Lesaka Technologies (LSAK) Q1 2027 earnings summary

Executive summary

• Met Q1 FY2027 guidance on all three measures, marking the 17th consecutive quarter of meeting profitability guidance; Consumer and Enterprise grew while Merchant weakened.

• Q1 is expected to be the Merchant low point for FY2027; Group Adjusted EBITDA included ZAR 44.8m of once-off items, primarily brand refresh costs.

• Three-year ambitions: net revenue CAGR >20%, Group Adjusted EBITDA CAGR >30%, and adjusted EPS CAGR >40%; include Bank Zero and exclude unannounced acquisitions.

Financial highlights

• Net revenue rose 8% YoY to ZAR 1.583bn; GAAP revenue was ZAR 3.006bn, down 0.6% YoY.

• Group Adjusted EBITDA fell 17% to ZAR 220.1m; adjusted earnings were ZAR 60.3m and adjusted EPS was ZAR 0.72, down 25% and 26%, respectively.

• Net loss attributable to shareholders narrowed 17% to ZAR 68.0m; operating loss was ZAR 17.2m versus operating income of ZAR 2.4m.

• Group Adjusted EBITDA margin declined to 13.9% from 18.1%; Group costs rose to ZAR 91.4m from ZAR 63.6m.

Outlook and guidance

• Q2 FY2027 guidance: net revenue ZAR 1.62bn–ZAR 1.72bn, Group Adjusted EBITDA ZAR 280m–ZAR 320m, and adjusted EPS ZAR 1.00–ZAR 1.40.

• FY2027 guidance reaffirmed: net revenue ZAR 7.0bn–ZAR 7.7bn, Group Adjusted EBITDA ZAR 1.45bn–ZAR 1.60bn, and adjusted EPS ZAR 7.50–ZAR 8.50; includes pending Bank Zero acquisition.

• Merchant Segment Adjusted EBITDA expected to exceed ZAR 130m in Q2; volume expansion is expected in Q2 and ARPU improvement from Q3.

• Merchant Q4 is expected to be its highest-ever quarter, with margins initially returning to >20%.

• Consumer margin expected to average ~35% for FY2027; cash conversion is expected to remain pressured in Q2 and improve in H2.