Lightspeed Commerce Inc.

Good morning, and thank you for standing by. My name is John, and I will be your conference operator for today. At this time, I would like to welcome everyone to the Lightspeed fiscal fourth quarter 2026 conference call. All lights have been placed in 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, please press star, followed by the number one on your telephone keypad. And to withdraw your questions, please press star one again. I would now like to turn the conference over to Gustavo Jorge, Head of Investor Relations for Lightspeed. Please go ahead.

Thank you, Operator, and good morning, everyone. Welcome to Lightspeed's fiscal Q4 2026 conference call. Joining me today are Dax Basilva, Lightspeed's founder and CEO, and Asha Bhakshani, Lightspeed's CFO. After prepared remarks from Dax and Asha, we will open it up to 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 fourth 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 if not, a substitute for, IFRS financial measures. Reconciliations between the two can be found in our earnings specialties, which is available on our website, on CEDAR Plus, and on the SEC's address 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 Zach.

Good morning, everyone, and thank you for joining us. Fiscal 2026 was a pivotal year for Lightspeed. We pursued a disciplined strategy that focused our organization on the two areas where we have a proven right to win, retail in North America and hospitality in Europe. The results today show unequivocally that the strategy is working. Lightspeed delivered revenue and gross profit growth ahead of expectations, and gained momentum in the crucial areas of customer location and GTV growth. In Q4, we delivered another strong quarter with total revenue of $291 million and gross profit of $129 million, both up 15% year-over-year and coming in ahead of our previously established outlook. Adjusted EBITDA of $15 million was up 17% year-over-year. Our performance was bolstered by the strength of our growth engines. where we saw total revenue of 24%, GTV of 19%, and locations up 11%. After the divestment of UpServe, our growth engines now comprise approximately 75% of total revenues, and we expect them to grow towards 80% during the course of fiscal 2027. Our accomplishments for fiscal 2026 were on track to meet the three-year targets we initially presented at our capital markets day in March of last year. In the first year of our transformation, we delivered the following results relative to our CMD commitments. Gross profit growth of 17% versus a target three-year CAGR of 15% to 18%. Gross margin of 43% versus a target gross margin of 42% to 45%. Adjusted EBITDA growth of 35%, in line with our target three-year CAGR. 24% gross profit growth in our growth engines. versus a target three-year CAGR of 20% to 25%, and 11% customer location growth within our growth engines, versus a target three-year CAGR of 10% to 15%. Underpinning these targets are three priorities that will drive long-term value at Lightspeed. These are, one, growing customer locations in our growth engines, two, expanding subscription ARPU, and three, improving adjusted EBITDA and free cash flow. In Q4, we continued to make solid progress. Let me start with customer locations in our growth engines. We added approximately 3,200 net new locations in the quarter, growing 11% year-over-year. Q4 marks the fourth quarter in a row where customer location growth has accelerated. Total customer locations, including growth and efficiency markets, grew to 150,000. We were very proud to welcome a host of new customers. Within retail, we added the luxury lifestyle brand Erin with locations in New York and Palm Beach. We also added Oshima Surf and Skate, a multi-location Hawaii-based retailer and an avid user of Lightspeed Wholesale. Lightspeed Wholesale connects retailers using our Lightspeed Retail POS to brands using our New Order by Lightspeed platform. With this integration, retailers can discover and order over 5 million products from over 4,000 brands all on one platform. In this quarter, we continue to add world-class wholesale brands, such as Pharrell, Nixon, Proenza Schubler, and BBC International Footwear to the Lightview wholesale ecosystem. Within golf, we added Redwater Golf, which utilizes our specialized tools across eight courses and five indoor simulators in Michigan. In European hospitality, we are becoming the standard for full-service dining. We added 19 locations with Gaucho, the iconic Argentinian steakhouse chain across the UK. NaviCov in London has also joined us to manage this complex three-in-one restaurant concept. And we added Austin Tochter, the highly acclaimed modern Turkish restaurant in Berlin. Turning to software revenue in our group, we continue to innovate across our flagship platforms of Lightspeed retail and Lightspeed restaurants, which is key for long-term software ARC growth. Within Lightspeed Wholesale, we launched an integration with FAIR, a B2B marketplace that will give Lightspeed retailers direct access to over 100,000 lifestyle home decor apparel and jewelry brands. Also within Lightspeed Wholesale, we launched AI-driven brand recommendations in our recently released marketplace. which surfaces personalized brand suggestions based on the buyer's profile, expanding discovery and opening new revenue opportunities for brands on LightFeed Marketplace. We also launched our AI-powered OCR tool that automates the tedious task of product data entry, helping merchants onboard new inventory, reduce stock discrepancies, and improve accuracy. Within LightFeed Restaurant, we released AI Menu Imports, which significantly reduces setup time for new restaurants by allowing business owners to easily digitize and upload menus using photos, online documents, or even sketchnotes. And the new promotion engine within Order Anywhere, our takeout and delivery offering, with buy one, get one free functionality, enabling restaurants to create time-limited offers to drive order volume and repeat visits. We also saw strong adoption of our more recent product launches, almost 30% of our restaurant customers adopted Lightspeed Pulse, which provides live data on restaurant operations right to your mobile device. Since its recent release, over 20,000 reservations were made using Lightspeed Reservations. Approximately 20% of our target restaurant locations have now adopted Lightspeed Restaurant AI. And the number of customers using Retail Insights has increased over three times year over year. We add popular features to our top-tier plans that help drive higher software ARPU. I am very proud of the innovations that have come out of our product teams this year, particularly around AI. Customers are using our AI agents to drive more productivity out of the LightSuite platform by delivering tangible results, such as getting started faster with seamless onboarding, curating which products carry an inventory, building an online showroom, or receiving on-the-fly reporting and insights to better understand business trends and opportunities. AI gives Lightspeed the capacity to deliver real product differentiation and sustainable competitive advantage. Every restaurant or retailer has a context and a complexity that is unique to their business. AI helps them solve problems that were previously too tough or too expensive to address. But in order to do so, requires deep, native foundational data to solve complex issues such as wholesale buying, inventory management, omni-channel selling, and business operations. We are in a very unique and advantageous position because we have the data derived from billions of dollars in transactions to build AI agents that can solve for these complex issues at scale. That secure, fiscalized, and proprietary data, standing wholesale, the merchant, and the consumer, comes from businesses that operate in physical spaces and use right-through POS solutions that integrate physical hardware complex workflows seamlessly as their system of record. These businesses were engaged and onboarded by a scaled go-to-market motion, specifically crafted to make them successful on our platform. No one is better positioned to deliver AI-backed solutions that can help our customers run and grow their businesses. In the end, our SMB and mid-market versions' priority is to build better businesses, not build their own software. Now turning to profitability. In fiscal 2026, we achieved a landmark accomplishment as a company. For the full fiscal year, our operations generated $18 million in adjusted free cash flow, a milestone that underscores our commitment to profitable growth. I think this accomplishment is even more impressive when you consider that we did this while meaningfully scaling the business in our focus areas and launching a series of new product innovations. demonstrating our capacity for disciplined investment that results in enhanced financial performance. I also want to take a minute to highlight the changes we have made to our executive leadership within Lightspeed to drive the next phase of growth. Gabriel Benavides joined us as Chief Revenue Officer. Gabe brings a wealth of experience in scaling global sales organizations and will be instrumental in refining our go-to-market productivity. We've also appointed Leslie Mark as our new Chief Strategy and Transformation Officer. Leslie joins us from Boston Consulting Group with 18 years of experience advising on strategy, operational transformation, and performance improvement. And finally, we recently welcomed Bhavna Singh as our Chief Technology Officer. Bhavna is a veteran technology executive with over 25 years of experience in scaling global engineering organizations and leading platform transformations at major firms like Glassdoor and Okta, where she pioneered AI adoption within the organization. She specializes in aligning technical strategy with business growth. I look forward to working with our entire executive team as we continue executing in fiscal 27 and beyond. At the beginning of this fiscal year, we launched a corporate transformation aimed at sharpening our focus, improving our execution, and delivering results. We laid out our clear three-year growth targets for locations, gross profit, and adjusted EBITDA. In fiscal 2026, we delivered against these goals on all fronts, and we are entering fiscal 2027 with growing momentum. With that, I will pass it over to Asha.