Lesaka Technologies Q3 2025: Unraveling Contradictions in Growth and Margin Projections

Consumer division growth and sustainability, enterprise division growth and strategic focus, merchant division growth rates, and margin projections are the key contradictions discussed in Lesaka Technologies' latest 2025Q3 earnings call.



Consumer Division Performance:
- Lesaka's Consumer division reported revenue growth of 32% year-on-year to ZAR 446 million for Q3 2025, with segment adjusted EBITDA increasing 65% to ZAR 117 million.
- This growth was driven by an increase in consumer base expansion, effective cross-selling of lending and insurance products, and a strategic focus on the permanent SASSA grant customer base.

Merchant Division Growth:
- The Merchant division's net revenue increased by 58% to ZAR 782 million for Q3 2025, with segment adjusted EBITDA up 7% to ZAR 150 million.
- Growth was attributed to the acquisition of Adumo, which brought significant scale and product enhancement, along with successful interventions in the merchant lending business.

Enterprise Division Transformation:
- Lesaka's Enterprise division achieved an EBITDA of ZAR 2 million in Q3 2025, a decline from ZAR 14 million last year, due to restructuring and investment in strategic products like the Recharger acquisition.
- The transformation aims to reposition the division for enhanced contributions to Group adjusted EBITDA, with an expectation of contributing north of 10% in FY '26.

Group Financial Performance:
- Lesaka delivered Group adjusted EBITDA of ZAR 237 million for Q3 2025, achieving guidance across all metrics, with net revenue increasing 42% year-on-year.
- The results were driven by strategic acquisitions, operational efficiencies, and solid traction in the execution of Lesaka's growth strategy.