Lesaka (LSAK) 7 Nov 24 2025 Q1 Earnings call transcript

In the first quarter of FY 2025, Lesaka Technologies demonstrated its transformative potential in the fintech sector of Southern Africa. During the earnings call, the executive team provided insights into the company's financial performance, strategic initiatives, and future outlook. The transcript offers a comprehensive analysis of Lesaka's journey so far and sheds light on its strategic plans for the future.

Strong Performance and Financial Health

Lesaka reported a robust performance in Q1 FY 2025, achieving the midpoint of its revenue and EBITDA guidance at both the consumer and merchant segments. The company's net revenue stood at ZAR 1.056 billion, representing an organic growth of 16% from the previous year. This growth is a testament to Lesaka's strategic focus on expanding its product offerings and enhancing customer value.

Focus on Merchant and Consumer Segments

The company's strategy is centered around serving both merchant and consumer segments. Lesaka aims to contribute approximately 1/3 of its segmented adjusted EBITDA from the consumer segment and 2/3 from the business segment. This diversification strategy is expected to provide a strong foundation for future growth and profitability.

Innovation and Integration

Lesaka's focus on innovation and integration is evident in its recent acquisition of Adumo. The company aims to leverage Adumo's capabilities to expand its product offerings and strengthen its position in the market. This strategic move underscores Lesaka's commitment to growth and competitiveness in the fintech landscape.

Future Outlook

Looking ahead, Lesaka anticipates significant growth, with net revenue and EBITDA projected to increase by more than 30% year-on-year. This optimistic outlook is based on the company's strategic focus on product innovation, market expansion, and operational efficiency.

Challenges and Opportunities

Despite the promising outlook, Lesaka faces challenges in the form of currency fluctuations, regulatory compliance, and competition from traditional banks. However, the company's agility and strategic vision position it well to navigate these challenges and capitalize on opportunities in the rapidly evolving fintech market.

Conclusion

Lesaka's first quarter earnings call for FY 2025 paints a picture of a company on the brink of significant growth and transformation. With a strong financial performance, strategic acquisitions, and a forward-looking approach to innovation and customer value, Lesaka is well-positioned to capitalize on the opportunities in the Southern African fintech market. As the company continues to execute its growth strategy, investors and stakeholders can look forward to a promising future.