EX-99.1 2 financialstatementsfy26q2.htm EX-99.1 Document



Lightspeed Commerce Inc.
Condensed Interim Consolidated Financial Statements
(Unaudited)
For the three and six months ended September 30, 2025
(expressed in thousands of US dollars)


Lightspeed Commerce Inc.
Condensed Interim Consolidated Balance Sheets
(Unaudited)
As at September 30 and March 31, 2025
(expressed in thousands of US dollars)
Notes
September 30,
2025		March 31,
2025
Assets
$
$
Current assets
Cash and cash equivalents462,546 558,469 
Trade and other receivables944,639 53,077 
Merchant cash advances17107,068 106,169 
Inventories11,992 14,612 
Other current assets1067,080 65,696 
Total current assets693,325 798,023 
Lease right-of-use assets, net
13,491 12,714 
Property and equipment, net
17,532 17,102 
Intangible assets, net
113,669 159,542 
Goodwill805,899 797,962 
Other long-term assets1137,386 40,562 
Deferred tax assets377 298 
Total assets1,681,679 1,826,203 
Liabilities and Shareholders’ Equity
Current liabilities
Accounts payable and accrued liabilities1270,674 73,075 
Lease liabilities5,656 5,654 
Income taxes payable1,809 1,540 
Deferred revenue70,611 68,714 
Total current liabilities148,750 148,983 
Deferred revenue1,030 1,088 
Lease liabilities11,829 11,319 
Other long-term liabilities869 562 
Deferred tax liabilities144 284 
Total liabilities162,622 162,236 
Shareholders’ equity
Share capital143,889,091 4,157,395 
Additional paid-in capital212,848 200,634 
Accumulated other comprehensive income (loss)
152,913 (7,462)
Accumulated deficit(2,585,795)(2,686,600)
Total shareholders’ equity1,519,057 1,663,967 
Total liabilities and shareholders’ equity1,681,679 1,826,203 
Commitments and contingencies13

The accompanying notes are an integral part of these unaudited condensed interim consolidated financial statements.
2

Lightspeed Commerce Inc.
Condensed Interim Consolidated Statements of Loss and Comprehensive Loss
(Unaudited)
For the three and six months ended September 30, 2025 and 2024
(expressed in thousands of US dollars, except per share amounts)
Three months ended September 30,Six months ended September 30,
Notes
2025202420252024
$
$$$
Revenues4318,963 277,182 623,905 543,273 
Direct cost of revenues5, 6183,800 162,899 359,669 320,782 
Gross profit135,163 114,283 264,236 222,491 
Operating expenses
General and administrative629,100 31,247 63,813 63,103 
Research and development632,694 30,520 65,119 57,991 
Sales and marketing670,342 65,681 138,222 122,751 
Depreciation of property and equipment1,697 1,853 3,332 3,826 
Depreciation of right-of-use assets1,292 1,369 2,480 2,763 
Foreign exchange loss (gain)
235 (1,337)(2,528)(1,252)
Acquisition-related compensation157 52 314 52 
Amortization of intangible assets34,681 22,612 69,362 45,507 
Restructuring131,622 164 2,832 9,705 
Total operating expenses171,820 152,161 342,946 304,446 
Operating loss(36,657)(37,878)(78,710)(81,955)
Net interest income (expense)75,219 9,543 (990)19,709 
Loss before income taxes(31,438)(28,335)(79,700)(62,246)
Income tax expense (recovery)
Current1,116 1,692 2,807 2,493 
Deferred146 (372)(240)(72)
Total income tax expense
1,262 1,320 2,567 2,421 
Net loss(32,700)(29,655)(82,267)(64,667)
Other comprehensive income (loss)
Items that may be reclassified to net loss
Foreign currency differences on translation of foreign operations576 4,609 7,978 4,849 
Change in net unrealized gain (loss) on cash flow hedging instruments, net of tax(734)584 2,397 70 
Total other comprehensive income (loss)15(158)5,193 10,375 4,919 
Total comprehensive loss(32,858)(24,462)(71,892)(59,748)
Net loss per share – basic and diluted8(0.24)(0.19)(0.59)(0.42)

The accompanying notes are an integral part of these unaudited condensed interim consolidated financial statements.
3

Lightspeed Commerce Inc.
Condensed Interim Consolidated Statements of Cash Flows
(Unaudited)
For the six months ended September 30, 2025 and 2024
(expressed in thousands of US dollars)
Six months ended September 30,
20252024
Cash flows from (used in) operating activities
$
$
Net loss(82,267)(64,667)
Items not affecting cash and cash equivalents
Amortization of intangible assets69,362 45,507 
Depreciation of property and equipment and lease right-of-use assets5,812 6,589 
Deferred income tax recovery
(240)(72)
Share-based compensation expense29,870 29,657 
Unrealized foreign exchange loss (gain)
(681)8 
(Increase)/decrease in operating assets and increase/(decrease) in operating liabilities
Trade and other receivables7,984 13,635 
Merchant cash advances(899)(31,208)
Inventories2,620 (2,762)
Other assets2,282 (1,324)
Accounts payable and accrued liabilities689 2,924 
Income taxes payable269 95 
Deferred revenue1,839 (4,407)
Other long-term liabilities307 190 
Net interest (income) expense
990 (19,709)
Total operating activities37,937 (25,544)
Cash flows from (used in) investing activities
Additions to property and equipment(3,511)(1,902)
Additions to intangible assets(23,475)(8,103)
Acquisition of business, net of cash acquired
(165)(6,706)
Interest income 11,782 21,299 
Total investing activities(15,369)4,588 
Cash flows from (used in) financing activities
Proceeds from exercise of stock options950 1,591 
Shares repurchased and cancelled(86,238)(39,946)
Shares repurchased for settlement of non-treasury RSUs
(30,208)— 
Payment of lease liabilities
(4,331)(4,328)
Financing costs
(42)(44)
Total financing activities(119,869)(42,727)
Effect of foreign exchange rate changes on cash and cash equivalents
1,378 599 
Net decrease in cash and cash equivalents during the period(95,923)(63,084)

Cash and cash equivalents – Beginning of period558,469 722,102 
Cash and cash equivalents – End of period462,546 659,018 
Income taxes paid2,130 2,026 
The accompanying notes are an integral part of these unaudited condensed interim consolidated financial statements.
4

Lightspeed Commerce Inc.
Condensed Interim Consolidated Statements of Changes in Shareholders' Equity
(Unaudited)
For the six months ended September 30, 2025 and 2024
(expressed in thousands of US dollars, except number of shares)
Issued and
Outstanding Shares
Notes
Number
of shares
Amount
Additional
paid-in
capital		Accumulated other comprehensive income (loss)Accumulated
deficit		Total
$$$$$
Balance as at March 31, 2025146,399,347 4,157,395 200,634 (7,462)(2,686,600)1,663,967 
Net loss— — — — (82,267)(82,267)
Exercise of stock options and settlement of share awards
992,834 15,605 (14,655)— — 950 
Share-based compensation— — 29,870 — — 29,870 
Shares repurchased and cancelled14(9,013,953)(255,975)— — 182,345 (73,630)
Shares repurchased for settlement of non-treasury RSUs
14(2,594,833)(30,208)— — — (30,208)
Settlement of non-treasury RSUs
14195,488 2,274 (3,001)— 727 — 
Other comprehensive income 15— — — 10,375 — 10,375 
Balance as at September 30, 2025135,978,883 3,889,091 212,848 2,913 (2,585,795)1,519,057 
Balance as at March 31, 2024153,547,616 4,362,691 213,918 (4,045)(2,160,163)2,412,401 
Net loss— — — — (64,667)(64,667)
Exercise of stock options and settlement of share awards1,038,366 25,103 (23,512)— — 1,591 
Share-based compensation— — 29,657 — — 29,657 
Shares repurchased and cancelled14(2,673,926)(75,973)— — 36,027 (39,946)
Other comprehensive income15— — — 4,919 — 4,919 
Balance as at September 30, 2024151,912,056 4,311,821 220,063 874 (2,188,803)2,343,955 




The accompanying notes are an integral part of these unaudited condensed interim consolidated financial statements.
5
Lightspeed Commerce Inc.
Notes to Condensed Interim Consolidated Financial Statements
(Unaudited)
September 30, 2025 and 2024
(expressed in thousands of US dollars, except number of shares and per share amounts)

    1. Organization and nature of operations
Lightspeed Commerce Inc. ("Lightspeed" or the "Company") was incorporated on March 21, 2005 under the Canada Business Corporations Act. Its head office is located at Gare Viger, 700 Saint-Antoine St. East, Suite 300, Montréal, Québec, Canada. Lightspeed's one-stop commerce platform provides its customers with the critical functionalities they need to engage with consumers, manage their operations, accept payments, and grow their business. Lightspeed has customers globally in over 100 countries, empowering single- and multi-location small and medium-sized businesses to compete in an omni-channel market environment by engaging with consumers across online, mobile, social, and physical channels.
The Company’s shares are listed on both the Toronto Stock Exchange ("TSX") and the New York Stock Exchange ("NYSE") under the stock symbol "LSPD".
    2. Basis of presentation and consolidation
These unaudited condensed interim consolidated financial statements have been prepared in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board ("IFRS Accounting Standards") applicable to the preparation of interim financial statements, including International Accounting Standard ("IAS") 34, Interim Financial Reporting. Certain information and disclosures have been omitted or condensed. These unaudited condensed interim consolidated financial statements should be read together with the Company’s audited annual consolidated financial statements and notes thereto for the fiscal year ended March 31, 2025.
These unaudited condensed interim consolidated financial statements were approved for issue by the Board of Directors of the Company on November 5, 2025.
Seasonality of interim operations
The operations of the Company are seasonal, and the results of operations for any interim period are not necessarily indicative of operations for the full fiscal year or any future period.
Estimates, judgments and assumptions
The preparation of the unaudited condensed interim consolidated financial statements in accordance with IFRS Accounting Standards requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, revenues and expenses during the period. These estimates and assumptions are based on historical experience, expectations of the future, and other relevant factors and are reviewed regularly. Revisions to accounting estimates are recognized in the period in which the estimates are revised and in any future period affected. Actual results may differ from these estimates.
In preparing these unaudited condensed interim consolidated financial statements, the significant judgments made by management in applying the Company’s accounting policies and the key sources of uncertainty are the same as those applied and described in the Company’s audited annual consolidated financial statements for the fiscal year ended March 31, 2025.
As at April 1, 2025, the estimated useful lives of the acquired software technologies and customer relationships were revised. Assuming that the intangible assets are held until the end of their revised estimated useful lives, amortization in future years will be increased/(decreased) by the following amounts:
6
Lightspeed Commerce Inc.
Notes to Condensed Interim Consolidated Financial Statements
(Unaudited)
September 30, 2025 and 2024
(expressed in thousands of US dollars, except number of shares and per share amounts)
Fiscal Year$
202647,931 
2027(45,577)
2028(2,354)
    3. Material accounting policies
The same accounting policies and methods of computation were followed in the preparation of these unaudited condensed interim consolidated financial statements as were followed in the preparation of the most recent audited annual consolidated financial statements.
New legislation within the three and six months ended September 30, 2025
On July 4, 2025, the One Big Beautiful Bill Act ("OBBBA") was signed into law in the United States. The legislation includes several significant tax provisions. The Company has not recorded any adjustments related to the OBBBA in its unaudited condensed interim consolidated financial statements as of and for the three and six months ended September 30, 2025. The Company has assessed that the impact of the OBBBA on its unaudited condensed interim consolidated financial statements is insignificant due to the availability of net operating losses to offset any potential tax liabilities arising from the OBBBA.
New and amended material accounting policies issued but not yet effective
The Company continues to evaluate the impact of the amendments to IFRS 9, Financial Instruments, and IFRS 7, Financial Instruments: Disclosures, and the impact of IFRS 18, Presentation and Disclosure in Financial Statements, on its consolidated financial statements. For all other new and amended material accounting policies issued but not yet effective which have been identified in the most recent audited annual consolidated financial statements, the Company does not expect that the adoption of these standards will have a material impact on the financial statements of the Company in future periods.
    4. Revenues
Three months ended September 30,Six months ended September 30,
20252024

20252024
$
$

$$

Subscription revenue93,543 85,536 184,405 168,850 
Transaction-based revenue215,766 183,751 420,325 357,805 
Hardware and other revenue9,654 7,895 19,175 16,618 
Total revenues318,963 277,182 623,905 543,273 
Transaction-based revenue includes $12,212 and $22,612 of revenue from the Company's merchant cash advance program for the three and six months ended September 30, 2025 (September 30, 2024 – $9,275 and $17,047).
7
Lightspeed Commerce Inc.
Notes to Condensed Interim Consolidated Financial Statements
(Unaudited)
September 30, 2025 and 2024
(expressed in thousands of US dollars, except number of shares and per share amounts)
    5. Direct cost of revenues

Three months ended September 30,

Six months ended September 30,
2025202420252024
$
$

$$
Subscription cost of revenue17,100 18,009 34,443 35,516 
Transaction-based cost of revenue151,534 133,497 296,237 261,449 
Hardware and other cost of revenue15,166 11,393 28,989 23,817 
Total direct cost of revenues183,800 162,899 359,669 320,782 
    6. Employee compensation
The total employee compensation comprising salaries and benefits, including share-based compensation and related payroll taxes and restructuring, excluding government assistance and acquisition-related compensation, for the three and six months ended September 30, 2025, was $91,466 and $176,819 (September 30, 2024 – $85,562 and $169,955).
The following table outlines share-based compensation and related payroll taxes included in the following expenses:
Three months ended September 30,Six months ended September 30,
2025202420252024
$$$$
Direct cost of revenues595 1,071 896 1,813 
General and administrative4,988 5,534 9,605 9,834 
Research and development7,161 5,747 12,200 8,922 
Sales and marketing4,684 7,175 8,696 10,632 
Total share-based compensation and related payroll taxes
17,428 19,527 31,397 31,201 
As at September 30, 2025, the Company had 11,480,371 options (320,490 of which have vesting dependent on market conditions tied to the Company's future share price performance), 8,613,564 restricted share units and 158,516 deferred share units outstanding (September 30, 2024 - 10,940,399 options, 7,500,502 restricted share units and 142,715 deferred share units outstanding).
    7. Finance income and costs
Three months ended September 30,Six months ended September 30,
20252024

20252024
$
$

$$

Interest income5,543 9,899 11,431 20,459 
Interest expense and finance costs
(324)(356)(12,421)(750)
Net interest income (expense)
5,219 9,543 (990)19,709 
8
Lightspeed Commerce Inc.
Notes to Condensed Interim Consolidated Financial Statements
(Unaudited)
September 30, 2025 and 2024
(expressed in thousands of US dollars, except number of shares and per share amounts)
Interest expense and finance costs for the three and six months ended September 30, 2025 includes a loss from the change in fair value of the share repurchase liability related to the normal course issuer bid ("NCIB") of nil and $11,800 (September 30, 2024 – nil).
    8. Loss per share
The Company has stock options and share awards as potentially dilutive shares. Diluted net loss per share excludes all potentially-dilutive shares if their effect is anti-dilutive. As a result of net losses incurred, all potentially-dilutive shares have been excluded from the calculation of diluted net loss per share because including them would be anti-dilutive; therefore, basic and diluted number of shares is the same for the three and six months ended September 30, 2025 and 2024. All outstanding potentially dilutive shares could potentially dilute loss per share in the future.

Three months ended September 30,

Six months ended September 30,
2025202420252024
Issued and outstanding Common Shares135,978,883 151,912,056 135,978,883 151,912,056 
Weighted average number of Common Shares outstanding - basic and diluted
137,730,160 153,551,716 139,265,640 154,144,370 
Net loss per share – basic and diluted($0.24)($0.19)($0.59)($0.42)
The issued and outstanding Common Shares as at September 30, 2025 are net of 2,399,345 Common Shares that have been purchased and are held in trust as described in note 14 (September 30, 2024 - nil).
The weighted average number of potentially dilutive shares that are not included in the diluted per share calculations because they would be anti-dilutive was 18,578,420 and 17,465,922 stock options and share awards for the three and six months ended September 30, 2025 (September 30, 2024 - 16,540,293 and 16,182,725). This weighted average number includes all of the Company's issued and outstanding potentially dilutive shares notwithstanding exercise prices, as applicable.
    9. Trade and other receivables
September 30,
2025		March 31,
2025
$
$
Trade receivables37,294 39,744 
Allowance for expected credit losses(6,808)(6,445)

Trade receivables, net30,486 33,299 
Research and development tax credits receivable8,867 7,626 
Sales tax receivable3,481 9,898 
Accrued interest and other1,805 2,254 
Total trade and other receivables44,639 53,077 
9
Lightspeed Commerce Inc.
Notes to Condensed Interim Consolidated Financial Statements
(Unaudited)
September 30, 2025 and 2024
(expressed in thousands of US dollars, except number of shares and per share amounts)
    10. Other current assets
September 30,
2025		March 31,
2025
$
$
Restricted cash and restricted deposits1,545 1,364 
Prepaid expenses and deposits26,163 29,414 
Commission asset18,452 18,010 
Contract asset and other20,920 16,908 
Total other current assets67,080 65,696 
    11. Other long-term assets
September 30,
2025		March 31,
2025
$
$

Restricted cash393 510 
Prepaid expenses and deposits4,108 5,486 
Commission asset18,974 18,877 
Contract asset13,911 15,689 
Total other long-term assets37,386 40,562 
    12. Accounts payable and accrued liabilities
September 30,
2025		March 31,
2025
$$

Trade payables and trade accruals34,501 34,146 
Accrued compensation and benefits26,516 25,538 
Accrued payroll taxes on share-based compensation3,621 2,892 
Sales tax payable3,753 4,655 
Provisions and other
2,283 5,844 
Total accounts payable and accrued liabilities70,674 73,075 
    13. Contingencies, provisions and commitments
Beginning in October 2021, the Company and certain of the Company's officers and directors were named as defendants to an application for authorization to bring a securities class action filed before the Superior Court of Québec. The application was sought on behalf of purchasers of the Company's securities, and based upon allegations that the defendants made false and/or misleading statements to the public, both on the primary and secondary market. The plaintiffs sought unspecified damages. On June 16, 2025, the Company and the plaintiffs agreed in principle that the Company would pay $7,568 in full and final settlement of the proceedings, inclusive of class counsel fees, notice and administration costs, fees, and expenses relating to the settlement or the litigation. The settlement remains subject to approval by the Superior Court of Québec. The Company paid the settlement amount of $7,568 in escrow in July 2025.
10
Lightspeed Commerce Inc.
Notes to Condensed Interim Consolidated Financial Statements
(Unaudited)
September 30, 2025 and 2024
(expressed in thousands of US dollars, except number of shares and per share amounts)
On October 22, 2021, CloudofChange, LLC, a non-practising entity, filed a patent infringement lawsuit against the Company in the Western District of Texas. The patents at issue in the suit were U.S. Patents Nos. 9,400,640, 10,083,012 and 11,226,793. These patents are generally related to web-based point of sale builder systems. Separately, the Company applied for inter partes review of all three patents by the U.S. Patent Trial and Appeal Board (the "PTAB"). The PTAB issued final written decisions finding all asserted claims of all three patents unpatentable. The lawsuit has now been stayed pending final resolutions of the inter partes reviews. The plaintiff is in the process of appealing the PTAB's final written decisions and the Company and management intend to vigorously defend the PTAB's invalidity findings.
The Company is involved in other litigation and claims in the normal course of business. Management is of the opinion that any resulting provisions and ultimate settlements would not materially affect the financial position and operating results of the Company.
Except as indicated, the Company has not provisioned for the above-referenced matters.
Restructuring
The Company implemented a reorganization to streamline the Company's operating model while continuing to focus on profitable growth. The restructuring expense consisted primarily of cash severance costs.
Provision for severance
Six months ended September 30,
20252024
$$
Balance - Beginning of period1,715 2,591 
Expensed during the period2,832 9,705 
Paid during the period(3,697)(11,006)
Balance - End of period850 1,290 
The provision is included in accounts payable and accrued liabilities in the provisions and other category in note 12.
Commitments
During October 2025, the Company increased its significant commitments from those disclosed in its audited annual consolidated financial statements for the fiscal year ended March 31, 2025. The Company renegotiated certain contracts with a service provider which include additional commitments of $46,000 over the next five fiscal years.
    14. Share capital

The Company’s authorized share capital consists of (i) an unlimited number of Subordinate Voting Shares and (ii) an unlimited number of preferred shares, issuable in series. All references to "Common Shares" refer to Subordinate Voting Shares in the capital of Lightspeed.
Normal Course Issuer Bid
The Board and the TSX approved the renewal of the Company's NCIB to purchase at its discretion for cancellation up to 9,013,953 Subordinate Voting Shares of the Company, representing approximately 10% of the Company's "public
11
Lightspeed Commerce Inc.
Notes to Condensed Interim Consolidated Financial Statements
(Unaudited)
September 30, 2025 and 2024
(expressed in thousands of US dollars, except number of shares and per share amounts)
float" (as defined in the TSX Company Manual) of Subordinate Voting Shares issued and outstanding as at March 21, 2025, over the twelve-month period commencing on April 5, 2025 and ending no later than April 4, 2026.
Under the NCIB, other than purchases made under block purchase exemptions, the Company is allowed, subject to applicable securities laws, to purchase daily, through the facilities of the TSX, a maximum of 153,504 Subordinate Voting Shares representing 25% of the average daily trading volume of 614,018 Subordinate Voting Shares, as calculated per the TSX rules for the six-month period ended on February 28, 2025.
In connection with the NCIB, the Company also entered into an automatic share purchase plan (“ASPP”) under which a designated broker may purchase Subordinate Voting Shares at times when the Company would ordinarily not be permitted to purchase its Subordinate Voting Shares due to regulatory restrictions and customary self-imposed blackout periods. Any repurchases made under the ASPP are made in accordance with certain purchasing parameters.
During the six months ended September 30, 2025, under the NCIB and pursuant to the ASPP, the Company repurchased and cancelled 9,013,953 Subordinate Voting Shares representing the total authorized amount pursuant to the NCIB for a total consideration, including transaction costs, of $85,430 (September 30, 2024 - 2,673,926 Subordinate Voting Shares for a total consideration, including transaction costs, of $39,946). Interest expense and finance costs for the six months ended September 30, 2025 includes a loss from the change in fair value of the share repurchase liability related to the ASPP of $11,800. There was no share repurchase liability outstanding as at September 30, 2025.
Common Shares purchased for settlement of non-treasury RSUs
Non-treasury RSUs have the same features as RSUs, except that they can either be settled in cash based on the Company’s share price on the settlement date, or through the delivery of Common Shares purchased on the open market, at the Company's option. For the three and six months ended September 30, 2025, the non-treasury RSUs were settled in Common Shares purchased on the open market.
The Company has established a trust for the purpose of settling vested non-treasury RSUs. For non-treasury RSUs, the Company directs the trustee to purchase Common Shares of the Company on the open market to be held in trust for and on behalf of the holders of non-treasury RSUs until they are released and delivered for settlement. For accounting purposes, the Common Shares are considered as held in treasury, and recorded as a temporary reduction of Common Shares outstanding and as a temporary reduction of share capital equal to the consideration paid, including transaction costs. Upon delivery of the Common Shares for settlement of the non-treasury RSUs, the number of Common Shares outstanding is increased, offsetting the initial temporary reduction of Common Shares outstanding, and the amount in contributed surplus associated with the non-treasury RSUs being settled is transferred to share capital, offsetting the initial temporary reduction of share capital. Any difference between the contributed surplus and the initial temporary reduction of share capital is recorded in accumulated deficit. As at September 30, 2025, a total of 2,399,345 Common Shares purchased for settlement of non-treasury RSUs were considered as held in treasury and recorded as a temporary reduction of outstanding Common Shares and share capital (September 30, 2024 - nil Common Shares).
12
Lightspeed Commerce Inc.
Notes to Condensed Interim Consolidated Financial Statements
(Unaudited)
September 30, 2025 and 2024
(expressed in thousands of US dollars, except number of shares and per share amounts)
    15. Accumulated other comprehensive income (loss)
Foreign currency differences on translation of foreign operations
Hedging reserve
Total accumulated other comprehensive income (loss)
202520242025202420252024
$$$$$$
Balance as at March 31,(4,966)(4,234)(2,496)189 (7,462)(4,045)
Foreign currency differences on translation of foreign operations7,978 4,849 — — 7,978 4,849 
Change in net unrealized gain on cash flow hedging instruments
— — 2,397 96 2,397 96 
Deferred income tax expense
— — — (26)— (26)
Balance as at September 30,3,012 615 (99)259 2,913 874 
Foreign exchange forward contracts
The Company designates certain foreign exchange forward contracts as cash flow hedges when all the requirements in IFRS 9, Financial Instruments are met. The Company's currency pair used for cash flow hedges is US dollar / Canadian dollar. The notional principal of the foreign exchange contracts was $65,000 CAD as at September 30, 2025 (March 31, 2025 - $113,750 CAD).
    16. Related party transactions
Key management personnel includes executive officers. Other related parties include close family members of the key management personnel and entities controlled by the key management personnel.
The executive compensation expense to the top five key management personnel is as follows:
Three months ended September 30,Six months ended
September 30,
2025202420252024
$$$$

Short-term employee benefits
739 663 1,688 1,307 
Share-based payments3,657 3,505 6,361 6,515 
Total compensation paid to key management personnel4,396 4,168 8,049 7,822 
    17. Financial instruments
Fair value
The Company measures the fair value of its financial assets and financial liabilities using a fair value hierarchy. A financial instrument’s classification within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Three levels of inputs may be used to measure fair value. The different levels of the fair value hierarchy are defined as follows:
13
Lightspeed Commerce Inc.
Notes to Condensed Interim Consolidated Financial Statements
(Unaudited)
September 30, 2025 and 2024
(expressed in thousands of US dollars, except number of shares and per share amounts)
Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities;
Level 2: Other techniques for which inputs are based on quoted prices for identical or similar instruments in markets that are not active, quoted prices for similar instruments in active markets, and model-based valuation techniques for which all significant assumptions are observable in the market or can be corroborated by observable market data for substantially the full term of the asset or liability;
Level 3: Techniques which use inputs that have a significant effect on the recognized fair value that require the Company to use its own assumptions about market participant assumptions.
The Company estimated the fair value of its financial instruments as described below.
The fair value of cash and cash equivalents, restricted cash and restricted deposits, trade receivables and trade payables and accrued liabilities is considered to be equal to their respective carrying values due to their short-term maturities.
Recurring fair value measurements
The fair value of foreign exchange forward contracts was determined based on Level 2 inputs, which included period-end mid-market quotations for each underlying contract as calculated by the financial institution with which the Company has transacted. The quotations represent the discounted future settlement amounts based on current market rates.
The fair value of merchant cash advances was determined based on Level 3 inputs by calculating the present value of the future estimated cash flows based on the terms of the agreements. Key assumptions for the six months ended September 30, 2025 include an average repayment period of 7 months, an average discount rate, over the repayment period, of 15% and amounts deemed uncollectible, which includes write offs, of $6,340. No reasonably possible change in the key assumptions would lead to a significant change in the fair value of merchant cash advances due to their expected short-term repayment periods.
The movement in the merchant cash advances is as follows:
Six months ended
September 30,
20252024
$
$
Balance - Beginning of period106,169 74,236 
Principal issued
164,107 140,517 
Amounts collected(179,480)(120,716)
Transaction-based revenues from fees collected incorporating fair value movement
22,612 17,047 
General & administrative expenses from amounts deemed uncollectible
(6,340)(5,640)
Balance - End of period107,068 105,444 
14
Lightspeed Commerce Inc.
Notes to Condensed Interim Consolidated Financial Statements
(Unaudited)
September 30, 2025 and 2024
(expressed in thousands of US dollars, except number of shares and per share amounts)
As at September 30 and March 31, 2025, the fair value of the financial instruments measured at fair value in the consolidated balance sheets were as follows:
September 30, 2025March 31, 2025
Fair
value
hierarchy
Carrying
amount
Fair
value
Fair
value
hierarchy
Carrying
amount
Fair
value
$
$

$$

Assets:
Cash and cash equivalents
Level 1462,546 462,546 Level 1558,469 558,469 
Restricted cash and restricted depositsLevel 11,938 1,938 Level 11,874 1,874 
Merchant cash advancesLevel 3107,068 107,068 Level 3106,169 106,169 
Liabilities:
Foreign exchange forward contractsLevel 299 99 Level 22,496 2,496 

15