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]

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]

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]