Lightspeed Q1 Revenue Beats, Loss Narrows; Upserve Divested, $86M in Shares Repurchased
LSPD sits 32% above its 52-week low of $7.83.
Summary
Lightspeed Commerce reported fiscal Q1 2027 results that beat its revenue outlook, with organic growth of 17% and a near-breakeven net loss. The company divested its Upserve hospitality unit and repurchased $86 million in shares, while reaffirming its full-year guidance.
Key Events · Earnings and Guidance · LSPD
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Revenue Beat and Organic Growth
Q1 revenue of $322.7 million exceeded the company's outlook, with organic growth of 17% year-over-year driven by 20% growth in transaction-based revenue and 8% growth in subscription revenue.
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Profitability Turnaround
Net loss narrowed to ($2.4 million) or ($0.02) per share from ($49.6 million) or ($0.35) per share a year ago. Adjusted Income reached $17.4 million or $0.13 per share, up from $7.9 million or $0.06 per share.
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Upserve Divestiture
Lightspeed sold its non-core Upserve U.S. hospitality product line to Skyview Equity for total consideration of up to $81 million, including a $37 million earnout, streamlining its portfolio to focus on retail in North America and hospitality in Europe.
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Aggressive Share Repurchases
The company repurchased approximately $86 million worth of shares in the quarter, including roughly 7 million shares cancelled under its normal course issuer bid, reducing the share count and returning capital to shareholders.
Analysis · LSPD · Technology
A strong start to fiscal 2027 saw revenue top the company's own outlook and organic growth accelerate to 17%. The net loss shrank dramatically to just $2.4 million from nearly $50 million a year ago, while adjusted profit swung to a healthy $17.4 million. Sharpening its focus on two core growth engines, the company divested the non-core Upserve unit for up to $81 million and deployed an aggressive $86 million buyback that retired about 7 million shares. Maintaining the full-year outlook underscores confidence in reaching $95 million in adjusted free cash flow by fiscal 2028.
At the time of this filing, LSPD was trading at $10.30 on NYSE in the Technology sector, with a market capitalization of approximately $1.5B. The 52-week trading range was $7.83 to $14.34. This filing was assessed with positive market sentiment and an importance score of 8 out of 10.