Lesaka(LSAK) - 2025 Q2 - Quarterly Results

Financial Performance - Lesaka reported Q2 2025 revenue of $146.8 million (ZAR 2.6 billion), which is at the upper end of their revenue guidance and represents an increase from$143.9 million (ZAR 2.7 billion) in Q2 2024[5]. - Net Revenue for Q2 2025 was $77.1 million (ZAR 1.4 billion), a 42$51.7 million (ZAR 968.7 million) in Q2 2024[5]. - Group Adjusted EBITDA for Q2 2025 was $11.8 million (ZAR 211.8 million), exceeding guidance and improving 26$9.0 million (ZAR 167.8 million) in Q2 2024[5]. - The company expects FY2025 revenue guidance between ZAR 10.0 billion and ZAR 11.0 billion, with Net Revenue between ZAR 5.2 billion and ZAR 5.6 billion[6]. - For FY2026, Group Adjusted EBITDA is expected to be between ZAR 1.25 billion and ZAR 1.45 billion, including the impact of the acquisition of Recharger[7]. - Lesaka's Merchant Division Revenue decreased by 5% in ZAR to $115.8 million (ZAR 2.1 billion), while Consumer Division Revenue increased by 31$22.9 million (ZAR 410.7 million)[5]. - Lesaka's net loss for Q2 2025 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[5]. - The company reported a GAAP loss of $32,134,000 for the three months ended December 31, 2024, compared to a loss of$2,707,000 in the same period of 2023, indicating a significant increase in losses[26]. - The company's net revenue for the three months ended December 31, 2024, was $77,060,000, representing a 49$51,730,000 in the same period of 2023[30]. - Group Adjusted EBITDA for the six months ended December 31, 2024, was $21,173,000, up from$16,975,000 in the same period of 2023, reflecting a growth of approximately 25%[26]. - Merchant net revenue for the three months ended December 31, 2024, was $47,714,000, a 75$27,214,000 in the same period of 2023[30]. - For the six months ended December 31, 2024, Lesaka Technologies reported a net loss of $36,676,000 compared to a net loss of$8,358,000 for the same period in 2023, representing a significant increase in losses[32]. - Revenue for the six months ended December 31, 2024, was $292,364,000, up from$279,982,000 in 2023, indicating a growth of approximately 4.6% year-over-year[34]. - The company reported a net loss of $36,676,000 for the six months ended December 31, 2024, compared to a net loss of$8,358,000 for the same period in 2023[39]. Strategic Acquisitions - The acquisition of Adumo, which closed in October 2024, and the expected acquisition of Recharger in Q3 2025 are significant strategic moves for the company[6]. - The company incurred transaction costs of $684,000 related to acquisitions in the three months ended December 31, 2024[31]. - The company incurred transaction costs related to the Adumo acquisition amounting to$1,702,000 for the six months ended December 31, 2024[34]. Cash Flow and Investments - Cash flows from operating activities showed a net cash used of $13,302,000 for the six months ended December 31, 2024, compared to a net cash provided of$3,957,000 in 2023[36]. - The company reported capital expenditures of $10,283,000 for the six months ended December 31, 2024, compared to$5,007,000 in 2023, reflecting an increase in investment activities[36]. Balance Sheet and Equity - Total current assets increased to $211,365,000 in December 2024 from$187,696,000 in June 2024, representing a growth of 12.6%[38]. - Total assets reached $640,574,000 in December 2024, up from$558,450,000 in June 2024, indicating a 14.7% increase[38]. - Total liabilities increased to $351,580,000 in December 2024 from$303,164,000 in June 2024, reflecting a rise of 15.9%[38]. - Goodwill increased significantly to $200,760,000 in December 2024 from$138,551,000 in June 2024, a growth of 44.9%[38]. - Total equity rose to $200,037,000 in December 2024, compared to$175,857,000 in June 2024, marking a 13.8% increase[38]. - Additional paid-in capital increased to $421,950,000 in December 2024 from$343,639,000 in June 2024, a rise of 22.8%[38]. Operational Performance - Operating loss for the six months ended December 31, 2024, was $732,000, compared to an operating income of$2,501,000 in 2023, marking a decline in operational performance[34]. - The cost of goods sold and related expenses decreased from $221,756,000 in 2023 to$212,185,000 in 2024, reflecting a reduction of about 4.3%[34]. - The company experienced a change in fair value of equity securities resulting in a loss of $33,731,000 for the six months ended December 31, 2024, compared to no such loss in 2023[34]. - Stock-based compensation charges for the three months ended December 31, 2024, amounted to$2,644,000, compared to $1,804,000 in the same period of 2023[31]. - The indirect tax provision release contributed to a benefit of$196,000 in the three months ended December 31, 2024[31]. Shareholder Impact - Basic loss per share attributable to Lesaka shareholders was $0.51 for the six months ended December 31, 2024, compared to$0.13 in 2023, indicating a worsening loss per share[34]. - Headline loss per share for the three months ended December 31, 2024, was $(0.40), compared to$(0.09) in the prior year[39]. - The weighted average number of shares used to calculate basic loss per share increased to 79,753,000 in December 2024 from 63,805,000 in December 2023[40].