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First Quarter FY2027 Results July 30, 2026
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2 General All references in this presentation to the “Company”, “Lightspeed”, “us” or “we” are to Lightspeed Commerce Inc. All references in this presentation to dollars, “$” or “US$” are to United States dollars, and all references to Canadian dollars and “C$” are to Canadian dollars. Cautionary Note Regarding Forward-Looking Information This presentation contains “forward-looking information” and “forward-looking statements” (collectively, “forward-looking information”) within the meaning of applicable securities laws. Forward-looking information may relate to our financial outlook (including revenue, gross profit and Adjusted EBITDA) and anticipated events or results and may include information regarding our financial position, business strategy, growth strategies, addressable markets, budgets, operations, financial results, taxes, dividend and capital allocation policy (including share repurchase initiatives), plans and objectives. Particularly, information regarding: our expectations of future results, performance, achievements, prospects or opportunities or the markets in which we operate; macroeconomic conditions such as inflationary pressures, interest rates, the international trade environment and related restrictions or disputes, and global economic uncertainty; our expectations regarding the costs, timing and impact of reorganizations and cost reduction initiatives and personnel changes; our expectations regarding our growth strategy focused on retail customers in North America and hospitality customers in Europe and our strategies for customers in other geographies and verticals; geopolitical instability, terrorism, war and other global conflicts such as the Russian invasion of Ukraine and continuing military conflict in the Middle East; our expectations regarding industry and consumer spending trends, our growth rates, the achievement of advances in and expansion of our platform, our focus on complex customers, our revenue and the revenue generation potential of our payment-related and other solutions; the impact of our decision to sell our POS and payments solutions as one unified platform, our pricing and packaging initiatives, our gross margins and future profitability, acquisition, investment or divestiture outcomes and synergies, our expectations to derive the benefits from past and future divestitures, including the divestiture of the Upserve U.S. hospitality product line, and to receive the post-closing and potential earn out payments from such sale, the impact of any further goodwill impairments, the impact of pending and threatened litigation, the impact of any external stakeholder activism, the impact of foreign currency fluctuations and the use of hedging on our results of operations; and our business plans and strategies and our competitive position in our industry, is forward-looking information. This forward-looking information and other forward-looking information is based on our opinions, estimates and assumptions in light of our experience and perception of historical trends, current conditions and expected future developments, as well as other factors that we currently believe are appropriate and reasonable in the circumstances. Despite a careful process to prepare and review the forward-looking information, there can be no assurance that the underlying opinions, estimates and assumptions will prove to be correct. Forward-looking information is necessarily based on a number of opinions, estimates and assumptions that we considered appropriate and reasonable as of the date of such forward-looking information. Forward-looking information is subject to known and unknown risks, uncertainties, assumptions and other factors that may cause the actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking information, including but not limited to the risk factors identified in our most recent Management's Discussion and Analysis of Financial Condition and Results of Operation, under “Risk Factors” in our most recent Annual Information Form, and in our other filings with the Canadian securities regulatory authorities and the U.S. Securities and Exchange Commission, all of which are available under our profiles on SEDAR+ at www.sedarplus.com and on EDGAR at www.sec.gov. If any of these risks or uncertainties materialize, or if the opinions, estimates or assumptions underlying the forward-looking information prove to be incorrect, actual results or future events might vary materially from those anticipated in the forward-looking information. The forward-looking information contained in this presentation represents our expectations as of the date of this presentation (or as of the date they are otherwise stated to be made), and are subject to change after such date. However, we disclaim any intention or obligation or undertaking to update or revise any forward-looking information whether as a result of new information, future events or otherwise, except as required under applicable securities laws. Non-IFRS Measures and Industry Metrics This presentation makes reference to certain non-IFRS measures and key performance indicators, which do not have a standardized meaning prescribed by IFRS and are therefore unlikely to be comparable to similar measures presented by other companies. Refer to “Appendix B” for more details on such non-IFRS measures, the definition of “Adjusted EBITDA” and a reconciliation of such non-IFRS measures to the most directly comparable IFRS measure. In addition, the terms “Average Revenue Per User” or “ARPU”, “Customer Locations”, “Gross Payment Volume” or “GPV”, and “Gross Transaction Volume” or “GTV” are key performance indicators. See “Appendix A” of this presentation for the definition of each such industry metric. Disclaimer
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3 (1) Key Performance Indicator. See Appendix A. (2) As at June 30, 2026 vs as at June 30, 2025. (3) As at June 30, 2026. (4) GTV does not represent revenue generated by Lightspeed. (5) Three months ended June 30, 2026 vs June 30, 2025. (6) For the three months ended June 30, 2026. (7) Revenue organic or organic revenue represents, in a given period, the Company's revenue, adjusted so that where a divestiture occurs partway through the subsequent period, the divested business's contributions are included in the given period only to the extent of the same days in respect of which they are included in the subsequent period. The Upserve revenue from April 28, 2025 to March 31, 2026 includes approximately $14 million of transaction-based revenue for Fiscal 2026 related to payments solutions associated with Customer Locations that continue to be serviced by Lightspeed but following the divestiture of Upserve, is recognized on a net basis rather than a gross basis. This reclassification, which is reflected in the Upserve revenue figures used to calculate organic revenue growth, reduces reported revenue and cost of revenue by the same amount, with no impact on gross profit. The Company is providing these figures in order to provide greater comparability year-over-year taking into account the divestiture of Upserve. (8) GPV organic or organic GPV represents, in a given period, the Company's GPV, adjusted so that where a divestiture occurs partway through the subsequent period, the divested business's contributions are included in the given period only to the extent of the same days in respect of which they are included in the subsequent period. The Company is providing these figures in order to provide greater comparability year-over-year taking into account the divestiture of Upserve. (9) ARPU organic or organic ARPU represents, in a given period, the Company's ARPU, adjusted so that where a divestiture occurs partway through the subsequent period, the divested business's subscription revenue and transaction-based revenue are included in the given period only to the extent of the same days in respect of which they are included in the subsequent period, and the divested business's Customer Locations are included in the average number of Customer Locations only for the same days in respect of which its revenue is included. The Company is providing these figures in order to provide greater comparability year-over-year taking into account the divestiture of Upserve. $322.7 million Q1'27 revenue 17% organic growth in revenue or 6% as reported $11.3 billion Q1'27 Gross Payment Volume (“GPV”) 20% organic growth in Gross Payment Volume or 11% as reported 44% GPV as a % of GTV $25.7 billion Q1'27 Gross Transaction Volume (“GTV”) ~96% At-a-glance - Q1'2027 (5)(5) (4)(6) (1) (1)(4) recurring or reoccurring subscription and transaction-based revenue 13% organic growth in ARPU to ~$676 or 3% as reported (1)(3) (6) (2) (7) (8) (9) (5) (5) (2)
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4 Big picture (1) For the three months ended June 30, 2026 vs June 30, 2025. (2) Key Performance Indicator. See Appendix A. (3) For the three months ended June 30, 2026. (4) As at June 30, 2026 vs as at June 30, 2025. Growth engines refer to retail Customer Locations in North America and hospitality Customer Locations in Europe. (5) Revenue organic or organic revenue, and gross profit organic or organic gross profit represent, in a given period, the Company's revenue and gross profit, adjusted so that where a divestiture occurs partway through the subsequent period, the divested business's contributions are included in the given period only to the extent of the same days in respect of which they are included in the subsequent period. The Upserve revenue from April 28, 2025 to March 31, 2026 includes approximately $14 million of transaction-based revenue for Fiscal 2026 related to payments solutions associated with Customer Locations that continue to be serviced by Lightspeed but following the divestiture of Upserve, is recognized on a net basis rather than a gross basis. This reclassification, which is reflected in the Upserve revenue figures used to calculate organic revenue growth, reduces reported revenue and cost of revenue by the same amount, with no impact on gross profit. The Company is providing these figures in order to provide greater comparability year-over-year taking into account the divestiture of Upserve. Revenue of $322.7 million saw organic growth of 17% YoY or 6% YoY as reported 10% YoY growth in Customer Locations within our growth engines (1) Gross profit of $138.6 million saw organic growth of 12% YoY or 7% YoY as reported (2)(4) (3) (3) (1) (5) (5) (1) (1)
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5 Q1'2027 $322.7 million revenue $138.6 million gross profit $(2.4) million net loss $17.5 million Adjusted EBITDA Fiscal 2027 $1,225 - $1,265 million revenue, representing 12% - 15% organic revenue growth $565 - $585 million gross profit, representing 12% - 16% organic gross profit growth $75 - $95 million Adjusted EBITDA Quarterly and full-year results and outlook (1) This is a non-IFRS measure. Please see Appendix B for Non-IFRS Measures and Ratios definitions and the reconciliation to the most directly comparable IFRS measure or ratio. (2) The financial outlook is fully qualified and based on a number of assumptions and subject to a number of risks. Refer to Appendix C for the financial outlook assumptions and risks and “Disclaimer - Cautionary Note Regarding Forward-Looking Information.” (3) Revenue organic or organic revenue, and gross profit organic or organic gross profit represent, in a given period, the Company's revenue and gross profit, adjusted so that where a divestiture occurs partway through the subsequent period, the divested business's contributions are included in the given period only to the extent of the same days in respect of which they are included in the subsequent period. The Upserve revenue from April 28, 2025 to March 31, 2026 includes approximately $14 million of transaction-based revenue for Fiscal 2026 related to payments solutions associated with Customer Locations that continue to be serviced by Lightspeed but following the divestiture of Upserve, is recognized on a net basis rather than a gross basis. This reclassification, which is reflected in the Upserve revenue figures used to calculate organic revenue growth, reduces reported revenue and cost of revenue by the same amount, with no impact on gross profit. The Company is providing these figures in order to provide greater comparability year-over-year taking into account the divestiture of Upserve. Results Outlook Fiscal 2026 $322.7 million revenue $(2.4) million net loss $17.5 million Adjusted EBITDA (2) (1) Q2'2027 $316 - $326 million revenue, representing 12% - 16% organic revenue growth $141 - $146 million gross profit, representing 10% - 14% organic gross profit growth $20 - $25 million Adjusted EBITDA (1) (1) (3) (3) (3) (3)
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6 Upserve Divestiture Impact (1) Revenue organic or organic revenue, and gross profit organic or organic gross profit represent, in a given period, the Company's revenue and gross profit, adjusted so that where a divestiture occurs partway through the subsequent period, the divested business's contributions are included in the given period only to the extent of the same days in respect of which they are included in the subsequent period. The Upserve revenue from April 28, 2025 to March 31, 2026 includes approximately $14 million of transaction-based revenue for Fiscal 2026 related to payments solutions associated with Customer Locations that continue to be serviced by Lightspeed but following the divestiture of Upserve, is recognized on a net basis rather than a gross basis. This reclassification, which is reflected in the Upserve revenue figures used to calculate organic revenue growth, reduces reported revenue and cost of revenue by the same amount, with no impact on gross profit. The Company is providing these figures in order to provide greater comparability year-over-year taking into account the divestiture of Upserve. Fiscal 2026 $322.7 million revenue $(2.4) million net loss $17.5 million Adjusted EBITDA (expressed in millions of US dollars) FY26 Q1 FY26 Q2 Fiscal 2026 $ $ $ Revenue 305 319 1,227 Gross profit 129 135 527 Upserve revenue from April 28, 2025 to March 31, 2026 29 38 129 Upserve gross profit from April 28, 2025 to March 31, 2026 5 7 24 Revenue organic(1) 276 281 1,098 Gross profit organic(1) 124 128 503 For Fiscal 2027, Lightspeed's outlook includes organic revenue growth and organic gross profit growth, each of which exclude the revenue and gross profit contribution from Upserve for the period from April 28, 2025 to March 31, 2026. The table below outlines this impact for the first and second quarter of Fiscal 2026 and for the full year Fiscal 2026(1):
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Lightspeed Restaurant Vlaamsch Broodhuys was founded by artisan bakers. With 19 locations across the Netherlands, they chose Lightspeed as the platform that could support bakery sales, table service, kitchen workflows, loyalty and centralized management across all of their locations. 7 Lightspeed Golf Encore Leisure Group is a multi-course operator with 16 locations across the U.S. They will be using Lightspeed Golf, Retail and Restaurant solutions to run their multi-location operations. Customer spotlight - Q1'2027 Lightspeed Retail Synergy Sportswear, with 7 locations in the U.S., was already a NuORDER user and quickly recognized the benefit of the Lightspeed POS with wholesale built right in.
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Currently processed through our payments solutions Long-Term GTV Opportunity $25.7B 8 (1) GTV does not represent revenue generated by Lightspeed. See Appendix A. (2) GPV organic or organic GPV represents, in a given period, the Company's GPV, adjusted so that where a divestiture occurs partway through the subsequent period, the divested business's contributions are included in the given period only to the extent of the same days in respect of which they are included in the subsequent period. The Company is providing these figures in order to provide greater comparability year-over-year taking into account the divestiture of Upserve. Q1'27 GTV Payments opportunity and transaction volume 30% CAGR Gross Payment Volume (in $B) $10.2 $11.3 Q1'26 Q1'27 $24.2 $33.9 $41.0 Fiscal 2024Fiscal 2025Fiscal 2026 20% organic growth or 11% as reported YoY (1) 40% YoY $11.3B Q1'27 GPV 21% YoY $90.7 $91.3 $98.1 Fiscal 2024Fiscal 2025Fiscal 2026 Gross Transaction Volume (in $B) Total Revenue as a % of GTV 1.24% 1.26% 1.24% 1.27% 1.25% Q1’26 Q2’26 Q3’26 Q4’26 Q1’27 (2)
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Expanding ARPU through growth engine focus 9 Subscription Transaction-based Q1'26 Q1'27 ~$655 ARPU 13% organic growth or 3% YoY as reported Focused on driving ARPU growth in subscription and payments Clear strategy to improve gross profit with a focus on software revenue growth Sales Mix 29.8% 67.1% 3.1% 29.6% 66.5% 3.9% Subscription revenue Transaction-based revenue Hardware and other revenue ~$676 Q1'26 Q1'27 Lightspeed Retail • One-stop commerce platform for complex retailers with embedded payments & Lightspeed NuORDER • Growth focus primarily on North America • Market leader in Bike, Golf, Home & Garden, Apparel • Foundational software suite for restaurants with embedded payments & integrations with local partners • Growth focus primarily in Europe • Market leader in Germany, France, Switzerland, Benelux Lightspeed Restaurant (1) ARPU organic or organic ARPU represents, in a given period, the Company's ARPU, adjusted so that where a divestiture occurs partway through the subsequent period, the divested business's subscription revenue and transaction-based revenue are included in the given period only to the extent of the same days in respect of which they are included in the subsequent period, and the divested business's Customer Locations are included in the average number of Customer Locations only for the same days in respect of which its revenue is included. The Company is providing these figures in order to provide greater comparability year-over-year taking into account the divestiture of Upserve. (1)
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10 Focusing on disciplined growth Net Loss (in $M) 10 (1) Revenue organic or organic revenue represents, in a given period, the Company's revenue, adjusted so that where a divestiture occurs partway through the subsequent period, the divested business's contributions are included in the given period only to the extent of the same days in respect of which they are included in the subsequent period. The Upserve revenue from April 28, 2025 to March 31, 2026 includes approximately $14 million of transaction-based revenue for Fiscal 2026 related to payments solutions associated with Customer Locations that continue to be serviced by Lightspeed but following the divestiture of Upserve, is recognized on a net basis rather than a gross basis. This reclassification, which is reflected in the Upserve revenue figures used to calculate organic revenue growth, reduces reported revenue and cost of revenue by the same amount, with no impact on gross profit. The Company is providing these figures in order to provide greater comparability year-over-year taking into account the divestiture of Upserve. (2) This is a Non-IFRS measure. Please see Appendix B for Non-IFRS Measures and Ratios definitions and the reconciliation to the most directly comparable IFRS measure or ratio. $15.9 $21.3 $20.2 $15.1 $17.5 $(49.6) $(32.7) $(33.6) $(28.6) $(2.4) Q1’26 Q1’27Q2’26 Q3’26 Q4’26 Adjusted EBITDA (in $M) $909.3 $1,076.8 $1,227.0 Fiscal 2024 Fiscal 2025 Fiscal 2026 $304.9 $322.7 Q1'26 Q1'27 16% CAGR Total Revenue (in $M) (2) 17% organic growth or 6% as reported YoY 18% YoY 14% YoY (1)
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Appendix A
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We monitor the following key performance indicators to help us evaluate our business, measure our performance, identify trends affecting our business, formulate business plans and make strategic decisions. These key performance indicators are also used to provide investors with supplemental measures of our operating performance and thus highlight trends in our core business that may not otherwise be apparent when relying solely on IFRS measures and ratios. We also believe that securities analysts, investors and other interested parties frequently use industry metrics in the evaluation of issuers. Our key performance indicators may be calculated in a manner different than similar key performance indicators used by other companies. The divestiture of Upserve on April 28, 2026, affects the year-over-year comparability of these key performance indicators, as the prior-year period includes a full three months of Upserve, whereas the current period includes Upserve only up to the divestiture date. “Average Revenue Per User” or “ARPU” represents the total subscription revenue and transaction-based revenue of the Company in the period divided by the number of Customer Locations of the Company in the period. Subscription revenue and transaction-based revenue attributable to standalone eCommerce sites is excluded from ARPU. We use this measure as we believe it provides a helpful supplemental indicator of our progress in growing the revenue that we derive from our customer base. For greater clarity, the number of Customer Locations of the Company in the period is calculated by taking the average number of Customer Locations throughout the period. “Customer Location” means a billing merchant location for which the term of services has not ended, or in respect of which we are negotiating a renewal contract, and, in the case of NuORDER, a brand with a direct or indirect paid subscription for which the term of services has not ended or in respect of which we are negotiating a subscription renewal. A single unique customer can only have multiple Customer Locations if it has multiple physical sites and in the case of NuORDER, multiple subscriptions. We use this measure as we believe that our ability to increase the number of Customer Locations with a high GTV per year and the number of retail Customer Locations in North America and hospitality Customer Locations in Europe served by our platform is an indicator of our success in terms of market penetration and growth of our business. “Gross Payment Volume” or “GPV” means the total dollar value of transactions processed, excluding amounts processed through the NuORDER solution, in the period through our payments solutions in respect of which we act as the principal in the arrangement with the customer, net of refunds, inclusive of shipping and handling, duty and value-added taxes. We use this measure as we believe that growth in our GPV demonstrates the extent to which we have scaled our payments solutions. As the number of Customer Locations using our payments solutions grows, particularly those with a high GTV, we will generate more GPV and see higher transaction-based revenue. We have excluded amounts processed through the NuORDER solution from our GPV because they represent business-to-business volume rather than business-to-consumer volume and we do not currently have a robust payments solution for business-to-business volume. Some of our brands can accept certain payments from retailers in certain of our geographies, and we may in the future include such volume in GPV once we have further developed our payments solution for business-to-business volume. “Gross Transaction Volume” or “GTV” means the total dollar value of transactions processed through our cloud-based software-as-a-service platform, excluding amounts processed through the NuORDER solution, in the period, net of refunds, inclusive of shipping and handling, duty and value-added taxes. We use this measure as we believe GTV is an indicator of the success of our customers and the strength of our platform. GTV does not represent revenue earned by us. We have excluded amounts processed through the NuORDER solution from our GTV because they represent business-to-business volume rather than business-to-consumer volume and we do not currently have a robust payments solution for business-to-business volume. Some of our brands can accept certain payments from retailers in certain of our geographies, and we may in the future include such volume in GTV once we have further developed our payments solution for business-to-business volume. Appendix A - Industry Metrics 12
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Appendix B
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14 The information presented within this presentation includes certain non-IFRS financial measures such as “Adjusted EBITDA”. These measures are not recognized measures under IFRS and do not have a standardized meaning prescribed by IFRS and are therefore unlikely to be comparable to similar measures presented by other companies. Rather, these measures are provided as additional information to complement those IFRS measures by providing further understanding of our results of operations from management’s perspective. Accordingly, these measures should not be considered in isolation nor as a substitute for analysis of our financial information reported under IFRS. These non-IFRS measures are used to provide investors with supplemental measures of our operating performance and thus highlight trends in our core business that may not otherwise be apparent when relying solely on IFRS measures. We also believe that securities analysts, investors and other interested parties frequently use non-IFRS measures in the evaluation of issuers. Our management also uses non-IFRS measures in order to facilitate operating performance comparisons from period to period, to prepare operating budgets and forecasts and to determine components of management compensation. The comparability of these non-IFRS measures is affected by the divestiture of Upserve on April 28, 2026, as the prior-year period reflects a full three months of Upserve, whereas the current period reflects Upserve only up to the divestiture date. Appendix B - Non-IFRS Measures Adjusted EBITDA is defined as net loss excluding interest, taxes, depreciation and amortization, or EBITDA, as adjusted for share-based compensation and related payroll taxes, compensation expenses relating to acquisitions completed, foreign exchange gains and losses, transaction-related costs, restructuring, litigation provisions, goodwill impairment and gains and losses on the sale of businesses. We believe that Adjusted EBITDA provides a useful supplemental measure of the Company’s operating performance, as it helps illustrate underlying trends in our business that could otherwise be masked by the effect of the income or expenses that are not indicative of the core operating performance of our business.
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15 (In thousands of US dollars) Three months ended Jun. 30, 2026 Mar. 31, 2026 Dec. 31, 2025 Sept. 30, 2025 Jun. 30, 2025 $ $ $ $ $ Net Loss (2,421) (28,567) (33,578) (32,700) (49,567) Share-based compensation and related payroll taxes(1) 12,659 10,997 16,503 17,428 13,969 Depreciation and amortization(2) 8,422 37,709 37,879 37,670 37,504 Foreign exchange loss (gain)(3) 246 411 571 235 (2,763) Net interest (income) expense(2) (4,940) (4,387) (4,851) (5,219) 6,209 Acquisition-related compensation(4) 157 156 157 157 157 Transaction-related costs(5) (17) 392 1,310 873 64 Restructuring(6) 3,688 1,419 1,381 1,622 1,210 Litigation provisions(7) — — 16 11 7,788 Gain on sale of business(8) (2,091) — — — — Income tax expense (recovery) 1,820 (2,996) 790 1,262 1,305 Adjusted EBITDA 17,523 15,134 20,178 21,339 15,876 The following table reconciles net loss to Adjusted EBITDA for the periods indicated: Appendix B - Non-IFRS Measures
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16 (1) These expenses represent non-cash expenditures recognized in connection with issued stock options and other awards under our equity incentive plans to our employees and directors, and cash related payroll taxes given that they are directly attributable to share-based compensation; they can include estimates and are therefore subject to change. For the three months ended June 30, 2026, share-based compensation expense was $11,795 (June 2025 - expense of $12,963), and related payroll taxes were an expense of $864 (June 2025 - expense of $1,006). These amounts are included in direct cost of revenues, general and administrative expenses, research and development expenses, and sales and marketing expenses (see note 7 of the unaudited condensed interim consolidated financial statements for additional details). (2) In connection with the accounting standard IFRS 16 - Leases, for the three months ended June 30, 2026, net loss includes depreciation of $1,261 related to right-of-use assets, interest expense of $313 on lease liabilities, and excludes an amount of $1,714 relating to rent expense ($1,188, $274, and $2,059, respectively, for the three months ended June 30, 2025). (3) These non-cash gains and losses relate to foreign exchange translation. (4) These costs represent a portion of the consideration paid to acquired businesses that is contingent upon the ongoing employment obligations for certain key personnel of such acquired businesses, and/or on certain performance criteria being achieved. (5) These expenses relate to professional, legal, consulting, accounting, advisory, and other fees relating to our public offerings, acquisitions, divestitures, and other similar strategic transactions that would otherwise not have been incurred. These costs are included in general and administrative expenses. (6) We implemented a reorganization to streamline the Company's operating model while continuing to focus on profitable growth. The expenses associated with reorganization initiatives were recorded as a restructuring charge (see note 14 of the unaudited condensed interim consolidated financial statements for additional details). (7) These amounts represent provisions taken, settlement amounts and other costs, such as legal fees, incurred in respect of certain litigation matters, net of amounts covered by insurance and indemnifications. These amounts are included in general and administrative expenses (see note 14 of the unaudited condensed interim consolidated financial statements for additional details). (8) This represents the gain recognized on the divestiture of the Company's Upserve U.S. hospitality product line, completed through the sale of Provide Holdings Inc. on April 28, 2026. This amount is included in the gain on sale of business line in the unaudited condensed interim consolidated financial statements (see note 4 of the unaudited condensed interim consolidated financial statements for additional details). Appendix B - Non-IFRS Measures The above footnotes are related to the three months ended June 30, 2026 and 2025. For the footnotes related to the quarter ended March 31, 2026, the quarter ended December 31, 2025, and the quarter ended September 30, 2025, refer to the section entitled “Non-IFRS Measures and Ratios and Reconciliation of Non-IFRS Measures and Ratios” within Management's Discussion and Analysis of Financial Condition and Results of Operation for each of these respective quarters available on SEDAR+ at www.sedarplus.com and on EDGAR at www.sec.gov.
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Appendix C
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18 When calculating the Adjusted EBITDA included in our financial outlook for the quarter ending September 30, 2026 and full year ending March 31, 2027, we considered IFRS measures including revenues, direct cost of revenues, and operating expenses. Our financial outlook is based on a number of assumptions, including assumptions related to inflation, tariffs, changes in interest rates, consumer spending, foreign exchange rates and other macroeconomic conditions; that the jurisdictions in which Lightspeed has significant operations do not impose strict measures like those put in place in response to pandemics like the COVID-19 pandemic or other health crises; requests for subscription pauses and churn rates owing to business failures remain in line with planned levels; our Customer Location count growing in line with our planned levels (particularly in higher GTV cohorts and among retail customers in North America and hospitality customers in Europe); quarterly subscription revenue growth in line with our expectations; revenue streams resulting from certain partner referrals remaining in line with our expectations (particularly in light of our decision to unify our POS and payments solutions, which payments solutions have in the past and may in the future, in some instances, be perceived by certain referral partners to be competing with their own solutions); customers adopting our payments solutions having an average GTV at our planned levels; continued uptake of our payments solutions in line with our expectations in connection with our ongoing efforts to sell our POS and payments solutions as one unified platform; our ability to price our payments solutions in line with our expectations and to achieve suitable margins and to execute on more optimized pricing structures; our pricing and packaging initiatives and resulting impacts on our year-over-year growth rates; continued uptake of our merchant cash advance solutions in line with our expectations; our ability to manage default risks of our merchant cash advances in line with our expectations; seasonal trends being in line with our expectations and the resulting impact on our GTV, GPV and subscription, transaction-based, and hardware and other revenues; our capital expenditures and capitalized internal development costs remaining in line with our expectations; hardware and freight costs, and our ability to manage hardware margins, being in line with our expectations including hardware margins improving in the second half of the fiscal year; continued success in module adoption expansion throughout our customer base; our ability to selectively pursue strategic opportunities (such as acquisitions, investments or divestitures) and derive the benefits we expect from the acquisitions we have completed including expected synergies resulting from the prioritization of our flagship Lightspeed Retail and Lightspeed Restaurant offerings; our ability to derive the benefits from past and future divestitures, including the divestiture of the Upserve U.S. hospitality product line, and to receive the post-closing and potential earn out payments from such sale; market acceptance and adoption of our flagship offerings; our ability to attract and retain key personnel required to achieve our plans, including outbound and field sales personnel in our key markets; our ability to execute our succession planning; our expectations regarding the costs, timing and impact of our reorganizations and other cost reduction initiatives; our expectations regarding our growth strategy focused on retail customers in North America and hospitality customers in Europe and our strategies for customers in other geographies and verticals; our ability to manage customer churn; and our ability to manage customer discount requests. Our financial outlook does not give effect to the potential impact of acquisitions, divestitures or other strategic transactions that may be announced or closed after the date hereof. Our financial outlook, including the various underlying assumptions, constitutes forward-looking information and should be read in conjunction with “Disclaimer - Cautionary Note Regarding Forward-Looking Information”. Many factors may cause our actual results, level of activity, performance or achievements to differ materially from those expressed or implied by such forward-looking information, including the risks and uncertainties related to: macroeconomic factors affecting small and medium-sized businesses, including inflation, tariffs, changes in interest rates and consumer spending trends; instability in the banking sector; exchange rate fluctuations and the use of hedging; any pandemic or global health crisis; the Russian invasion of Ukraine and reactions thereto; continuing military conflict in the Middle East and reactions thereto; the impact and uncertainty of foreign policy shifts in the U.S., Canada and Europe (including the impacts of tariffs, sanctions, trade wars, or other trade conditions or protective government actions); certain natural disasters; our inability to attract and retain customers, including among high GTV customers and among retail customers in North America and hospitality customers in Europe; our inability to increase customer sales; our inability to implement our growth strategy; our inability to continue to increase adoption of our payments solutions, including our initiative to sell our POS and payments solutions as one unified platform; our ability to successfully execute our pricing and packaging initiatives; risks relating to our merchant cash advance program; our ability to continue offering merchant cash advances and scaling our merchant cash advance program in line with our expectations; our reliance on a small number of cloud service suppliers and suppliers for parts of the technology in our payments solutions; our ability to manage and maintain integrations between our platform and certain third-party platforms; our ability to maintain sufficient levels of hardware inventory; supply chain risks and our ability to manage shortages including for our hardware; global disruptions in shipping and energy costs; our inability to improve and enhance the functionality, performance, reliability, design, security and scalability of our platform; our ability to prevent and manage information security breaches or other cyber-security threats; our ability to compete against competitors; strategic relations with third parties; our reliance on integration of third-party payment processing solutions; compatibility of our solutions with third-party applications and systems; changes to technologies on which our platform is reliant; our ability to effectively incorporate artificial intelligence solutions into our business and operations; our inability to control the availability or pricing of software, infrastructure or hardware required to provide artificial intelligence solutions; our ability to obtain, maintain and protect our intellectual property; risks relating to international operations, sales and use of our platform in various countries; our liquidity and capital resources; pending and threatened litigation and regulatory compliance; any external stakeholder activism; changes in tax laws and their application; our ability to expand our sales, marketing and support capability and capacity; our ability to execute on our reorganizations and cost reduction initiatives; our ability to execute on our growth strategy focused on retail customers in North America and hospitality customers in Europe and our strategies for customers in other geographies and verticals; our ability to successfully make future investments in our business through capital expenditures; our ability to successfully execute our capital allocation strategies; our ability to execute on our business and operational strategy; and maintaining our customer service levels and reputation. The purpose of the forward-looking information is to provide the reader with a description of management’s expectations regarding our financial performance and may not be appropriate for other purposes. Appendix C - Financial Outlook Assumptions
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