Lesaka Technologies (LSAK) Q4 2025 earnings summary

Executive summary

• FY2025 marked a transformative year with strong operational performance, major acquisitions (Adumo, Recharger), the announced BankZero deal, and the exit from MobiKwik, supporting strategic expansion and balance sheet optimization.

• All three divisions—Merchant, Consumer, and Enterprise—contributed to double-digit growth in revenue, net revenue, and adjusted EBITDA.

• Strategic focus included integration, brand consolidation, extracting efficiencies, and a refreshed executive team.

• Profitability guidance for FY2025 was achieved, with adjusted earnings per share up 187% year-on-year to R2.29.

• Restatement of interim FY2025 financials due to revenue classification changes, with no impact on operating income, net loss, or cash flows.

Financial highlights

• FY2025 net revenue rose 38% to R5.3 billion (non-GAAP: $328.7M), with group adjusted EBITDA up 33% to R922 million.

• Q4 net revenue increased 47% year-on-year to R1.5 billion, with group adjusted EBITDA up 61% to R306 million.

• Adjusted earnings for FY2025 were R186 million, up 263%, and adjusted EPS was R2.29, up 187% year-on-year.

• Net loss attributable to the company for FY2025 was R1.58 billion (ZAR 1.6B), mainly due to non-cash and one-off charges.

• Significant non-recurring items included R239m transaction costs, R46m accelerated amortization, R335m goodwill impairments, R101m loss on MobiKwik sale, and R210m deferred tax benefit.

Outlook and guidance

• FY2026 guidance: net revenue R6.4–R6.9 billion, group adjusted EBITDA R1.25–1.45 billion, and adjusted EPS expected to exceed R4.60, more than doubling year-on-year.

• Net income attributable to the company projected to be positive in FY2026.

• Guidance excludes impact of BankZero acquisition and any unannounced M&A.

• Q1 FY2026 guidance: net revenue ZAR 1.50B–1.65B; group adjusted EBITDA ZAR 260M–300M.

• All three divisions expected to grow at least 20%+ in FY2026, with Enterprise division to contribute over 10% of segment EBITDA.