Lesaka Technologies (LSAK) Q3 2025 earnings summary

Executive summary

• Achieved record Q3 FY2025 results with strong growth in Consumer and Merchant divisions, highest account enrolments, lending, and insurance originations, and successful integration of Adumo and Recharger acquisitions.

• Completed Recharger acquisition in March 2025, expanding electricity vending and annuity revenue streams for the Enterprise division.

• Successfully refinanced ZAR 4.5 billion of group debt, consolidating legacy debt, reducing average borrowing rates, and increasing facility headroom for growth.

• Launched Employee Share Ownership Plan, granting 3% of issued share capital to non-executive staff, supporting transformation and employee alignment.

• Continued execution of multi-product fintech strategy, focusing on cross-selling, digitalization, and operational efficiency.

Financial highlights

• Q3 FY2025 revenue reached ZAR 2.51 billion ($135.7M), net revenue ZAR 1.36 billion ($73.4M), and group adjusted EBITDA ZAR 237 million ($12.8M), all meeting or exceeding guidance.

• Net revenue grew 43%–44% year-over-year, driven by Adumo acquisition and 32% consumer growth; group adjusted EBITDA up 29%–32% year-over-year.

• Fundamental earnings rose 98% year-over-year to ZAR 58 million ($3.3M); EPS up 60% to 72 cents; GAAP net loss increased to $22.1M due to non-cash Mobikwik charge.

• Cash generated from operations increased to ZAR 277 million ($10.7M); cash and cash equivalents at quarter-end were $71.0M.

• Net debt to group-adjusted EBITDA at 2.8x, within covenants; total long-term borrowings $194.7M (ZAR 3.6B).

Outlook and guidance

• FY2025 guidance reaffirmed: revenue ZAR 10–11 billion, net revenue ZAR 5.2–5.6 billion, group adjusted EBITDA ZAR 900 million–1 billion.

• FY2026 guidance: revenue ZAR 11.4–12.2 billion, net revenue ZAR 6.4–6.9 billion, group adjusted EBITDA ZAR 1.25–1.45 billion, and positive net income on US GAAP basis.

• Group-adjusted EBITDA to net revenue margin expected to rise from 18% in FY2025 to over 20% in FY2026; Consumer and Merchant divisions targeting EBITDA margins north of 30%.

• Guidance excludes impact of unannounced M&A.