Lightspeed Commerce Inc.

Good morning, ladies and gentlemen, and thank you for standing by. My name is Kelvin, and I will be your conference operator today. At this time, I would like to welcome everyone to Lightspeed's third quarter 2026 earnings call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star followed by the number one on your telephone keypad. If you would like to withdraw your question, please press star one again. Thank you. I would now like to turn the call over to Gus Papachorjou, head of investor relations. Please go ahead.

Thank you, operator, and good morning, everyone. Welcome to Lightspeed's fiscal Q3 2026 conference call. Joining me today are Dax De Silva, Lightspeed's founder and CEO, and Asha Vakshani, our CFO. After prepared remarks from Dax and Asha, we will open it up for your questions. We will make forward-looking statements on our call today that are subject to risks and uncertainties that could cause actual results to differ materially from those projected. Certain material factors and assumptions were applied in respect of conclusions, forecasts, and projections contained in these statements. We undertake no obligation to update these statements except as required by law. You should carefully review these factors, assumptions, risks, and uncertainties in our earnings press release issued earlier today, our third quarter fiscal 2026 Results presentation available on our website, as well as in our filings with U.S. and Canadian securities regulators. Also, our commentary today will include adjusted financial measures, which are non-IFRS measures and ratios. These should be considered as a supplement to and not a substitute for IFRS financial measures. Reconciliations between the two can be found in our earnings press release, which is available on our website, on CEDAR Plus, and on the SEC's Edgar system. Note that because we report in U.S. dollars, all amounts discussed today are in U.S. dollars unless otherwise indicated. With that, I will now turn the call over to DAX.

Thank you, Gus, and good morning, everyone. Our Q3 results highlight our disciplined execution against the strategy we presented at Capital Markets Day. We delivered another strong quarter, with revenue of just over $312 million and adjusted EBITDA of $20.2 million, both exceeding our outlook. Our focus on the two growth engines of retail in North America and hospitality in Europe is driving results. They account for two-thirds of our total revenue and generated 21% year-over-year revenue growth in the quarter. At our capital markets day, we set three clear priorities to drive long-term value at light speed. One, growing customer locations in our growth engines. Two, expanding subscription ARPU, and three, improving adjusted EBITDA and free cash flow. In Q3, we made solid progress on all fronts. Location growth reached its fastest pace since our business transformation began. Software revenue in ARPU increased, even as we lapped prior price increases, especially within our growth engines. And we achieved our second consecutive quarter of positive free cash flow and grew adjusted EBITDA by 22%. These results demonstrate the effectiveness of our strategy and our ongoing momentum. Let me walk you through our performance against each of these priorities in more detail. Starting with customer locations, our focus remains on quality growth, winning sophisticated high GDP merchants in retail in North America and hospitality in Europe. Customer locations in our growth engines grew 9% year over year in Q3, with approximately 2,600 net new locations added in the quarter. This acceleration is exactly what we would expect at this stage of our go-to-market ramp and sets us up well to achieve our targeted 10% to 15% three-year customer location CAGR outlined for our growth engines at Capital Markets Day. Overall, total customer locations grew, reaching approximately 148,000 in the quarter. In retail, we welcomed leading global brands like Balmain, Diane von Fustenberg, and Dickies, of the Lightspeed Wholesale ecosystem. As a reminder, Lightspeed Wholesale connects retailers using our Lightspeed Retail POS and brands using our New Order by Lightspeed platform. With this integration, retailers can discover an order of 5 million products from over 4,000 brands all in one place. This is a true differentiator, with retailers like Abersons migrating their POS to Lightspeed just so they can benefit from our unified wholesale ordering. We also welcomed Irvine's Tac and Westernware, one of the largest Western retailers in the world, and Value Zone, with seven locations, that was attracted by Lightspeed's advanced inventory features and scanner app. In European hospitality, we continued to win high-profile multi-location operators, such as Hotel Belle Rive on the French Riviera, Quai des Artistes in Monaco, Burger Vision in Germany with over 20 locations and ambitious expansion plans, and Colici with more than 40 locations across the UK. These wins reinforce our conviction that as merchant complexity grows, Lightspeed's unique value stands out even more. An expanded outbound sales effort, increased investment in vertical brand marketing, and more effective inbound spending have accelerated location growth, particularly in our growth engines. We have fully hired our team of 150 outbound reps for the year, and we continue to ramp them towards full productivity. Our outbound motion continues to deliver highly targeted acquisition of our ideal customers with strong unit economics. Turning to software revenue and ARPU. At the company level, software revenue grew 6% year over year, reflecting the lapping of prior year pricing actions. and expected seasonality effects in parts of our business. Our growth engines delivered 13% software growth year over year, underscoring strong momentum. We continue to drive software ARPU higher through innovative products that empower complex multi-location merchants thrive. We launched LightSeed AI, bringing agentic AI directly into retail and hospitality workflows. These AI capabilities go beyond reporting They help merchants identify best sellers, optimize inventory decisions, and improve kitchen execution in real time. At National Retail Federation's Big Show, we unveiled Marketplace. Available in Lightspeed Wholesale, retailers can now browse, compare, and purchase inventory from multiple brands all in one place. The next level of wholesale integration that we believe no other cloud POS provider offers. We also expanded in-store monetization by adding Tap to Pay for Android on Lightspeed Scanner and delivered customer-facing displays on Lightspeed payment terminals, improving checkout efficiency and transparency. In hospitality, we continue to extend our product leadership in Europe. We launched Lightspeed Tempo, which applies pacing intelligence to service flow, turning what has traditionally been an art into a science by guiding servers through each stage of service. We also introduced light-feed reservations, offering independent restaurants an integrated alternative to costly third-party platforms, and light-feed tasks, which standardizes workflows across locations to improve consistency and execution. Collectively, these releases help drive deeper engagement, higher module attachment, and improve win rates with the types of merchants we are actively targeting. These represent innovation-led growth. that reinforces our confidence in the long-term ARPU and gross profit expansion we outlined at Capital Markets Day. Finally, on profitability and free cash flow. In Q3, we delivered 20.2 million in adjusted EBITDA and generated positive free cash flow for the second consecutive quarter. Positive free cash flow of 15 million in the quarter helped increase our total cash balance by over 31 million since Q1. Importantly, we achieved this profitability while continuing to invest meaningfully in growth, scaling our outbound sales organization, and increasing product innovation in our growth engines. The fact that we can do both, invest for growth and expand margins, is a direct result of the structural changes we've made over the past year. Adjusted EBITDA reached 15% of gross profit, moving us closer to the 20% long-term target we outlined at Capital Markets Day. This progress reinforces our confidence in the operating model and in our ability to continue expanding adjusted EBITDA and free cash flow as we scale. I will let Asha take you through the numbers before I make some closing comments.