Lightspeed Commerce (LSPD) investor relations material

Executive summary

• Q3 revenue reached $312.3 million, up 11% year-over-year, surpassing guidance, with gross profit of $133.6 million, a 15% increase, and adjusted EBITDA of $20.2 million.

• Net loss for the quarter was $33.6 million, or $0.24 per share, while Adjusted Income rose to $20.2 million, or $0.15 per share.

• Customer Locations grew by approximately 2,600 in the quarter, reaching about 148,000 globally, with strong growth in North American retail and European hospitality.

• Positive cash flow from operations was $28.9 million, and Adjusted Free Cash Flow was $14.9 million, marking the second consecutive quarter of positive free cash flow.

• Strategic focus on expanding 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.

• Gross profit margin improved to 43% from 41% year-over-year; subscription gross margin reached 82%, and transaction-based gross margin rose to 31%.

• ARPU increased 11% year-over-year to approximately $660; subscription ARPU up 4%.

• 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, and Adjusted EBITDA at $72 million.

• Q4 2026 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, product innovation, and technology, with incremental Q4 investments pulled forward due to strong demand.