Core Insights - Lesaka Technologies is consolidating its operating brands under a unified "One Lesaka" identity, aiming to enhance its market position as a strong challenger brand by integrating digital capabilities with physical distribution [1][3][6] - The company received Competition Tribunal approval for its merger with Bank Zero, which is expected to provide significant funding and balance-sheet benefits, including a reduction in gross debt by over ZAR 1 billion [2][6][19] Financial Performance - For Q2 fiscal 2026, Lesaka reported net revenue of ZAR 1.6 billion, reflecting a 16% year-over-year increase, and group-adjusted EBITDA of ZAR 304 million, up 47% year-over-year [5][7] - Adjusted earnings rose to ZAR 111 million, with adjusted earnings per share increasing from ZAR 0.21 to ZAR 1.34 [7][8] - The company's leverage ratio remained stable at 2.5x, down from 2.9x at year-end, with a medium-term target of 2x or lower [8] Operational Highlights - The consumer division showed strong performance with revenue increasing by 38% to ZAR 567 million, lending originations up 88%, and the outstanding loan book growing by 106% to approximately ZAR 1.5 billion [4][13] - The merchant division experienced a revenue decline of 2%, but active merchants increased by 8% to around 130,000, with a new in-house payments switch processing over 40% of card total payment volume [4][11][12] - In the insurance segment, gross premium revenue rose by 38% to ZAR 134 million, with enforced policies increasing by 29% to 641,000 [14] Strategic Guidance - Management provided guidance for Q3, projecting net revenue between ZAR 1.65 billion and ZAR 1.8 billion, and group-adjusted EBITDA between ZAR 300 million and ZAR 340 million [17] - Full-year guidance was reaffirmed with net revenue expected to be between ZAR 6.4 billion and ZAR 6.9 billion, and group-adjusted EBITDA between ZAR 1.25 billion and ZAR 1.45 billion [17]

Market Performance - Market indexes experienced significant declines, with the Dow dropping 592 points (-1.20%), the S&P 500 down 84 points (-1.23%), the Nasdaq falling 363 points (-1.59%), and the Russell 2000 losing 46 points (-1.79%) [1] Amazon's Earnings Report - Amazon reported mixed Q4 results, with earnings of $1.95 per share, slightly below the Zacks consensus by 3 cents, but above the $1.86 per share from the previous year [2] - Revenues for the quarter were $213.4 billion, exceeding the anticipated $211.5 billion, and Amazon Web Services (AWS) also outperformed expectations with $35.6 billion compared to $34.9 billion [2] Investor Concerns - Despite the earnings beat, Amazon's shares fell 8% in after-hours trading due to a projected $200 billion in capital expenditures aimed at competing in the AI infrastructure sector, raising concerns among investors [3] - The company announced 16,000 layoffs this week, bringing the total to 30,000 since late last year, which raises questions about the sustainability of such high spending amid lower-than-expected operating income [4] Other Company Performances - Roblox shares increased by 20% following its Q4 earnings release, reporting a loss per share of -$0.45, which was better than expected, alongside a 69% year-over-year growth in Daily Active Users (DAUs) to 144 million [5] - Affirm exceeded estimates in its fiscal Q2 report with earnings of 37 cents, a 61% year-over-year increase, and revenues of $1.12 billion, surpassing expectations, but shares still fell 4% due to concerns over consumer credit deterioration [6]

Financial Data and Key Metrics Changes - The company reported excellent results for Q2 of FY 2026, with significant growth in key metrics, although specific figures were not disclosed in the opening remarks [6][10]. - The company expects RLTC take rates to hover slightly above 4% for Q3 and Q4, indicating a stable margin outlook despite some year-over-year softening in revenue take rates [21][24]. Business Line Data and Key Metrics Changes - The Affirm Card has shown remarkable growth, with GMV up nearly 160% year-over-year and active cardholders increasing by 121% [61]. - The "other" category, which includes various smaller merchants, has grown to represent 15% of total GMV, indicating a diversification in the business [30][87]. Market Data and Key Metrics Changes - The company is experiencing healthy consumer trends, with consumers showing a willingness to borrow and repay, contributing to stable growth in the current economic environment [18][19]. - The ABS market remains constructive, with recent deals priced with spreads under 100 basis points, reflecting strong market confidence in the company's credit outcomes [49]. Company Strategy and Development Direction - The company is focused on expanding its merchant base and diversifying its offerings, with plans to explore new verticals such as home improvement and medical services [110]. - The application for a bank charter is aimed at achieving regulatory certainty and unlocking new product opportunities in the future, although the timeline for approval is uncertain [38][72]. Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the current consumer health and the ability to manage credit effectively, with no significant deviations from previous quarters [18][97]. - The company anticipates a slowdown in GMV growth to 30% in Q3 and 25% in Q4, primarily due to the transition with a large retail partner [66]. Other Important Information - The company is actively monitoring regulatory developments, particularly concerning potential caps on BNPL rates, but has not seen any immediate threats [70][72]. - The partnership with Fiserv aims to integrate buy now, pay later capabilities into existing banking products, indicating a strategic move to broaden market reach [115]. Q&A Session Summary Question: Dynamics of growth with top merchants - Management noted that the top five merchants for Q2 FY 2026 are different from the previous year, and the business is diversifying well despite some concentration [10][14]. Question: Overview of consumer trends and economic health - Management indicated that consumers are healthy and willing to repay loans, with no significant changes observed in the current quarter [18][19]. Question: RLTC margin trajectory - Management expects RLTC take rates to remain slightly above 4% in the upcoming quarters, with benefits from reduced funding costs [21][24]. Question: Impact of competition on merchant pricing - Management stated that aggressive promotional strategies from competitors have not affected Affirm's pricing or market position [28]. Question: Growth in the "other" category - Management explained that the "other" category includes a diverse range of small merchants, which are increasingly recognizing the value of offering Affirm [30][33]. Question: Bank charter application rationale - Management clarified that the primary motivation for applying for a bank charter is regulatory certainty, with potential long-term benefits for product offerings [38][72]. Question: ABS deal execution - Management highlighted strong execution in the ABS market, with favorable pricing conditions reflecting confidence in the company's credit management [49]. Question: Growth opportunities in new verticals - Management discussed the cautious approach to entering new verticals, emphasizing consumer demand as the driving factor for expansion [110].

Financial Data and Key Metrics Changes - The company reported excellent results for Q2 of fiscal 2026, with significant growth in key metrics [4][10] - The RLTC take rates are expected to remain slightly above 4% for Q3 and Q4, with transaction costs benefiting from lower funding costs [21][22] Business Line Data and Key Metrics Changes - The Affirm Card saw GMV growth of just under 160% year-over-year, with active cardholders increasing by 121% and 0% deals on the card rising by 190% [60] - The "other" category, which includes various small merchants, has grown to 15% of total GMV and is experiencing triple-digit growth [29][32] Market Data and Key Metrics Changes - The company is seeing healthy consumer trends, with consumers willing and able to repay loans, indicating a stable economic environment [15] - The ABS market remains constructive, with recent deals priced with spreads under 100 basis points, reflecting strong market confidence [48] Company Strategy and Development Direction - The company is focused on expanding its network and aims to be universally accepted across various retail sectors, similar to major credit card brands [109] - The decision to explore new verticals such as home improvement and medical is driven by consumer demand and the goal of building a comprehensive service network [108] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the current consumer health and the ability to manage credit effectively, with no significant disturbances noted in the market [94] - The company is tracking regulatory developments closely but has not identified any immediate concerns regarding potential caps on BNPL rates [70][71] Other Important Information - The company has applied for a bank charter to enhance regulatory certainty and potentially unlock new products and services in the future [38][39] - The Boost AI product is still in early stages, but it is expected to enhance merchant engagement through automated A/B testing [46] Q&A Session Summary Question: Can you discuss the dynamics of growth with the top five merchants? - Management noted that the top five merchants for Q2 of FY 2026 are different from the previous year, and the business is diversifying well despite some concentration [11] Question: What are the current consumer and credit trends? - Management indicated that consumers are healthy and willing to repay loans, with no significant deviations from previous quarters [15] Question: Can you elaborate on the RLTC margin trajectory? - Management expects RLTC take rates to hover around 4% for the remainder of the year, with transaction costs benefiting from favorable funding conditions [21][22] Question: How is competition affecting merchant pricing? - Management stated that aggressive promotional strategies from competitors have not impacted Affirm's pricing or market position [26][28] Question: What is the growth outlook for the Affirm Card and international expansion? - The Affirm Card is a significant growth driver, with plans for further expansion in the UK and other international markets [61][62] Question: What is the current state of the ABS market? - Management reported strong execution in the ABS market, with favorable pricing conditions and high confidence from investors [48] Question: How is the regulatory environment evolving? - Management is actively monitoring regulatory discussions but has not seen immediate threats to their business model [70][71] Question: What are the implications of entering new verticals? - Management clarified that new verticals are based on consumer demand and are part of a strategy to build a comprehensive service network [108]

Core Viewpoint - The company is navigating a volatile market environment while maintaining operational stability and planning a strategic shift from a passive "DAT" model to a more active "DeFi Development Corporation" approach by 2026 [5][9]. Market Environment - The market is described as unusually volatile, with Bitcoin potentially facing its largest single-day decline since the FTX collapse if it closes in "double digits" for the day [1]. Operational Updates - The company ended January with approximately 2.2 million SOL on its balance sheet and reported an SPS of 0.0743, with DFDVX generating over $30 million in trading volume during the month [4][7]. - The company has expanded its on-chain yield and treasury infrastructure through new integrations, including HILO, Mooncake, Solstice, Yield Vault, and Jupiter Lend [3][7]. Capital Allocation Strategy - The company has executed unannounced buybacks at discounts and is cautious about ATM and preferred issuance due to weak market conditions, avoiding margin debt [6][12]. - Management is considering a strategic shift to actively deploy capital into early projects and support hackathons, with a target push in 2026 [6][9]. Governance and Organizational Updates - Hadley Stern, previously chief commercial officer at Marinade Finance, has been added to the board, bringing institutional experience [2][16]. - The company is working on a U.K. initiative to create a more approval-oriented regulatory environment, aiming to have a vehicle ready for market turnaround [17]. Risk Management - The company argues that most DATs are not heavily leveraged and that its leverage is structured as unsecured debt, minimizing risks associated with margin calls [18].

This document contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended, that involve risks and uncertainties. All statements other than statements of historical fact are forward-looking statements, including statements regarding: the Company's strategy and future operations, including the Company's partnerships with certain key merchant partners and commerce platf ...

New York, New York--(Newsfile Corp. - February 5, 2026) - WHY: Rosen Law Firm, a global investor rights law firm, reminds purchasers of securities of Klarna Group plc (NYSE: KLAR) pursuant and/or traceable to the registration statement and related prospectus (collectively, the "Registration Statement") issued in connection with Klarna's September 2025 initial public offering (the "IPO"), of the important February 20, 2026 lead plaintiff deadline in the securities class action first filed by the Firm.SO WHA ...

Market Overview - Bitcoin (BTC) dropped below $70,000, losing approximately 8% in 24 hours, marking its steepest decline since early November 2024, trading at $69,398.37 [1] - The sell-off caused significant volatility in the crypto sector, negatively impacting major blockchain and fintech stocks as the U.S. market opened [1] Company Performance - Robinhood Markets (NASDAQ: HOOD) opened down 2.68% at $78.46, with investors awaiting its Q4 and full-year 2025 earnings report [2] - Coinbase (NASDAQ: COIN) fell 5% to $160.08 amid a new legal challenge from the Nevada Gaming Control Board regarding its prediction market platform [4] - Circle Internet Group (NASDAQ: CRCL), issuer of the USDC stablecoin, decreased by 4.66% to $52.54 [4] - Block (NYSE: XYZ), led by Jack Dorsey, was down 2.61% trading at $55.90 [5] - TeraWulf (NASDAQ: WULF) saw a decline of 5.63% to $13.10 after a previous day’s 11% increase [5] - Riot Platforms (NASDAQ: RIOT), a major Bitcoin mining company, dropped 5.94% to $13.30 [6] Analyst Insights - Truist Securities maintained a "Buy" rating for Robinhood with a price target of $155, while Piper Sandler highlighted near-term challenges such as declining crypto trading volumes and fading retail momentum [3]

Affirm Holdings Inc (NASDAQ:AFRM) traded lower on Thursday as investors positioned ahead of the company’s second-quarter fiscal 2026 earnings report scheduled for release after the market close.Earnings ExpectationsAnalysts expect Affirm Holdings to report earnings per share of $0.61 for the quarter, according to consensus estimates. The buy now, pay later provider will release results following Thursday’s closing bell.Market Pressure Weighs On Tech NamesThe stock’s decline comes amid a broader sell-off in ...

Key Points 63% of U.S. workers could not cover a $500 emergency as of late 2023. Many banks still pay around 4% on high-yield savings accounts. A recent study identified one single habit that doubled Americans’ retirement savings and moved retirement from dream, to reality. Read more here. The past few years have done a number on a lot of people's savings. Between high levels of unemployment spurred by the pandemic and several years of rampant inflation, many folks have whittled down their cash re ...