Lesaka Technologies (LSAK) investor relations material

Executive summary

• Achieved all FY2026 guidance measures, including positive GAAP net income for the first time since 2022, and delivered a significant financial turnaround with strong growth in adjusted metrics.

• Net revenue grew 20% to ZAR 6.33 billion (or $374.9M), group Adjusted EBITDA up 41% to ZAR 1.27 billion, and adjusted EPS up 210% to ZAR 6.51 year-over-year.

• Major rebranding and office consolidation under 'One Lesaka' to drive cross-team collaboration and brand recognition.

• Strengthened balance sheet, reduced leverage, and improved cash generation.

• Acquisition of Bank Zero progressing, expected to close by end of calendar 2026, enabling strategic expansion and cost efficiencies.

Financial highlights

• FY2026 net revenue: ZAR 6.33 billion (+20% YoY); group Adjusted EBITDA: ZAR 1.27 billion (+41% YoY); adjusted EPS: ZAR 6.51 (+210% YoY); adjusted earnings increased 229% to ZAR 539 million.

• Positive GAAP net income of ZAR 39.8 million, reversing a prior year loss of ZAR 1.65 billion.

• Net cash from operating activities: ZAR 864 million; CapEx: ZAR 421 million; positive cash generation of ZAR 443 million.

• Q4 net revenue: ZAR 1.62 billion (+8% YoY); group Adjusted EBITDA: ZAR 367 million (+22% YoY); adjusted EPS: ZAR 2.40.

• Gross debt reduced by ZAR 200 million to ZAR 3.8 billion.

Outlook and guidance

• FY2027 guidance: net revenue ZAR 7–7.7 billion, group Adjusted EBITDA ZAR 1.45–1.6 billion, adjusted EPS ZAR 7.50–8.50.

• Q1 FY2027 guidance reflects seasonality and once-off restructuring costs in merchant segment.

• Bank Zero expected to close by December 2026; major synergy benefits anticipated in FY2028.

• Medium-term ambition: >20% CAGR net revenue to ZAR 11 billion, >30% CAGR Adjusted EBITDA, >40% CAGR adjusted EPS by FY2029.