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- **Revenue & Profit Beat**: Q1 net revenue ZAR 1.53B (+45% YoY), EBITDA ZAR 271M (+61% YoY), EPS doubled to ZAR 1.07.
- **Consumer Dominance**: 1.9M active users (+24% YoY), ARPU ZAR 89 (+13%), lending originations ZAR 820M (+87% YoY).
- **Merchant Integration Success**: TPV ZAR 9.2B (+119% YoY), micro merchant cash TPV +75%, devices 88K (+64% YoY).
- **Strategic Moves**: Bank Zero acquisition on track, Cell C stake monetization, and 20% office consolidation reducing costs.

**【Management Opening Remarks】**
- **Revenue Growth**: Net revenue reached ZAR 1.53 billion (45% YoY), driven by Merchant (Adumo acquisition) and Consumer divisions. Group adjusted EBITDA rose 61% to ZAR 271 million, with adjusted EPS doubling to ZAR 1.07.
- **Financial Health**: Net debt/EBITDA improved to 2.5x (from 2.6x YoY), targeting 2x medium-term. Capital expenditure for FY26 expected below ZAR 400 million.

**【CEO Operational Update】**
- **Merchant Division**: TPV doubled to ZAR 9.2 billion, devices up 64% to 88,000. Micro merchant cash TPV grew 75%, offsetting small merchant churn. Merchant lending originations increased 21% to ZAR 201 million.
- **Consumer Division**: Active users reached 1.9 million (24% YoY), ARPU up 13% to ZAR 89. Lending originations doubled to ZAR 820 million, insurance premiums rose 38%.
- **Enterprise Division**: ADP TPV grew 13% to ZAR 11.9 billion, Utilities TPV up 21% to ZAR 396 million. Active meters increased 16% to 270,000.

**【CFO Financial Review】**
- **Cash Flow**: Operating cash flow ZAR 341 million, reinvested 36% in lending and 31% in net interest costs. Nonrecurring costs elevated group expenses to ZAR 64 million.
- **Balance Sheet**: Capital expenditure focused on Smart Safe expansion and software development. Bank Zero expected to reduce reliance on debt funding.

**【Q&A Highlights】**
- **Merchant Margin Volatility**: Seasonality and product mix drive 19-25% quarterly EBITDA margin range. Cross-sell rate >1 product per merchant, targeting higher attachment rates.
- **Bank Zero Progress**: Regulatory approval on track for FY26 close, enhancing consumer lending and digital banking capabilities.
- **Cell C IPO**: 5% stake valued at ZAR 50 million+ if listed, aligning with simplification strategy.
- **Consumer Growth Runway**: 14% market share vs. 20% Postbank migration rate, plus insurance expansion to non-Easy Pay customers.
- **FY26 EBITDA Guidance**: Q2 midpoint ZAR 300 million (42% YoY), with Q3/Q4 growth driven by organic expansion and Bank Zero integration.

Lesaka Technologies, Inc. (LSAK) Q1 2026 Earnings Call Transcript

- **Record growth**: FY 2025 adjusted EPS up 187% to ZAR 2.29, driven by 46% revenue growth and 83% Consumer EBITDA expansion. 
- **Strategic acquisitions**: ZAR 3.3 billion spent on Adumo, Recharger, and Bank Zero (pending), creating integrated fintech platform. 
- **Profitability targets**: FY 2026 >100% EPS growth, >ZAR 4.60 adjusted EPS, positive net income. 
- **Key risks**: ZAR 335 million goodwill impairment, macroeconomic stress on consumer loans (<6% loss ratio). 
- **Bank Zero impact**: Expected to reduce gross debt by ZAR 1 billion via deposit mobilization, accelerate merchant banking offering.

**【Executive Chairman Remarks】**
- FY 2025 net revenue: ZAR 5.3 billion (up 46% YoY), adjusted EBITDA: ZAR 922 million (up 187% YoY), adjusted EPS: ZAR 2.29 (up 187% YoY). 
- Key acquisitions: ZAR 1.7 billion Adumo (Oct 2024), ZAR 507 million Recharger (Mar 2025), ZAR 1.1 billion Bank Zero (pending regulatory approval). 
- Debt refinanced to ZAR 4 billion, net debt/EBITDA ratio 2.9x (target 2.0x). 
- Divestiture of MobiKwik for ZAR 290 million. 
- Merchant division EBITDA: ZAR 657 million (20% YoY), Consumer: ZAR 435 million (83% YoY), Enterprise: ZAR 24 million (down 54% YoY). 

**【CFO Financial Commentary】**
- Q4 2025 net revenue: ZAR 1.5 billion (47% YoY), adjusted EBITDA: ZAR 306 million (61% YoY), adjusted EPS: ZAR 0.99 (211% YoY). 
- Non-cash charges: ZAR 239 million transaction costs, ZAR 46 million accelerated amortization, ZAR 335 million goodwill impairment. 
- Operating cash flow: ZAR 370 million (Q4), net debt/EBITDA: 2.9x. 
- FY 2026 guidance: >100% EPS growth, >ZAR 4.60 adjusted EPS, positive net income. 

**【Merchant Division】**
- Acquired Adumo (23,000 merchants) and GAAP (9,600 hospitality sites), integrated under Lesaka brand. 
- Q4 2025 net revenue: ZAR 3 billion (46% YoY), EBITDA: ZAR 657 million (20% YoY). 
- Cross-sell opportunities: 10% GAAP software customers use acquiring, target 50%+ penetration. 
- Micro merchant vault deposits: ZAR 13.8 billion (92% YoY). 
- Operating margin improved to 23% (Q4) from 19% (Q3). 

**【Consumer Division】**
- Launched Bonngwe CRM platform, new loan product (max loan size +50%, terms +50%). 
- Q4 2025 net revenue: ZAR 1.7 billion (35% YoY), EBITDA: ZAR 435 million (83% YoY). 
- Active consumers: 166,000 (Q4), ARPU: ZAR 85/month. 
- 20% market share of Post Bank migrants, 40% loan penetration, 34% insurance penetration. 

**【Enterprise Division】**
- Acquired Recharger (utilities), integrated into Lesaka tech stack. 
- Q4 2025 net revenue: ZAR 190 million (60% ADP, 35% utilities), EBITDA: ZAR 11 million (excl. ZAR 17 million restructuring costs). 
- ADP billers: 620+ (incl. DStv, telcos), utilities meters: high double-digit margin. 
- FY 2026 target: >10% of group EBITDA. 

**【Q&A Highlights】**
- **Bank Zero**: Expected to close Q2 2026, will reduce gross debt by ZAR 1 billion via deposit mobilization. 
- **Competitive risk**: Nedbank/Ecoka focuses on narrow SME segment, Lesaka offers integrated solutions (acquiring + lending + software). 
- **Goodwill impairment**: ZAR 335 million due to CGU-specific valuations, no write-up allowed under IFRS. 
- **Regulatory environment**: ASAPP engagement positive, Reserve Bank moving to open payment system. 
- **Shoprite banking**: No direct threat, Lesaka focuses on underserved micro-merchant and grant beneficiary segments. 
- **Credit quality**: Consumer loan loss ratio <6%, merchant impairment <1.5%, no macro stress transmission.

Lesaka Technologies, Inc. (LSAK) Q4 2025 Earnings Call Transcript

- **Consumer Dominance**: Consumer division revenue up 32% YoY, ARPU at ZAR 106, and 13% market share in grant recipients.
- **Merchant Momentum**: Merchant net revenue +58% YoY, 81,000+ PoP processing ZAR 9.9 billion in throughput.
- **Enterprise Reset**: Recharger acquisition adds 500k meters, targeting >10% EBITDA contribution in FY26.
- **Financial Strength**: Group EBITDA of ZAR 237 million, debt refinanced to 10.7% cost, and 2.8x net debt ratio.
- **Future Guidance**: FY26 EBITDA target of ZAR 1.25-1.45 billion, with positive GAAP net income for first time.


**【CEO Summary Section】**
- Lesaka delivered Q3 FY25 revenue of ZAR 2.5 billion, net revenue of ZAR 1.36 billion, and Group adjusted EBITDA of ZAR 237 million, surpassing guidance across all metrics.
- Consumer division drove 32% year-on-year revenue growth to ZAR 446 million, with EPE account penetration reaching 45% for loans and 34% for insurance.
- Merchant division net revenue rose 58% to ZAR 782 million, supported by Adumo integration and double-digit growth in Kazang Pay.
- Enterprise division completed Recharger acquisition, contributing ZAR 100 million in utility payments throughput.
- Group debt restructure reduced cost of debt to 10.7% per annum, saving ZAR 52 million annually.

**【CFO Financial Commentary】**
- Fundamental earnings grew 98% YoY to ZAR 58 million, driven by Consumer division expansion and cost optimization.
- Cash generation from operations improved to ZAR 277 million, with net debt to Group adjusted EBITDA at 2.8x, within covenant limits.
- CapEx of ZAR 83 million focused on Smart Safe rollout, payment switch enhancements, and POS device expansion.

**【Merchant Division Performance】**
- Over 81,000 points of presence processed ZAR 9.9 billion in throughput, up 156% YoY.
- Software business (GAAP) ARPU of ZAR 3,360/month, with 70% annual recurring revenue.
- Merchant lending disbursed ZAR 332 million, up 52% YoY, with net loan book of ZAR 494 million.
- Alternative payments throughput grew 4% to ZAR 5.3 billion, with 57% YoY growth in supplier-enabled payments.

**【Consumer Division Highlights】**
- 1.5 million permanent SASSA grant customers, 17% YoY growth, capturing 13% market share.
- Micro loans capped at ZAR 4,000 with 54% YoY gross advances growth.
- Insurance policies reached 527,000, up 27% YoY, with 96% premium collection rate.
- ARPU increased to ZAR 106, up 12% QoQ, driven by cross-selling.

**【Enterprise Division Update】**
- Recharger acquisition added 500,000 registered meters, with 28% YoY vending throughput growth.
- Prism Switch processed 2 million transactions, enhancing internal transaction flows.
- Exiting legacy hardware businesses to focus on strategic technology products.

**【Q&A Key Takeaways】**
- Consumer market share gains continued into Q4, with ARPU growth outpacing account expansion.
- Merchant ADP growth underwhelmed at 4% YoY, but interventions expected to restore mid-teens growth.
- Enterprise EBITDA contribution to improve to >10% of Group adjusted EBITDA in FY26.
- Target Group adjusted EBITDA margin of 20% in FY26, trending toward 30% medium-term.


Lesaka Technologies, Inc. (LSAK) Q3 2025 Earnings Call Transcript

- **Revenue Growth & EBITDA Beat**: Q2 FY 2025 net revenue up 42% YoY to ZAR 5.2 billion, with adjusted EBITDA exceeding guidance at ZAR 212 million (+26% YoY). Merchant Division led with ZAR 854 million net revenue (+68% YoY).
- **Consumer Expansion**: Consumer ARPU rose 12% to ZAR 94, driven by 31% YoY revenue growth. Cross-sell initiatives achieved 43% loan penetration and 35% insurance penetration.
- **Enterprise Restructuring**: FY 2025 EBITDA guidance includes Recharger's ZAR 40 million contribution. Prism Switch and EasyPay bill payments (ZAR 8.3 billion) support long-term growth.
- **Debt Optimization**: Target net debt-to-EBITDA ratio of 2x, with MobiKwik monetization reducing gross debt to ZAR 1.8 billion.
- **Regulatory Tailwind**: SARB's proposed Banks Act exemption could unlock nonbank fintech growth, aligning with Lesaka's digital payments strategy.

**【CEO Summary Section】**
- Lesaka Technologies reported Q2 FY 2025 revenue of ZAR 2.6 billion, with net revenue up 42% YoY to ZAR 5.2 billion. The Merchant Division contributed ZAR 854 million in net revenue, driven by the Adumo acquisition. Consumer Division net revenue grew 31% YoY to ZAR 411 million, while the Enterprise Division retracted 29% due to restructuring costs.
- Group adjusted EBITDA rose 26% YoY to ZAR 212 million, exceeding guidance of ZAR 210 million. Merchant Division EBITDA increased 32% to ZAR 185 million, while Consumer EBITDA grew 61% to ZAR 77 million. Enterprise Division reported a loss of ZAR 0.5 million due to unprofitable contract exits.
- FY 2026 guidance includes group adjusted EBITDA of ZAR 1.25 billion to ZAR 1.45 billion, reflecting 42% YoY growth. The outlook emphasizes organic growth, market share expansion, and integration of acquisitions like Recharger (expected to contribute ZAR 40 million in FY 2025).

**【CFO Financial Commentary】**
- Gross debt stood at ZAR 3.8 billion, with plans to refinance to reduce net debt-to-EBITDA ratio to 2x. Cash generation from operations reached ZAR 269 million, supporting Adumo integration and Consumer loan book growth. MobiKwik's listing resulted in a ZAR 615 million non-cash write-down, impacting net loss of ZAR 584 million.
- Fundamental earnings increased 35% YoY to ZAR 23 million, driven by cost optimization and higher-margin product mix. Capital expenditures of ZAR 113 million focused on Merchant acquiring POS devices and Consumer cash vaults.

**【Merchant Division Performance】**
- Merchant acquiring throughput rose 71% YoY to ZAR 11.3 billion, with Kazang Pay contributing 19% growth. GAAP software solutions expanded to 9,705 sites, with ARPU of ZAR 3,300. Alternative digital payments saw 63% YoY growth in supplier-enabled platforms. Lending disbursements reached ZAR 178 million, including Adumo Capital's ZAR 39 million share.

**【Consumer Division Highlights】**
- Active EPE customer base grew 11% YoY to 1.6 million, with ARPU increasing 12% to ZAR 94. Loan originations rose 38% YoY to ZAR 617 million, while insurance gross premiums grew 38% to ZAR 97 million. Cross-sell initiatives achieved 43% loan penetration and 35% insurance penetration. Adumo Payouts added 200,000 cardholders with a load value of ZAR 170 million.

**【Enterprise Division Update】**
- Recharger acquisition (expected to close in Q3) will expand prepaid electricity sub-metering and voucher vending. Prism Switch, a secure data processing platform, saw 7% YoY growth in HSM unit sales. EasyPay bill payments increased 13% YoY to ZAR 8.3 billion, offsetting utility payment declines from contract exits.

**【Q&A Key Takeaways】**
- **Consumer Growth Sustainability**: Lincoln Mali emphasized 12% market share in grant beneficiaries, cross-sell opportunities (43% loan penetration, 35% insurance), and expansion beyond grants via Adumo Payouts. 
- **Debt Management**: Dan Smith outlined plans to reduce net debt-to-EBITDA to 2x through refinancing and MobiKwik monetization. Q2 cash outflows included ZAR 149 million for Consumer loans and ZAR 69 million for bulk VAS purchases.
- **Regulatory Outlook**: Ali Mazanderani highlighted SARB's proposed Banks Act exemption, enabling nonbank fintechs to bypass traditional banking gatekeepers and accelerate digitization.


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