Least-squares reverse time migration is well-known for its capability to generate artifact-free true-amplitude subsurface images through fitting observed data in the least-squares sense. However, when applied to realistic imaging problems, this approach is faced with issues related to overfitting and excessive computational costs induced by many wave-equation solves. The fact that the source function is unknown complicates this situation even further. Motivated by recent results in stochastic optimization and transform-domain sparsity-promotion, we demonstrate that the computational costs of inversion can be reduced significantly while avoiding imaging artifacts and restoring amplitudes. While powerful, these new approaches do require accurate information on the source-time function, which is often lacking. Without this information, the imaging quality deteriorates rapidly. We address this issue by presenting an approach where the source-time function is estimated on the fly through a technique known as variable projection. Aside from introducing negligible computational overhead, the proposed method is shown to perform well on imaging problems with noisy data and problems that involve complex settings such as salt. In either case, the presented method produces high resolution high-amplitude fidelity images including an estimates for the source-time function. In addition, due to its use of stochastic optimization, we arrive at these images at roughly one to two times the cost of conventional reverse time migration involving all data.