Montréal-based Lightspeed Commerce has pulled back its revenue outlook for its 2025 fiscal year, which ends on March 31, as its same-store sales and subscription revenues have taken a hit over the past couple of months.
Lightspeed said in a statement that “several macroeconomic conditions have deteriorated” since reporting its third-quarter earnings last month, where its revenue outlook carried an approximate 20-percent increase year-over-year. Lightspeed has now adjusted its revenue outlook to reflect approximately 18 percent year-over-year growth.
Lightspeed said factors such as heightened inflationary pressures, increased job insecurity, and weakened consumer confidence have impacted discretionary spending among consumers.
“This shift has led to a decline in same-store sales through February and March to date,” Lightspeed said in a statement. “In addition, declining small business optimism is dampening new business formation. As a result of these factors, Lightspeed experienced significant pressure on transaction-based revenue and, to a lesser extent, on subscription revenue.”
After declining to go private, Lightspeed is expected to detail its transformation plan at its Capital Markets Day later this week.
Lightspeed said it still expects to report a fiscal 2025 adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) of over $53 million USD.
The February decline noted by Lightspeed lines up with the beginning of the chaotic trade war between Canada and the United States (US), which has seen a dizzying back-and-forth of tariff actions between the two countries over the past nearly two months.
In an email statement to BetaKit, Lightspeed CEO Dax Dasilva said that it is difficult for Lightspeed to isolate the exact reasons for the “macroeconomic deterioration,” but added that tariffs and trade wars certainly play a role in creating uncertainty in the market.
“Businesses thrive when there is a measure of certainty in growth, trade and consumer spending, and ongoing trade disruptions are a contributing factor to businesses—and consumers—being more cautious about spending.”
Much like in Dasilva’s previous conversation with BetaKit, when asked how Lightspeed plans to address the macroeconomic factors if they persist, he plugged Lightspeed’s Supplier Network, which he said helps customers navigate “changing macroeconomic conditions and supply chain issues.”
“Lightspeed will continue to focus on ensuring our customers are best positioned to changing environments by putting technology to work for them, just like we did during the COVID pandemic and through previous macroeconomic conditions,” he said.
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Founded in 2005, Lightspeed sells point-of-sale and commerce software and hardware to restaurants, retailers, and hospitality providers. The company is dual-listed on the Toronto Stock Exchange and the New York Stock Exchange under the symbol LSPD.
Lightspeed announced its outlook adjustment just a couple of days before its Capital Markets Day on March 26, which will provide a three-year vision for the company and a comprehensive update on the operational and financial impact of its recently-announced transformation plan. The plan was the culmination of a months-long strategic review where Lightspeed considered going private via acquisition, but ultimately chose to carry on as a publicly traded company.
As the trade war places uncertainty onto many Canadian businesses, some Canadian consumer goods startups that are reliant on US materials and production have found themselves caught in the crossfire of disrupted supply chains, while others have come to benefit from a nationwide buy-Canadian campaign.
This week, Lightspeed released the results of a survey of 1,000 Canadians it conducted earlier this month, which found that 91 percent of respondents are either currently focused on buying Canadian products or planning to do so. The survey also found that 74 percent said they are likely to continue buying Canadian products even if the US tariffs are removed.
Feature image courtesy Lightspeed.