Lesaka Technologies (LSAK) Q2 2025 earnings summary

Executive summary

• Achieved strong operational performance in Q2 FY2025, with net revenue up 42% year-over-year in ZAR and Group Adjusted EBITDA up 26% in ZAR, exceeding guidance, despite a 2% decline in reported revenue due to currency effects and revenue mix.

• Integrated Adumo acquisition, significantly boosting Merchant and Consumer Divisions, and reorganized reporting to include Enterprise as a standalone division.

• Continued focus on customer-led strategy, cross-selling, and expanding addressable markets in South Africa, with growth in EasyPay Everywhere accounts and lending/insurance products.

• Operating income declined to $0.8M from $2.3M year-over-year, with a net loss of $32.1M, mainly due to a non-cash fair value loss on MobiKwik investment.

Financial highlights

• Q2 FY2025 revenue: $146.8M (+2% YoY); net revenue: $77.1M (+42% YoY in ZAR); Group Adjusted EBITDA: $11.8M (+26% YoY in ZAR); fundamental earnings up 35% to ZAR 23M.

• Net loss for Q2: $32.1M, mainly due to a $26.6M–$33.7M non-cash fair value loss on MobiKwik investment.

• Consumer revenue up 31% in ZAR to $22.9M; segment Adjusted EBITDA up 61% in ZAR to $4.3M.

• Merchant net revenue up 68% in ZAR to $47.7M; segment Adjusted EBITDA up 32% in ZAR to $10.3M.

• Enterprise net revenue down 29% in ZAR; segment Adjusted EBITDA loss of $0.03M.

Outlook and guidance

• Reaffirmed FY2025 guidance: revenue ZAR 10–11B, net revenue ZAR 5.2–5.6B, Group Adjusted EBITDA ZAR 900M–1B.

• Q3 FY2025 guidance: revenue ZAR 2.4–2.6B, net revenue ZAR 1.3–1.5B, Group Adjusted EBITDA ZAR 230–260M.

• FY2026 Group Adjusted EBITDA guidance: ZAR 1.25–1.45B, including full-year impact of Recharger acquisition.

• Expect positive fundamental EPS and profit after tax in FY2026.