Lesaka Technologies reports 90% increase in first quarter EBITDA

Lesaka Technologies’ consumer business delivered a standout performance in its first quarter with a 90% increase in segment adjusted earnings before interest, tax, depreciation, and amortisation (EBITDA) to R150 million, although the group reported a small loss.

The Nasdaq and JSE listed technology group, which provides financial services and digital solutions to underserved communities and merchants across Southern Africa, said year-on-year, group net revenue increased by 45% and adjusted EBITDA was up 61%. Adjusted earnings per share increased by 97%, reflecting organic growth and the accretive effect of acquisitions.

“These results mark a strong start to our financial year, demonstrating consistent and resilient growth momentum,” Lesaka CEO Lincoln Mall said. Lesaka serves over 90 000 micro merchants and more than 30 000 small-to-medium-sized businesses; the majority of these businesses are located in townships and villages across South Africa.

Group net revenue came to R1.5 billion in the quarter, up 45% in rands, but at the lower end of the group’s guidance at the last year-end, of between R1.5bn and R1.65bn.

Group adjusted EBITDA of R270.6m was 61% higher than the same period a year before, achieving guidance provided at the last year-end of between R260m and R300m. A net loss of R75.4m represented a 6% improvement in rand terms.

The group reaffirmed its full-year group adjusted EBITDA guidance of R1.25bn to R1.45bn, representing a 46% increase at the midpoint. Lesaka currently serves 1.7 million Sassa grant beneficiaries with services that cover banking, micro-loans, insurance, bill payments and value-added services specifically tailored for Sassa grant recipients.

The full-year guidance excludes the impact of the Bank Zero acquisition announced on June 26, 2025, which is still subject to regulatory approval by the Prudential Authority and the South African Reserve Bank and other customary closing conditions. The group is hoping to receive all the necessary approvals for the Bank Zero acquisition by the end of the 2026 financial year.

In the first quarter, the Merchant business grew segment adjusted EBITDA by 20% and was focused on unifying the brand and product offering to clients while capturing synergies.

The Enterprise business segment adjusted EBITDA increased threefold to R22m for the quarter, becoming a more significant contributor to the group.

Adjusted earnings per share of R1.07 was up 97% in rand terms.

On the outlook for the second quarter, the group expected net revenue between R1.58bn and R1.73bn. Group adjusted EBITDA was expected to be between R280m and R320m.

BUSINESS REPORT