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]

Third Quarter FY2026 Results February 5, 2026 Disclaimer General All references in this presentation to the "Company", "Lightspeed", "us" or "we" are to Lightspeed Commerce Inc. All references in this presentation to dollars, "$" or "US$" are to United States dollars, and all references to Canadian dollars and "C$" are to Canadian dollars. Cautionary Note Regarding Forward-Looking Information This presentation contains "forward-looking information" and "forward-looking statements" (collectively, "forward-lo ...

Q2 2026 Financial Highlights - Revenue reached $319.0 million, a 15% year-over-year increase[10] - Gross Payment Volume (GPV) grew by 22% year-over-year to $10.8 billion[10] - GPV accounted for 43% of Gross Transaction Volume (GTV)[10] - Gross Transaction Volume (GTV) amounted to $25.3 billion[10] - Recurring subscription and transaction-based revenue represented approximately 97% of total revenue[10] - Average Revenue Per User (ARPU) increased by 15% to approximately $685[10] Financial Outlook - Q3 2026 revenue is projected to be approximately $309 - $312 million[15] - At least 15% year-over-year gross profit growth is expected for Q3 2026[15] - Adjusted EBITDA for Q3 2026 is anticipated to be approximately $18 - $20 million[15] - Fiscal Year 2026 is expected to have at least 12% revenue growth year-over-year[15] - Fiscal Year 2026 is expected to have at least 15% gross profit growth year-over-year[15] - Adjusted EBITDA for Fiscal Year 2026 is projected to be at least $70 million[15]

Core Insights - NuORDER by Lightspeed is expanding its partnership with Nordstrom to enhance data-driven wholesale strategies, aiming to improve merchandise assortment and customer experience [1][2][3] Company Overview - NuORDER by Lightspeed is a leading B2B commerce platform that facilitates wholesale buying and selling, currently serving over 4,000 brands and more than 100,000 vetted retailers [4] - Lightspeed, the parent company of NuORDER, operates in over 100 countries, providing a comprehensive POS and payments platform for retail and hospitality businesses [5][6] Partnership Details - The partnership will involve creating a universal catalog of product data, which will streamline operations for Nordstrom by reducing manual processes and accelerating buying cycles [2][3] - NuORDER currently collects over 50 data points per item, and plans to increase data capture to support AI-driven forecasting and personalized product recommendations [2][3] Industry Impact - The integration of AI in retail is highlighted as a transformative force, enabling personalized recommendations and faster product availability, which are crucial for retail success [3] - The collaboration aims to unlock richer and broader data capabilities, enhancing decision-making processes for Nordstrom [3]

Q1 2026 Financial Highlights - Revenue reached $304.9 million, a 15% increase year-over-year[10] - Gross Payment Volume (GPV) totaled $10.2 billion, representing a 21% year-over-year growth[10] - Gross Transaction Volume (GTV) amounted to $24.6 billion[10] - Approximately 97% of revenue is recurring or transaction-based[10] - Average Revenue Per User (ARPU) grew by 16% to approximately $655[10] - Gross profit increased by 19% year-over-year to $129.1 million[13] Fiscal Year 2026 Outlook - The company anticipates approximately 10%-12% revenue growth for fiscal year 2026[15] - The company anticipates approximately 14% gross profit growth for fiscal year 2026[15] - The company anticipates approximately $68 - $72 million Adjusted EBITDA for fiscal year 2026[15] Payment Solutions - Gross Payment Volume (GPV) has a 52% Compound Annual Growth Rate (CAGR)[21] - Q1 2026 Gross Payment Volume (GPV) reached $10.2 billion, a 21% year-over-year increase[27] - Q1 2026 Gross Transaction Volume (GTV) reached $24.6 billion[26]

Core Insights - Lightspeed Commerce Inc. reported total revenue of $304.9 million for the quarter, representing a 15% year-over-year growth and exceeding expectations [1] - The company achieved a gross margin of 42%, with gross profit increasing by 19% year-over-year, also surpassing outlook [1] - The company added approximately 1,700 net Customer Locations in North America and Europe, contributing to a total of around 145,000 Customer Locations, which is a 5% increase year-over-year [1][10] - Gross Payment Volume (GPV) grew by 21% year-over-year, reaching $10.2 billion, with GPV as a percentage of Gross Transaction Volume (GTV) at 41% [1][10] Financial Performance - Total revenue for the quarter was $304.9 million, with transaction-based revenue at $204.6 million (up 18% year-over-year) and subscription revenue at $90.9 million (up 9% year-over-year) [6] - The net loss for the quarter was $49.6 million, or $0.35 per share, compared to a net loss of $35.0 million, or $0.23 per share in the previous year [6] - Adjusted EBITDA for the quarter was $15.9 million, an increase from $10.2 million in the same period last year [6] Operational Highlights - The company launched several new product features, including enhanced inventory tracking and AI-powered insights for hospitality in Europe [6][10] - Average Revenue Per User (ARPU) increased by 16% to approximately $655, driven by software price increases and greater adoption of payment solutions [10] - The company completed a share repurchase program, buying back approximately 9 million shares for about $85.4 million [10] Strategic Outlook - Lightspeed remains focused on expanding its customer base in retail and hospitality sectors, particularly in North America and Europe [8] - The company anticipates revenue for the second quarter of 2026 to be between $305 million and $310 million, reflecting confidence in its growth strategy [9] - Long-term targets include a gross profit CAGR of approximately 15-18% and an Adjusted EBITDA CAGR of approximately 35% over the next three years [9]

Core Insights - Lightspeed is enhancing its product offerings to meet the evolving needs of merchants in retail, hospitality, and golf industries, focusing on intelligent tools for better business management [1] Retail - New features introduced by Lightspeed aim to address industry challenges, improve operational efficiency, and enhance customer engagement [2] - The "Order Trends" feature in NuORDER by Lightspeed provides buyers with data-driven insights, leading to a 10% increase in average order value for early adopters [2] - Custom Inventory Adjustments and new financial metrics like Inventory Turns and GMROI are now available, with users of Lightspeed Insights seeing a 25.4% higher GMROI compared to those not using it [3][19] - The Lightspeed Retail SuiteApp has achieved "Built for NetSuite" status, facilitating better data integration and visibility for retailers [4] - Enhanced omnichannel management features allow for seamless order tracking and custom online checkout charges [5] Hospitality - Lightspeed Restaurant's AI-powered Benchmarks and Trends feature is now available in Europe, helping restaurant owners understand their performance relative to competitors [6] - The upgraded Lightspeed Tableside mobile POS allows servers to take orders and payments directly at the table, improving service speed and efficiency [7][8] - Lightspeed Pulse provides real-time sales insights, enabling restaurateurs to track sales trends and performance easily [9] - New updates to kitchen operations and menu management streamline processes, enhancing overall efficiency [10] - A new Sales Report feature consolidates key sales insights, allowing operators to analyze performance by specific shifts [11] Golf - Lightspeed has partnered with Whoosh to enhance private golf operations, providing integrated membership management and real-time insights for clubs [12]