Lesaka Technologies (LSAK) investor relations material

Executive summary

• Achieved significant strategic milestones, including competition tribunal approval for the Bank Zero combination, the launch of the unified One Lesaka brand, and strong organic growth through business simplification and closure of non-core items.

• Achieved positive net income for the first time since 2022, meeting profitability guidance for the 14th consecutive quarter.

• Focused on providing financial services and software to underserved consumers and merchants in Southern Africa, with a workforce of 3,750 and a strong emphasis on distribution and innovation.

• Completed the disposal of non-core assets (Cell C) and finalized the liquidation of Cash Paymaster Services, releasing significant provisions.

• Operating income and net income improved significantly year-over-year, driven by strong Consumer and Enterprise performance and the inclusion of Recharger.

Financial highlights

• Q2 net revenue reached ZAR 1.6 billion (R1.60bn/$93.4M), up 16% year-on-year and within guidance.

• Group Adjusted EBITDA grew 47% year-on-year to ZAR 304 million (R304M/$17.8M), slightly above guidance midpoint.

• Adjusted earnings per share increased more than sixfold to ZAR 1.34 ($0.08), reflecting strong operational performance and accretive acquisitions.

• Net income for the quarter was $3.6 million, compared to a net loss of $32.4 million in the prior year period.

• Cash flows from operations totaled ZAR 419 million, with ZAR 385 million reinvested into lending and ZAR 101 million for interest costs.

Outlook and guidance

• Q3 net revenue guidance: ZAR 1.65–1.8 billion, implying up to 33% year-over-year growth; group-adjusted EBITDA: ZAR 300–340 million.

• Full-year net revenue guidance reaffirmed at ZAR 6.4–6.9 billion; group-adjusted EBITDA at ZAR 1.25–1.45 billion, excluding Bank Zero impact.

• Adjusted EPS for FY26 expected to exceed ZAR 4.60, more than doubling year-over-year.

• Guidance excludes impact of the pending Bank Zero acquisition and any unannounced M&A.

• Anticipates continued earnings momentum into FY27, with further deleveraging expected as Bank Zero integration allows funding expansion via customer deposits.