- 1Lightspeed had $160M in MCAs outstanding at the end of its fiscal Q1 2027.
- 2The company says the program grew 56% year over year and is high margin.
- 3Defaults have stayed in the low single-digit range.
Lightspeed says its merchant cash advance program is where it is putting its capital. CFO Asha Bakshani said on the fiscal Q1 2027 earnings call that investing to deliver long-term shareholder value currently means the MCA business and returning cash through buybacks.
Growth and credit
The company called MCA a "high-margin business" that has grown 56% year over year. Bakshani said that aside from a potential share buyback, the biggest use of cash will be continued growth of the program. There were $160 million in MCAs outstanding at the end of the quarter, and Lightspeed intends to keep expanding it over time.
Bakshani said the company remains disciplined in underwriting and that default rates have stayed consistent in the low single-digit range, which gives it confidence to keep growing.
Source reporting: deBanked.
