Financial Performance - Net revenue for Q1 was ZAR 1.53 billion, a 45% increase year-on-year [4] - Group adjusted EBITDA was ZAR 271 million, representing a 61% year-on-year growth [4] - Adjusted earnings grew by 150% to ZAR 87 million, with adjusted earnings per share doubling from ZAR 0.54 to ZAR 1.07 [4][8] - Net debt to adjusted EBITDA improved from 2.9x to 2.5x year-on-year [10] Business Line Performance - The Enterprise division reported net revenue of ZAR 222 million, a 19% year-on-year improvement [5] - Consumer division net revenue increased by 43% year-on-year [6] - Merchant division net revenue also rose by 43%, driven by the acquisition of Adumo [6] - Merchant segment adjusted EBITDA was ZAR 162 million, a 20% increase year-on-year [6] Market Performance - The number of devices in the Merchant division grew from 53,500 to almost 88,000 [11] - Total Payment Volume (TPV) for card acquiring more than doubled to ZAR 9.2 billion [11] - Cash TPV in the micro merchant segment grew 75% year-on-year, now accounting for 18% of all cash volumes [13] Company Strategy and Industry Competition - The company is focusing on unifying its merchant brand and product offerings to capture efficiencies [7] - The integration of various products and businesses is aimed at creating a comprehensive go-to-market strategy [7] - The company is simplifying its operations and reducing its lease footprint from over 40 locations to approximately 20 [29] Management Commentary on Operating Environment and Future Outlook - Management expressed confidence in achieving guidance for the 13th consecutive quarter [3] - The company anticipates continued improvement in net debt to adjusted EBITDA ratio as adjusted EBITDA increases [10] - Management expects to maintain discipline and focus on execution for FY 2026 [33] Other Important Information - Cash flows from operations totaled ZAR 341 million for the quarter [9] - Capital expenditure for the quarter was ZAR 90 million, with expectations to remain below ZAR 400 million annually [9] - The company is on track to close the Bank Zero acquisition by the end of FY 2026 [29] Q&A Session Summary Question: What is the reason for the sequential performance decline in the merchant segment revenue? - Management indicated that there is seasonality and non-core business lines being closed [37] Question: Can you elaborate on the change in margin for the merchant segment? - Management noted that non-recurring costs impacted margins and provided guidance for the next quarter to better reflect underlying growth [38] Question: What is the expected impact on the cost base from infrastructure rationalization? - Management expects significant cost savings from the rationalization of operations and reduction of duplicated functions [44] Question: How is the cross-sell strategy progressing? - Management plans to provide attachment rates for products in the merchant business, indicating a high attachment rate for customers with multiple products [42] Question: What is the rationale behind the Cell C potential IPO? - Management supports the IPO as it aligns with the strategy to simplify operations and focus on core business [48]

Financial Performance - Net revenue for Q1 FY2026 was ZAR 1.53 billion, a 45% increase year-on-year [4][5] - Group adjusted EBITDA reached ZAR 271 million, representing a 61% year-on-year growth [4][6] - Adjusted earnings grew by 150% to ZAR 87 million, with adjusted earnings per share doubling from ZAR 0.54 to ZAR 1.07 [4][8] - Net debt to adjusted EBITDA improved from 2.9 times to 2.5 times [10] Business Line Performance - The Enterprise division reported net revenue of ZAR 222 million, a 19% year-on-year increase [5][6] - Consumer division net revenue increased by 43% year-on-year [6][19] - Merchant division net revenue also rose by 43%, driven by the acquisition of Adumo [6][19] - Segment adjusted EBITDA for the Merchant division was ZAR 162 million, a 20% increase year-on-year [6][8] Market Performance - The number of devices in the Merchant division grew from 53,500 to almost 88,000 [11] - Total Payment Volume (TPV) for card acquiring more than doubled to ZAR 9.2 billion [11] - Cash TPV in the micro merchant segment grew 75% year-on-year, now accounting for 18% of all cash volumes [13] Company Strategy and Industry Competition - The company is focusing on unifying its merchant brand and product offerings to enhance efficiency [7][28] - The integration of various products and businesses is aimed at creating a comprehensive go-to-market strategy [7][28] - The Bank Zero acquisition is expected to enhance customer offerings and expand the consumer base [29][32] Management Commentary on Operating Environment and Future Outlook - Management expressed confidence in achieving guidance for the 13th consecutive quarter [3] - The company anticipates continued improvement in net debt to adjusted EBITDA ratio as adjusted EBITDA increases [10] - Future growth is expected to be driven by innovations in product offerings and distribution channels [20][21] Other Important Information - Cash flows from operations totaled ZAR 341 million for the quarter [9] - Capital expenditure for the quarter was ZAR 90 million, with expectations to remain below ZAR 400 million annually [9][10] - The company is simplifying its corporate structure by exiting non-core business lines [30] Q&A Session Summary Question: What caused the sequential performance decline in the merchant segment revenue? - Management indicated that seasonality and the closure of non-core business lines contributed to the decline [37] Question: What about the change in margin for the merchant segment? - Management noted non-recurring costs impacted margins, and guidance for the next quarter provides a clearer picture of underlying growth [38] Question: What is the impact of infrastructure rationalization on the cost base? - Management expects significant cost savings from the rationalization of operations and reduction of office locations [44] Question: Can you elaborate on the potential IPO of Cell C? - Management supports the planned IPO and aims to simplify operations by monetizing their equity position [47][48] Question: How long is the runway for growth in the consumer segment? - Management believes there is still significant growth potential, particularly with the upcoming Bank Zero acquisition [55][56]

Financial Performance - Net revenue for Q1 FY2026 was ZAR 1.53 billion, a 45% increase year-on-year [4] - Group adjusted EBITDA reached ZAR 271 million, reflecting a 61% year-on-year growth [4] - Adjusted earnings grew by 150% to ZAR 87 million, with adjusted earnings per share doubling from ZAR 0.54 to ZAR 1.07 [4][9] - Net debt to adjusted EBITDA improved from 2.9 times in the previous quarter to 2.5 times [11] Business Line Performance - The Enterprise division generated ZAR 222 million in net revenue, a 19% year-on-year increase [5] - Consumer division net revenue increased by 43% year-on-year [6] - Merchant division net revenue also rose by 43%, primarily due to the acquisition of Adumo [6] - Merchant segment adjusted EBITDA was ZAR 162 million, a 20% increase year-on-year [6] Market Performance - Total Payment Volume (TPV) for card acquiring more than doubled to ZAR 9.2 billion from ZAR 4.2 billion year-on-year [12] - Cash TPV in the micro merchant segment grew 75% year-on-year, now accounting for 18% of all cash volumes [14] - ADP TPV increased by 13% year-on-year to ZAR 11.9 billion [27] Company Strategy and Industry Competition - The company is focused on unifying its merchant brand and product offerings to enhance efficiency and capture growth [7] - The integration of various products aims to build deeper relationships with clients and transition from single product to multi-product solutions [13] - The Bank Zero acquisition is expected to enhance customer offerings and expand the consumer base [31][34] Management Commentary on Operating Environment and Future Outlook - Management expressed confidence in achieving continued growth and reaffirmed FY2026 guidance for net revenue and adjusted EBITDA [35] - The company anticipates a transformative year for the merchant segment, with significant growth expected from the integration of Adumo [6][8] - Management highlighted the importance of maintaining discipline and focus in execution for future growth [35] Other Important Information - Cash flows from operations totaled ZAR 341 million for the quarter, with ZAR 122 million reinvested into growing lending books [10] - Capital expenditure for the quarter was ZAR 90 million, with expectations to remain below ZAR 400 million annually [10] Q&A Session Summary Question: What caused the sequential performance decline in the merchant revenue line? - Management noted seasonality and the closure of non-core business lines as contributing factors [39] Question: What is the impact on margins due to recent changes? - Management indicated that non-recurring costs affected margins, and guidance for the next quarter would provide a clearer picture [40] Question: What are the expected cost savings from infrastructure rationalization? - Management expects significant cost savings from reducing office locations and eliminating duplicated functions [46] Question: How is cross-selling progressing within the merchant segment? - Management confirmed that most merchants have multiple products, with plans to provide detailed metrics on cross-sell rates in future reports [44] Question: What is the rationale behind the Cell C potential IPO? - Management supports the IPO as part of simplifying operations and reallocating capital towards core business [49]

Financial Performance - Q1 FY26 revenue increased by 10% in ZAR (South African Rand) to R3,023,546,000 and 12% in USD to $171,448,000 compared to Q1 FY25 [10] - Q1 FY26 expense increased by 9% in ZAR to R3,016,810,000 and 11% in USD to $171,065,000 compared to Q1 FY25 [10] - Q1 FY26 net loss attributable to the company was R75,890,000, a 6% decrease compared to a net loss of R81,023,000 in Q1 FY25 [10] - Basic loss per share attributable to Lesaka shareholders decreased by 26% from (R1.26) in Q1 FY25 to (R0.93) in Q1 FY26 [10] - Adjusted earnings per share attributable to shareholders increased by 97% from R0.54 in Q1 FY25 to R1.07 in Q1 FY26 [10] - Group Adjusted EBITDA increased by 61% from R168,000,000 in Q1 FY25 to R271,000,000 in Q1 FY26 [13] Segment Performance - Consumer revenue increased by 43% from R378,063,000 in Q1 FY25 to R539,006,000 in Q1 FY26 [72] - Enterprise revenue increased by 22% from R213,997,000 in Q1 FY25 to R261,904,000 in Q1 FY26 [72] Guidance - The company projects net revenue between R1,575,000,000 and R1,725,000,000 for Q2 FY26, representing a year-over-year growth of 14% to 25% [55] - The company projects Group Adjusted EBITDA between R280,000,000 and R320,000,000 for Q2 FY26, representing a year-over-year growth of 32% to 51% [55]

Financial Performance - Q1 FY2026 revenue reached $171.5 million (ZAR 3.0 billion), representing a 10% increase in ZAR year-on-year[8] - Net revenue for Q1 FY2026 was $86.6 million (ZAR 1.5 billion), up 45% in ZAR compared to Q1 FY2025[8] - Group Adjusted EBITDA for Q1 FY2026 was $15.3 million (ZAR 270.6 million), an increase of 61% in ZAR, meeting the guidance provided[8] - Adjusted earnings for Q1 FY2026 were $5.0 million (ZAR 87.3 million), reflecting a 150% increase in ZAR year-on-year[8] - The company's revenue for the three months ended September 30, 2025, was $171,448,000, an increase of 11.9% from $153,568,000 in the same period of 2024[23] - Group Adjusted EBITDA for the three months ended September 30, 2025, was $15,341,000, up from $9,363,000 in the same period of 2024, indicating a year-over-year increase of 63.5%[22] - The net revenue (non-GAAP) for the three months ended September 30, 2025, was $86,606,000, compared to $58,809,000 in the same period of 2024, reflecting a growth of 47.3%[23] Segment Performance - Merchant Segment revenue was $127.0 million (ZAR 2.2 billion), with net revenue of $44.4 million (ZAR 782.8 million), up 43% in ZAR[8] - Consumer Segment revenue increased to $30.6 million (ZAR 539.0 million), also up 43% in ZAR[8] - Enterprise Segment net revenue was $12.6 million (ZAR 221.6 million), marking a 19% increase in ZAR[8] Future Guidance - For Q2 FY2026, net revenue is expected to be between ZAR 1.575 billion and ZAR 1.725 billion[8] - Full FY2026 guidance includes net revenue between ZAR 6.4 billion and ZAR 6.9 billion, with Group Adjusted EBITDA between ZAR 1.25 billion and ZAR 1.45 billion[8] - Adjusted earnings per share for FY2026 is projected to be at least ZAR 4.60, indicating a year-on-year growth of greater than 100%[8] Loss and Expenses - Lesaka Technologies reported a GAAP net loss of $4,297,000 for the three months ended September 30, 2025, compared to a loss of $4,542,000 in the same period of 2024, representing a decrease of 5.4%[22] - The loss attributable to Lesaka for the year ended June 30, 2025, was $87,634,000, significantly higher than the loss of $17,440,000 for the year ended June 30, 2024[23] - The company reported a basic loss per share of $0.05 for the three months ended September 30, 2025, compared to a loss of $0.07 in the same period of 2024[24] - Lesaka's interest expense for the three months ended September 30, 2025, was $4,898,000, slightly down from $5,032,000 in the same period of 2024[26] - Headline loss per share for the three months ended September 30, 2025, was $0.05, unchanged from the previous year[34] Cash Flow and Assets - Cash flows from operating activities generated $8,923 in the latest quarter, a significant turnaround from a cash outflow of $4,137 in the prior year[28] - Total current assets decreased slightly to $240,544 as of September 30, 2025, from $243,923 as of June 30, 2025[30] - Finance loans receivable increased to $80,860, up from $74,110 in the previous quarter, indicating a 9.8% growth[30] - Inventory levels decreased to $18,957, down from $23,551 in the previous quarter, reflecting a 19.5% reduction[30] - Total liabilities decreased to $386,633 as of September 30, 2025, from $392,327 as of June 30, 2025, showing a 1.0% decline[30] - Cash, cash equivalents, and restricted cash at the end of the period totaled $72,284, down from $76,639 at the beginning of the period[28] Fair Value Adjustments - The company recognized a net gain of $59,828,000 on the change in fair value of equity securities for the year ended June 30, 2025[23] - The company reported a fair value adjustment related to financial liabilities of $(1) for the latest quarter, compared to a positive adjustment of $190 in the prior year[28] Share Information - The weighted average number of shares used to calculate net loss per share increased to 81,327, compared to 64,293 in the prior year, reflecting a 26.6% increase[34]

Financial Performance - Total throughput for the Merchant Division reached ZAR 9.2 billion in Q1 2026, a 117% increase from ZAR 4.2 billion in Q1 2025, driven by the inclusion of Adumo[178] - Revenue increased by $17.9 million (ZAR 266.7 million) or 11.6% (in ZAR 9.7%) primarily due to the inclusion of Adumo and Recharger, higher transaction activity, and increased insurance premiums collected[212] - Consolidated revenue for the three months ended September 30, 2025, was $171.4 million, a 12% increase from $153.6 million in 2024[223] - Merchant segment revenue increased by 3% to $126.9 million, while Consumer segment revenue surged by 45% to $30.6 million, and Enterprise segment revenue rose by 25% to $14.9 million[223] - Group Adjusted EBITDA for the three months ended September 30, 2025, was $15.3 million, reflecting a 64% increase from $9.4 million in 2024[223] Lending and Consumer Growth - The lending origination volume for the period was ZAR 201 million, representing a 21% increase compared to ZAR 166 million in Q1 2025[183] - The net loan book outstanding increased by 72% to ZAR 470 million as of Q1 2026, up from ZAR 273 million in Q1 2025[183] - Lending originations for EasyPay Loans increased by 77% to ZAR 820 million in Q1 2026, compared to ZAR 462 million in Q1 2025[190] - The Consumer Division saw a 24% increase in active consumers, reaching 1.9 million in Q1 2026, compared to 1.6 million in Q1 2025[190] - The average revenue per consumer per month increased to ZAR 89 in Q1 2026, up from ZAR 78 in Q1 2025, reflecting a 13% growth[193] Operational Efficiency - Operating income improved to $383,000 compared to a loss of $45,000 in the prior year, driven by strong performance in the Consumer segment and contributions from Adumo and Recharger[211] - The operating income margin improved to 0.2% in the first quarter of fiscal 2026 from (0.0)% in the prior year[218] - The Segment Adjusted EBITDA margin for the Merchant segment improved to 7.2% in fiscal 2026 from 6.1% in fiscal 2025[229] - Consumer segment revenue growth was driven by higher transaction fees and an increase in loan originations, resulting in a Segment Adjusted EBITDA margin of 27.8% for fiscal 2026[231] - Enterprise segment revenue and Adjusted EBITDA increased primarily due to the inclusion of Recharger, with a Segment Adjusted EBITDA margin of 8.54% for fiscal 2026[233] Expenses and Costs - Selling, general and administration expenses rose by $12.9 million (ZAR 219.5 million), or 48.5% (in ZAR 45.8%), mainly due to higher employee-related expenses and the inclusion of Adumo and Recharger[215] - Depreciation and amortization expense increased by $6.6 million (ZAR 114.7 million), or 105.4% (101.8%), attributed to acquisition-related intangible asset amortization from Adumo and Recharger[216] - Cost of goods sold decreased by $0.5 million (ZAR 45.8 million) or 0.4% (in ZAR 2.1%), primarily due to reduced prepaid airtime costs[213] - Group costs increased due to higher employee costs and consulting fees, partially offset by lower bonus expenses[235] Cash Flow and Financing - Cash and cash equivalents as of September 30, 2025, totaled $72.2 million, including ZAR 1.2 billion ($69.2 million) in South African Rand[241] - Net cash provided by operating activities in Q1 fiscal 2026 was $8.9 million (ZAR 157.6 million), compared to a net cash utilized of $4.1 million (ZAR 73.3 million) in Q1 fiscal 2025[252] - Capital expenditures for Q1 fiscal 2026 were $4.0 million (ZAR 70.3 million), primarily for the acquisition of vaults and POS devices[255] - The company has a revolving credit facility of ZAR 400.0 million utilized for merchant finance loans[248] - Long-term borrowings outstanding amount to ZAR 3.6 billion ($208.1 million) as of September 30, 2025, including ZAR 3.1 billion from Lesaka SA for refinancing[248] Acquisitions and Integration - The company closed acquisitions of Adumo and Recharger in fiscal 2025, integrating their businesses into its operations[209] - The company plans to make a cash payment of ZAR 175 million ($10.1 million) in March 2026 related to the acquisition of Recharger[245] Tax and Interest - The effective tax rate for fiscal 2025 was impacted by tax expenses from profitable South African operations and non-deductible expenses, with an income tax benefit of $0.1 million (ZAR 2.6 million) recorded in the first quarter of fiscal 2026[221] - Net interest charge decreased to $4.36 million (ZAR 76.9 million) from $4.45 million (ZAR 79.8 million) due to lower interest rates and changes in borrowing arrangements[211] - Interest expense decreased to $4.9 million (ZAR 86.4 million) from $5.0 million (ZAR 90.3 million), reflecting lower interest rates[220] - Estimated annual expected interest charge on South African borrowings is $22.9 million, with a hypothetical 1% increase raising it to $25.1 million[265] Risks and Challenges - The company is exposed to cash loss risks in ATMs and must repay African Bank for any shortages[251] - Restricted cash of $0.1 million is included in the consolidated statement of cash flows as of September 30, 2025[250]

Core Insights - Lesaka Technologies, Inc. reported its Q1 2026 financial results, showing significant growth in various metrics compared to Q1 2025 [1][2]. Financial Performance - Revenue reached $171.5 million (ZAR 3.0 billion), an increase of 10% in ZAR [8]. - Net Revenue was $86.6 million (ZAR 1.5 billion), up 45% in ZAR [8]. - Operating Income improved to $0.4 million (ZAR 6.7 million) from a loss of $0.1 million (ZAR 0.3 million) [8]. - Net Loss was $4.3 million (ZAR 75.9 million), a 6% improvement in ZAR [8]. - Group Adjusted EBITDA was $15.3 million (ZAR 270.6 million), up 61% in ZAR [8]. - Basic loss per share improved to $0.05 (ZAR 0.93), a 26% improvement in ZAR [8]. - Adjusted earnings were $5.0 million (ZAR 87.3 million), up 150% in ZAR [8]. - Adjusted earnings per share increased to $0.06 (ZAR 1.07), up 97% in ZAR [8]. Segment Performance - Merchant Segment Revenue was $127.0 million (ZAR 2.2 billion), with Net Revenue of $44.4 million (ZAR 782.8 million), up 43% in ZAR [8]. - Consumer Segment Revenue reached $30.6 million (ZAR 539.0 million), also up 43% in ZAR [8]. - Enterprise Segment Revenue was $14.9 million (ZAR 261.9 million), with Net Revenue of $12.6 million (ZAR 221.6 million), up 19% in ZAR [8]. Guidance and Outlook - For Q2 FY2026, the company expects Net Revenue between ZAR 1.575 billion and ZAR 1.725 billion [9]. - Full Fiscal Year 2026 guidance includes Net Revenue between ZAR 6.4 billion and ZAR 6.9 billion, with Group Adjusted EBITDA between ZAR 1.25 billion and ZAR 1.45 billion [9]. - The company anticipates positive Net Income Attributable to Lesaka and Adjusted earnings per share of at least ZAR 4.60, implying a year-on-year growth of greater than 100% [9]. Company Overview - Lesaka Technologies operates as a South African fintech company, providing financial services and software to underserved consumers and merchants in Southern Africa [22][23]. - The company offers a multiproduct platform that includes transactional accounts, lending, insurance, and merchant acquiring services [22].

Core Viewpoint - Bragar Eagel & Squire, P.C. is investigating potential claims against Lesaka Technologies, Inc. for possible violations of federal securities laws and unlawful business practices following a significant restatement of financial statements [1][2]. Investigation Details - On September 10, 2025, Lesaka announced that its Audit Committee concluded that the unaudited condensed consolidated financial statements for the quarters ended September 30, 2024, December 31, 2024, and March 31, 2025, should be restated due to a re-evaluation of revenue classification [2]. - The restatement indicates that certain revenue was reported as an agent rather than as a principal, affecting the related cost of goods sold, which led to a drop in Lesaka's stock price [2]. Next Steps - Investors who purchased or acquired Lesaka shares and suffered losses are encouraged to contact Bragar Eagel & Squire for more information regarding their rights and potential claims [3].

Core Points - Lesaka Technologies, Inc. will release its first quarter 2026 results after the U.S. market close on November 5, 2025 [1] - A presentation webcast and conference call will be held on November 6, 2025, at 8:00am EDT, followed by a live Q&A session for analysts and investors [1] Company Overview - Lesaka operates as a South African fintech company focused on providing financial services, software, and business services to underserved consumers and merchants in Southern Africa [4] - The company offers an integrated multiproduct platform that includes transactional accounts, lending, insurance, merchant acquiring, cash management, software, and Alternative Digital Products (ADP) [4] - Lesaka aims to facilitate payments between consumers, merchants, and enterprises, contributing to the digitization of commerce in its markets [4] Investor Relations - Lesaka has a primary listing on NASDAQ (NASDAQ:LSAK) and a secondary listing on the Johannesburg Stock Exchange (JSE: LSK) [5] - Contact information for investor relations includes emails and mobile numbers for key personnel [5]

Currency and Economic Impact - Fluctuations in the South African rand (ZAR) significantly impact reported revenue and net income, complicating performance evaluations across reporting periods[118] - The company faces risks related to fluctuations in currency exchange rates, particularly the U.S. dollar/ZAR exchange rate[153] - The U.S. dollar to the ZAR exchange rate has fluctuated significantly over the past three years, impacting the company's results of operations[355] - The company uses forward contracts to limit exposure to currency exchange risk primarily with the euro, renminbi, and U.S. dollar[353] - The company had no outstanding foreign exchange contracts as of June 30, 2025 and 2024[354] Regulatory Compliance and Risks - Compliance with various regulatory regimes may incur significant additional costs, and failure to comply could result in shutdowns, fines, or civil liability[127] - Proposed regulatory changes to the national payments system may lead to increased operating costs and affect business conduct[140] - The South African Financial Advisory and Intermediary Services Act requires registration as a financial service provider, and loss of licenses could halt financial services operations[134] - The company is subject to extensive regulations regarding anti-corruption laws, which could impose substantial penalties for non-compliance[130] - Proposed regulations by the South African Reserve Bank aim to establish a robust regulatory framework for the national payment system, potentially increasing operational costs[142] - Compliance with the National Credit Amendment Bill in South Africa may adversely impact the company's micro-lending operations[145] - The company is subject to varying international privacy and data protection regulations, which could result in substantial compliance costs[144] Financial Performance and Control - The company identified material weaknesses in its internal control over financial reporting, which could adversely affect the accuracy and reliability of its financial statements[155] - The company restated its quarterly financial statements for the quarters ended September 30, 2024, December 31, 2024, and March 31, 2025, due to material misstatements[163] - The company maintains credit risk policies to minimize overall credit risk, focusing on counterparties with a credit rating of "B" or better[359] - The company is exposed to credit risk in its Consumer microlending activities, which provides unsecured short-term loans[361] - The company monitors investments for impairment and makes appropriate reductions in carrying value when necessary[366] Shareholder and Stock Information - Approximately 31% of the company's outstanding common stock is owned by two shareholders, Value Capital Partners (19%) and IFC Investors (12%) as of June 30, 2025[149] - The company issued an aggregate of 1,989,162 additional shares to IFC Investors on October 1, 2024, as part of the Adumo transaction agreement[148] - The existence of a put right granted to IFC Investors could adversely impact the company's liquidity and capital resources[148] Economic Conditions and Interest Rates - High inflation and interest rates in South Africa may increase operating costs and reduce profitability, with inflation rates historically higher than those in developed economies[124] - The estimated annual expected interest charge on South African borrowings is $23,987,000, with a hypothetical 1% increase resulting in an additional $2,262,000, bringing the total to $26,249,000[358] - Interest rates in South Africa are expected to decline by a further 25 basis points in the first quarter of calendar 2026[356] - Interest rates applicable to borrowings fluctuate based on changes in the South African prime and 3-month JIBAR interest rates[357] Operational Structure - The company operates its EasyPay Everywhere (EPE) solution through a third-party bank arrangement, limiting control and economic benefits[132] - The company does not engage in extensive currency hedging, relying primarily on economic hedging through forward contracts for inventory purchases[119] Stock Price Volatility - The company's stock price experienced significant volatility during the 2025 fiscal year, ranging from a low of $3.39 to a high of $5.60[147]