Lightspeed Organic Revenue Rises 15% as Quarterly Loss Narrows

Lightspeed Commerce announced (LSPD.TO ) on November 5, 2026, that revenue for its fiscal second quarter ended September 30, 2026, reached $323.8 million, up 15% on an organic basis, while its net loss narrowed to $4.2 million from $32.7 million a year earlier. Gross profit increased 11% organically to $142.8 million. Lightspeed reports in U.S. dollars under IFRS Accounting Standards.

The organic figures provide the clearer comparison because Lightspeed divested Upserve on April 28, 2026. The year-earlier quarter included a full three months of Upserve, while the latest quarter excluded it entirely; organic growth adjusts for that difference. As reported, total revenue grew 2%. Subscription revenue rose 5% to $97.8 million and transaction-based revenue slipped 1% to $213.9 million, compared with organic growth of 9% and 17%, respectively.

Adjusted EBITDA, a company-defined measure that starts with net loss and excludes interest, taxes, depreciation and amortization as well as items such as share-based compensation and restructuring, increased to $22.7 million from $21.3 million. Overall gross margin was 44%, compared with 46% on an organic basis and 42% as reported a year earlier. Subscription gross margin improved to 84% from 82% on both bases, while transaction-based gross margin was 32%, unchanged organically and up from 30% as reported.

Payments Adoption Expands in Priority Markets

Retail in North America and hospitality in Europe, which Lightspeed identifies as its two growth engines, produced 17% revenue growth and 14% subscription revenue growth. Gross transaction volume (GTV), the value of transactions processed through Lightspeed’s platform rather than revenue earned by the company, grew 14% in those markets. Gross payment volume (GPV), the volume handled through its payments solutions, reached 50% of GTV, up from 46%.

Customer Locations in the growth engines increased by approximately 800 during the quarter and rose 8% year over year to approximately 99,000. Lightspeed ended the quarter with approximately 146,000 Customer Locations across the company.

Companywide GTV totaled $25.8 billion, up 8% organically and 2% as reported, while GPV rose to $11.6 billion, up 19% organically and 7% as reported. GPV represented 45% of GTV on the organic comparison, up from 40% a year earlier, or 43% as reported.

Chief Financial Officer Asha Bakshani said: “We remain focused on scaling these high-growth markets and translating that growth into sustained profitability and cash generation.”

Merchant Cash Advances Pressure Cash Generation

Operating activities used $7.5 million of cash during the quarter, compared with $25.5 million generated a year earlier. Lightspeed attributed the decline primarily to growing its outstanding merchant cash advances by $26.0 million. At the same time, Lightspeed Capital revenue reached $15.0 million, representing 42% organic growth and 23% reported growth.

Adjusted Free Cash Flow fell to $4.0 million from $18.0 million. Lightspeed defines this measure as operating cash flow adjusted for capitalized internal development costs, purchases of property and equipment, and certain cash flows associated with merchant cash advances. Its quarterly reconciliation deducted $15.2 million of capitalized development costs and $2.2 million of equipment additions while adding $29.0 million of net merchant-cash-advance flows. Those adjustments show how the adjusted measure remained positive despite the operating cash outflow.

Full-Year Outlook Maintained as Cost Cuts Continue

Management maintained its full-year fiscal 2027 outlook for revenue of $1.225 billion to $1.265 billion, gross profit of $565 million to $585 million and Adjusted EBITDA of $75 million to $95 million. The outlook also calls for significant growth in Adjusted Free Cash Flow over fiscal 2026’s $18.2 million and retains a $95 million target for fiscal 2028.

After the quarter ended, Lightspeed undertook further reorganization and cost-reduction initiatives as part of its planned three-year transformation. The second-quarter results already included a $3.5 million restructuring charge, up from $1.6 million a year earlier.

Maintaining the outlook ties the next stage of Lightspeed’s transformation to cash conversion. Payments adoption and revenue in its priority markets are growing, but merchant-advance expansion absorbed cash during the quarter. The open question for the remaining fiscal year is whether Lightspeed can turn that commercial growth into stronger free cash flow while carrying out further cost reductions.