Lightspeed Pos ((TSE:LSPD)) has held its Q1 earnings call. Read on for the main highlights of the call.
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The recent earnings call for Lightspeed POS painted a largely positive picture, highlighting strong revenue and profit growth, improved payments penetration, and strategic customer wins. Despite these successes, the company acknowledged challenges in accelerating software revenue and competitive pressures. Overall, Lightspeed is executing well on its strategic focus and profitability improvements.
Strong Revenue and Profit Growth
Lightspeed POS reported a revenue of $305 million for the quarter, marking a 15% increase year-over-year and exceeding the high end of their outlook. The company also saw a 19% increase in gross profit, showcasing robust financial performance.
Improved Payments Penetration
The company achieved a payments penetration of 41%, up from 36% in the same quarter last year. This contributed to a gross payments volume growth of 21%, reflecting the effectiveness of their payment solutions.
Significant Increase in Adjusted EBITDA
Adjusted EBITDA reached $16 million, a substantial 55% increase year-over-year. This indicates strong profitability improvements and effective cost management strategies.
Customer Location Growth
Lightspeed added approximately 1,700 net new customer locations, with total growth engine locations increasing by 5% year-over-year. This expansion highlights the company’s ability to attract and retain customers.
Expansion in High-Value Markets
The company achieved notable customer wins in key markets, including partnerships with Neiman Marcus, Bergdorf Goodman, and prestigious hospitality locations in Europe, enhancing its market presence.
Innovative Product Developments
Lightspeed launched several new products and features, including AI-powered tools in both retail and hospitality sectors, driving growth in average revenue per user (ARPU).
Increased Shareholder Returns
The company completed a fiscal 2026 normal course issuer bid of approximately 9 million shares, returning $85 million to shareholders, demonstrating a commitment to enhancing shareholder value.
Software Revenue Growth Challenges
While software revenue grew 9% year-over-year, this moderate pace indicates challenges in this segment compared to the more robust transaction-based revenue growth.
Continued Competitive Pressure
Lightspeed is facing increased competition in key markets, which may impact the cost of growth and necessitate strategic adjustments to maintain its competitive edge.
Forward-Looking Guidance
For fiscal 2026, Lightspeed maintains its revenue growth guidance of 10% to 12% year-over-year, with gross profit expected to grow by approximately 14% and adjusted EBITDA projected to be between $68 million and $72 million. These forecasts reflect the company’s confidence in its strategic direction and market opportunities.
In summary, Lightspeed POS’s recent earnings call highlighted a positive outlook with strong financial growth and strategic advancements. While challenges in software revenue growth and competitive pressures exist, the company’s strategic focus and profitability improvements are promising for future performance.