Lightspeed Commerce (LSPD): FQ3 2026 Growth Fueled by North American Retail, European Hospitality

Lightspeed Commerce Inc. (NYSE:LSPD) is one of the best Canadian stocks to buy under $20. On February 5, Lightspeed Commerce reported FQ3 2026 revenue of $312.3 million, which marked an 11% increase year-over-year. Adjusted EBITDA rose 22% to $20.2 million, and the company achieved its second consecutive quarter of positive free cash flow at $15 million. Growth was largely driven by North American retail and European hospitality sectors, which saw a combined revenue increase of 21%, while the company added 2,600 net new customer locations during the quarter.

Financial margins showed broad improvement, with total gross margin rising to 43% from 41% the previous year. Software gross margin reached 82% due to cloud spend optimization and AI-driven support efficiencies, while transaction-based gross margin climbed to 31%. However, software revenue growth remained moderate at 6% as the company lapped prior pricing actions, and hardware margins declined due to strategic discounting aimed at acquiring new business.

Lightspeed Commerce (LSPD): FQ3 2026 Growth Fueled by North American Retail, European Hospitality

ecommerce-2140604_1280

The company is heavily integrating AI to differentiate its retail and hospitality workflows, focusing on inventory optimization and customer experience to drive upsells. Payment penetration reached 46%, up from 42% last year. To sustain this momentum, Lightspeed Commerce Inc. hired 150 new sales representatives to accelerate location growth and outbound sales performance.

Lightspeed Commerce Inc. sells cloud-based software subscriptions and payments solutions for single and multi-location retailers, restaurants, golf course operators, and other businesses.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

Follow Insider Monkey on Google News.