Lightspeed Q3 Revenue Climbs 11% as Software Growth Lags at 6%
Lightspeed Commerce reported Q3 FY2026 revenue of $312.3 million, up 11% year-over-year, with subscription software revenue rising 6% to $93 million while transaction-based revenues grew 15% to $209.4 million. Adjusted EBITDA reached $20.2 million (6% margin) but the company still posted a net loss of $33.6 million.
1. Q3 Fiscal 2026 Financial Results
Lightspeed Commerce generated $312.3 million in Q3 FY2026 revenue, marking an 11% increase year-over-year compared to 15% in Q2. The company delivered $20.2 million in adjusted EBITDA at a 6% margin but reported a net loss of $33.6 million for the period.
2. Revenue Mix and Growth Drivers
Subscription software revenue grew 6% to $93 million, representing 30% of total revenue, while transaction-based revenues expanded 15% to $209.4 million, or 67% of sales. Payments penetration reached 37% of GPV and consolidated ARPU stood at $660, with net new customer locations increasing by 2,600 to reach approximately 148,000.
3. Profitability and Cash Flow
Gross profit rose to $133.6 million at a 43% margin, up from 42% in Q2, driven by operational efficiencies. Operating cash flow improved to $28.9 million, adjusted free cash flow was positive at $14.9 million, and cash reserves stood at $479 million at quarter end.
4. Competitive Benchmark with Toast
Compared to Toast’s Q3 performance—25% revenue growth to $1.63 billion and 35% adjusted EBITDA margins—Lightspeed’s 15% growth and 6% margin highlight a substantial execution gap. Toast added 7,500 net locations versus Lightspeed’s 2,600, underscoring stronger scale and profitability dynamics.