Lightspeed Commerce Inc.

2025 earnings call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, we will have a question and answer session. And at that point, if you would like to ask a question, simply press star followed by the number one on your telephone keypad. At any point, if you'd like to withdraw your question, just press star followed by the number one again. We do ask that you please limit yourself to an initial question and then a single follow-up question when you're given the opportunity to speak. Thank you. With that, I am pleased to turn the call over to Gus Papagiorgio, Head of Investor Relations. Gus, please begin.

Thank you, operator, and good morning, everyone. Welcome to Lightspeed's fiscal Q4 2025 conference call. Joining me today are Dax De Silva, Lightspeed's founder and CEO, Asha Bhakshani, our CFO, and JD St. Martin, our president, After prepared remarks from ACTS and ASHA, we will open it up for your questions. We will make forward-looking statements on our call today that are subject to risks and uncertainties that could cause actual results to differ materially from those projected. Certain material factors and assumptions were applied in respect of conclusions, forecasts, and projections contained in these statements. We undertake no obligation to update these statements except as required by law. We should carefully review these factors, assumptions, risks, and uncertainties in our earnings press release issued earlier today, our fourth quarter fiscal 2025 results presentation available on our website, as well as in our filings with U.S. and Canadian securities regulators. Also, our commentary today will include adjusted financial measures, which are non-IFRS measures, and ratios. These should be considered as a supplement to and not a substitute for IFRS financial measures. Reconciliations between the two can be found in our earnings press release, which is available on our website, on CEDAR Plus and on the SEC's HECR system. Note that because we report in U.S. dollars, all amounts discussed today are in U.S. dollars unless otherwise indicated. With that, I will now turn the call over to DAX. Thank you, Gus, and welcome, everyone.

Fiscal 2025 was a pivotal year for Lightspeed. We exceeded $1 billion in annual revenue for the first time in company history, delivered $53.7 million in adjusted EBITDA, and realigned the business around a focused strategy designed to drive long-term profitable growth. There were many things to be proud of in fiscal 2025. Revenue grew 18%. Adjusted EBITDA rose substantially from $1.3 million to $53.7 million. We launched a series of industry-leading innovations, such as Retail Insights and our Kitchen Display System. We refocused our efforts on two core growth markets, retail in North America and hospitality in Europe, where we have strong product market fit and a proven right to win. We restructured the organization to better align with our new strategy and met our goal of profitable growth. And we completed a share repurchase program for 9.7 million shares, returning over $130 million of capital to investors. In addition, after the year end, Lightspeed further executed its share repurchase program, buying back an additional 9 million shares. In the last 12 months, Light Studio repurchased approximately 18.7 million shares, or about 12% of the shares previously outstanding at the end of last year for about $219 million. In Q4, we continued to make meaningful progress towards our strategic priorities. Software ARPU grew 11% year-over-year, reflecting strong adoption of our new modules and ongoing price optimization. Gross margin reached 44%. driven by disciplined cost management. We added quality customer locations in our growth markets, retail for North America and hospitality for Europe, supported by the growing effectiveness of our outbound sales teams. Importantly, March was a record month for outbound sales. These achievements reflect not only strong execution, but the foundational transformation we undertook this year. With many of the hard decisions behind us, fiscal 2026 will be a year of executing on our plan and delivering on our potential. While macroeconomic conditions remain uncertain across our global footprint, our ongoing strategic execution and product capabilities position us well for continued resilience. From forecasting demand to sourcing inventory from the thousands of suppliers on our wholesale network, the LightFeed Commerce platform is built to help merchants thrive no matter what conditions they face. In late March, we hosted our Capital Markets Day in New York City, where we outlined our new strategy and financial goals. I want to recap some of the highlights from that day. LightSuite is concentrating efforts on its growth markets, where we have a clear right to win. Our go-forward strategy is anchored in two high-opportunity areas. North American retail, where we serve complex, high-GDP retailers with differentiated tools and deep vertical expertise. European hospitality, a fragmented market where Lightspeed is already a leader with workflow automation, local support, and fiscal compliance. In these areas, we are doubling down on outbound sales capacity, product innovation, and customer experience. Elsewhere, we are focused on efficiency, continuing to support existing customers while realigning our cost structure to maximize adjusted EBITDA for the whole business. The success of our efforts within these growth markets will be measured by our ability to grow customer locations and software ARPU, while improving overall profitability. I want to highlight the progress we are making on the first two goals, and Ash will follow with a more thorough discussion on profitability and our financials. Go-to-market progress. Customer locations in our growth markets grew over 3% in fiscal 25, and GDP for these customers grew 6%. Notably, this growth came despite the strategic pivot only beginning to ramp in December 2024, when we realigned our organization to execute on our profitable growth strategy. By making further investments in sales and product, we expect to accelerate net customer locations growth towards our targeted three-year CAGR of 10% to 15%. We're scaling our outbound sales organization rapidly. As of April, we filled over half of the 150 roles we committed to by fiscal 26th. In Europe, field teams are now active across key cities in Germany, the UK, and France. In North America retail, our AI-powered outbound engine is helping reps target and convert high-value merchants. We are leveraging AI to feed the top of the sales funnel through outbound cold calling, and our salespeople then convert those leads into active customers. Our AI engine helps us prioritize outbound calling to the highest-value leads. We are moving quickly to fill all of our outbound positions. Outbound sales reps require some time to fully ramp, usually around six months, so we will see a lag between hiring and results. But thus far, the results are very encouraging. Outbound salespeople are much more efficient at targeting our ICP customers, and because these are generally more established customers, they tend to go live much faster because they do not need to clear hurdles such as financing or signing leases. March was our best month yet for outbound revenue, which was driven by faster go lifetimes, higher average GTV per location, and higher productivity per rep. Here are a few examples of such well-established customers signed in the quarter. Runner's Roost in Colorado with seven locations, carrying one of the most complete selections of fitness shoes and apparel in the USA. They had previously relied on separate POS and payments providers, and we were able to deliver an integrated solution. Tennis Plaza, with nine locations in Florida. Frequently ranked as the number one tennis specialty store in America, they had considered several cloud-based competitors but chose Lightspeed due to our inventory management, B2B, and the ability to sell on the Lightspeed scanner app that we announced last quarter. Woodstack, with seven locations in New York and New Jersey. A streetwear retailer known for its premium sneakers, apparel, and accessories, they chose Lightspeed as their end-to-end solution provider. Half Moon Bay Golf Links in California, with two world-class championship golf courses connected to a luxury resort. Finally, within light-speed new order, we signed several new brands, including Birkenstock Australia, Crew Clothing in the UK, and the Children's Wear Brands key collection. In EMEA Hospitality, we also had great success during this quarter and signed a number of notable customers. We continued our winning streak amongst Michelin-starred restaurants and chefs, by adding La Vie in Dusseldorf, Zetjo in Bruges, and restaurant Juelia in Rotterdam. High GDP restaurants with complex operations turned to Lightspeed to seamlessly power their operational flow. We added Group Eclore with eight restaurants in Paris, five of which have Michelin stars. They switched to Lightspeed from their legacy system, with an impressive seven of them going live on the same day. We signed Le Relais de Chambord, located within a luxury hotel in the Loire Valley. They chose Lightspeed for our centralized management system, modern tools, and integration with key partners. Finally, we also saw traction amongst multi-location chains, signing burger and sauce with 18 restaurants in the UK. They were impressed with the flexibility of our platform and wanted a reliable partner to help them pursue their aggressive expansion plans. The second key metric by which we measure the success of our strategy ARPU expansion, driven by product innovation and retention within our core markets. In Q4, software ARPU grew 11% year-over-year, driven by deeper module adoption and recent pricing initiatives, proof that our flagship platforms are resonating with the right customers. As part of our strategic pivot, in fiscal 2026, we are investing over 35% more in product development than in fiscal 2025. to accelerate innovation across our offerings for retail customers in North America and hospitality customers in Europe. These capabilities are now being translated into modular features that help complex merchants scale efficiently. In retail, we ship several key innovations to improve operational control and online reach for our customers, including seasonal trends to enhance inventory planning and insight for retailers to ensure accurate inventory levels, sales visualization so retailers can view data in the interactive graphic form to better understand their business. A generative AI-powered web builder, which allows our customers to simply show a screenshot of what they want their website to look like. And our web builder will deliver a fully integrated, professional-looking online store with no coding required. Omni gift cards, so retailers can sell and redeem gift cards across in-store and online selling channels. And the New Order Catalog Portal, which creates a self-service portal for brands who want to share their catalogs with the thousands of merchants using the Lightspeed POS. In hospitality, we ship several key features, including Google integration with Order Anywhere. Restaurants can now make sure they're showing up in Google searches, increasing order volume, and offering a convenient ordering experience. And we launch advanced production instructions and consolidated items. These releases allow kitchen staff to adjust menu items for variations, such as allergens, and it automatically queues multiple orders of identical items to minimize prep time. As we enter fiscal 2026 with our renewed focus on our growth engines, we expect even further acceleration in product innovation, which, along with our aggressive outbound strategy, will drive improved sales velocity. Our goals for 2026 are clear. Increase customer locations within our growth markets, expand software ARPU, and enhance profitability for the entire business. I look forward to reporting on our progress throughout the year, and will now turn the call over to Asha.