Lesaka lifts full-year earnings guidance

Dual-listed fintech Lesaka Technologies has swung to a net profit in its third quarter and raised its full-year adjusted earnings per share guidance, as growth in its consumer and enterprise segments offset a softer top line in its core merchant business.

The group, which holds a primary listing on Nasdaq and a secondary listing on the JSE, reported net income attributable to shareholders of R8.4-million for the three months ended 31 March 2026. That compares with a restated net loss of R409.8-million in the same period a year earlier – a swing driven by improved operating leverage and a much smaller fair-value charge on equity securities.

Group revenue was virtually flat at R3-billion (up 0.2% year on year), but net revenue – which strips out the cost of pinned airtime and commissions paid on agency-based prepaid products – rose 16% to R1.58-billion. Adjusted earnings before interest, tax, depreciation and amortisation (Ebitda) climbed 45% to R337.1-million, while adjusted earnings per share rose 247% to R1.80.

“I am pleased to report another strong quarter for Lesaka as we continue to improve our profitability,” chairman Ali Mazanderani said in a statement. He said the group had “built a diversified platform, with multiple levers of sustainable growth”.

Lesaka’s consumer segment was the standout performer, with revenue up 41% to R626.5-million and segment adjusted Ebitda up 81% to R212.5-million. The much smaller enterprise segment posted 78% revenue growth to R310.5-million and a 1 370% jump in segment Ebitda to R35-million, off a low base.

Bank Zero excluded

The merchant segment – historically the group’s largest — saw revenue contract 13% to R2.08-billion. The gap between gross and net revenue declines reflects the shift in mix between pinned airtime, recorded on a principal basis, and agency-based prepaid products such as Pinless airtime: net revenue was down a more modest 4% to R751.3-million. Segment adjusted Ebitda still nudged up 3% to R151.1-million, suggesting margin expansion in the underlying business.

Lesaka disclosed once-off costs of US$1.6-million in the quarter related to the exit of its ATM business, including wind-down expenses and the impairment of ATM equipment. A separate $984 000 charge related to the group’s rebrand, launched in November 2025 and being rolled out across the organisation through the rest of 2026 under a “One Lesaka” identity.

Read: Big changes at Lesaka as Bank Zero deal nears completion

The pending acquisition of digital-only retail bank Bank Zero remains subject to regulatory approval and is excluded from the group’s full-year guidance.

For the 2026 financial year ending 30 June, Lesaka now expects net revenue of between R6.2-billion and R6.5-billion, group adjusted Ebitda of between R1.25-billion and R1.35-billion, positive net income attributable to shareholders, and adjusted earnings per share of R5.50 to R6. The guidance excludes the Bank Zero deal and any unannounced M&A activity.

Operating cash flow strengthened sharply, with the group generating R607.9-million from operations in the quarter, against R194.2-million a year earlier. Cash, cash equivalents and restricted cash totalled R1.55-billion.

Lesaka also restated prior-year comparatives to correct an understatement of property, plant and equipment cost and accumulated depreciation of R114.5-million, identified in October 2025. The company said the carrying value of the assets was not affected.  – © 2026 NewsCentral Media