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Q2 2025 Results: Lesaka beats profitability guidance, reaffirms FY2025 guidance & sets FY2026 profitability guidance
Lesaka Technologies, Inc.
Registered in the state of Florida, USA
(IRS Employer Identification No. 98-0171860)
Nasdaq share code: LSAK
JSE share code: LSK
LEI: 529900J4IZMWV4RDEB07
ISIN: US64107N2062
("Lesaka," or the "Company")
Q2 2025 Results: Lesaka beats profitability guidance for Q2 2025, reaffirms FY2025 guidance and sets FY2026 profitability
guidance
JOHANNESBURG, February 6, 2025 – Lesaka (Nasdaq: LSAK; JSE: LSK) today released results for the second quarter of fiscal 2025
("Q2 2025").
Q2 2025 performance:
- Revenue of $146.8 million (ZAR 2.6 billion) was at the upper end of our Revenue guidance and compares to $143.9 million
(ZAR 2.7 billion) in Q2 2024.
- Net Revenue (a non-GAAP measure) of $77.1 million (ZAR 1.4 billion) was at the upper end of our Net Revenue guidance
increasing 42% in ZAR, from $51.7 million (ZAR 968.7 million) in Q2 2024.
- Operating income of $0.8 million (ZAR 14.2 million) was lower than operating income of $2.3 million (ZAR 42.5 million) in
Q2 2024.
- Net loss, including a tax adjusted $26.6 million (ZAR 485.6 million) non-operating, non-cash, change in fair value of Mobikwik
(a non-core asset), increased to $32.1 million (ZAR 583.7 million) compared to a net loss of $2.7 million (ZAR 50.8 million)
in Q2 2024.
- GAAP loss per share increased to $0.40 (ZAR 7.32) from $0.04 (ZAR 0.79) in Q2 2024.
- Group Adjusted EBITDA (a non-GAAP measure) of $11.8 million (ZAR 211.8 million) improved 26% in ZAR from $9.0
million (ZAR 167.8 million) in Q2 2024, exceeding guidance provided
- Fundamental earnings per share (a non-GAAP measure) of $0.01 (ZAR 0.29) improved by 12% in ZAR, from $0.01 (ZAR
0.26) in Q2 2024.
- Merchant Division Revenue decreased 5% in ZAR to $115.8 million (ZAR 2.1 billion), Net Revenue increased 68% in ZAR
to $47.7 million (ZAR 854.5 million) and Segment Adjusted EBITDA increased by 32% in ZAR, to $10.3 million (ZAR
185.1 million).
- Consumer Division Revenue and Net Revenue increased 31% in ZAR to $22.9 million (ZAR 410.7 million) and Segment
Adjusted EBITDA increased 61% in ZAR, to $4.3 million (ZAR 77.5 million).
(1) Average exchange rates applicable for the quarter: ZAR 17.85 to $1 for Q2 2025, ZAR 18.71 to $1 for Q2 2024. The ZAR
strengthened 4.6% against the U.S. dollar during Q2 2025 when compared to Q2 2024.
Commenting on the results, Lesaka Chairman Ali Mazanderani said, "I am pleased that we exceeded our Group Adjusted EBITDA
guidance for the quarter and can re-affirm our FY2025 guidance. We have now delivered on our profitability guidance for ten successive
quarters. Our Group Adjusted EBITDA guidance of ZAR 1.25 billion to ZAR 1.45 billion for FY2026 demonstrates our continued
confidence in the Lesaka platform's scalability."
Outlook: Third Quarter 2025 ("Q3 2025"), reaffirming Full Fiscal Year 2025 ("FY 2025") and Group Adjusted EBITDA
guidance for Full Fiscal Year 2026 ("FY 2026")
While we report our financial results in USD, we measure our operating performance in ZAR, and as such we provide our guidance
accordingly.
For Q3 2025, the quarter ending March 31, 2025 we expect:
- Revenue between ZAR 2.4 billion and ZAR 2.6 billion.
- Net Revenue between ZAR 1.3 billion and ZAR 1.5 billion.
- Group Adjusted EBITDA between ZAR 230 million and ZAR 260 million.
For FY2025, the year ending June 30, 2025, we expect:
- Revenue between ZAR 10.0 billion and ZAR 11.0 billion.
- Net Revenue between ZAR 5.2 billion and ZAR 5.6 billion.
- Group Adjusted EBITDA between ZAR 900 million and ZAR 1 billion
Our FY2025 outlook provided:
- Includes the impact of the acquisition of Adumo, which closed in October 2024 (in Q2 2025).
- Includes the impact of the acquisition of Recharger, which we expect to close in Q3 2025.
- Excludes the impact of unannounced mergers and acquisitions that we may conclude.
For FY2026, the year ending June 30, 2026, we expect:
For the year ending June 30, 2026, we expect Group Adjusted EBITDA between ZAR 1.25 billion and ZAR 1.45 billion. This includes
the impact of Recharger for 12 months in FY2026 and excludes the impact of unannounced mergers and acquisitions that we may
conclude.
Management has provided its outlook regarding Net Revenue and Group Adjusted EBITDA, which are non-GAAP financial measures
and excludes certain revenue and charges. Management has not reconciled these non-GAAP financial measures to the corresponding
GAAP financial measures because guidance for the various reconciling items is not provided. Management is unable to provide guidance
for these reconciling items because they cannot determine their probable significance, as certain items are outside of the company's
control and cannot be reasonably predicted since these items could vary significantly from period to period. Accordingly, reconciliations
to the corresponding GAAP financial measure is not available without unreasonable effort.
Earnings Presentation for Q2 2025 Results
Our earnings presentation will be posted to the Investor Relations page of our website prior to our earnings call.
Webcast and Conference Call
Lesaka will host a webcast and conference call to review results on February 6, 2025, at 8:00 a.m. Eastern Time which is 3:00 p.m.
South Africa Standard Time ("SAST"). A replay of the results presentation webcast will be available on the Lesaka investor relations
website following the conclusion of the live event.
Presentation webcast via Zoom:
Link to access the results webcast: https://bit.ly/3VzfPjT
Participants using the webcast will be able to ask questions by raising their hand and then asking the question "live."
Conference call dial-in:
- US Toll-Free: +1 564 217 2000 or +1 646 931 3860
- South Africa Toll-Free: +27 21 426 8190 or +27 87 551 7702 or +27 87 550 3946
Participants using the conference call dial-in will be unable to ask questions.
A replay of the results presentation webcast will be available on the Lesaka investor relations website following the conclusion of the
live event.
Our Form 10-Q for the quarter ended December 31, 2024, as filed with the SEC, is available on our company website at
www.lesakatech.com.
Headline earnings (loss) per share ("HEPS")
The inclusion of H(L)EPS in this results announcement is a requirement of our listing on the JSE. H(L)EPS basic and diluted is calculated
using net (loss) income which has been determined based on GAAP. Accordingly, this may differ to the headline (loss) earnings per
share calculation of other companies listed on the JSE as these companies may report their financial results under a different financial
reporting framework, including but not limited to, International Financial Reporting Standards.
The table below presents our HEPS for Q2 2025 and 2024:
Q2 Q2
2025 2024
Net loss used to calculate headline earnings (USD'000) ............................................................................ (31,983) (5,770)
Headline (loss) earnings per share:................................................................................................
Basic, in USD .................................................................................................................. (0.40) (0.09)
Diluted, in USD ................................................................................................................ (0.40) (0.09)
The table below presents our HEPS for F2025 and F2024:
F2025 F2024
Net loss used to calculate headline earnings (USD'000) ............................................................................ (36,545) (7,336)
Headline (loss) earnings per share:................................................................................................
Basic, in USD .................................................................................................................. (0.51) (0.12)
Diluted, in USD ................................................................................................................ (0.51) (0.12)
Results announcement released in the US and unaudited condensed consolidated financial statements
The full results announcement released in the U.S. and our unaudited condensed consolidated financial statements are available at
https://senspdf.jse.co.za/documents/2025/JSE/ISSE/LSKE/Q2Res2025.pdf and have been published on Lesaka's website at
www.lesakatech.com. Any investment decision by investors and/or shareholders should be based on consideration of the U.S. results
announcement and its recently published unaudited condensed consolidated financial statements.
About Lesaka (www.lesakatech.com)
Lesaka Technologies, (Lesaka™) is a South African Fintech company driven by a purpose to provide financial services and software to
Southern Africa's underserviced consumers (B2C) and merchants (B2B), improving people's lives and increasing financial inclusion in
the markets in which we operate. We offer a wide range of integrated payment solutions including transactional accounts (banking),
lending, insurance, payouts, cash management solutions, card acceptance, supplier payments, software services and bill payments. By
providing a full-service fintech platform in our connected ecosystem, we facilitate the digitization of commerce in our markets.
Lesaka has a primary listing on NASDAQ (NasdaqGS: LSAK) and a secondary listing on the Johannesburg Stock Exchange (JSE:
LSK). Visit www.lesakatech.com for additional information about Lesaka Technologies (Lesaka ™).
Forward-Looking Statements
This press release contains certain statements that may be considered forward-looking statements within the meaning of Section 27A of
the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and such statements are
subject to the safe harbor created by those sections and the Private Securities Litigation Reform Act of 1995, as amended. Such
statements may be identified by their use of terms or phrases such as "expects," "estimates," "projects," "believes," "anticipates,"
"plans," "could," "would," "may," "will," "intends," "outlook," "focus," "seek," "potential," "mission," "continue," "goal," "target,"
"objective," derivations thereof, and similar terms and phrases. Forward-looking statements are based upon the current beliefs and
expectations of our management and are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified,
which could cause future events and actual results to differ materially from those set forth in, contemplated by, or underlying the forward-
looking statements. In this press release, statements relating to future financial results and future financing and business opportunities
are forward-looking statements. Additional information concerning factors that could cause actual events or results to differ materially
from those in any forward-looking statement is contained in our Form 10-K for the fiscal year ended June 30, 2024, and our Form 10-
Q for the quarterly period ended December 31, 2024, as filed with the SEC, as well as other documents we have filed or will file with
the SEC. With respect to our proposed acquisition of Recharger, additional factors that could cause actual results to differ materially
from those indicated or implied by the forward-looking statements include, among others: (1) the occurrence of any event, change or
other circumstances that could give rise to the termination of the share purchase agreement relating to the proposed acquisition; (2) the
ability to satisfy all conditions to completion of the proposed acquisition, including obtaining regulatory approvals; (3) unexpected costs,
charges or expenses resulting from the transaction; (4) the disruption of management's attention from our ongoing business operations
due to the proposed acquisition; (5) changes in the financial condition of the markets that Recharger serves; (6) risks associated with
Recharger's product and service offerings or its results of operation; (7) the challenges, risks and costs involved with integrating the
operations of Recharger with ours; and (8) our ability to realize the anticipated benefits of the proposed acquisition. We assume no
obligation to update the information in this press release, to revise any forward-looking statements or to update the reasons actual results
could differ materially from those anticipated in forward-looking statements.
Investor Relations and Media Relations Contacts:
Phillipe Welthagen
Email: phillipe.welthagen@lesakatech.com
Mobile: +27 84 512 5393
Media Relations Contact:
Ian Harrison
Email: Ian@thenielsennetwork.com
Johannesburg
February 6, 2025
Sponsor:
Rand Merchant Bank, a division of FirstRand Bank Limited
Date: 06-02-2025 07:05:00
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