Lesaka Technologies, Inc. — FY2026 Earnings Summary

Financial Performance

• FY2026 Group Revenue was $721.6 million (ZAR 12.2 billion), a 1.7% increase year-over-year from $659.7 million (ZAR 12.0 billion).
• FY2026 Group Net Revenue was $374.9 million (ZAR 6.3 billion), a 20% increase year-over-year from $291.2 million (ZAR 5.3 billion).
• FY2026 Group Adjusted EBITDA was $75.7 million (ZAR 1.3 billion), a 41% increase year-over-year from $49.8 million (ZAR 906.6 million).
• FY2026 Group Operating Income turned positive at $12.7 million (ZAR 208.5 million), compared to a loss of $28.0 million (ZAR 496.6 million) in FY2025.
• FY2026 Net Income attributable to Lesaka was $2.8 million (ZAR 39.8 million), a reversal from a loss of $91.0 million (ZAR 1.6 billion) in FY2025.
• FY2026 Adjusted Earnings were $32.2 million (ZAR 539.3 million), a 229% increase year-over-year from $9.1 million (ZAR 163.8 million).
• FY2026 Adjusted Earnings per Share (EPS) was $0.39 (ZAR 6.51), a 210% increase year-over-year from $0.12 (ZAR 2.10).
• FY2026 Basic EPS was $0.03 (ZAR 0.51), compared to a loss of $1.19 (ZAR 20.12) in FY2025.
• Q4 2026 Group Revenue was $188.3 million (ZAR 3.1 billion), a 0.8% increase year-over-year.
• Q4 2026 Group Net Revenue was $98.5 million (ZAR 1.6 billion), an 8% increase year-over-year.
• Q4 2026 Group Adjusted EBITDA was $22.3 million (ZAR 366.9 million), a 22% increase year-over-year.
• Q4 2026 Adjusted Earnings per Share was $0.15 (ZAR 2.40), a 166% increase year-over-year.
• FY2026 Cash flows from operating activities were $52.4 million (ZAR 863.6 million), compared to a use of $9.1 million (ZAR 160.1 million) in FY2025.
• FY2026 Net cash used in investing activities was $25.7 million (ZAR 434.3 million).
• FY2026 Net cash used in financing activities was $27.0 million (ZAR 443.5 million).
• Total Assets as of June 30, 2026, were $699.3 million (ZAR 11.5 billion), up from $651.5 million (ZAR 11.6 billion) in FY2025.
• Total Liabilities as of June 30, 2026, were $415.0 million (ZAR 6.8 billion), up from $396.3 million (ZAR 7.0 billion) in FY2025.
• Total Equity as of June 30, 2026, was $205.4 million (ZAR 4.7 billion), up from $166.3 million (ZAR 4.5 billion) in FY2025.

Guidance and Future Outlook

• FY2027 Net Revenue guidance is set between ZAR 7.0 billion and ZAR 7.7 billion.
• FY2027 Group Adjusted EBITDA guidance is set between ZAR 1.45 billion and ZAR 1.60 billion.
• FY2027 Adjusted EPS guidance is set between ZAR 7.50 and ZAR 8.50.
• Q1 FY2027 Net Revenue guidance is set between ZAR 1.58 billion and ZAR 1.66 billion.
• Q1 FY2027 Group Adjusted EBITDA guidance is set between ZAR 200 million and ZAR 240 million.
• Q1 FY2027 Adjusted EPS guidance is set between ZAR 0.40 and ZAR 0.60.
• Management targets an Adjusted EPS CAGR in excess of 40% over the next three years.
• FY2027 guidance includes the impact of the pending Bank Zero acquisition, subject to regulatory approval.
• FY2027 guidance excludes any unannounced mergers and acquisitions.
• Q1 FY2027 guidance reflects seasonality and expected one-off restructuring costs in the merchant business.

Business Segments and Product Lines

• Merchant Segment: FY2026 Revenue was $509.3 million (ZAR 8.6 billion), down 10% year-over-year. FY2026 Segment Adjusted EBITDA was $35.5 million (ZAR 601.6 million), down 6% year-over-year.
• Consumer Segment: FY2026 Revenue was $142.6 million (ZAR 2.4 billion), up 38% year-over-year. FY2026 Segment Adjusted EBITDA was $46.2 million (ZAR 775.0 million), up 78% year-over-year.
• Enterprise Segment: FY2026 Revenue was $74.7 million (ZAR 1.3 billion), up 62% year-over-year. FY2026 Net Revenue was $54.2 million (ZAR 913.3 million), up 40% year-over-year. FY2026 Segment Adjusted EBITDA was $8.1 million (ZAR 136.2 million), up 474% year-over-year.
• Q4 2026 Enterprise Revenue grew 91% year-over-year to $26.1 million (ZAR 430.0 million).
• Q4 2026 Consumer Revenue grew 31% year-over-year to $40.6 million (ZAR 669.5 million).
• Q4 2026 Merchant Revenue declined 14% year-over-year to $123.4 million (ZAR 2.0 billion).

Market and Competitive Landscape

• Lesaka operates as a South African fintech company providing financial services, software, and business services to underserved consumers and merchants in Southern Africa.
• The company offers an integrated multiproduct platform including transactional accounts, lending, insurance, merchant acquiring, cash management, software, and Alternative Digital Products (ADP).
• The company facilitates the digitization of commerce through its connected ecosystem.

Risks and Challenges

• FY2026 results included one-off restructuring costs in the merchant business, impacting Q1 FY2027 guidance.
• The pending Bank Zero acquisition is subject to regulatory approval by the Financial Surveillance Department of the South African Reserve Bank and other customary closing conditions.
• Non-GAAP guidance measures exclude certain revenue and charges, and reconciliations to GAAP are not provided for guidance due to the inability to determine the probable significance of reconciling items.
• Prior period financial statements contained errors regarding intercompany transactions and deferred income taxes, as well as the presentation of repurchased shares, which were corrected in FY2026 filings.

Management Commentary and Tone

• Executive Chairman Ali Mazanderani stated that FY2026 was a milestone year, delivering on all guidance metrics and achieving full-year GAAP profitability for the first time since 2022.
• Management expressed confidence in entering FY2027 with "real momentum and a platform built for strong, sustainable growth."
• Management highlighted the achievement of exceeding the top end of the Adjusted EPS guidance range.

Other Key Points

• The company achieved full-year GAAP profitability for the first time since its effective creation in 2022.
• FY2025 amounts were revised to correct errors discussed in the Form 10-K for the year ended June 30, 2026.
• The company is listed on NASDAQ (LSAK) and the Johannesburg Stock Exchange (LSK).
• One-off items in FY2026 included Lesaka brand refresh costs ($3.0 million), ATM exit expenses ($1.6 million), and transaction costs related to acquisitions ($1.1 million).
• The company reported a reversal of allowance for doubtful loans receivable of $1.5 million in FY2026.
• Impairment losses in FY2026 were $4.0 million, down from $18.9 million in FY2025.
• The company recognized income related to the closure of legacy businesses of $0.6 million in FY2026.
• The company acquired an insurance entity investment costing $4.6 million in FY2026.
• Cash and cash equivalents increased to $81.4 million (ZAR 1.3 billion) as of June 30, 2026, from $76.5 million (ZAR 1.4 billion) in FY2025.