During the quarter, Lesaka also announced and began consolidating all operating brands under a single “One Lesaka” identity. Management framed the move as more than a rebrand, positioning it as a shift from “a collection of individual brands” to “a single, strong challenger brand” combining digital capabilities with physical distribution. As part of the consolidation, Ali said Lesaka plans in June to consolidate multiple Kazang offices into a single Johannesburg location, citing expected cost and cultural e ...

Lesaka Technologies (NasdaqGS:LSAK) Q2 2026 Earnings call February 05, 2026 08:00 AM ET Company ParticipantsAli Mazanderani - Executive ChairmanDan Smith - CFOLincoln Mali - CEOTheodore O'Neill - Chief Executive OfficerNone - Video NarratorConference Call ParticipantsRoss Krige - Equity Research AnalystOperatorWelcome to Lesaka Technologies' Results Webcast for the second quarter of fiscal 2026. As a reminder, this webcast is being recorded. Management will address any questions you have at the end of the p ...

Lesaka Technologies (NasdaqGS:LSAK) Q2 2026 Earnings call February 05, 2026 08:00 AM ET Company ParticipantsAli Mazanderani - Executive ChairmanDan Smith - CFOLincoln Mali - CEOTheodore O'Neill - Chief Executive OfficerNone - Video NarratorConference Call ParticipantsRoss Krige - Equity Research AnalystOperatorWelcome to Lesaka Technologies' Results Webcast for the Second Quarter of Fiscal 2026. As a reminder, this webcast is being recorded. Management will address any questions you have at the end of the p ...

Lesaka Technologies (NasdaqGS:LSAK) Q2 2026 Earnings call February 05, 2026 08:00 AM ET Speaker3Welcome to Lesaka Technologies' Results Webcast for the second quarter of fiscal 2026. As a reminder, this webcast is being recorded. Management will address any questions you have at the end of the presentation. To ask a question, live participants are requested to join the chorus call line by registering via the link provided. Alternatively, please enter your questions into the Questions tab of this webcast. Ou ...

Q2 FY26 Results Presentation Regulatory Disclosures US GAAP Income Statement for the Quarter Safe Harbor Statement 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 ma terially from those projected in the information. The use of words such as "may", "migh ...

Merchant Division Performance - Lesaka's Merchant Division reported an 8% increase in active merchants, reaching 132,443 in Q2 2026 compared to 122,846 in Q2 2025[238]. - The Merchant Division's Average Revenue Per User (ARPU) decreased by 10% to ZAR 1,835 in Q2 2026 from ZAR 2,030 in Q2 2025[238]. - The Merchant Division's Total Payment Volume (TPV) from Supplier Enabled Payments grew by 46% to ZAR 9.0 billion in Q2 2026 from ZAR 6.1 billion in Q2 2025[238]. - Merchant segment revenue decreased by 9% to $131.919 million[284]. Consumer Division Performance - The Consumer Division saw a 21% increase in active consumers, growing to 2.0 million in Q2 2026 from 1.6 million in Q2 2025[247]. - Lending origination in the Consumer Division surged by 88% to ZAR 1,156 million in Q2 2026, up from ZAR 617 million in Q2 2025[247]. - The Consumer Division's gross written premium from insurance policies increased by 38% to ZAR 134 million in Q2 2026 from ZAR 97 million in Q2 2025[247]. - Consumer segment revenue increased by 40% to ZAR 1,105,741, driven by higher transaction fees and loan originations[320]. Enterprise Division Performance - The Enterprise Division's Total Payment Volume (TPV) increased by 18% to ZAR 11.9 billion in Q2 2026 from ZAR 10.1 billion in Q2 2025[252]. - Enterprise segment revenue increased by 38% to ZAR 515,131, primarily due to the inclusion of Recharger[320]. Financial Performance - Revenue for the second quarter of fiscal 2026 increased by $2.5 million, or 1.4% in U.S. dollars, but decreased by ZAR 97.6 million, or 3.1% in ZAR, primarily due to a decrease in prepaid airtime sold[273]. - Consolidated revenue for the second quarter of fiscal 2026 was $178.734 million, a 1% increase from $176.216 million in the same period of fiscal 2025[284]. - Group Adjusted EBITDA for the second quarter of fiscal 2026 was $17.777 million, a 54% increase from $11.580 million in the same period of fiscal 2025[284]. - Operating income for the second quarter of fiscal 2026 was $2.15 million, a 293% increase compared to $547,000 in the same period last year[269]. - Operating income margin for the second quarter of fiscal 2026 was 1.2%, compared to 0.3% in the same period of fiscal 2025[278]. Cost and Expenses - Cost of goods sold, IT processing, servicing, and support decreased by $8.2 million (ZAR 244.7 million), or 6.2% (in ZAR 10.4%), primarily due to lower prepaid airtime costs[274]. - Selling, general and administration expenses increased by $3.9 million (ZAR 38.3 million), or 10.8% (in ZAR 5.9%), mainly due to the inclusion of Recharger and higher employee-related expenses[275]. - Depreciation and amortization expense increased by $5.3 million (ZAR 85.1 million), or 65.0% (57.8%), due to changes in useful life for certain intangible assets and acquisition-related amortization[276]. Taxation - The effective tax rate for fiscal 2026 was impacted by a tax expense of $0.7 million compared to a tax benefit of $(6.4) million in fiscal 2025[282]. - Total South African taxes paid in the first half of fiscal 2026 amounted to $4.994 million (ZAR 84.493 million), an increase from $3.068 million (ZAR 55.871 million) in the same period of fiscal 2025, representing a year-over-year increase of 62%[354]. - Total tax paid in the first half of fiscal 2026, including foreign taxes, was $5.138 million, up from $3.208 million in the first half of fiscal 2025, representing a 60% increase[354]. Cash Flow and Financing - Net cash utilized in operating activities during the second quarter of fiscal 2026 was $10.9 million, compared to $9.2 million in the same quarter of fiscal 2025[348]. - Cash and cash equivalents as of December 31, 2025, totaled $69.5 million, including ZAR 1.1 billion ($65.6 million) in ZAR-denominated balances[337]. - Long-term borrowings outstanding as of December 31, 2025, amounted to ZAR 3.6 billion ($217.1 million)[344]. - Cash flows from financing activities in the second quarter of fiscal 2026 included $20.5 million utilized from banking facilities to support Consumer lending growth, with $12.4 million repaid during the same period[359]. Acquisitions and Strategic Initiatives - The company closed the acquisitions of Adumo and Recharger in fiscal 2025, integrating their businesses into its operations[265]. - Lesaka finalized the lease for a new head office in Johannesburg, consolidating three offices into one hub to enhance operational efficiency[231]. - Lesaka's new brand launched in November 2025 aims to create a unified identity for customers and employees, supporting strategic initiatives for growth[230]. Other Financial Metrics - Net interest charge decreased to $4.08 million (ZAR 69.9 million) from $5.55 million (ZAR 99.4 million), primarily due to lower interest expenses[267]. - The company recorded an increase in the fair value of Cell C of $3.0 million (ZAR 50 million) during the second quarter of fiscal 2026[279]. - The company incurred transaction costs related to acquisitions totaling $141,000 for the six months ended December 31, 2025[334].

Financial Performance - Lesaka reported Q2 FY2026 revenue of $178.734 million, a slight increase of 1.4% year-on-year compared to $176.216 million in Q2 FY2025[3] - Net revenue for Q2 FY2026 was $93.403 million, representing a 16% increase from $77.060 million in Q2 FY2025[3] - Operating income surged to $2.150 million, a 265% increase from $547,000 in the same quarter last year[3] - The company achieved a positive net income of $3.645 million, a significant turnaround from a loss of $32.456 million in Q2 FY2025[3] - Group Adjusted EBITDA for Q2 FY2026 was $17.777 million, up 47% from $11.580 million in Q2 FY2025[3] - Lesaka reported a GAAP net income of $3,645 for the three months ended December 31, 2025, compared to a loss of $32,456 in the same period of 2024, marking a significant turnaround[28] - The company's Group Adjusted EBITDA for the six months ended December 31, 2025, was $32,872, up from $20,719 in the prior year, reflecting a 58.5% increase[28] - Net Revenue for the three months ended December 31, 2025, was $93,403, representing a 21.3% increase from $77,060 in the same period of 2024[32] - Adjusted net income for the six months ended December 31, 2025, was $11,085, compared to $2,551 in the same period of 2024, reflecting a substantial increase[35] Future Guidance - Lesaka reaffirmed its full-year guidance for FY2026, projecting a 49% growth in Group Adjusted EBITDA at the mid-point[5] - For Q3 FY2026, Lesaka expects net revenue between ZAR 1.65 billion and ZAR 1.80 billion[6] - The company anticipates Group Adjusted EBITDA for Q3 FY2026 to be between ZAR 300 million and ZAR 340 million[6] - FY2026 guidance includes net revenue expectations of ZAR 6.4 billion to ZAR 6.9 billion and adjusted earnings per share of at least ZAR 4.60, indicating over 100% year-on-year growth[14] Segment Performance - The Merchant segment revenue for the three months ended December 31, 2025, was $131,919, down from $145,209 in the same period of 2024, indicating a decline of 9.0%[32] - The Enterprise segment revenue for the three months ended December 31, 2025, increased to $14,796 from $8,933 in the prior year, showing a growth of 65.5%[33] Assets and Liabilities - Total current assets as of December 31, 2025, were R 4,723,610, an increase from R 4,330,950 as of June 30, 2025[41] - Total liabilities as of December 31, 2025, were R 7,097,257, slightly down from R 7,036,164 as of June 30, 2025[41] Transaction Costs and Acquisitions - The company incurred transaction costs related to acquisitions totaling $373 for the six months ended December 31, 2025, compared to $537 in the same period of 2024[29] - The company incurred transaction costs related to acquisitions amounting to R 805 for the three months ended December 31, 2025, down from R 3,957 in 2024[38] - Lesaka's acquisition of Bank Zero is pending regulatory approvals and will not impact the FY2026 guidance[7] Fair Value Changes - The company reported a change in fair value of equity securities of R 50,000 for the three months ended December 31, 2025, compared to a loss of R 614,710 in 2024[38] Exchange Rates - The exchange rate for USD to ZAR was 16.9556 for the three months ended December 31, 2025, compared to 17.8495 in 2024[38]

JOHANNESBURG, Feb. 04, 2026 (GLOBE NEWSWIRE) -- Lesaka Technologies, Inc. (Nasdaq: LSAK; JSE: LSK) today released results for the second quarter of fiscal 2026 (“Q2 2026”). Q2 2026 performance1:All growth rates are year-on-year between Q2 FY2026 and Q2 FY2025. Group LevelUSD(In thousands, except per share data) ZAR(In thousands, except per share data)   Q2 FY26 Q2 FY25 Q2 FY26 Q2 FY25 YoY%Revenue178,734 176,216  3,058,191 3,155,758  (3%)Net Revenue(2)93,403 77,060  1,598,138 1,379,926  16%Operating Income(3 ...

Core Viewpoint - Lesaka Technologies, Inc. will release its second quarter 2026 results on February 4, 2026, after the U.S. market closes, followed by a presentation and Q&A session on February 5, 2026 [1] Company Overview - Lesaka operates as a South African fintech company focused on 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 Products (ADP) [4] - Lesaka aims to facilitate the digitization of commerce in its markets through targeted solutions and integrations that enable payments between consumers, merchants, and enterprises [4] Stock Listings - Lesaka has a primary listing on NASDAQ (NASDAQ: LSAK) and a secondary listing on the Johannesburg Stock Exchange (JSE: LSK) [5]

Financial Performance - Net revenue for Q1 was ZAR 1.53 billion, a 45% increase year-on-year [4] - Group adjusted EBITDA was ZAR 271 million, representing a 61% year-on-year growth [4] - Adjusted earnings grew by 150% to ZAR 87 million, with adjusted earnings per share doubling from ZAR 0.54 to ZAR 1.07 [4][8] - Net debt to adjusted EBITDA improved from 2.9x to 2.5x year-on-year [10] Business Line Performance - The Enterprise division reported net revenue of ZAR 222 million, a 19% year-on-year improvement [5] - Consumer division net revenue increased by 43% year-on-year [6] - Merchant division net revenue also rose by 43%, driven by the acquisition of Adumo [6] - Merchant segment adjusted EBITDA was ZAR 162 million, a 20% increase year-on-year [6] Market Performance - The number of devices in the Merchant division grew from 53,500 to almost 88,000 [11] - Total Payment Volume (TPV) for card acquiring more than doubled to ZAR 9.2 billion [11] - Cash TPV in the micro merchant segment grew 75% year-on-year, now accounting for 18% of all cash volumes [13] Company Strategy and Industry Competition - The company is focusing on unifying its merchant brand and product offerings to capture efficiencies [7] - The integration of various products and businesses is aimed at creating a comprehensive go-to-market strategy [7] - The company is simplifying its operations and reducing its lease footprint from over 40 locations to approximately 20 [29] Management Commentary on Operating Environment and Future Outlook - Management expressed confidence in achieving guidance for the 13th consecutive quarter [3] - The company anticipates continued improvement in net debt to adjusted EBITDA ratio as adjusted EBITDA increases [10] - Management expects to maintain discipline and focus on execution for FY 2026 [33] Other Important Information - Cash flows from operations totaled ZAR 341 million for the quarter [9] - Capital expenditure for the quarter was ZAR 90 million, with expectations to remain below ZAR 400 million annually [9] - The company is on track to close the Bank Zero acquisition by the end of FY 2026 [29] Q&A Session Summary Question: What is the reason for the sequential performance decline in the merchant segment revenue? - Management indicated that there is seasonality and non-core business lines being closed [37] Question: Can you elaborate on the change in margin for the merchant segment? - Management noted that non-recurring costs impacted margins and provided guidance for the next quarter to better reflect underlying growth [38] Question: What is the expected impact on the cost base from infrastructure rationalization? - Management expects significant cost savings from the rationalization of operations and reduction of duplicated functions [44] Question: How is the cross-sell strategy progressing? - Management plans to provide attachment rates for products in the merchant business, indicating a high attachment rate for customers with multiple products [42] Question: What is the rationale behind the Cell C potential IPO? - Management supports the IPO as it aligns with the strategy to simplify operations and focus on core business [48]