Lesaka Technologies (LSAK) Q3 2026 earnings summary

Executive summary

• Net revenue grew 16% year-over-year to ZAR 1.58 billion for Q3 FY2026, with strong performance in Consumer and Enterprise segments, while Merchant performance was softer.

• Group Adjusted EBITDA increased 45% year-over-year to ZAR 337 million, reaching the top end of guidance and reflecting improved operational efficiency.

• Adjusted earnings per share surged 247% to ZAR 1.80, with adjusted earnings reaching ZAR 148 million.

• Net income attributable to shareholders turned positive at ZAR 8.4 million, compared to a loss of ZAR 410 million in Q3 FY2025.

• Achieved upper end of profitability guidance for Q3 FY2026, with strong cash generation and prudent CapEx management.

Financial highlights

• Consumer division net revenue grew 41% to ZAR 627 million, with segment Adjusted EBITDA up 81% to ZAR 213 million.

• Enterprise division net revenue increased 51% to ZAR 220 million, with segment Adjusted EBITDA of ZAR 35 million.

• Merchant division net revenue declined 4% to ZAR 751 million, but segment Adjusted EBITDA rose 3% to ZAR 151 million.

• Group operating margin improved from 17.2% to 21.4% year-over-year.

• CapEx for the quarter was ZAR 76 million, with annual CapEx expected to remain below ZAR 400 million.

Outlook and guidance

• FY2026 net revenue guidance set at ZAR 6.2–6.5 billion, implying up to 23% year-over-year growth.

• Group Adjusted EBITDA guidance narrowed to ZAR 1.25–1.35 billion, midpoint implies up to 49% growth.

• Adjusted EPS guidance raised to ZAR 5.50–6.00, midpoint implies over 150% growth.

• Net income attributable to shareholders expected to be positive for FY2026.

• Guidance excludes impact of pending Bank Zero acquisition and any unannounced M&A.