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.
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