Lightspeed Commerce (LSPD) Q3 2026 earnings summary

Executive summary

• Q3 revenue reached $312.3 million, up 11% year-over-year, surpassing guidance, with adjusted EBITDA of $20.2 million and positive free cash flow for the second consecutive quarter.

• Gross profit rose 15% year-over-year to $133.6 million, with gross margin improving to 43%.

• Growth was driven by North America retail and European hospitality, adding approximately 2,600 net new customer locations, the fastest pace since the business transformation began.

• Net loss for the quarter was $33.6 million, or $0.24 per share, while Adjusted EBITDA was $20.2 million.

• Strategic focus on expanding subscription ARPU, improving profitability, and scaling outbound sales teams is yielding results.

Financial highlights

• Transaction-based revenue rose 15% year-over-year to $209.4 million; subscription revenue increased 6% to $93.0 million.

• Gross Payment Volume (GPV) for Q3 was $10.5 billion, up 19% year-over-year; Gross Transaction Volume (GTV) reached $25.3 billion.

• Free cash flow was $50 million, up from a $0.5 million use a year ago; positive cash flow from operations was $28.9 million.

• Software gross margin reached 82%, up from 79% last year, driven by cost efficiencies and AI deployment.

• Cash and cash equivalents stood at $479 million as of December 31, 2025.

Outlook and guidance

• Fiscal 2026 revenue outlook raised to $1,216–$1,220 million; gross profit expected at $523–$525 million; Adjusted EBITDA projected at $72 million.

• Q4 revenue guidance is $280–$284 million, with gross profit of $125–$127 million and Adjusted EBITDA of $15 million.

• Long-term targets include gross profit CAGR of 15–18% and Adjusted EBITDA CAGR of ~35% over three years.

• Continued investment in outbound sales and product innovation, with incremental Q4 investments pulled forward due to strong demand.