Lesaka Technologies (LSAK) Q1 2025 earnings summary

Executive summary

• Revenue reached ZAR 2.6 billion ($145.5 million), up year-over-year, with Group Adjusted EBITDA at ZAR 168 million ($9.4 million), both meeting guidance midpoints.

• Net revenue grew 16% year-on-year to ZAR 1.06 billion ($58.8 million), reflecting improved operational efficiency and a shift in revenue mix.

• Net loss narrowed to ZAR 81 million ($4.5 million), including one-off Adumo acquisition costs; GAAP loss per share improved to ZAR 1.26 ($0.07).

• Completed the Adumo acquisition in October 2024, expanding the Merchant division's reach and platform scale.

• Leadership changes included a new CFO and integration of Adumo's CEO into the executive team.

Financial highlights

• Group revenue rose 3% year-over-year to ZAR 2.62 billion ($145.5 million); Net revenue up 16% to ZAR 1.06 billion ($58.8 million).

• Group Adjusted EBITDA increased 12% to ZAR 168 million ($9.4 million); margin improved to 40% from 36% year-over-year.

• Consumer revenue increased 30% to ZAR 378 million ($21.1 million); segment-adjusted EBITDA up 99% to ZAR 79 million ($4.4 million).

• Merchant net revenue up 9% year-on-year; segment-adjusted EBITDA flat at ZAR 142 million ($7.9 million).

• Net debt to Group Adjusted EBITDA improved to 2.6x from 3.8x year-over-year.

Outlook and guidance

• FY25 revenue guidance reaffirmed at ZAR 10–11 billion; Group Adjusted EBITDA at ZAR 900 million–1 billion, implying over 30% growth.

• Net revenue guidance for FY25 set at ZAR 5.2–5.6 billion, implying 35% growth at midpoint.

• Q2 FY25 revenue expected between ZAR 2.4–2.6 billion; net revenue ZAR 1.2–1.4 billion; Group Adjusted EBITDA ZAR 190–210 million.

• Guidance includes the impact of the Adumo acquisition and anticipated interest expense charges for the Consumer lending book.

• Merchant and Consumer divisions expected to deliver strong segment-adjusted EBITDA growth in FY25.