Lightspeed Commerce Inc. Reports Q4 Results Amid Economic Uncertainty

Toronto, May 22, 2025 — Lightspeed Commerce Inc., a cloud-based point of sale (POS) software solution provider, reported its financial results for the fourth quarter and full year of 2025. The company, listed on the Toronto Stock Exchange, experienced a mixed financial performance, with revenue growth overshadowed by a significant net loss and a substantial goodwill impairment charge.

Financial Highlights

  • Revenue Growth: Lightspeed reported total revenue of $253.4 million for the quarter, marking a 10% year-over-year increase. For the full year, total revenue reached $1,076.8 million, an 18% increase from the previous year.
  • Net Loss: The company posted a net loss of $575.9 million for the quarter, or $3.79 per share, compared to a net loss of $32.5 million, or $0.21 per share, in the same quarter of the previous year. This loss included a non-cash goodwill impairment charge of $556.4 million.
  • Gross Margin: Gross margin improved to 44%, with gross profit increasing by 12% year-over-year. Monthly Average Revenue Per User (ARPU) grew by 13% year-over-year.

Market Reaction

Despite the revenue growth, Lightspeed’s shares slid following the earnings report. The significant goodwill impairment charge and the broader economic uncertainty, including U.S. tariffs and a trade war, contributed to investor concerns. The company’s stock was the worst performer on the S&P/TSX Composite Index on the day of the announcement.

Economic Challenges

Lightspeed’s CFO highlighted the company’s conservative approach to forecasting for the year due to swirling economic uncertainty. The technology company noted “softness” in the North American hospitality sector, which has been impacted by the current economic climate.

Outlook

Looking ahead, Lightspeed provided mixed guidance for the fiscal year 2026. While the company remains optimistic about its long-term growth prospects, it has adopted a cautious stance in light of the ongoing economic challenges.

Conclusion

Lightspeed Commerce Inc. continues to navigate a complex economic environment while achieving revenue growth. However, the significant net loss and goodwill impairment charge have raised concerns among investors. The company’s conservative outlook reflects the broader economic uncertainties facing the global market.