Key Highlights

  • Fiscal first quarter Revenue was USD 184.57 million, up 8% in dollars, while revenue in ZAR decreased 0.6%.
  • EPS was USD 0.04 against an estimate of USD 0.03, while GAAP diluted loss per share was USD 0.05.
  • Consumer revenue increased 34% to USD 41.05 million, and Enterprise revenue increased 73% to USD 25.77 million.
  • Cash and cash equivalents were USD 85.8 million, against long-term borrowings of ZAR 3.5 billion or USD 213.8 million.

Lesaka Technologies, Inc. (NASDAQ:LSAK) opened fiscal 2027 with first quarter revenue of USD 184.57 million, set against an estimate of USD 97.37 million, and EPS of USD 0.04 against an estimate of USD 0.03. The South African payments and lending group reported a GAAP net loss attributable to shareholders of USD 4.18 million, or USD 0.05 per diluted share.

Revenue by Segment

Revenue was USD 184.57 million against USD 171.45 million a year earlier, an 8% increase in dollars. In rand, revenue was ZAR 3,005.68 million, a decrease of 0.6%, which the company linked to lower ADP revenue in Merchant and lower cash fees after exiting its ATM business, partly offset by insurance premiums and lending revenue. The average rate was ZAR 16.2849 per dollar, against ZAR 17.6379 a year earlier.

Merchant revenue was USD 119.15 million, down 6%, while Consumer revenue was USD 41.05 million, up 34%, and Enterprise revenue was USD 25.77 million, up 73%. In Consumer, active consumers reached 2.15 million, lending originations were ZAR 1.14 billion, and gross Written Premium was ZAR 167 million. Merchant active merchants were 132,892, with acquiring total payment Volume of ZAR 11.3 billion.

Profit and Margins

The company posted an operating loss of USD 1.07 million, against Operating Income of USD 0.14 million a year earlier. Selling, general and administration expenses were USD 51.56 million against USD 39.70 million, which management attributed to employment costs, rebrand marketing, a higher allowance for Credit losses, consulting fees and new office leases. Depreciation and amortization was USD 9.97 million against USD 12.89 million.

Group Adjusted EBITDA, a non-GAAP measure, was USD 13.51 million against USD 15.10 million. Merchant contributed USD 4.72 million, Consumer USD 12.66 million and Enterprise USD 1.76 million, with group costs of USD 5.62 million. Once-off items totaled USD 3.03 million, including USD 2.75 million for the Lesaka Brand refresh. Interest expense was USD 4.26 million against USD 5.01 million.

Cash, Debt and Items Management Named

Cash and cash equivalents were USD 85.8 million at September 30. Operating Activities used USD 6.8 million, against USD 8.9 million provided a year earlier, which management tied to growth in the Consumer finance loans receivable and Working Capital for ADP. Long-term borrowings were ZAR 3.5 billion, or USD 213.8 million.

The company is required to make a scheduled debt repayment of ZAR 200 million, or USD 12.2 million, in March 2027, and said it would pay up to ZAR 93.0 million, or USD 5.7 million, on closing of the Bank Zero transaction. It also said the rebrand rollout would take the remainder of the 2026 calendar year.

Key Figures Side by Side

Revenue of USD 184.57 million sits alongside Group Adjusted EBITDA of USD 13.51 million, a GAAP net loss attributable to the company of USD 4.18 million and cash of USD 85.8 million. Consumer lending originations of ZAR 1.14 billion compare with a Consumer lending portfolio outstanding of ZAR 1.58 billion.

Management named the Bank Zero closing payment, the March 2027 repayment of ZAR 200 million and the completion of the brand rollout by the end of the 2026 calendar year as dated items. It also described priorities of deploying its Unity cloud point-of-sale software, which was used by about 19% of the Software base against 12% a year earlier, and growing merchant engagement through more competitive Prepaid Solutions pricing.