Financial Data and Key Metrics Changes - The company reported revenue of ZAR 2.5 billion, net revenue of ZAR 1.36 billion, and group adjusted EBITDA of ZAR 237 million, achieving guidance across all metrics for the quarter [10][11] - Fundamental earnings grew 98% year on year to ZAR 58 million, translating to ZAR 0.72 per share, an increase of 60% [10][13] - Net revenue increased 42% year on year, primarily driven by the inclusion of Adumo and a 32% increase in the consumer segment [12][11] Business Line Data and Key Metrics Changes - The Consumer division had a standout quarter with record transactional account enrollments, lending, and insurance originations, resulting in a revenue growth of 32% year on year to ZAR 446 million [5][39] - The Merchant division's net revenue was up 58% to ZAR 782 million, with segment adjusted EBITDA increasing 7% to ZAR 150 million [27] - The Enterprise division reported an EBITDA of ZAR 2 million, down from ZAR 14 million last year, due to restructuring costs and exiting certain hardware businesses [42][45] Market Data and Key Metrics Changes - The company serves 1.9 million consumers monthly, with a market share of 13% among permanent SASSA grant recipients [30][32] - The merchant acquiring offering now has over 81,000 points of presence, with throughput on devices growing to CAD 9.9 billion for the quarter [22] - The prepaid solutions throughput increased 4% year on year to ZAR 5.3 billion, while supplier enabled payments grew 57% year on year [25][26] Company Strategy and Development Direction - The company is focused on building a multiproduct fintech platform organized around customer needs, with M&A being a key part of the strategy [6][5] - The integration of Recharger is expected to significantly contribute to the Enterprise division and enhance the electricity vending business [44][48] - The company aims to optimize capital allocation towards areas with significant growth potential while downscaling less attractive market opportunities [7][11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the continued momentum of the Consumer division into FY 2026, with expectations of sustained growth in both customer base and ARPU [53][60] - The company anticipates a revenue guidance of ZAR 10 billion to ZAR 11 billion for FY 2025, with a net revenue increase of 42% year on year [51][52] - The Enterprise division is expected to become a material contributor to EBITDA in the coming years, with significant investments being made [42][70] Other Important Information - The company launched an employee share ownership plan, aligning employee interests with the company's success [10] - A net loss of ZAR 311 million was recorded from the noncore investment in MobiKwik, impacting overall financial results [9] Q&A Session Summary Question: Comment on your market share gains in this business. Has this continued into April and May? - Management noted significant investments have led to a 70% year-on-year growth in the customer base, with record sales in recent months indicating continued market share gains [59] Question: How deep could the endpoint for penetration end up? - Management believes there is potential to grow insurance penetration rates into the 40s and expand beyond the current customer base [62] Question: Insights on the merchant market growth and current slower growth in key contributors? - Management clarified that net revenue is growing at market rates, with confidence in restoring growth rates in the prepaid space back to mid-teen levels [64][66] Question: Contribution of the Enterprise division to group adjusted EBITDA? - Management indicated that FY 2025 was a year of rebuild for the Enterprise division, with expectations for a meaningful contribution to EBITDA in FY 2026 [68][70] Question: Thoughts on capital allocation regarding cash vaults? - Management emphasized that cash vaults are part of a holistic offering to merchants, facilitating a transition to more profitable services [71][73] Question: Margin evolution within the group per division? - Management expects the Consumer division's margin to exceed 30% over time, with similar expectations for the Merchant division, aiming for a group margin of around 30% in the medium term [74][76]

Financial Data and Key Metrics Changes - The company reported revenue of ZAR 2.5 billion, net revenue of ZAR 1.36 billion, and group adjusted EBITDA of ZAR 237 million, achieving guidance across all metrics for the quarter [9][10] - Fundamental earnings grew 98% year on year to ZAR 58 million, translating to ZAR 0.72 per share, an increase of 60% [11][12] - Net revenue increased 42% year on year, primarily driven by the inclusion of Adumo and a 32% increase in the consumer segment [11][12] Business Line Data and Key Metrics Changes - The Consumer division had record transactional account enrollments, lending, and insurance originations, contributing to a 32% revenue growth year on year to ZAR 446 million [38] - The Merchant division's net revenue was up 58% to CAD 782 million, with segment adjusted EBITDA increasing 7% to CAD 150 million [28][29] - The Enterprise division reported an EBITDA of ZAR 2 million, down from ZAR 14 million last year, due to restructuring costs and exiting certain hardware businesses [41][66] Market Data and Key Metrics Changes - The company serves 1.9 million consumers monthly, with a market share of 13% among permanent SASSA grant recipients [32] - The merchant acquiring offering now has over 81,000 points of presence, with throughput on devices growing to CAD 9.9 billion for the quarter [22] - The prepaid solutions throughput increased 4% year on year to ZAR 5.3 billion, while supplier enabled payments grew 57% year on year [25][26] Company Strategy and Development Direction - The company is focused on building a multiproduct fintech platform and has made acquisitions like Recharger to enhance its offerings [6][8] - The strategy includes optimizing capital allocation towards high-growth areas while downscaling less attractive market opportunities [7] - The company aims to achieve a net debt to group adjusted EBITDA ratio of 2x in the medium term, indicating a focus on financial stability [15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the continued momentum of the Consumer division and expects strong growth in FY 2026 [51] - The company anticipates a revenue guidance of ZAR 10 billion to ZAR 11 billion for FY 2025, with a net revenue increase of 42% year on year [49] - The Enterprise division is expected to become a material contributor to EBITDA, with significant investments being made in technology and new products [42][66] Other Important Information - The company launched an employee share ownership plan, aligning employee interests with company success [9] - The acquisition of MobiKwik resulted in a net loss of ZAR 311 million, impacting overall financial results for the quarter [8] - The company completed a debt refinance, reducing the weighted average cost of debt from approximately 12% to 10.7% per annum [16] Q&A Session Summary Question: Comment on your market share gains in this business. Has this continued into April and May? - Management noted a significant increase in customer base and market share, with record sales in recent months indicating continued growth [57] Question: How deep could the endpoint for penetration end up? - Management believes there is potential to grow insurance product penetration into the 40s and expand beyond the current customer base [59] Question: Can you give insight on why card acquiring and ADP appear to be growing slower than the market? - Management clarified that net revenue is growing at market rates and expects to restore growth in the prepaid space back to mid-teen levels [61][64] Question: What has caused the deterioration of the Enterprise division's contribution to revenue and EBITDA? - The Enterprise division faced challenges due to the closure of legacy businesses but is expected to contribute positively in FY 2026 [66] Question: How do you think about capital allocation in the context of cash vaults? - Management emphasized that cash vaults are part of a holistic offering to merchants, facilitating a transition to more profitable services [68][71] Question: How should we think about margin evolution within your group per division? - Management expects the Consumer division's margin to exceed 30% over time, with similar expectations for the Merchant division [72][74]

Group 1: Earnings Performance - Lesaka Technologies reported quarterly earnings of $0.04 per share, exceeding the Zacks Consensus Estimate of $0.02 per share, compared to a loss of $0.06 per share a year ago, representing an earnings surprise of 100% [1] - The company posted revenues of $135.67 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 4.36%, although this is a decline from year-ago revenues of $138.19 million [2] - Over the last four quarters, Lesaka Technologies has surpassed consensus EPS estimates just once, but has topped consensus revenue estimates three times [2] Group 2: Stock Performance and Outlook - Lesaka Technologies shares have declined approximately 21.7% since the beginning of the year, in contrast to the S&P 500's decline of 4.7% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The current consensus EPS estimate for the coming quarter is $0.05 on $131 million in revenues, and $0.12 on $553.36 million in revenues for the current fiscal year [7] Group 3: Industry Context - The Technology Services industry, to which Lesaka Technologies belongs, is currently ranked in the top 26% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors or through tools like the Zacks Rank [5][6]

FY25 Q3 Results Presentation May 8, 2025 1 Safe harbor statement 2 The Private Securities Litigation Reform Act of 1995 provides a "safe harbor" for certain forward-looking statements so long as such information is identified as forward-looking and is accompanied by meaningful cautionary statements identifying important factors that could cause actual results to differ materially from those projected in the information. The use of words such as "may", "might", "will", "should", "expect", "plan", "anticipate ...

Financial Performance - Consolidated revenue for Q3 2025 was $135.67 million, a decrease of 2% from $138.19 million in Q3 2024[323]. - Revenue decreased by 4% in ZAR, primarily due to fewer low margin prepaid airtime sales and lower contribution from legacy Enterprise businesses, partially offset by Adumo and Recharger inclusion[322]. - Group Adjusted EBITDA for Q3 2025 was $12.8 million, a 32% increase from $9.7 million in Q3 2024[333]. - Net loss attributable to the company was $22.06 million, a 445% increase from $4.05 million in Q3 2024[323]. - Year-to-date revenue was flat in USD and decreased by 1.1% in ZAR, impacted by the inclusion of Adumo and Recharger, and fewer Pinned Airtime sales[347]. - Group Adjusted EBITDA for the nine months ended March 31, 2025, was $33,970,000, a 27% increase from $26,678,000 in the prior year[364]. - The total consolidated revenue in South African Rand for the nine months ended March 31, 2025, was ZAR 7,754,951,000, a 1% decrease from ZAR 7,842,078,000 in the prior year[366]. Consumer Division Growth - The Consumer Division's active EasyPay Everywhere transactional account base grew to 1.7 million in Q3 2025, a 16% increase from 1.5 million in Q3 2024[292]. - Total throughput for the Consumer Division's EasyPay Loans reached ZAR 641 million in Q3 2025, a 54% increase from ZAR 416 million in Q3 2024[292]. - The average revenue per user (ARPU) for permanent grant beneficiaries increased to approximately ZAR 106 per month in Q3 2025, up from ZAR 90 in Q3 2024[297]. - The consumer loan book increased by 59% to ZAR 808 million as of March 31, 2025, compared to ZAR 509 million a year ago[300]. - The company originated approximately 320,000 loans during the quarter, reflecting strong demand for tailored loan products[300]. - Consumer segment revenue increased due to higher transaction fees from a larger EPE account holder base and increased loan originations, leading to a Segment Adjusted EBITDA margin of 26.3%, up from 21.0% year-over-year[341][342]. Merchant Division Performance - The Merchant Division deployed 81,106 devices in Q3 2025, a 62% increase from 50,211 devices in Q3 2024, with total throughput reaching ZAR 9.9 billion, up 154% year-on-year[278]. - The number of devices in deployment for cash management solutions reached 4,550, with cash settlements for the quarter totaling ZAR 27.5 billion, a 2% increase year-on-year[282]. - Supplier enabled payments throughput increased by 57% to ZAR 5.9 billion in Q3 2025, compared to ZAR 3.8 billion in Q3 2024[289]. - Merchant segment revenue decreased by 2% to $334,442,000, while Consumer segment revenue increased by 36% to $68,097,000, and Enterprise segment revenue decreased by 7% to $30,259,000[364]. Enterprise Division Developments - The Enterprise Division's offerings include a new payment switch, Prism Switch, enhancing service capabilities for large corporates and other clients[298]. - Enterprise segment revenue decreased significantly, with a Segment Adjusted EBITDA margin dropping to 1.5% in fiscal 2025 from 7.4% in fiscal 2024[374]. Debt and Financing - The company completed a ZAR 4.5 billion refinance of its debt facilities, reducing the overall weighted average borrowing rate by approximately 1.3% per year[304]. - Long-term borrowings outstanding as of March 31, 2025, amounted to ZAR 3.6 billion ($194.7 million), which includes ZAR 3.1 billion used to refinance previous long-term borrowings[389]. - Net interest charge increased to $15.0 million (ZAR 272.5 million) from $12.8 million (ZAR 239.0 million) due to higher borrowings, partially offset by increased interest received from Adumo[347]. Operational Costs - Selling, general and administration expenses increased by $30.1 million (ZAR 502.4 million), or 44.8% in USD, primarily due to the inclusion of Adumo and higher employee-related expenses[353]. - Cost of goods sold decreased by $26.2 million (7.9%) in USD and ZAR by ZAR 685.3 million (11.1%), mainly due to decreased Pinned Airtime sales[352]. - Group costs increased by 25% to $7,541,000 due to higher employee costs and other operational expenses[375]. Cash Flow and Investments - Cash and cash equivalents as of March 31, 2025, totaled $71.0 million, with a significant portion being ZAR 1.2 billion ($65.9 million) in ZAR-denominated balances[384]. - Net cash provided by operating activities during the third quarter of fiscal 2025 was $10.7 million, a turnaround from net cash utilized of $19.2 million in the same quarter of fiscal 2024[393]. - Cash used in investing activities for the year to date of fiscal 2025 included capital expenditures of $13.1 million, primarily for the acquisition of vaults and POS devices[402]. - The company expects capital spending for Q4 fiscal 2025 to include acquisitions of POS devices, vaults, and ATM infrastructure, with outstanding capital commitments of $0.1 million as of March 31, 2025[410].

Core Insights - Lesaka Technologies, Inc. reported its Q3 2025 financial results, reaffirming its full-year guidance for FY2025 and providing projections for FY2026, indicating a positive outlook for revenue and net income growth [2][3]. Financial Performance - Revenue for Q3 2025 was $135.7 million (ZAR 2.5 billion), slightly down from $138.2 million (ZAR 2.6 billion) in Q3 2024 [4]. - Net Revenue, a non-GAAP measure, increased by 43% in ZAR to $73.4 million (ZAR 1.4 billion) compared to $50.3 million (ZAR 950.6 million) in Q3 2024 [4]. - Operating income decreased to $0.6 million (ZAR 10.9 million) from $0.8 million (ZAR 15.0 million) in Q3 2024, impacted by $2.3 million (ZAR 42.3 million) in one-off transaction costs [4]. - The net loss for Q3 2025 was $22.1 million (ZAR 404.3 million), compared to a net loss of $4.0 million (ZAR 76.4 million) in Q3 2024, largely due to a non-cash charge related to the fair value of Mobikwik [4]. - Group Adjusted EBITDA improved by 29% in ZAR to $12.8 million (ZAR 236.8 million) from $9.7 million (ZAR 183.3 million) in Q3 2024 [4]. Guidance and Outlook - For FY2025, the company expects revenue between ZAR 10.0 billion and ZAR 11.0 billion, with net revenue between ZAR 5.2 billion and ZAR 5.6 billion [5]. - For FY2026, revenue is projected to be between ZAR 11.4 billion and ZAR 12.2 billion, with net revenue between ZAR 6.4 billion and ZAR 6.9 billion [5]. - The company anticipates a 23% growth in Net Revenue and a 42% growth in Group Adjusted EBITDA year-on-year for FY2026 [2][3]. Segment Performance - Merchant Division Revenue decreased by 10% in ZAR to $103 million (ZAR 1.9 billion), while Net Revenue increased by 58% in ZAR to $42.3 million (ZAR 782.2 million) [4]. - Consumer Division Revenue and Net Revenue increased by 32% in ZAR to $24.1 million (ZAR 445.8 million), with Segment Adjusted EBITDA rising by 65% in ZAR to $6.3 million (ZAR 117.1 million) [4].

JOHANNESBURG, April 08, 2025 (GLOBE NEWSWIRE) -- Lesaka Technologies, Inc. (NASDAQ:LSAK, JSE: LSK) ("Lesaka" or the "Company") today announced it will release third quarter 2025 results after the U.S. market close on May 7, 2025. Lesaka management will host a presentation webcast on May 8, 2025, on at 8:00am EDT (2:00pm SAST), followed by a live question and answer session for analysts and investors. Webcast Registration Link to access the results webcast: https://www.corpcam.com/Lesaka08052025 Participants ...

Core Points - Lesaka Technologies, Inc. has made four presentations available on its investor relations website ahead of its Investor Day scheduled for March 31, 2025 [1][2] - The presentations cover management's perspectives on the company's strategic vision, market opportunities, competitive positioning, and go-to-market strategies [7] - A live presentation will be hosted by Lesaka's management on March 31, 2025, discussing recent performance and current outlook, followed by a Q&A session [3] Company Overview - Lesaka Technologies is a South African Fintech company focused on providing financial services and software to underserved consumers and merchants in Southern Africa [5] - The company offers an integrated multiproduct platform that includes transactional accounts, lending, insurance, payouts, card acquiring, cash management, software, and Alternative Digital Payments [5] - Lesaka aims to facilitate the digitization of commerce in its markets through a full-service fintech platform [5] Investor Relations - Lesaka has a primary listing on NASDAQ and a secondary listing on the Johannesburg Stock Exchange [6] - Information regarding registration for the Investor Day event is available on the company's website [4]

Group 1 - Lesaka Technologies, Inc. completed the acquisition of Recharger (Pty) Ltd for ZAR 507 million ($27 million) on March 3, 2025, consisting of ZAR 332 million ($18 million) in cash and ZAR 175 million ($9 million) in shares [1][2] - The acquisition is expected to enhance Lesaka's strategy in its Enterprise Division and provide an entry point into the South African private utilities market, while also augmenting its alternative payment offerings [3] - Recharger operates a prepaid electricity submetering and payments business with over 460,000 registered prepaid electricity meters, allowing landlords to collect payments in advance and giving tenants control over their utility usage [4] Group 2 - Lesaka Technologies aims to improve financial inclusion in Southern Africa through its integrated fintech platform, which offers various financial services including transactional accounts, lending, insurance, and alternative digital payments [5] - The company has a primary listing on NASDAQ and a secondary listing on the Johannesburg Stock Exchange [6]

Group 1 - Lesaka Technologies, Inc. will host an Investor Day on March 31, 2025, featuring presentations from senior leadership about the company's strategic vision and market opportunities [1] - The event will include a detailed description of Lesaka's go-to-market strategies across its Consumer, Merchant, and Enterprise divisions, along with a financial performance overview [1] - A live Question and Answer session will be available for analysts and investors during the event [1] Group 2 - The Investor Day will take place from 9:00am to 11:00am EDT, with options for virtual or in-person attendance at Lesaka's head office in Rosebank [2] - Virtual attendees will have the opportunity to submit questions during the live Q&A session [2] - Registration for participation must be completed by March 25, 2025 [3] Group 3 - 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 an integrated multiproduct platform that includes banking, lending, insurance, payouts, card acquiring, cash management, and Alternative Digital Payments [4] - Lesaka aims to facilitate the digitization of commerce in its markets through a full-service fintech platform [4] Group 4 - Lesaka has a primary listing on NASDAQ and a secondary listing on the Johannesburg Stock Exchange [5]