Lesaka Technologies, Inc.

What they do

Lesaka provides payment acceptance, banking, lending, insurance, cash management, and prepaid solutions to underserviced consumers, merchants, and enterprises, primarily in South Africa. The company operates three divisions: Merchant (payment acceptance, software, cash management, lending, and alternative digital products), Consumer (banking, lending, and insurance for social welfare grant recipients), and Enterprise (payment processing, prepaid solutions, and bill payment infrastructure). It employs about 3,900 people across South Africa, Namibia, Botswana, Zambia, and Kenya.

Revenue drivers

• Merchant — Generates revenue from merchant acquiring on an ad valorem basis, software licensing and hardware sales, cash vaulting fees, merchant lending interest, and alternative digital products (ADP) such as prepaid airtime and supplier payments. FY2026 revenue was $509.3M, representing about 71% of total group revenue, though down 10% year-over-year.
• Consumer — Earns transactional banking fees, interest income from loans, insurance premiums, and card processing fees from consumers, principally social welfare grant recipients. FY2026 revenue was $142.6M, up 38% year-over-year, making it the fastest-growing division at about 20% of group revenue.
• Enterprise — Generates revenue from prepaid solutions, bill payment infrastructure, and utilities vending on a fixed fee or ad valorem basis. FY2026 revenue was $74.7M, up 62% year-over-year, representing roughly 10% of group revenue.
• Net Revenue — Group net revenue (a non-GAAP measure) rose 20% to $374.9M in FY2026, reflecting the mix of transaction-based and ad valorem pricing across divisions.

Recent performance

For FY2026, Lesaka reported revenue of $721.6M, up 1.7% year-over-year, and net income attributable to Lesaka of $2.8M, compared with a net loss of $91.0M in FY2025. Adjusted EBITDA increased 41% to $75.7M, and adjusted earnings per share rose 210% to $0.39. Q4 FY2026 revenue was $188.3M, up 0.8% year-over-year, with net income of $3.2M. The Consumer and Enterprise divisions drove growth, with segment adjusted EBITDA up 78% and 474% respectively, while Merchant segment revenue declined 14% in Q4.

Strategy

Management is integrating recent acquisitions, including Adumo and Recharger, to create a unified multi-product platform under the Lesaka brand. The company is aligning Merchant metrics to active merchants and blended ARPU, and exited its ancillary ATM business to focus on core cash management and merchant lending. It also acquired MobileMart in February 2026 to enhance ADP unit economics, and amended its working capital facility to ZAR 1.1 billion for additional liquidity. The proposed acquisition of Bank Zero remains subject to conditions precedent.

Risks

• Execution of strategy — The company's ability to sustain profitability and positive cash flow depends on successfully completing its strategy of building a leading South African fintech platform, and failure could adversely impact financial performance.
• Merchant division revenue decline — Merchant revenue fell 10% in FY2026 and 14% in Q4 FY2026, with segment adjusted EBITDA down 6% for the year, indicating challenges in the largest division.
• Acquisition integration — The successful realization of benefits from acquisitions such as Adumo, Recharger, and MobileMart is subject to various internal and external factors, including market conditions and integration execution.
• Prior period revisions — FY2025 amounts were revised to correct errors discussed in Note 1 of the FY2026 Form 10-K, indicating potential weaknesses in financial reporting controls.

Outlook

Management reported that FY2026 results delivered on guidance across all metrics, exceeded the adjusted EPS range, and achieved GAAP profitability. The company highlighted growth in Consumer and Enterprise divisions and improved group adjusted EBITDA. It continues to integrate acquisitions and focus on its core Merchant offerings while investing in technology and financial inclusion. However, no specific forward guidance figures are provided in the excerpts.