LSPD · Lightspeed Commerce Inc.

Lightspeed Commerce's divestiture of its Upserve U.S. hospitality product line to Skyview Equity for up to $81 million in cash consideration represents a strategic portfolio streamlining move. The transaction includes $44 million in fixed payments, with $20 million at closing and the balance due shortly after, plus a $37 million earnout linked to 24-month performance targets. Upserve contributed approximately $140 million in revenue, $26 million in gross profit, and $5 billion in GTV for Fiscal 2026, encompassing 3,200 customer locations and 70 employees who will transition to the buyer. This non-core asset's sale aligns with Lightspeed's focus on high-growth areas: retail in North America and hospitality in Europe, which already accounted for 75% of FY2026 revenue post-adjustment. The deal enhances capital flexibility for priorities like share repurchases (with $200 million remaining under a $400 million authorization), merchant cash advance expansion, and product investments. Financially, it reduces the three-year outlook by about 5% on absolute gross profit, Adjusted EBITDA, and Adjusted Free Cash Flow for FY2028, but preserves compound annual growth rates. Lightspeed anticipates FY2026 Q4 and full-year revenue and gross profit ahead of prior guidance, Adjusted EBITDA in line, and FY2027 Adjusted EBITDA of $75-95 million. Additional details on impacts and earnout probabilities will follow in the May 21, 2026, earnings release. CEO Dax Dasilva emphasized retaining Upserve's analytics foundation in Lightspeed Insights for its Restaurant solution, underscoring retained value.