Lesaka Technologies, Inc. — Q1 FY2027 Earnings Summary

Financial Performance:

• Group Revenue was $184.6 million (ZAR 3.01 billion), a 0.6% decrease year-over-year.
• Net Revenue was $97.2 million (ZAR 1.58 billion), an 8% increase year-over-year.
• Group Adjusted EBITDA was $13.5 million (ZAR 220.1 million), a 17% decrease year-over-year.
• Net loss attributable to Lesaka was $4.2 million (ZAR 68.0 million), a 17% improvement year-over-year.
• Adjusted earnings were $3.7 million (ZAR 60.3 million), a 25% decrease year-over-year.
• Adjusted earnings per share was $0.04 (ZAR 0.72), a 26% decrease year-over-year.
• Basic loss per share was $0.05 (ZAR 0.81), an 8% improvement year-over-year.
• Operating loss was $1.1 million (ZAR 17.2 million) compared to operating income of $0.1 million (ZAR 2.4 million) in the prior year period.
• Cash provided by financing activities was $20.6 million (ZAR 340.3 million), while cash used in operating activities was $6.8 million (ZAR 113.0 million).
• Capital expenditures were $8.2 million (ZAR 134.1 million).
• Cash and cash equivalents at period end were $85.8 million (ZAR 1.41 billion).

Guidance and Future Outlook:

• Q2 FY2027 Net Revenue guidance is between ZAR 1.62 billion and ZAR 1.72 billion.
• Q2 FY2027 Group Adjusted EBITDA guidance is between ZAR 280 million and ZAR 320 million.
• Q2 FY2027 Adjusted earnings per share guidance is between ZAR 1.00 and ZAR 1.40.
• Full-year FY2027 Net Revenue guidance is between ZAR 7.0 billion and ZAR 7.7 billion.
• Full-year FY2027 Group Adjusted EBITDA guidance is between ZAR 1.45 billion and ZAR 1.60 billion.
• Full-year FY2027 Adjusted earnings per share guidance is between ZAR 7.50 and ZAR 8.50.
• FY2027 guidance includes the impact of the pending Bank Zero acquisition, subject to regulatory approval, and excludes unannounced M&A.
• Management reaffirmed full-year outlook representing adjusted earnings per share of ZAR 8.00 at the midpoint, up 23% year-over-year.

Business Segments and Product Lines:

• Merchant Segment: Revenue was $119.1 million (ZAR 1.94 billion), down 13% year-over-year. Segment Adjusted EBITDA was $4.7 million (ZAR 76.9 million), down 51% year-over-year.
• Consumer Segment: Revenue was $41.0 million (ZAR 668.3 million), up 24% year-over-year. Segment Adjusted EBITDA was $12.7 million (ZAR 206.1 million), up 38% year-over-year.
• Enterprise Segment: Revenue was $25.8 million (ZAR 419.5 million), up 60% year-over-year. Net Revenue was $16.1 million (ZAR 262.6 million), up 19% year-over-year. Segment Adjusted EBITDA was $1.8 million (ZAR 28.6 million), up 28% year-over-year.

Management Commentary and Tone:

• Executive Chairman Ali Mazanderani stated results were delivered in line with expectations.
• Management noted they have met profitability guidance for 17 consecutive quarters.
• Management expressed pleasure in reaffirming the full-year outlook.

Other Key Points:

• The pending acquisition of Bank Zero is included in FY2027 guidance, pending regulatory approval by the Financial Surveillance Department of the South African Reserve Bank.
• Non-GAAP measures used include Group Adjusted EBITDA, Net Revenue, Adjusted Earnings, and Adjusted Earnings per Share.
• One-off items for Q1 FY2027 included Lesaka brand refresh costs ($2.75 million), transaction costs ($225,000), and transaction costs related to Utilities and Bank Zero acquisitions ($58,000).
• The company operates a fintech platform providing transactional accounts, lending, insurance, merchant acquiring, cash management, software, and Alternative Digital Products (ADP).
• Lesaka has a primary listing on NASDAQ (LSAK) and a secondary listing on the Johannesburg Stock Exchange (LSK).
• Average exchange rates for Q1 FY2027 were ZAR 16.28 to $1, compared to ZAR 17.67 to $1 in Q1 FY2026.
• Q1 FY2026 amounts were revised to correct an error discussed in the Form 10-Q for the period ended September 30, 2026.