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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

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

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Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

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Income (Loss) from Associates

Income (Loss) from Joint ventures

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Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

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Net Income from Continuing Operations

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Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

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Other Comprehensive Income

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Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

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Diluted EPS

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Diluted EPS from Discontinued Operations

LSAK

LSAK fundamentals

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