Lesaka Technologies (LSAK) Investor Day 2025 summary

Strategic Vision and Market Opportunity

• Southern Africa is one of the most attractive fintech markets globally, with a $4.4 billion serviceable addressable opportunity and double-digit market growth driven by digitization trends.

• The business operates across merchant, consumer, and enterprise segments, serving 1.7 million active consumers, 120,000 merchants, and 750+ enterprises, with only a 7% market share, providing significant room for expansion.

• The company leverages a network-neutral, technology-led approach, broad product suite, and dual-listed structure for capital market access, positioning itself as a natural consolidator and disruptor.

• Expansion into adjacent geographies and products is planned, with a focus on leveraging operational scale, M&A, and demographic tailwinds such as rapid population growth and a young population.

• The business model is asset-light, scalable, and not regulated as a bank, providing operating leverage and flexibility for expansion.

Financial Performance and Guidance

• FY25 guidance projects US$575 million in revenue and US$52 million in group adjusted EBITDA, with organic EBITDA growth expected at 30%.

• Net revenue has compounded at 60% over four years, reaching ZAR 5.4 billion at the midpoint of FY25 guidance, with group-adjusted EBITDA guided to ZAR 900 million–1 billion for FY25 and ZAR 1.25–1.45 billion for FY26.

• Revenue grew 11% year-over-year to ZAR 10.6 billion in FY24, with group adjusted EBITDA up 55% to ZAR 691 million.

• Profitability has improved, with EBITDA margins expected to rise as platforms scale, and organic EBITDA growth projected at 25–50% year-on-year.

• The company maintains disciplined capital allocation, targeting a leverage ratio of 2x, pursuing only EBITDA-accretive acquisitions, and has diversified funding sources to support growth.

Market Opportunity and Business Development

• The addressable market is forecasted to reach $12 billion in net revenue over five years through geographic expansion and product augmentation.

• The company addresses significant pain points in the South African market, such as limited access to credit and digital payments, through integrated consumer, merchant, and enterprise platforms.

• Platforms enable end-to-end financial services, including payments, loans, insurance, bill payments, and advanced POS solutions.

• Consumer ARPU increased 13% year-over-year, with significant upside potential as product penetration deepens.

• The company is positioned as a natural consolidator in Africa, with a strong M&A playbook and the ability to unlock synergies and compound shareholder value.