Q2 2025 Results: Lesaka beats profitability guidance for Q2 2025, reaffirms FY2025 guidance and sets FY2026 profitability guidance

Core Viewpoint - Lesaka Technologies, Inc. reported its Q2 2025 financial results, highlighting a strong performance in revenue and adjusted EBITDA, while also reaffirming guidance for FY2025 and FY2026 [1][2]. Financial Performance - Revenue for Q2 2025 was $146.8 million (ZAR 2.6 billion), slightly up from$143.9 million (ZAR 2.7 billion) in Q2 2024 [4]. - Net Revenue, a non-GAAP measure, increased by 42% in ZAR to $77.1 million (ZAR 1.4 billion) compared to$51.7 million (ZAR 968.7 million) in Q2 2024 [4]. - Group Adjusted EBITDA for Q2 2025 was $11.8 million (ZAR 211.8 million), representing a 26$9.0 million (ZAR 167.8 million) in Q2 2024 [4]. - The company reported a net loss of $32.1 million (ZAR 583.7 million) for Q2 2025, which included a non-operating, non-cash change in fair value of Mobikwik amounting to$26.6 million (ZAR 485.6 million) [4]. Guidance and Outlook - Lesaka reaffirmed its FY2025 guidance, expecting revenue between ZAR 10.0 billion and ZAR 11.0 billion, and net revenue between ZAR 5.2 billion and ZAR 5.6 billion [5]. - For FY2026, the company anticipates Group Adjusted EBITDA between ZAR 1.25 billion and ZAR 1.45 billion, which includes the impact of the Recharger acquisition expected to close in Q3 2025 [6]. Segment Performance - The Merchant Division reported a revenue decrease of 5% in ZAR to $115.8 million (ZAR 2.1 billion), while Net Revenue increased by 68$47.7 million (ZAR 854.5 million) [4]. - The Consumer Division saw revenue and net revenue increase by 31% in ZAR to $22.9 million (ZAR 410.7 million), with Segment Adjusted EBITDA rising by 61$4.3 million (ZAR 77.5 million) [4]. Currency Impact - The average exchange rate for Q2 2025 was ZAR 17.85 to $1, showing a 4.6$1 [1].