Core Insights - Lesaka Technologies, Inc. reported strong financial performance for FY2025, achieving profitability guidance and advancing strategic priorities, with expectations for continued momentum into FY2026 [5][8]. FY2025 Performance - Revenue for FY2025 reached $659.7 million (ZAR 12.0 billion), representing a 14% increase in ZAR year-on-year [7]. - Net Revenue, a non-GAAP measure, was $328.7 million (ZAR 5.3 billion), up 38% in ZAR [7]. - The company reported a net loss of $87.5 million (ZAR 1.6 billion), a significant increase of 386% in ZAR, primarily due to non-operating, non-cash charges [7]. - Group Adjusted EBITDA was $50.7 million (ZAR 922.2 million), reflecting a 33% increase in ZAR [7]. - Basic loss per share was $1.14 (ZAR 19.49), up 284% in ZAR [7]. - Adjusted earnings were $10.4 million (ZAR 186.2 million), up 263% in ZAR, with adjusted earnings per share of $0.13 (ZAR 2.29), up 187% in ZAR [7]. Q4 2025 Performance - For Q4 2025, revenue was $168.5 million (ZAR 3.1 billion), a 14% increase in ZAR [7]. - Net Revenue for Q4 was $82.0 million (ZAR 1.5 billion), up 47% in ZAR [7]. - The net loss for Q4 was $28.8 million (ZAR 515 million), an increase of 452% in ZAR [7]. - Group Adjusted EBITDA for Q4 was $16.7 million (ZAR 305.6 million), up 61% in ZAR [7]. 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][8]. - Revenue guidance for Q1 FY2026 is set at $659.7 million (ZAR 12.0 billion) and for FY2026, net revenue is projected between ZAR 6.4 billion and ZAR 6.9 billion [8][14]. Non-GAAP Measures - Lesaka utilizes non-GAAP measures such as Group Adjusted EBITDA, Net Revenue, and Adjusted earnings to provide a clearer picture of its financial performance, excluding certain charges and revenues [10][19]. - The company has not reconciled these non-GAAP measures to GAAP measures due to the unpredictability of certain items [9]. Business Model - Lesaka operates as a fintech company in South Africa, providing a range of financial services, including transaction processing, lending, and insurance, aimed at underserved consumers and merchants [22][23]. - The company’s integrated platform facilitates payments and enhances the digitization of commerce in its markets [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, leading 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]. About the Law Firm - Bragar Eagel & Squire, P.C. is a nationally recognized law firm that represents individual and institutional investors in various complex litigations across state and federal courts [4].

Core Viewpoint - Pomerantz LLP is investigating potential securities fraud or unlawful business practices involving Lesaka Technologies, Inc. and its officers or directors [1] Financial Disclosure - On September 10, 2025, Lesaka disclosed 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 [3] - The company indicated that the previously reported financial statements should no longer be relied upon, impacting the classification of certain revenue as an agent rather than as a principal, along with related cost of goods sold [3] Market Reaction - Following the announcement of the financial restatement, Lesaka's stock price experienced a sharp decline during intraday trading on September 11, 2025 [3]

Core Viewpoint - Pomerantz LLP is investigating claims on behalf of investors of Lesaka Technologies, Inc. (NASDAQ: LSAK) [1] Group 1 - The investigation is focused on potential claims related to Lesaka Technologies, Inc. [1]

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][3]. Group 1: Company Financials - 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 [3]. - The financial statements in question were reported as agent revenue rather than principal revenue, which affects the related cost of goods sold [3]. Group 2: Stockholder Impact - Following the announcement of the restatement, Lesaka's stock experienced a decline [3]. - Bragar Eagel & Squire is reaching out to investors who suffered losses due to the stock drop, encouraging them to discuss their legal rights [1][4].

Group 1 - Pearl Gray is a proprietary investment fund and independent market research firm focusing on Fixed-Income and Capital Flows [1] - The firm also provides analysis on equity REITs, Investment Fund Appraisal, and Bank Risk Analysis for its Seeking Alpha readers [1] - The content published by the firm is independent analysis and does not constitute financial advice [1][3] Group 2 - The firm encourages readers to consult a registered financial advisor before making investment decisions [3] - There is no indication of any stock, option, or similar derivative positions held by the analysts in the companies mentioned [2] - The article expresses the author's own opinions and is not influenced by compensation from any company [2]

Group 1 - Lesaka Technologies, Inc. is currently under investigation for potential fraud, providing an opportunity for investors to join the legal proceedings initiated by the Schall Law Firm [1]

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 [4][12] - For Q4 2025, net revenue was R1.5 billion, up 47% year on year, and group adjusted EBITDA was R306 million, reflecting a 61% increase [11][12] - The net debt to adjusted EBITDA ratio increased from 2.5 times to 2.9 times at year-end, but annualizing Q4 results suggests a leverage ratio of 2.2 times, approaching the target of less than 2 times [12][20] Business Line Performance - The Merchant division 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 [6][38] - The Consumer division 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 [7][52] - The Enterprise division reported a decline in net revenue of 9% to R651 million and EBITDA decreased from R55 million to R24 million due to restructuring and closure of non-core business units [7][59] Market Performance - The Merchant division expanded its acquiring footprint to 84,541 points of presence, up from 51,880 a year ago, indicating a 16% annualized growth [32] - The Consumer division increased its active consumer base to 348,000, a 23% increase year on year, with a significant share of new customers coming from Postbank migrations [46][50] - The Enterprise division's net revenue for Q4 was R190 million, with a focus on expanding distribution channels and integrating acquired businesses [58][59] 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 [41][61] - The company aims to consolidate its brand identity and streamline operations to improve efficiency and reduce costs, with plans to reduce the number of offices and unify its branding [64][65] - The competitive landscape includes banks, retailers, and mobile network operators vying for merchant engagement, with Lesaka differentiating itself through a comprehensive product suite [24][41] 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 growth strategies [9][61] - The focus for FY 2026 includes optimizing the balance sheet, enhancing unit economics, and driving sustainable growth across all business divisions [20][22] - The management team emphasized the importance of cross-selling and bundling services to improve customer engagement and drive revenue growth [30][31] Other Important Information - The company incurred significant non-recurring costs related to acquisitions and restructuring, including ZAR 239 million in transaction costs and ZAR 335 million in non-cash goodwill impairments [15][17] - Operating cash flow increased to R370 million in Q4, reflecting strong cash generation capabilities despite fluctuations in working capital [18][19] - Capital expenditures for the quarter were R103 million, with expectations to maintain disciplined investment below R400 million annually [21][22] Q&A Session Summary Question: What are the expectations for the BankZero acquisition? - Management highlighted that BankZero will enhance Lesaka's banking capabilities, allowing for tailored banking solutions for small-to-medium merchants and improving overall service offerings [41][61] Question: How does the company plan to address the integration of acquired businesses? - The focus will be on streamlining operations, reducing duplication, and enhancing cross-sell opportunities across the integrated platform [27][29] Question: What are the growth prospects for the Consumer division? - The Consumer division is expected to continue its growth trajectory, leveraging increased market share and expanding product offerings beyond the grant beneficiary segment [46][52]

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]