Q3 2026 Lightspeed Commerce Inc Earnings Call Transcript
Key Points
- Lightspeed Commerce Inc (LSPD) reported strong Q3 results with revenue of over $312 million and adjusted EBITDA of $20.2 million, both exceeding expectations.
- The company's focus on growth engines in North American retail and European hospitality led to a 21% year-over-year revenue growth.
- Lightspeed Commerce Inc (LSPD) achieved its second consecutive quarter of positive free cash flow, generating $15 million in Q3.
- Customer locations in growth engines increased by 9% year-over-year, with approximately 2,600 net new locations added.
- The company launched innovative products like Lightspeed AI and expanded its wholesale ecosystem, enhancing its competitive edge.
- Software revenue growth was moderate at 6% year-over-year due to lapping prior pricing actions and seasonal effects.
- Hardware gross margins declined due to strategic discounts and incentives to drive new business.
- Payments penetration slightly decreased from Q2 due to GTV mix, although it is expected to climb over time.
- The company is facing challenges in maintaining growth in its efficiency markets, with software and payments revenue flat to last year.
- There is a need for continued investment in outbound sales and product innovation, which could impact short-term profitability.
Good morning ladies and gentlemen, and thank you for standing by. My name is Calvin, and I will be your conference operator today. At this time, I would like to welcome everyone to Lightspeed's 3rd quarter 2026 earnings call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question-and-answer session. If you would like to ask a question during this time, simply press star, followed by the number 1 on your telephone keypad. If you would like to withdraw your question, please press one again.
Thank you. I would now like to turn the call over to Gus Papageorgiou, Head of Investor Relations. Please go ahead.
Thank you, operator, and good morning, everyone. Welcome to LightSpeed's fiscal Q3 2026 conference call. Joining me today are Dax De Silva, LightSpeed's founder and CEO, and Ashraf Akshani, our CFO.
After prepared remarks from Dax and Aha, we will open it up for your questions.
We will make forward
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