Lesaka Technologies 2025 Q4 Earnings Misses Targets as Net Loss Widens

Lesaka Technologies (LSAK) reported its fiscal 2025 Q4 earnings on Sep 29th, 2025. The company's financial performance showed significant revenue growth but a widening net loss, driven by non-operational charges and impairments.

Revenue
Lesaka Technologies saw a notable increase in total revenue, with 2025 Q4 revenue reaching $231.67 million, a 58.6% rise from $146.05 million in 2024 Q4. The Merchant Division contributed $129.0 million in revenue, a 7% increase, while the Consumer segment generated $27.9 million, up 44% year-on-year.

Earnings/Net Income
The company’s losses widened significantly, with a net loss of $-28.95 million in 2025 Q4, representing a 474.9% increase from $-5.04 million in the same period of 2024. Earnings per share (EPS) also worsened, with a loss of $0.35 per share, a 352.2% increase compared to $-0.08 per share in 2024. The widening loss is attributed to non-operational charges such as a tax-adjusted non-cash impairment loss of $18.4 million, one-time transaction costs of $13.2 million, and a change in fair value and sale of MobiKwik, a non-core asset, amounting to $5.7 million. Despite these losses, the company’s Adjusted EBITDA increased by 61% to $16.7 million, demonstrating operational resilience.

Price Action
Lesaka’s stock price has experienced a decline in the latest trading period. The stock edged down by 0.49% during the latest trading day, 0.00% during the most recent full trading week, and has tumbled 13.50% month-to-date.

Post-Earnings Price Action Review
Following the earnings report, Lesaka’s stock faced downward pressure, reflecting investor concerns over the company’s expanded losses. The market reaction highlights the challenges the company faces in managing non-operational charges and the impact of these on its overall profitability.

CEO Commentary
Lesaka Chairman Ali Mazanderani highlighted FY2025 as a strong year, noting the Group delivered on profitability guidance and advanced strategic priorities. The company expects to maintain momentum into FY2026 with adjusted EBITDA growth of at least 35% and adjusted earnings per share more than doubling to at least ZAR 4.60. He emphasized the strong performance in both Merchant and Consumer segments, driven by organic growth and 9 months of contribution from Adumo, as well as increased active consumer base and cross-selling of products. The tone is optimistic, with confidence in sustained growth and strategic execution.

Guidance
Lesaka provided FY2026 guidance, including Net Revenue between ZAR 6.4 billion and ZAR 6.9 billion, Group Adjusted EBITDA between ZAR 1.25 billion and ZAR 1.45 billion, and Adjusted earnings per share of at least ZAR 4.60, reflecting more than 100% year-on-year growth. For Q1 2026, the company expects Net Revenue between ZAR 1.50 billion and ZAR 1.65 billion and Group Adjusted EBITDA between ZAR 260 million and ZAR 300 million. Guidance excludes the impact of the pending Bank Zero acquisition and unannounced M&A.

Additional News
Lesaka announced plans to acquire Bank Zero, a strategic move expected to enhance its financial services portfolio. The acquisition, subject to regulatory approval, is part of the company’s broader M&A strategy to expand its market presence and diversify offerings. Additionally, the company is in the process of winding down its non-core international business, aiming to streamline operations and improve efficiency. While no C-level executive changes were disclosed in the recent period, the company continues to focus on executive leadership development to support its growth ambitions. Lesaka also highlighted its commitment to maintaining a strong balance sheet, with cash and cash equivalents reaching $76.5 million as of June 30, 2025. The company’s capital structure is further supported by long-term borrowings of $188.8 million and a robust equity base of $165.6 million.