Financial Data and Key Metrics Changes - Revenue for Q3 2026 was reported at just over $312 million, exceeding expectations, with a year-over-year growth of 21% in the North America Retail and European Hospitality segments [5][14] - Adjusted EBITDA reached $20.2 million, reflecting a 22% increase from $16.6 million in Q3 last year, and represented 15% of gross profit, moving closer to the long-term target of 20% [12][22] - Free cash flow was positive for the second consecutive quarter at $15 million, contributing to an increase in total cash balance by over $31 million since Q1 [12][23] Business Line Data and Key Metrics Changes - Customer locations in growth engines grew by 9% year-over-year, adding approximately 2,600 net new locations in Q3, with total customer locations reaching approximately 148,000 [7][14] - Software revenue grew by 6% year-over-year, with growth engines delivering a 13% increase, while software ARPU rose by 4% year-over-year [10][16] - Transaction-based revenue was $209.4 million, up 15% year-over-year, with GPV growing by 19% year-over-year [17][19] Market Data and Key Metrics Changes - GTV grew by 8% to $25.3 billion, with same-store sales increasing in both retail and hospitality across all main geographies [18] - Payments penetration increased to 46%, up from 42% last year, indicating a strong upward trend in payment adoption [14][16] - Gross profit grew by 15% year-over-year, outpacing revenue growth of 11%, with total gross margin improving to 43% from 41% last year [19][21] Company Strategy and Development Direction - The company is focused on two growth engines: North America Retail and European Hospitality, which together account for two-thirds of total revenue [5][14] - Key priorities include growing customer locations, expanding subscription ARPU, and improving Adjusted EBITDA and free cash flow [6][12] - The introduction of innovative products, such as Lightspeed AI and Marketplace, aims to enhance customer engagement and drive revenue growth [10][11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the health of end markets, noting positive same-store sales growth across all regions, with no significant surprises in the macro environment [32][33] - The company anticipates continued upward trends in payments penetration and expects to generate positive free cash flow for the full fiscal year [15][19] - The outlook for Q4 includes expected revenue of approximately $280 million to $284 million, with a focus on maintaining profitability despite seasonal trends [28][81] Other Important Information - The company ended Q3 with approximately $479 million in cash, an increase of about $16 million from the previous quarter, and has $200 million remaining under its share repurchase authorization [24][25] - The appointment of Gabriel Benavides as Chief Revenue Officer is expected to accelerate go-to-market performance and expand software ARPU [29] Q&A Session Summary Question: Health of end markets and same-store sales growth - Management reported healthy same-store sales growth across all regions, with strong performance in highly penetrated verticals, although some deceleration was noted in seasonal categories [32][33] Question: Sustainability of software gross margins - Management expressed confidence in maintaining software gross margins above 80%, attributing improvements to operational efficiency and cost optimization [36][37] Question: Differentiated software capabilities and AI disruption - Management highlighted proprietary payments and wholesale data as key differentiators, with ongoing investments in AI to enhance workflows and customer insights [41][42] Question: Growth trajectory for software and pricing strategy - Management indicated that while pricing changes impacted growth, the focus remains on expanding the growth engines and enhancing product offerings [49][50] Question: Payment penetration in efficiency markets - Management noted that payments penetration in efficiency markets is currently in the low 30s, with expectations for continued growth as contracts renew [94][95]

Financial Data and Key Metrics Changes - Revenue for Q3 2026 was reported at just over $312 million, exceeding expectations, with a year-over-year growth of 21% [5][14] - Adjusted EBITDA reached $20.2 million, reflecting a 22% increase from $16.6 million in Q3 last year, and represented 15% of gross profit [12][22] - Positive free cash flow of $15 million was generated for the second consecutive quarter, contributing to an increase in total cash balance by over $31 million since Q1 [12][23] Business Line Data and Key Metrics Changes - Software revenue grew 6% year-over-year, with a notable 13% growth in the company's growth engines [10][16] - Customer locations in growth engines increased by 9% year-over-year, adding approximately 2,600 net new locations in the quarter [7][14] - Total gross profit grew 15% year-over-year, outpacing revenue growth, with total gross margin improving to 43% from 41% last year [19][21] Market Data and Key Metrics Changes - Total Gross Transaction Value (GTV) grew by 8% to $25.3 billion, with same-store sales up in both retail and hospitality across all main geographies [18] - Payments penetration increased to 46%, up from 42% last year, indicating a strong upward trend [14][16] - In efficiency markets, payments penetration remains below growth markets but is expected to climb over time [19][94] Company Strategy and Development Direction - The company is focused on two growth engines: retail in North America and hospitality in Europe, which together account for two-thirds of total revenue [5][14] - Strategic priorities include growing customer locations, expanding subscription Average Revenue Per User (ARPU), and improving adjusted EBITDA and free cash flow [6][12] - The introduction of innovative products, including Lightspeed AI and enhanced wholesale integration, aims to drive deeper engagement and higher module attachment [10][11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the health of end markets, noting positive same-store sales growth across all regions [32] - The company anticipates continued strong performance in Q4, despite it being typically the lowest GTV quarter due to seasonal patterns [26][80] - Management is optimistic about the long-term growth trajectory, particularly with the ongoing investments in outbound sales and product innovation [29][83] Other Important Information - The company ended Q3 with approximately $479 million in cash, reflecting a healthy balance sheet and ongoing share repurchase program [24][25] - The appointment of Gabriel Benavides as Chief Revenue Officer is expected to accelerate go-to-market performance and customer acquisition [29] Q&A Session Summary Question: Health of end markets - Management noted strong same-store sales growth across all regions, with specific verticals performing well despite some seasonal deceleration [32] Question: Sustainability of software gross margins - Management expressed confidence in maintaining software gross margins above 80%, citing operational efficiencies and cost optimization efforts [36] Question: Differentiated software capabilities - Management highlighted the unique payments and wholesale data that support proprietary AI workflows, enhancing competitive differentiation [41][66] Question: Growth path for software - Management indicated that while pricing changes impacted growth, the focus remains on expanding the growth engines, which are now two-thirds of total revenue [49] Question: Payment penetration in efficiency markets - Management confirmed that payments penetration in efficiency markets is expected to grow, with ongoing efforts to transition customers to Lightspeed [94]

Financial Data and Key Metrics Changes - Revenue for Q3 2026 was just over $312 million, exceeding expectations, with a year-over-year growth of 21% in North America Retail and European Hospitality [4][12] - Adjusted EBITDA reached $20.2 million, a 22% increase from $16.6 million in Q3 last year, representing 15% of gross profit [10][20] - Free cash flow was positive for the second consecutive quarter at $15 million, contributing to an increase in total cash balance by over $31 million since Q1 [10][21] Business Line Data and Key Metrics Changes - Customer locations in growth engines grew 9% year-over-year, with approximately 2,600 net new locations added in Q3 [5][12] - Software revenue grew 6% year-over-year, with growth engines delivering 13% software growth year-over-year [8][14] - Transaction-based revenue was $209.4 million, up 15% year-over-year, with GPV growing 19% year-over-year [15][19] Market Data and Key Metrics Changes - Total GTV grew by 8% to $25.3 billion, with same-store sales up in both retail and hospitality across all main geographies [16][17] - Payments penetration increased to 46%, up from 42% last year, indicating strong growth in payment adoption [12][14] Company Strategy and Development Direction - The company focuses on two growth engines: retail in North America and hospitality in Europe, which account for two-thirds of total revenue [4][12] - Key priorities include growing customer locations, expanding subscription ARPU, and improving Adjusted EBITDA and free cash flow [4][10] - The introduction of innovative products like Lightspeed AI and Marketplace aims to enhance customer engagement and drive revenue growth [8][9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the operating model and the ability to continue expanding Adjusted EBITDA and free cash flow as the company scales [10][20] - The outlook for Q4 anticipates typical seasonal patterns, with revenue guidance raised to approximately $280 million-$284 million [24][25] - Management highlighted the importance of ongoing investments in product innovation and go-to-market strategies to sustain growth momentum [24][80] Other Important Information - The company appointed Gabriel Benavides as Chief Revenue Officer to accelerate go-to-market performance and expand software ARPU [26] - The balance sheet remains healthy with approximately $479 million in cash, and the company plans to continue share repurchases [22][23] Q&A Session Summary Question: Health of end markets and same-store sales growth - Management noted positive same-store sales growth across all regions, with strong performance in highly penetrated verticals [28][29] Question: Sustainability of software gross margins - Management expressed confidence in maintaining software gross margins above 80% due to operational efficiencies and cost optimization [31][33] Question: Differentiated software capabilities and AI disruption - Management highlighted proprietary payment and wholesale data as key differentiators, with ongoing investments in AI to enhance workflows [37][39] Question: Growth path for software and pricing strategies - Management indicated that while pricing changes impacted growth, the focus remains on expanding the growth engines and introducing new software modules [46][48] Question: Sales force productivity and location growth - Management reported strong productivity from the sales force, contributing to an acceleration in location growth [95][96]

Core Insights - Lightspeed Commerce Inc. reported a total revenue of $312.3 million for the quarter, exceeding expectations with an 11% year-over-year increase [5] - The company achieved a gross profit margin of 43%, reflecting a 15% increase in gross profit compared to the previous year [5] - Positive cash flow from operating activities was reported at $28.9 million, with Adjusted Free Cash Flow of $14.9 million [5] Financial Performance - Total revenue reached $312.3 million, up 11% year-over-year, with transaction-based revenue increasing by 15% to $209.4 million and subscription revenue rising by 6% to $93.0 million [5] - The net loss for the quarter was ($33.6) million, or ($0.24) per share, compared to a net loss of ($26.6) million, or ($0.17) per share in the previous year [5] - Adjusted Income was reported at $20.2 million, or $0.15 per share, an increase from $18.5 million, or $0.12 per share [5] - Adjusted EBITDA improved to $20.2 million from $16.6 million [5] Operational Highlights - The company added approximately 2,600 net Customer Locations during the quarter, bringing the total to around 148,000, which is a 9% increase year-over-year [6] - Gross Transaction Volume (GTV) was reported at $25.3 billion, an 8% increase year-over-year, with Gross Payment Volume (GPV) rising by 19% to $10.5 billion [6] - The average revenue per user (ARPU) increased by 11% to approximately $660, driven by the adoption of payment solutions and new software modules [6] Product Development - Key product releases included Lightspeed AI, which features new conversational assistants to help merchants make informed decisions [4] - The company launched Lightspeed Tempo for hospitality, enhancing operational efficiency for restaurant management [6] Strategic Outlook - Lightspeed raised its full-year revenue, gross profit, and Adjusted EBITDA outlook due to strong performance in the first nine months of the fiscal year [7] - The company aims for a gross profit CAGR of approximately 15-18% and an Adjusted EBITDA CAGR of approximately 35% over the next three years [7]

Core Insights - Lightspeed Commerce Inc. has launched a suite of product innovations aimed at enhancing operational efficiency and customer experiences for independent businesses in retail and hospitality sectors [1][2] Product Innovations - The introduction of Lightspeed AI, an AI-powered intelligence layer, allows merchants to access insights quickly and make informed decisions through natural-language queries [3] - Lightspeed Tempo transforms restaurant pacing into a measurable process, improving guest experiences and operational efficiency [4] - Lightspeed Tasks offers a digital checklist solution for consistent operations, enabling restaurateurs to create repeatable workflows and receive real-time task completion updates [5] - Lightspeed Reservations provides an integrated booking management system for independent restaurants, enhancing guest experiences and reducing no-shows [6][7] - Mobile Tap, a portable payment device, expands across Europe, allowing restaurants to accept various payment methods conveniently [8] - A new multi-brand shopping and ordering experience within Lightspeed Marketplace simplifies purchasing for retailers by consolidating multiple brand portals [9] - Lightspeed's themes store offers ecommerce-optimized themes for retailers to enhance their online presence without requiring design expertise [10] - Customer-facing display options for retail merchants improve checkout efficiency and transparency [11] - The Selling on Scanner feature now available for Android devices enhances flexibility for contactless payments [12]

Core Insights - Lightspeed Commerce Inc. has launched Lightspeed Tempo, a new service pacing intelligence integrated into Lightspeed Restaurant, aimed at enhancing restaurant service management and guest experiences [2][3][4]. Product Overview - Tempo utilizes real-time dining flow data to assist servers and managers in optimizing service timing, from seating to billing, ensuring a smooth dining experience [4][5]. - The solution transforms the traditional art of pacing into a measurable performance metric, allowing restaurant operators to coach their teams effectively [5][6]. Market Context - The hospitality industry faces challenges such as staffing shortages and increasing guest expectations, making effective service pacing more critical than ever [3][5]. - According to Lightspeed's Hospitality Report, nearly 33% of diners have left a restaurant before ordering due to long wait times, highlighting the importance of efficient service [5]. Strategic Goals - Lightspeed aims to empower restaurateurs with scalable technology that simplifies operations and enhances guest experiences, contributing to business growth [6][8]. - Tempo is designed to provide actionable insights that help restaurant teams improve service delivery and customer loyalty [5][6].