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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.

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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. (NYSE:LSPD) hired 150 new sales representatives to accelerate location growth and outbound sales performance.

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

While we acknowledge the potential of LSPD to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than LSPD and that has 100x upside potential, check out our report about this cheapest AI stock.

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

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The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

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It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.

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  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

Even as we admire what Tesla, Nvidia, Alphabet, and Microsoft have built, we believe an even greater opportunity lies elsewhere…

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