How did Lightspeed's revenue and expenses trend in Q3 2025?

Lightspeed's revenue and expenses in Q3 2025 showed a notable increase in revenue with a slight rise in net income, while operating expenses also experienced growth.

1. **Revenue Growth**: Lightspeed's total revenue for Q3 2025 was $280.1 million, marking a significant 17% year-over-year increase. This growth was primarily driven by a 23% rise in transaction-based revenue, which reached $181.7 million. Subscription revenue also grew by 9% year-over-year, reaching $98.4 million. The company's monthly Average Revenue Per User (ARPU) grew by 19% year-over-year, reaching approximately $533.

|code|Ticker|Name|Date|Business Composition|Revenue By Business|market_code|
|---|---|---|---|---|---|---|
|LSPD|LSPD.N|Lightspeed|20250101-2025|Hardware and Other|2.7029E7|169|
|LSPD|LSPD.N|Lightspeed|20250101-2025|Hardware and Other|1.6618E7|169|
|LSPD|LSPD.N|Lightspeed|20250101-2025|Hardware and Other|8723000|169|

|code|Ticker|Name|Date|Net Income YoY|Net Income|market_code|
|---|---|---|---|---|---|---|
|LSPD|LSPD.N|Lightspeed|2024 Q4|56.30337863243272|-3.254E7|169|
|LSPD|LSPD.N|Lightspeed|2025 Q1|28.111204648584277|-3.5012E7|169|
|LSPD|LSPD.N|Lightspeed|2025 Q2|30.21039254447896|-2.9655E7|169|
|LSPD|LSPD.N|Lightspeed|2025 Q3|33.91334609361406|-2.6586E7|169|

2. **Net Income Improvement**: Despite the revenue growth, Lightspeed reported a net loss of $26.6 million for the quarter, an improvement from the previous year's net loss. This indicates a narrowing of the loss gap, with the company moving towards profitability.
3. **Operating Expenses**: The specific operating expenses for Q3 2025 are not available. However, it is clear that the company has been focusing on cost management while navigating the evolving economic conditions. Lightspeed has been proactive in managing costs and is focused on profitable growth.
4. **Strategic Focus**: Lightspeed's strategic focus on growth in retail in North America and hospitality in Europe, along with optimizing other business areas for efficiency, is likely contributing to the revenue growth and cost management. The company's transformation plan aims to enhance its go-to-market strategy and verticalized execution, which could be reflected in the increased revenue and improved net income.

In conclusion, Lightspeed demonstrated robust revenue growth in Q3 2025, driven by significant increases in transaction-based and subscription revenues. The company's strategic initiatives and cost management efforts have contributed to improved financial performance, although net losses are still being reported.