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


Lightspeed Commerce Inc.
Condensed Interim Consolidated Balance Sheets
(Unaudited)
As at June 30 and March 31, 2025
(expressed in thousands of US dollars)
Notes
June 30,
2025		March 31,
2025
Assets
$
$
Current assets
Cash and cash equivalents447,598 558,469 
Trade and other receivables952,127 53,077 
Merchant cash advances17103,626 106,169 
Inventories14,944 14,612 
Other current assets1069,480 65,696 
Total current assets687,775 798,023 
Lease right-of-use assets, net
11,774 12,714 
Property and equipment, net
17,043 17,102 
Intangible assets, net
135,391 159,542 
Goodwill805,321 797,962 
Other long-term assets1138,964 40,562 
Deferred tax assets356 298 
Total assets1,696,624 1,826,203 
Liabilities and Shareholders’ Equity
Current liabilities
Accounts payable and accrued liabilities1272,867 73,075 
Lease liabilities5,430 5,654 
Income taxes payable1,833 1,540 
Deferred revenue69,461 68,714 
Total current liabilities149,591 148,983 
Deferred revenue1,132 1,088 
Lease liabilities10,844 11,319 
Other long-term liabilities744 562 
Deferred tax liabilities216 284 
Total liabilities162,527 162,236 
Shareholders’ equity
Share capital143,878,111 4,157,395 
Additional paid-in capital206,445 200,634 
Accumulated other comprehensive income (loss)
153,071 (7,462)
Accumulated deficit(2,553,530)(2,686,600)
Total shareholders’ equity1,534,097 1,663,967 
Total liabilities and shareholders’ equity1,696,624 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 months ended June 30, 2025 and 2024
(expressed in thousands of US dollars, except per share amounts)
Three months ended June 30,
Notes
20252024
$$
Revenues4304,942 266,091 
Direct cost of revenues5, 6175,869 157,883 
Gross profit129,073 108,208 
Operating expenses
General and administrative634,713 31,856 
Research and development632,425 27,471 
Sales and marketing667,880 57,070 
Depreciation of property and equipment1,635 1,973 
Depreciation of right-of-use assets1,188 1,394 
Foreign exchange loss (gain)
(2,763)85 
Acquisition-related compensation157 — 
Amortization of intangible assets34,681 22,895 
Restructuring131,210 9,541 
Total operating expenses171,126 152,285 
Operating loss(42,053)(44,077)
Net interest income (expense)
7(6,209)10,166 
Loss before income taxes(48,262)(33,911)
Income tax expense (recovery)
Current1,691 801 
Deferred(386)300 
Total income tax expense
1,305 1,101 
Net loss(49,567)(35,012)
Other comprehensive income (loss)
Items that may be reclassified to net loss
Foreign currency differences on translation of foreign operations7,402 240 
Change in net unrealized gain (loss) on cash flow hedging instruments, net of tax3,131 (514)
Total other comprehensive income (loss)1510,533 (274)
Total comprehensive loss(39,034)(35,286)
Net loss per share – basic and diluted8(0.35)(0.23)

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 three months ended June 30, 2025 and 2024
(expressed in thousands of US dollars)
Three months ended June 30,
20252024
Cash flows from (used in) operating activities
$
$
Net loss(49,567)(35,012)
Items not affecting cash and cash equivalents
Amortization of intangible assets34,681 22,895 
Depreciation of property and equipment and lease right-of-use assets2,823 3,367 
Deferred income tax expense (recovery)
(386)300 
Share-based compensation expense12,963 11,328 
Unrealized foreign exchange loss (gain)
(501)3 
(Increase)/decrease in operating assets and increase/(decrease) in operating liabilities
Trade and other receivables475 15,576 
Merchant cash advances2,543 (13,302)
Inventories(332)(1,764)
Other assets(1,073)(3,259)
Accounts payable and accrued liabilities3,295 (3,361)
Income taxes payable293 (468)
Deferred revenue791 (197)
Other long-term liabilities182 (173)
Net interest (income) expense
6,209 (10,166)
Total operating activities12,396 (14,233)
Cash flows from (used in) investing activities
Additions to property and equipment(1,804)(847)
Additions to intangible assets(10,515)(3,269)
Interest income 6,114 10,985 
Total investing activities(6,205)6,869 
Cash flows from (used in) financing activities
Proceeds from exercise of stock options19 1,349 
Shares repurchased and cancelled(86,238)(39,946)
Shares repurchased for settlement of non-treasury RSUs
(30,188)— 
Payment of lease liabilities and movement in restricted lease deposits(2,059)(2,141)
Financing costs
(9)(40)
Total financing activities(118,475)(40,778)
Effect of foreign exchange rate changes on cash and cash equivalents
1,413 (12)
Net decrease in cash and cash equivalents during the period(110,871)(48,154)

Cash and cash equivalents – Beginning of period558,469 722,102 
Cash and cash equivalents – End of period447,598 673,948 
Income taxes paid1,390 1,056 
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 three months ended June 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— — — — (49,567)(49,567)
Exercise of stock options and settlement of share awards
366,554 6,104 (6,085)— — 19 
Share-based compensation— — 12,963 — — 12,963 
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)(30,188)— — — (30,188)
Settlement of non-treasury RSUs
1466,754 775 (1,067)— 292 — 
Other comprehensive income
15— — — 10,533 — 10,533 
Balance as at June 30, 2025135,223,869 3,878,111 206,445 3,071 (2,553,530)1,534,097 
Balance as at March 31, 2024153,547,616 4,362,691 213,918 (4,045)(2,160,163)2,412,401 
Net loss— — — — (35,012)(35,012)
Exercise of stock options and settlement of share awards612,956 14,605 (13,256)— — 1,349 
Share-based compensation— — 11,328 — — 11,328 
Shares repurchased and cancelled14(2,673,926)(75,973)— — 36,027 (39,946)
Other comprehensive loss15— — — (274)— (274)
Balance as at June 30, 2024151,486,646 4,301,323 211,990 (4,319)(2,159,148)2,349,846 




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)
June 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, Quebec, 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 July 30, 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)
June 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 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 June 30,
20252024
$$
Subscription revenue90,862 83,314 
Transaction-based revenue204,559 174,054 
Hardware and other revenue9,521 8,723 
Total revenues304,942 266,091 
Transaction-based revenue includes $10,400 of revenue from the Company's merchant cash advance program for the three months ended June 30, 2025 (June 30, 2024 – $7,772).
    5. Direct cost of revenues

Three months ended June 30,
20252024
$$
Subscription cost of revenue17,343 17,507 
Transaction-based cost of revenue144,703 127,952 
Hardware and other cost of revenue13,823 12,424 
Total direct cost of revenues175,869 157,883 
7
Lightspeed Commerce Inc.
Notes to Condensed Interim Consolidated Financial Statements
(Unaudited)
June 30, 2025 and 2024
(expressed in thousands of US dollars, except number of shares and per share amounts)
    6. Employee compensation
The total employee compensation comprising salaries and benefits, including share-based compensation and related payroll taxes and restructuring, excluding government assistance and acquisition-related compensation, for the three months ended June 30, 2025, was $85,353 (June 30, 2024 – $84,393).
The following table outlines share-based compensation and related payroll taxes included in the following expenses:
Three months ended June 30,
20252024
$$
Direct cost of revenues301 742 
General and administrative4,617 4,300 
Research and development5,039 3,175 
Sales and marketing4,012 3,457 
Total share-based compensation and related payroll taxes
13,969 11,674 
As at June 30, 2025, the Company had 12,884,988 options (1,014,999 of which have vesting dependent on market conditions tied to the Company's future share price performance), 8,147,869 restricted share units and 175,198 deferred share units outstanding (June 30, 2024 - 11,246,250 options, 6,794,792 restricted share units and 131,713 deferred share units outstanding).
    7. Finance income and costs
Three months ended June 30,
20252024
$$
Interest income5,888 10,560 
Interest expense and finance costs
(12,097)(394)
Net interest income (expense)
(6,209)10,166 
Interest expense and finance costs for the three months ended June 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 $11,800 (June 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 months ended June 30, 2025 and 2024. All outstanding potentially dilutive shares could potentially dilute loss per share in the future.
8
Lightspeed Commerce Inc.
Notes to Condensed Interim Consolidated Financial Statements
(Unaudited)
June 30, 2025 and 2024
(expressed in thousands of US dollars, except number of shares and per share amounts)

Three months ended June 30,
20252024
Issued and outstanding Common Shares135,223,869 151,486,646 
Weighted average number of Common Shares outstanding - basic and diluted
140,818,891 154,744,336 
Net loss per share – basic and diluted($0.35)($0.23)
The issued and outstanding Common Shares as at June 30, 2025 are net of 2,528,079 Common Shares that have been purchased and are held in trust as described in note 14 (June 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 16,353,423 stock options and share awards for the three months ended June 30, 2025 (June 30, 2024 - 15,825,157). 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
June 30,
2025		March 31,
2025
$
$
Trade receivables38,799 39,744 
Allowance for expected credit losses(6,336)(6,445)

Trade receivables, net32,463 33,299 
Research and development tax credits receivable8,192 7,626 
Sales tax receivable9,712 9,898 
Accrued interest and other1,760 2,254 
Total trade and other receivables52,127 53,077 
    10. Other current assets
June 30,
2025		March 31,
2025
$
$
Restricted cash and restricted deposits1,607 1,364 
Prepaid expenses and deposits29,492 29,414 
Commission asset18,551 18,010 
Contract asset and other19,830 16,908 
Total other current assets69,480 65,696 
9
Lightspeed Commerce Inc.
Notes to Condensed Interim Consolidated Financial Statements
(Unaudited)
June 30, 2025 and 2024
(expressed in thousands of US dollars, except number of shares and per share amounts)
    11. Other long-term assets
June 30,
2025		March 31,
2025
$
$

Restricted cash391 510 
Prepaid expenses and deposits4,814 5,486 
Commission asset18,871 18,877 
Contract asset14,888 15,689 
Total other long-term assets38,964 40,562 
    12. Accounts payable and accrued liabilities
June 30,
2025		March 31,
2025
$$

Trade payables and trade accruals34,173 34,146 
Accrued compensation and benefits21,569 25,538 
Accrued payroll taxes on share-based compensation3,519 2,892 
Sales tax payable3,637 4,655 
Provisions and other
9,969 5,844 
Total accounts payable and accrued liabilities72,867 73,075 
    13. Contingencies and Provisions
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 Quebec. 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 $7,583 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 Quebec. A $7,583 provision is included in accounts payable and accrued liabilities in the provisions and other category in respect of the matter for the three months ended June 30, 2025.
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.
Except as indicated, the Company has not provisioned for the above-referenced matters.
10
Lightspeed Commerce Inc.
Notes to Condensed Interim Consolidated Financial Statements
(Unaudited)
June 30, 2025 and 2024
(expressed in thousands of US dollars, except number of shares and per share amounts)
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.
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
Three months ended June 30,
20252024
$$
Balance - Beginning of period1,715 2,591 
Expensed during the period1,210 9,541 
Paid during the period(2,260)(10,207)
Balance - End of period665 1,925 
The provision is included in accounts payable and accrued liabilities in the provisions and other category in note 12.
    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 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 three months ended June 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 (June 30, 2024 - 2,673,926 Subordinate Voting Shares for a total
11
Lightspeed Commerce Inc.
Notes to Condensed Interim Consolidated Financial Statements
(Unaudited)
June 30, 2025 and 2024
(expressed in thousands of US dollars, except number of shares and per share amounts)
consideration, including transaction costs, of $39,946). Interest expense and finance costs for the three months ended June 30, 2025 includes a loss from the change in fair value of the share repurchase liability related to the NCIB of $11,800.
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 months ended June 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 June 30, 2025, a total of 2,528,079 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 (June 30, 2024 - nil Common Shares).
    15. Accumulated other comprehensive income (loss)
Foreign currency differences on translation of foreign operations
Hedging reserve
Total accumulated other comprehensive income (loss)
202520242025202420252024
$$$$$$
Balance as at March 31,(4,966)(4,234)(2,496)189 (7,462)(4,045)
Foreign currency differences on translation of foreign operations7,402 240 — — 7,402 240 
Change in net unrealized gain (loss) on cash flow hedging instruments
— — 3,360 (582)3,360 (582)
Deferred income tax recovery (expense)
— — (229)68 (229)68 
Balance as at June 30,2,436 (3,994)635 (325)3,071 (4,319)
Foreign exchange forward contracts
The Company designates certain foreign exchange forward contracts as cash flow hedges when all the requirements in IFRS 9, Financial Instruments are met. The Company's currency pair used for cash flow hedges is US dollar / Canadian dollar. The notional principal of the foreign exchange contracts was $78,750 CAD as at June 30, 2025 (March 31, 2025 - $113,750 CAD).
12
Lightspeed Commerce Inc.
Notes to Condensed Interim Consolidated Financial Statements
(Unaudited)
June 30, 2025 and 2024
(expressed in thousands of US dollars, except number of shares and per share amounts)
    16. Related party transactions
Key management personnel includes executive officers. Other related parties include close family members of the key management personnel and entities controlled by the key management personnel.
The executive compensation expense to the top five key management personnel is as follows:
Three months ended
June 30,
20252024
$$

Short-term employee benefits
949 644 
Share-based payments2,704 3,010 
Total compensation paid to key management personnel3,653 3,654 
    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:
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 three months ended June 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 $2,955. No reasonably possible change in the key assumptions
13
Lightspeed Commerce Inc.
Notes to Condensed Interim Consolidated Financial Statements
(Unaudited)
June 30, 2025 and 2024
(expressed in thousands of US dollars, except number of shares and per share amounts)
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:
Three months ended
June 30,
20252024
$
$
Balance - Beginning of period106,169 74,236 
Principal issued
76,774 64,067 
Amounts collected(86,762)(55,955)
Transaction-based revenues from fees collected incorporating fair value movement
10,400 7,772 
General & administrative expenses from amounts deemed uncollectible
(2,955)(2,582)
Balance - End of period103,626 87,538 
As at June 30 and March 31, 2025, financial instruments measured at fair value in the unaudited condensed interim consolidated balance sheets were as follows:
June 30, 2025March 31, 2025
Fair
value
hierarchy
Carrying
amount
Fair
value
Fair
value
hierarchy
Carrying
amount
Fair
value
$
$

$$

Assets:
Cash and cash equivalents
Level 1447,598 447,598 Level 1558,469 558,469 
Restricted cash and restricted depositsLevel 11,998 1,998 Level 11,874 1,874 
Merchant cash advancesLevel 3103,626 103,626 Level 3106,169 106,169 
Foreign exchange forward contractsLevel 2864 864 Level 200
Liabilities:
Foreign exchange forward contractsLevel 20 0 Level 22,496 2,496 

    18. Subsequent events
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. As the enactment occurred after the balance sheet date but before the issuance of these financial statements, 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 months ended June 30, 2025. The Company is currently evaluating the impact of the OBBBA on its unaudited condensed interim consolidated financial statements, including the potential effects on its effective tax rate, deferred tax assets and liabilities, and related disclosures. The impact, if any, will be reflected in the period of enactment, in accordance with IAS 12, Income Taxes.
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