Financial Performance - Lesaka Technologies reported net revenue of R5.3 billion and EBITDA of R922 million for FY 2025, with adjusted earnings increasing from R51 million to R186 million, resulting in adjusted earnings per share growing from R0.80 to R2.29 [3][4] - The company refinanced its debt, leading to an increase in gross debt to fund acquisitions, with net debt to adjusted EBITDA ratio increasing to 2.9 times, although annualizing Q4 adjusted EBITDA results in a leverage ratio of 2.2 times [3][11] - Q4 net revenue was R1.5 billion, up 47% year on year, with group adjusted EBITDA of R306 million, reflecting a 61% increase [10][12] Business Line Performance - The Merchant business achieved net revenue of R3 billion, up 46% year on year, and EBITDA of R657 million, up 20% year on year, driven partly by acquisitions [5][37] - The Consumer business saw net revenue grow by 35% to R1.7 billion and EBITDA increase by 83% to R435 million, reflecting strong performance in cross-selling initiatives [5][51] - The Enterprise business reported a decline in net revenue by 9% to R651 million and EBITDA decreased from R55 million to R24 million due to restructuring and closure of non-core units [6][58] Market Performance - The Merchant division expanded its footprint to 84,541 points of presence, up from 51,880 a year ago, with throughput reaching R35.5 billion, reflecting a 15% year-on-year growth [31][32] - The Consumer division increased its market share from 9.1% to 13.6%, with a notable migration of customers from Postbank [45][49] - The Enterprise division is expected to contribute more significantly to total segment adjusted EBITDA in FY 2026, with a focus on channel expansion and technology updates [59] Company Strategy and Industry Competition - Lesaka aims to build an integrated, multi-product platform for merchants, focusing on cross-selling and bundling services to enhance customer relationships [22][30] - The company is consolidating its brands under a single identity to streamline operations and improve market strategy [26][64] - The acquisition of BankZero is anticipated to enhance Lesaka's product offerings, allowing for banking services tailored to small-to-medium merchants [60][62] Management Commentary on Operating Environment and Future Outlook - Management expressed confidence in the company's growth trajectory, emphasizing the importance of strategic acquisitions and operational efficiencies [8][60] - The focus remains on sustainable growth, capital discipline, and enhancing shareholder value, with expectations for continued strong performance in the Consumer and Merchant divisions [21][40] - The company is optimistic about the integration of BankZero and its potential to reduce costs and expand product offerings [60][63] Other Important Information - Lesaka's adjusted earnings per share grew by 211% to R0.99 in Q4, reflecting strong underlying business performance [17] - The company incurred significant non-cash charges related to goodwill impairments and transaction costs, which impacted the overall net loss position [14][16] - Operating cash flow increased to R370 million in Q4, indicating strong cash generation capabilities [17][18] Q&A Session Summary Question: What are the expectations for the Merchant division's growth? - Management highlighted the focus on bolstering unit economics and extracting efficiencies from the Merchant platform, with an expectation of continued growth driven by cross-selling initiatives [37] Question: How is the integration of BankZero expected to impact the business? - The integration is anticipated to enhance product offerings, reduce costs, and provide banking services to the merchant base, thereby increasing competitiveness [60][62]

Financial Performance and Key Metrics - Lesaka Technologies reported net revenue of ZAR 5.3 billion and EBITDA of ZAR 922 million for FY 2025, with adjusted earnings increasing from ZAR 51 million to ZAR 186 million, resulting in adjusted earnings per share growing from ZAR 0.80 to ZAR 2.29 [3][10] - The company refinanced its debt, leading to an increase in gross debt to ZAR 4 billion, with a net debt to adjusted EBITDA ratio increasing to 2.9 times, although annualizing Q4 adjusted EBITDA results in a leverage ratio of 2.2 times [3][19] - Q4 net revenue was ZAR 1.5 billion, up 47% year on year, with group adjusted EBITDA of ZAR 306 million, reflecting a 61% increase [10][12] Business Line Performance - The Merchant business achieved net revenue of ZAR 3 billion, up 46% year on year, and EBITDA of ZAR 657 million, up 20% year on year, driven partly by acquisitions [5][37] - The Consumer business saw net revenue grow by 35% to ZAR 1.7 billion and EBITDA increase by 83% to ZAR 435 million, reflecting strong performance in lending and insurance [42][51] - The Enterprise business reported a decline in net revenue of 9% to ZAR 651 million and EBITDA dropping from ZAR 55 million to ZAR 24 million due to restructuring and closure of non-core units [6][58] Market Data and Key Metrics - The Merchant division expanded its acquiring footprint to 84,541 points of presence, up from 51,880 a year ago, with throughput for the year reaching ZAR 35.5 billion [31][32] - The Consumer division increased its active consumer base to 166,000 in Q4 and 348,000 for FY 2025, with a 23% increase in total customers to 1.9 million [49][50] - The Enterprise division's net revenue for Q4 was ZAR 190 million, with a focus on alternative digital payments and utilities [57][58] Company Strategy and Industry Competition - Lesaka is focused on building an integrated fintech platform through strategic acquisitions, including the recent acquisition of BankZero, which will enhance its banking capabilities for merchants [60][64] - The company aims to streamline operations by consolidating brands and reducing office locations, enhancing efficiency and market presence [63][64] - The competitive landscape includes banks, retailers, and mobile network operators, with Lesaka differentiating itself through a comprehensive product suite catering to both formal and informal sectors [23][30] Management Commentary on Operating Environment and Future Outlook - Management expressed confidence in the company's growth trajectory, highlighting the successful execution of both organic and inorganic strategies [3][60] - The focus for FY 2026 includes optimizing the balance sheet, enhancing unit economics, and leveraging the BankZero acquisition to expand product offerings [19][60] - Management acknowledged challenges in the macroeconomic environment but emphasized the resilience and adaptability of the business model [35][38] Other Important Information - The company incurred significant one-off costs related to acquisitions and restructuring, including ZAR 239 million in transaction costs and ZAR 335 million in non-cash goodwill impairments [14][16] - Operating cash flow increased to ZAR 370 million in Q4, reflecting strong cash generation capabilities [17][18] - The company plans to maintain capital expenditures below ZAR 400 million annually, focusing on disciplined investment strategies [21] Q&A Session Summary Question: What are the expectations for the BankZero acquisition? - Management highlighted that BankZero will enhance banking services for merchants and improve operational efficiencies, with a focus on reducing gross debt and expanding product offerings [60][62] Question: How is the integration of acquired businesses progressing? - The integration of Adumo and Recharger is ongoing, with early signs of success in cross-selling and operational efficiencies being realized [25][28] Question: What are the growth prospects for the Consumer division? - The Consumer division is expected to continue its growth trajectory, particularly in lending and insurance, with plans to expand distribution and enhance customer engagement [42][51]

Financial Performance and Key Metrics Changes - Lesaka Technologies reported net revenue of R5.3 billion and EBITDA of R922 million for FY 2025, with adjusted earnings increasing from R51 million to R186 million, resulting in adjusted earnings per share growing from R0.80 to R2.29 [3][4] - The company refinanced its debt, leading to an increase in gross debt to R4 billion, with a net debt to adjusted EBITDA ratio increasing to 2.9 times at year-end [3][19] - Q4 net revenue was R1.5 billion, up 47% year on year, with group adjusted EBITDA of R306 million, reflecting a 61% increase [10][12] Business Line Performance Changes - The Merchant business achieved net revenue of R3 billion, up 46% year on year, and EBITDA of R657 million, up 20% year on year, driven partly by acquisitions [5][38] - The Consumer business saw net revenue grow by 35% to R1.7 billion and EBITDA increase by 83% to R435 million [5][50] - The Enterprise business reported a decline in net revenue by 9% to R651 million and EBITDA dropping from R55 million to R24 million due to restructuring and closure of non-core units [5][56] Market Performance Changes - The Merchant division expanded its acquiring footprint to 84,541 points of presence, up from 51,880 a year ago, indicating a significant growth trajectory [31] - The Consumer division increased its market share from 9.1% to 13.6%, largely at the expense of Postbank, with a 23% increase in permanent grant beneficiaries [45][49] - The Enterprise division's revenue model is evolving, with a focus on alternative digital payments and utility services, although it remains a minor contributor to overall EBITDA [56] Company Strategy and Industry Competition - Lesaka is focused on building an integrated fintech platform through strategic acquisitions, including the recent acquisition of BankZero, which will enhance its product offerings and reduce dependency on third-party banking services [58][60] - The company aims to streamline operations by consolidating brands and reducing office locations, enhancing operational efficiency and market presence [62] - The competitive landscape includes banks, retailers, and mobile network operators, but Lesaka differentiates itself with a comprehensive product suite catering to both formal and informal merchant sectors [23] Management Commentary on Operating Environment and Future Outlook - Management expressed confidence in the company's growth trajectory, highlighting the successful integration of acquisitions and the potential for organic growth in the Merchant and Consumer divisions [8][20] - The focus for FY 2026 includes optimizing the balance sheet, enhancing unit economics, and driving sustainable growth through disciplined capital expenditure [19][20] - Management acknowledged challenges in the Enterprise division but emphasized a strategic pivot towards core offerings and channel expansion [51] Other Important Information - The company recorded ZAR 239 million in transaction costs related to acquisitions, alongside non-cash charges for goodwill impairments and accelerated amortization [13][15] - Operating cash flow increased to R370 million in Q4, reflecting strong cash generation capabilities [17] - The company plans to maintain annual capital expenditure below R400 million while continuing to invest in technology and product development [20] Q&A Session Summary Question: What are the expectations for the BankZero acquisition? - Management highlighted that BankZero will enhance Lesaka's capabilities, allowing for the offering of banking services to its merchant base and improving cost structures [58][60] Question: How is the integration of acquisitions progressing? - The integration of Adumo and Recharger is ongoing, with early signs of success in cross-selling and operational efficiencies being realized [26][38] Question: What are the growth prospects for the Consumer division? - The Consumer division is expected to sustain momentum, with a focus on expanding market share and enhancing service offerings to grant beneficiaries [45][49]

Group 1 - U.S. stock futures are higher, with Dow futures gaining approximately 0.2% [1] - Lovesac Co reported a quarterly loss of 45 cents per share, which was better than the analyst consensus estimate of 71 cents loss per share [1] - Lovesac's quarterly sales reached $160.530 million, exceeding the analyst consensus estimate of $160.229 million [1] Group 2 - Lovesac reduced its FY2026 GAAP EPS guidance from a range of $0.80-$1.36 to $0.52-$1.05 [2] - Lovesac shares fell 13% to $18.05 in pre-market trading following the guidance cut [2] Group 3 - Avidity Biosciences, Inc. experienced a 20.1% decline to $37.08 after announcing a $500 million common stock offering [4] - Veritone, Inc. dropped 18.7% to $2.96 due to the pricing of a $25 million public offering [4] - Lesaka Technologies Inc saw a 15.8% decrease to $3.98 following its fourth-quarter results [4] - Murano Global Investments Plc fell 14.8% to $3.50 after a previous 18% drop [4] - QMMM Holdings Ltd decreased 13.2% to $95.01 after a 47% decline on Wednesday [4] - CI&T Inc. fell 9.8% to $4.53 after a 3% decline on Wednesday [4] - Enovix Corp dropped 7.1% to $8.50 after announcing a $300 million convertible notes offering [4] - KT Corp fell 4% to $18.95 in pre-market trading [4]

Financial Performance - For FY25, Net Revenue increased by 38% to R53 billion, compared to R38 billion in FY24[20] - Group Adjusted EBITDA for FY25 increased by 33% to R922 million, compared to R691 million in FY24[20] - Adjusted earnings per share increased by 187% to R229 in FY25, compared to R080 in FY24[20] - For Q4 FY25, Net Revenue increased by 47% to R15 billion, compared to R10 billion in Q4 FY24[35] - Group Adjusted EBITDA for Q4 FY25 increased by 61% to R306 million, compared to R190 million in Q4 FY24[35] - Adjusted earnings per share for Q4 FY25 increased by 211% to R099, compared to R032 in Q4 FY24[35] Strategic Initiatives - The company acquired Adumo for R17 billion, Recharger for R507 million, and announced the acquisition of Bank Zero for R11 billion[26] - The company exited non-core asset MobiKwik for R290 million, using proceeds to reduce gross debt[26] FY26 Guidance - The company expects FY26 Net Revenue to be between R64 billion and R69 billion, representing a YoY growth of 21%-30%[110] - The company expects FY26 Group Adjusted EBITDA to be between R125 billion and R145 billion, representing a YoY growth of 36%-57%[110] - The company expects FY26 Adjusted EPS to be greater than R460, representing a YoY growth of over 100%[110]

Group 1 - Lesaka Technologies reported quarterly earnings of $0.05 per share, exceeding the Zacks Consensus Estimate of $0.04 per share, compared to a loss of $0.08 per share a year ago, representing an earnings surprise of +25.00% [1] - The company posted revenues of $82 million for the quarter ended June 2025, missing the Zacks Consensus Estimate by 37.41%, and this is a decline from year-ago revenues of $146.05 million [2] - Lesaka Technologies shares have underperformed the market, losing about 16% since the beginning of the year, while the S&P 500 gained 10.7% [3] Group 2 - The current consensus EPS estimate for the coming quarter is $0.04 on $158 million in revenues, and for the current fiscal year, it is $0.27 on $633.5 million in revenues [7] - The Zacks Industry Rank indicates that the Technology Services sector is currently in the top 36% of over 250 Zacks industries, suggesting that companies in the top 50% outperform those in the bottom 50% by more than 2 to 1 [8]

Core Viewpoint - Lesaka Technologies, Inc. reported strong preliminary unaudited results for Q4 2025 and FY2025, highlighting significant growth in net revenue and adjusted EBITDA, despite a notable increase in net loss due to non-operating charges and transaction costs [1][5][8]. FY2025 Performance - Net Revenue reached $328.7 million (ZAR 5.3 billion), reflecting a 38% increase in ZAR year-on-year [8]. - Group Adjusted EBITDA was $50.7 million (ZAR 922.2 million), up 33% in ZAR, meeting the company's guidance [8]. - The net loss for FY2025 was $87.5 million (ZAR 1.6 billion), a 386% increase in ZAR, primarily due to a non-operating, non-cash charge of $49.3 million (ZAR 897.6 million) related to the sale of MobiKwik [8]. Q4 2025 Performance - For Q4 2025, net revenue was $82.0 million (ZAR 1.5 billion), a 47% increase in ZAR compared to Q4 2024 [8]. - Group Adjusted EBITDA for Q4 2025 was $16.7 million (ZAR 305.6 million), up 61% in ZAR [8]. - The basic loss per share for Q4 2025 was $0.35 (ZAR 6.33), a 338% increase in ZAR [8]. Outlook for FY2026 - The company expects adjusted EBITDA growth of at least 35% for FY2026 and anticipates adjusted earnings per share to more than double to at least ZAR 4.60 from ZAR 2.29 in FY2025 [5][9]. - FY2026 guidance includes net revenue expectations between ZAR 6.4 billion and ZAR 6.9 billion, with Group Adjusted EBITDA projected between ZAR 1.25 billion and ZAR 1.45 billion [9]. Restatement of Financial Results - The company announced a restatement of interim fiscal 2025 financial results due to a re-evaluation of revenue classification, which is expected to increase reported revenue but will not impact operating income or net loss [11][12]. - Previously provided FY2026 revenue guidance has been withdrawn in light of the restatement [12]. Non-GAAP Measures - Lesaka utilizes non-GAAP measures such as Net Revenue, Group Adjusted EBITDA, and Adjusted earnings to provide a clearer picture of its financial performance, excluding certain charges and revenue classifications [18][19][20].

Group 1 - Lesaka Technologies, Inc. plans to release its fourth quarter and year-end 2025 results after the U.S. market close on September 10, 2025 [1] - A presentation webcast and conference call will be hosted by Lesaka management on September 11, 2025, at 8:00am EDT, followed by a live Q&A session for analysts and investors [1] - An archived version of the webcast will be available on Lesaka's Investor Relations website after the presentation [4] Group 2 - Lesaka operates as a South African fintech company, 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 Payments (ADP) [4] - Lesaka has a primary listing on NASDAQ and a secondary listing on the Johannesburg Stock Exchange [5]

Group 1 - Lesaka Technologies, Inc. will release its fourth quarter and year-end 2025 results after the U.S. market close on September 3, 2025 [1] - A presentation webcast and conference call will be hosted by Lesaka management on September 4, 2025, at 8:00am EDT, followed by a live Q&A session for analysts and investors [1] - An archived version of the webcast will be available on Lesaka's Investor Relations website after the presentation [4] Group 2 - Lesaka Technologies is a South African Fintech company focused on providing financial services and software to underserved consumers and merchants in Southern Africa [4] - The company offers a comprehensive multiproduct platform that includes transactional accounts, lending, insurance, merchant acquiring, cash management, software, and Alternative Digital Payments [4] - Lesaka has a primary listing on NASDAQ and a secondary listing on the Johannesburg Stock Exchange [4]

Core Insights - Lesaka Technologies, a South Africa-based fintech firm, has seen its shares recover from a post-earnings pullback and climb back to higher levels since the last analysis [1] Company Summary - The company is listed on NASDAQ under the ticker LSAK [1] - The recent performance indicates a positive trend in the stock price following earnings announcements [1]