JOHANNESBURG, May 06, 2026 (GLOBE NEWSWIRE) -- Lesaka Technologies, Inc. (Nasdaq: LSAK; JSE: LSK) today released results for the third quarter of fiscal 2026 ("Q3 2026").
Q3 2026 performance(1) :
All growth rates are year-on-year between Q3 FY2026 and Q3 FY2025 in ZAR.
USD (In thousands,
except per share ZAR (In thousands,
Group Level data) except per share data)
Q3 FY26 Q3 FY25 Q3 FY26 Q3 FY25 YoY%
------- ----------- --------- ------------- ---------
Revenue 183,051 161,450 2,994,536 2,987,226 0.2%
Net Revenue(2) 96,368 73,367 1,576,015 1,357,159 16%
Operating
Income(3) 4,085 366 65,013 7,188 804%
Net Income
(Loss)(3) 552 (22,353) 8,383 (409,790) nm
Group Adjusted
EBITDA(2)(3) 20,612 12,594 337,071 233,026 45%
Basic Earnings
(Loss) per
Share(3) 0.01 (0.28) 0.17 (5.15) nm
Adjusted
Earnings(2)(3) 9,077 2,515 148,349 42,917 246%
Adjusted
Earnings per
Share(2)(3) 0.11 0.03 1.80 0.52 247%
---------------- ------- ------- --------- --------- -----
USD ZAR
Segment Level (In thousands) (In thousands)
Q3 FY26 Q3 FY25 Q3 FY26 Q3 FY25 YoY%
------- ----------- --------- ------------- ---------
Merchant
Revenue 127,078 128,781 2,079,232 2,382,982 (13%)
Net Revenue(2) 45,926 42,279 751,280 782,191 (4%)
Segment Adjusted
EBITDA(3) 9,228 7,900 151,116 146,121 3%
Consumer
Revenue 38,323 24,096 626,514 445,845 41%
Segment Adjusted
EBITDA 13,015 6,333 212,537 117,144 81%
Enterprise
Revenue 18,978 9,444 310,481 174,565 78%
Net Revenue(2) 13,447 7,863 219,912 145,289 51%
Segment Adjusted
EBITDA 2,125 133 35,047 2,384 1,370%
---------------- ------- ------- --------- --------- -----
(1) Average exchange rates applicable for the purpose of translating our results of operations: ZAR 16.77 to $1 for Q3 2026, ZAR 18.40 to $1 for Q3 2025.
(2) Non-GAAP measure. Refer to Attachment A of press release for full reconciliation of non-GAAP measures.
(3) Revised Q3 FY2025 amounts to correct the errors discussed in Note 1 of our Form 10-Q for the period ended March 31, 2026.
Commenting on the results, Lesaka Chairman Ali Mazanderani said, "I am pleased to report another strong quarter for Lesaka as we continue to improve our profitability. We achieved Group Adjusted EBITDA growth of 45% and an Adjusted Earnings per Share of ZAR 1.80, up more than 200% year-on-year. We have built a diversified platform, with multiple levers of sustainable growth that positions us exceptionally well for the years to come."
Outlook: Full Fiscal Year 2026 ("FY 2026") guidance
While we report our financial results in USD, we measure our operating performance in ZAR, and as such we provide our guidance accordingly.
For FY2026, the year ending June 30, 2026, we expect:
-- Net Revenue between ZAR 6.2 billion and ZAR 6.5 billion. -- Group Adjusted EBITDA between ZAR 1.25 billion and ZAR 1.35 billion. -- Net Income Attributable to Lesaka to be positive. -- Adjusted earnings per share between ZAR 5.50 and ZAR 6.00.
Our FY2026 guidance excludes the impact of the announced acquisition of Bank Zero (which is subject to regulatory approvals and other customary closing conditions) and any unannounced mergers and acquisitions that we may conclude.
Management has provided its outlook regarding Net Revenue, Group Adjusted EBITDA and Adjusted earnings per share, which are non-GAAP financial measures and excludes certain revenue and charges. Management has not reconciled these non-GAAP financial measures to the corresponding GAAP financial measures because guidance for the various reconciling items is not provided. Management is unable to provide guidance for these reconciling items because they cannot determine their probable significance, as certain items are outside of the control of Lesaka and cannot be reasonably predicted since these items could vary significantly from period to period. Accordingly, reconciliations to the corresponding GAAP financial measures are not available without unreasonable effort.
Earnings Presentation for Q3 FY2026 Results
Our earnings presentation will be posted to the Investor Relations page of our website prior to our earnings call.
Webcast Registration
Link to access the results webcast: https://www.corpcam.com/Lesaka07052026
Participants using the webcast will be able to submit questions during the live Question and Answer session. Link to conference call dial-in registration via Chorus Call: https://services.choruscall.it/DiamondPassRegistration/register?confirmationNumber=1737086&linkSecurityString=515af47c8
Dial in details and individual pin to be provided on registration. Participants using the conference call dial-in will be able to ask their questions during the live Question and Answer session
Following the presentation, an archived version of the webcast will be provided on Lesaka's Investor Relations website.
Use of Non-GAAP Measures
U.S. securities laws require that when we publish any non-GAAP measures, we disclose the reason for using these non-GAAP measures and provide reconciliations to the most directly comparable GAAP measures. The presentation of Group Adjusted EBITDA, Net Revenue, Adjusted Earnings, Adjusted Earnings per Share, and headline (loss) earnings per share are non-GAAP measures. Refer to Attachment A for a reconciliation of these non-GAAP measures.
Non-GAAP Measures
Group Adjusted EBITDA
Group Adjusted EBITDA is net income (loss) before interest, taxes, depreciation and amortization, adjusted for non-operational transactions (including loss on impairment/disposal of equity-accounted investments), impairment loss, loss from equity-accounted investments, stock-based compensation charges and once-off items. Once-off items represent non-recurring expense items, including costs related to acquisitions and transactions consummated or ultimately not pursued.
Net Revenue
Net revenue is a non-GAAP financial measure. Revenue is the financial measure calculated in accordance with GAAP that is most directly comparable to net revenue. We generate revenue from the provision of transaction-processing services through our various platforms and service offerings. We use these platforms to (a) sell prepaid airtime vouchers ("Pinned Airtime") which was held as inventory, and (b) distribute pre-paid solutions including prepaid airtime vouchers (which we do not hold as inventory) ("Pinless Airtime"), prepaid electricity, gaming vouchers, and other products, to users of our platforms. We act as a principal when we sell Pinned Airtime that were held as inventory and record revenue and cost of sales on a gross basis when sold. We act as an agent in a transaction when we provide pre-paid solutions through our various platforms and services offerings because we do not control the good or service to be provided and we recognize revenue based on the amount that we are contractually entitled to receive for performing the distribution service on behalf of our customers using our platform. Our revenue under GAAP can fluctuate materially due to changes in the revenue mix between these revenue categories. Net Revenue is a non-GAAP measure and is calculated as revenue presented under GAAP less (i) the cost of Pinned Airtime sold by us, and (ii) commissions paid to third parties selling all other agency-based pre-paid solutions (including Pinless Airtime, electricity and other products) provided through our distribution channels. We believe that the use of Net Revenue is meaningful to users of financial information because it seeks to eliminate the impact of the change in the revenue mix from the revenue categories over the periods presented.
Adjusted earnings and Adjusted earnings per share
Adjusted earnings and Adjusted earnings per share is GAAP net income (loss) and income (loss) per share adjusted for the amortization of acquisition-related intangible assets (net of deferred taxes), stock-based compensation charges, and unusual non-recurring items, including costs related to acquisitions and transactions consummated or ultimately not pursued.
Adjusted earnings and Adjusted earnings per share for fiscal 2026 also includes adjustments related to the loss on impairment of equity-accounted investments, impairment loss, ATM exit expenses and impairments, reversal of allowance for doubtful loans receivable, Lesaka rebrand refresh expenses (net of tax), income recognized related to closure of legacy businesses (net of tax), changes in the fair value of equity securities (net of deferred tax), loss on disposal of equity securities, other income and intangible asset amortization, net related to non-controlling interests.
Adjusted earnings and Adjusted earnings per share for fiscal 2025 also includes adjustments related to changes in the fair value of equity securities (net of deferred tax), loss on disposal of equity-accounted investments and intangible asset amortization, net related to non-controlling interests.
Management believes that the Group Adjusted EBITDA, Adjusted earnings and Adjusted earnings per share metrics enhance its own evaluation, as well as an investor's understanding of our financial performance. Attachment A presents the reconciliation between GAAP net income (loss) attributable to Lesaka and these non-GAAP measures and the reconciliation between the basic weighted-average common shares outstanding and unvested restricted shares expected to vest under GAAP and the denominator used for Adjusted earnings per share.
Headline earnings (loss) per share ("HE(L)PS")
The inclusion of HE(L)PS in this press release is a requirement of our listing on the JSE. HE(L)PS basic and diluted is calculated using net income (loss) which has been determined based on GAAP. Accordingly, this may differ to the headline (loss) earnings per share calculation of other companies listed on the JSE as these companies may report their financial results under a different financial reporting framework, including, but not limited to, International Financial Reporting Standards.
HE(L)PS basic and diluted is calculated as GAAP net income (loss) adjusted for the loss on sale of equity-accounted investments, impairment losses related to our equity-accounted investments, change in fair value of equity securities, net, impairment losses and (profit) loss on sale of property, plant and equipment. Attachment C presents the reconciliation between our net income (loss) used to calculate earnings (loss) per share basic and diluted and HE(L)PS basic and diluted and the calculation of the denominator for headline diluted earnings (loss) per share.
About Lesaka Technologies, Inc. (www.lesakatech.com)
Lesaka operates a South African fintech company driven by a purpose to provide financial services, software and other business services to Southern Africa's underserviced consumers and merchants. We offer an integrated and holistic multiproduct platform that provides transactional accounts, lending, insurance, merchant acquiring, cash management, software and Alternative Digital Products ("ADP"). We provide targeted solutions and integrations to facilitate payments between consumers, merchants, and enterprises. By providing a full-service fintech platform in our connected ecosystem, we facilitate the digitization of commerce in our markets.
Lesaka has a primary listing on NASDAQ (NASDAQ:LSAK) and a secondary listing on the Johannesburg Stock Exchange (JSE: LSK). Visit www.lesakatech.com for additional information about Lesaka.
Forward-Looking Statements
This press release contains certain statements that may be considered forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and such statements are subject to the safe harbor created by those sections and the Private Securities Litigation Reform Act of 1995, as amended. Such statements may be identified by their use of terms or phrases such as "expects," "estimates," "projects," "believes," "anticipates," "plans," "could," "would," "may," "will," "intends," "outlook," "focus," "seek," "potential," "mission," "continue," "goal," "target," "objective," derivations thereof, and similar terms and phrases. Forward-looking statements are based upon the current beliefs and expectations of our management and are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified, which could cause future events and actual results to differ materially from those set forth in, contemplated by, or underlying the forward-looking statements. In this press release, statements relating to future financial results and future financing and business opportunities are forward-looking statements. Additional information concerning factors that could cause actual events or results to differ materially from those in any forward-looking statement is contained in our Form 10-K for the fiscal year ended June 30, 2025 and our Form 10-Q for the quarter ended March 31, 2026, as filed with the SEC, as well as other documents we have filed or will file with the SEC. We assume no obligation to update the information in this press release, to revise any forward-looking statements or to update the reasons actual results could differ materially from those anticipated in forward-looking statements.
Investor Relations and Media Relations Contacts:
Idris Dungarwalla
Email: idris.dungarwalla@lesakatech.com
Mobile: +44 786 225 4852
Akash Dowra
Email: akash.dowra@lesakatech.com
Mobile: +27 83 235 9750
Media Relations Contact:
Ian Harrison
Email: Ian@thenielsennetwork.com
Lesaka Technologies, Inc.
Attachment A
Reconciliation of GAAP income (loss) attributable to Lesaka to Group Adjusted EBITDA:
Three and nine months ended March 31, 2026 and 2025 and three months ended December 31, 2025
Three months ended Nine months ended
----------------------------- ---------------------
March 31, Dec 31, March 31,
------------------- -------- ---------------------
2026 2025 2025 2026 2025
-------- --------- -------- -------- -----------
Income (Loss) attributable to
Lesaka - GAAP$(A)$ $ 552 $(22,353) $ 3,645 $ (461) $(59,659)
(Add) Less net (loss) income
attributable to non-controlling
interest 115 (20) 14 246 (48)
------ ------- ------ ------ -------
Net income (loss) 437 (22,333) 3,631 (707) (59,611)
Earnings from equity accounted
investments (56) (12) (110) (166) (89)
------ ------- ------ ------ -------
Net income (loss) before
earnings from equity-accounted
investments 381 (22,345) 3,521 (873) (59,700)
Income tax expense (benefit) 1,503 (2,934) 670 2,027 (9,268)
------ ------- ------ ------ -------
Income (Loss) before income
tax expense 1,884 (25,279) 4,191 1,154 (68,968)
Loss on disposal of equity
securities - - 730 730 -
Other income - - (3,883) (3,883) -
Change in fair value of equity
securities 378 20,421 (2,971) (2,593) 54,152
Net loss on impairment/
disposal of equity-accounted
investment - - - 584 161
Reversal of allowance for
doubtful loans receivable (1,500) - - (1,500) -
Impairment loss(1) 1,916 - - 1,916 -
Unrealized loss (gain) FV for
currency adjustments 181 (114) (133) (16) 102
------ ------- ------ ------ -------
Operating income (loss) after
PPA amortization and net
interest (non-GAAP) 2,859 (4,972) (2,066) (3,608) (14,553)
PPA amortization (amortization
of acquired intangible
assets) 6,044 4,974 9,481 24,659 13,588
------ ------- ------ ------ -------
Operating income (loss)
before PPA amortization
after net interest
(non-GAAP) 8,903 2 7,415 21,051 (965)
Interest expense(A) 4,477 5,869 4,591 14,081 17,251
Interest income (1,154) (645) (508) (2,201) (1,952)
------ ------- ------ ------ -------
Operating income before PPA
amortization and net
interest (non-GAAP) 12,226 5,226 11,498 32,931 14,334
Depreciation and
amortization (excluding
amortization of
intangibles) 4,499 3,455 4,087 12,346 9,340
Interest adjustment - (890) - - (2,478)
Stock-based compensation
charges 1,334 2,497 1,945 5,140 7,518
Once-off items (refer below) 2,553 2,306 247 3,067 4,599
------ ------- ------ ------ -------
Group Adjusted EBITDA -
Non-GAAP(A) $20,612 $ 12,594 $17,777 $53,484 $ 33,313
====== ======= ====== ====== =======
(A) Revised FY2025 amounts to correct the errors discussed in Note 1 of our Form 10-Q for the period ended March 31, 2026.
(1) Impairments excludes an amount of $0.7 million which is included in the caption exit of ATM business in the table below.
Three months ended Nine months ended
----------------------- ------------------
Dec
March 31, 31, March 31,
--------------- ------ ------------------
2026 2025 2025 2026 2025
------- ------ ------ ------- ---------
Once-off items
comprises:
Transaction costs $ 466 $1,084 $ 200 $ 839 $1,621
Transaction costs
related to Adumo,
Recharger and Bank
Zero acquisitions 144 1,222 47 285 3,174
Lesaka brand refresh 984 - - 984 -
Exit of ATM business 1,599 - - 1,599 -
Indirect taxes
provision release (61) - - (61) (196)
Income recognized
related to closure
of legacy
businesses (579) - - (579) -
Total once-off
items $2,553 $2,306 $ 247 $3,067 $4,599
===== ===== ===== ===== =====
Once-off items are non-recurring in nature, however, certain items may be reported in multiple quarters. For instance, transaction costs include costs incurred related to acquisitions and transactions consummated or ultimately not pursued. The transactions can span multiple quarters, for instance in fiscal 2025 we incurred transaction costs related to the acquisition of Recharger over a number of quarters, and the transactions are generally non-recurring.
Exit of ATM business includes expenses incurred to exit our ATM business and the impairment of ATMs recorded in property, plant and equipment.
Rebrand relates to costs incurred related to Lesaka's new brand launched in November 2025, we expect that it will take the remainder of the 2026 calendar year to roll out the refreshed brand throughout the organization. These are non-recurring costs incurred as a necessary step in a set of strategic initiatives designed to create a "One Lesaka" identity for our customers and our employees.
Indirect tax provision release relates to the reversal of a non-recurring indirect tax provision created in fiscal 2023 which was resolved in fiscal 2025 following settlement of the matter with the tax authority.
Income recognized related to closure of legacy businesses represents (i) gains recognized related to the release of the foreign currency translation reserve on deconsolidation of a subsidiary and (ii) costs incurred related to subsidiaries which we are in the process of deregistering/ liquidation and therefore we consider these costs non-operational and ad hoc in nature.
Year ended June 30, 2025 and 2024
Year ended
-----------------------
June 30,
-----------------------
2025 2024
---------- -----------
(in thousands)
Net loss attributable to
Lesaka(A) $ (88,741) $(18,515)
(Less) Add net (loss) income
attributable to non-controlling
interest (130) -
-------- -------
Loss attributable to Lesaka --
GAAP $ (88,871) $(18,515)
(Earnings) Loss from equity
accounted investments (114) 1,279
-------- -------
Net loss before (earnings) loss
from equity-accounted
investments (88,985) (17,236)
Income tax (benefit) expense (18,198) 3,363
-------- -------
Loss before income tax expense (107,183) (13,873)
Reversal of allowance for
doubtful EMI loans
receivable - (250)
Net (gain) loss on disposal of
equity-accounted investment 161 -
Change in fair value of equity
securities 59,828 -
Impairment loss 18,863 -
Unrealized (gain) loss FV for
currency adjustments 23 (83)
-------- -------
Operating loss after PPA
amortization and net interest
(non-GAAP) (28,308) (14,206)
PPA amortization (amortization
of acquired intangible
assets) 21,384 14,419
-------- -------
Operating (loss) income
before PPA amortization
after net interest
(non-GAAP) (6,924) 213
Interest expense(A) 21,824 19,171
Interest income (2,596) (2,294)
-------- -------
Operating (loss) income
before PPA amortization and
net interest (non-GAAP) 12,304 17,090
Depreciation (excluding
amortization of
intangibles) 12,337 9,246
Stock-based compensation
charges 9,550 7,911
Interest adjustment (2,195) -
Once-off items (refer below) 17,826 1,853
-------- -------
Group Adjusted EBITDA -
Non-GAAP(A) $ 49,822 $ 36,100
======== =======
(A) Revised to correct the errors discussed in Note 1 of our Form 10-Q for the period ended March 31, 2026.
Reconciliation of Revenue under GAAP to Net Revenue:
Three and nine months ended March 31, 2026 and 2025, and three months ended December 31, 2025
Three months ended Nine months ended
---------------------------------------- ----------------------------
March 31, Dec 31, March 31,
-------------------------- ------------ ----------------------------
2026 2025 2025 2026 2025
------------ ------------ ------------ ------------- -------------
Revenue -- GAAP $183,051 $161,450 $178,734 $ 533,233 $ 491,234
Cost of prepaid airtime
vouchers sold by us &
commissions paid to third
parties selling all other
agency-based products (86,683) (88,083) (85,331) (256,856) (281,998)
------- ------- ------- -------- --------
Net Revenue (non-GAAP) $ 96,368 $ 73,367 $ 93,403 $ 276,377 $ 209,236
======= ======= ======= ======== ========
Net Revenue / Revenue --
GAAP 53% 45% 52% 52% 43%
Merchant segment revenue
(before eliminations) --
GAAP $127,078 $128,781 $131,919 $ 385,947 $ 397,642
Cost of prepaid airtime
vouchers sold by us &
commissions paid to third
parties selling all other
agency-based products (81,152) (86,502) (83,205) (246,913) (277,192)
------- ------- ------- -------- --------
Merchant Net Revenue
(non-GAAP) $ 45,926 $ 42,279 $ 48,714 $ 139,034 $ 120,450
======= ======= ======= ======== ========
Enterprise segment revenue
(before eliminations) --
GAAP $ 18,978 $ 9,444 $ 14,796 $ 48,627 $ 30,259
Cost of prepaid airtime
vouchers sold by us &
commissions paid to third
parties selling all other
agency-based products (5,531) (1,581) (2,126) (9,943) (4,806)
------- ------- ------- -------- --------
Enterprise Net Revenue
(non-GAAP) $ 13,447 $ 7,863 $ 12,670 $ 38,684 $ 25,453
======= ======= ======= ======== ========
Reconciliation of GAAP net income (loss) and earnings (loss) per share, basic, to adjusted earnings and adjusted earnings per share, basic:
Three months ended March 31, 2026 and 2025
Net income (loss) E(L)PS, Net income (loss) E(L)PS, basic
(USD '000) basic $(USD)$ (ZAR '000) (ZAR)
2026 2025 2026 2025 2026 2025 2026 2025
---------- -------- ---- ------ -------- --------- ---- --------
GAAP(A) 552 (22,353) 0.01 (0.28) 8,383 (409,790) 0.17 (5.15)
Change in fair
value of
equity
securities,
net 378 16,971 6,043 310,636
Intangible
asset
amortization,
net 4,412 3,631 72,110 63,495
Stock-based
compensation
charge 1,334 2,497 21,798 46,222
Transaction
costs 610 2,306 10,150 42,276
ATM exit
expenses and
impairments 1,599 - 26,792 -
Amortization
of intangible
assets, net
of tax -
equity
accounted
investments (94) (82) (1,574) (1,503)
Release of
valuation
allowance
related to
deferred tax
asset in
EasyPay
Financial
Services - (455) - (8,419)
Income
recognized
related to
closure of
legacy
businesses,
net (848) - (14,208) -
Reversal of
allowance for
doubtful
loans
receivable (1,500) - (25,132) -
Lesaka rebrand
refresh, net
of tax 718 - 11,885 -
Impairment
loss(1) 1,916 - 32,102 -
Adjusted(A) 9,077 2,515 0.11 0.03 148,349 42,917 1.80 0.52
====== ======= ======= ========
(A) Revised FY2025 amounts to correct the errors discussed in Note 1 of our Form 10-Q for the period ended March 31, 2026.
(1) Impairments excludes an amount of $0.7 million which is included in the caption ATM exit expenses and impairments.
Nine months ended March 31, 2026 and 2025
Net (loss) income (L)EPS, basic Net (loss) income (L)EPS, basic
(USD '000) (USD) (ZAR '000) (ZAR)
-------------------- -------------- --------------------- -----------------
2026 2025 2026 2025 2026 2025 2026 2025
---------- -------- ------ ------ -------- ----------- ------ ---------
GAAP(A) (461) (59,659) (0.01) (0.82) (13,057) (1,085,800) (0.17) (14.79)
Change in fair value
of equity
securities, net (2,593) 43,618 (43,957) 796,257
Stock-based
compensation
charge 5,140 7,518 87,819 136,313
Intangible asset
amortization, net 18,001 9,919 308,153 176,163
Transaction costs 1,124 4,795 19,194 86,434
Other (3,883) (196) (65,353) (3,508)
Net loss on
impairment/disposal
of equity-accounted
investment 584 161 10,342 2,886
Intangible asset
amortization, net
related to
non-controlling
interest (367) (166) (6,296) (3,006)
Release of valuation
allowance related
to deferred tax
asset in EasyPay
Financial Services - (924) - (16,682)
ATM exit expenses
and impairments 1,599 - 26,792 -
Income recognized
related to closure
of legacy
businesses, net (848) - (14,208) -
Reversal of
allowance for
doubtful loans
receivable (1,500) - (25,132) -
Loss on disposal of
equity securities 730 - 12,286 -
Lesaka rebrand
refresh, net of
tax 718 - 11,885 -
Impairment loss(1) 1,916 - 32,102 -
Adjusted(A) 20,160 5,066 0.25 0.07 340,570 89,057 4.15 1.21
====== ======= ======= ==========
(A) Revised FY2025 amounts to correct the errors discussed in Note 1 of our Form 10-Q for the period ended March 31, 2026.
(1) Impairments excludes an amount of $0.7 million which is included in the caption ATM exit expenses and impairments.
Calculation of the denominator for Adjusted earnings per share
Three months ended Nine months ended
March 31, March 31,
-------------------- -------------------
2026 2025 2026 2025
--------- --------- --------- --------
('000) ('000)
Basic weighted-average
common shares
outstanding and unvested
restricted shares
expected to vest under
GAAP 81,845 81,282 81,464 72,333
In the money stock
options 643 725 643 725
Acquisition related
shares - 813 - 813
--------- --------- --------- --------
Weighted average number
of shares used to
calculate Adjusted
earnings per share 82,488 82,820 82,107 73,871
========= ========= ========= ========
Weighted average number of shares used to calculate Adjusted earnings per share represents basic weighted-average common shares outstanding and unvested restricted shares expected to vest plus the effect of stock options that are in the money at the reporting date and shares to be issued related to acquisitions.
Attachment B
Unaudited Condensed Consolidated Financial Statements
Our unaudited condensed consolidated Statements of Operations for the three and nine months ended March 31, 2026 and 2025 in ZAR are presented below. We have translated the results of operations information for the three and nine months ended March 31, 2026 and 2025, provided in the tables below using the actual average exchange rates per month between the USD and ZAR.
Unaudited Condensed Consolidated Statements of Operations
Three months ended Nine months ended
--------------------------- ---------------------------
March 31, March 31,
--------------------------- ---------------------------
2026 2025 2026 2025
-------------- ----------- ----------- --------------
(In thousands) (In thousands)
REVENUE R 2,994,536 R2,987,226 R9,076,273 R 8,899,861
EXPENSE
Cost of goods sold, IT
processing, servicing
and support(A) 2,027,838 2,167,948 6,219,138 6,649,460
Selling, general and
administration(A) 642,142 602,675 1,913,704 1,661,228
Allowance for credit
losses 40,953 31,135 158,310 103,669
Depreciation and
amortization 172,553 155,919 632,092 415,665
Impairment loss 43,636 - 43,636 -
Transaction costs related
to Adumo, Recharger and
Bank Zero acquisitions
and certain compensation
costs 2,401 22,361 4,968 56,809
OPERATING INCOME 65,013 7,188 104,425 13,030
CHANGE IN FAIR VALUE OF
EQUITY SECURITIES (6,043) (373,784) 43,957 (988,494)
OTHER INCOME - - 65,353 -
LOSS ON
IMPAIRMENT/DISPOSAL OF
EQUITY-ACCOUNTED
INVESTMENT - - 10,342 2,886
LOSS ON DISPOSAL OF EQUITY
SECURITIES - - 12,286 -
REVERSAL OF ALLOWANCE FOR
DOUBTFUL LOAN RECEIVABLE (25,132) - (25,132) -
INTEREST INCOME 19,086 11,944 37,278 35,347
INTEREST EXPENSE(A) 73,288 108,639 240,274 312,720
INCOME (LOSS) BEFORE
INCOME TAX EXPENSE
(BENEFIT) 29,900 (463,291) 13,243 (1,255,723)
INCOME TAX EXPENSE
(BENEFIT) 24,310 (53,650) 33,244 (169,202)
NET INCOME (LOSS) BEFORE
EARNINGS FROM
EQUITY-ACCOUNTED
INVESTMENTS 5,590 (409,641) (20,001) (1,086,521)
EARNINGS FROM
EQUITY-ACCOUNTED
INVESTMENTS 938 220 2,789 1,586
NET INCOME (LOSS) 6,528 (409,421) (17,212) (1,084,935)
(ADD) LESS NET (LOSS)
INCOME ATTRIBUTABLE TO
NON-CONTROLLING INTEREST (1,855) 369 (4,155) 865
NET INCOME (LOSS)
ATTRIBUTABLE TO LESAKA R 8,383 R (409,790) R (13,057) R(1,085,800)
========= ========= ========= ==========
Net earnings (loss) per
share, in South African
Rands:
Basic earnings (loss)
attributable to Lesaka
shareholders R 0.17 R (5.15) R (0.17) R (14.79)
Diluted earnings (loss)
attributable to Lesaka
shareholders R 0.17 R (5.15) R (0.17) R (14.79)
Exchange rate $1: ZAR 16.7685 18.4021 17.1282 18.0393
(A) Revised FY2025 amounts to correct the errors discussed in Note 1 of our Form 10-Q for the period ended March 31, 2026.
Our unaudited condensed consolidated Statements of Cash Flows for the three and nine months ended March 31, 2026 and 2025 in ZAR are presented below. We have translated the cash flow information for the three and nine months ended March 31, 2026 and 2025, provided in the tables below using the actual average exchange rates per month between the USD and ZAR.
Unaudited Condensed Consolidated Statements of Cash
Flows
Three months ended Nine months ended
---------------------------- ----------------------------
March 31, March 31,
---------------------------- ----------------------------
2026 2025 2026 2025
-------------- ------------ ------------ --------------
(In thousands) (In thousands)
Cash flows from
operating activities
Net income (loss)(A) R 6,528 R (409,421) R (17,212) R(1,084,936)
Depreciation and
amortization 172,553 155,919 632,092 415,665
Impairment loss 43,636 - 43,629 -
Movement in allowance
for doubtful
accounts receivable 40,953 31,135 158,310 103,669
Fair value adjustment
related to financial
liabilities (3,275) 1,940 (2,784) (2,808)
Loss on disposal of
equity securities - - 12,286 -
Loss on
impairment/disposal
of equity-accounted
investments - - 10,342 2,886
Earnings from
equity-accounted
investments (938) (220) (2,790) (1,586)
Reversal of allowance
for doubtful loans
receivable (25,132) - (25,132) -
Gain on
deconsolidation of
subsidiary (14,208) - (14,208) -
Change in fair value
of equity
securities 6,043 373,784 (43,957) 988,494
Other income - - (65,353) -
Profit on disposal of
property, plant and
equipment (3,040) (220) (4,037) (959)
Movement in interest
payable (462) 53,378 (1,062) 117,328
Facility fee
amortized 1,504 1,533 4,386 3,989
Stock-based
compensation charge 21,798 46,222 87,819 136,313
Dividends received
from equity
accounted
investments 1,681 - 1,681 1,165
Decrease (Increase)
in accounts
receivable 208,571 199,458 (21,723) 120,835
Increase in finance
loans receivable (9,543) (219,419) (516,570) (400,670)
Decrease in inventory 120,658 172,817 143,626 78,066
Increase (Decrease)
in accounts payable
and other
payables(A) 29,956 (170,871) 259,888 (322,498)
Deferred
consideration due to
seller of Recharger
included in accounts
payable and other
payables - 20,794 - 20,384
Increase in taxes
payable 20,498 18,712 23,041 29,404
Decrease in deferred
taxes (9,877) (81,336) (77,436) (251,666)
--------- ---------- ---------- ----------
Net cash provided by
(used in) operating
activities 607,904 194,205 584,837 (46,924)
--------- ---------- ---------- ----------
Cash flows from
investing activities
Capital expenditures (55,871) (52,151) (193,225) (236,150)
Proceeds from
disposal of
property, plant and
equipment (10,612) 7,302 5,214 31,206
Acquisition of
intangible assets (19,766) (30,907) (57,159) (41,687)
Acquisitions, net of
cash acquired (180,233) (164,726) (186,040) (234,156)
Cash disposed on
disposal of
subsidiary - - (2,777) -
Investment in equity
securities - - (4,208) -
Proceeds from
disposal of equity
securities - - 50,000 -
Net change in
settlement assets 103,944 58,259 115,546 97,813
--------- ---------- ---------- ----------
Net cash used in
investing activities (162,538) (182,223) (272,649) (382,975)
--------- ---------- ---------- ----------
Cash flows from
financing activities
Proceeds from bank
overdraft 743,928 394,300 1,585,486 1,689,434
Repayment of bank
overdraft (482,320) (932,884) (1,404,556) (1,569,781)
Long-term borrowings
utilized 11,480 3,249,662 81,470 3,495,887
Repayment of
long-term
borrowings (170,444) (2,485,653) (211,872) (2,730,300)
Acquisition of
non-controlling
interests (59,278) - (59,278) -
Acquisition of
treasury stock (640) (499) (5,201) (221,976)
Proceeds from
exercise of stock
options - 1,082 - 2,005
Guarantee fee - (9,961) (575) (17,532)
Dividends paid to
non-controlling
interest - (2,398) - (7,744)
Net change in
settlement
obligations (98,170) (59,755) (104,952) (101,935)
--------- ---------- ---------- ----------
Net cash (used in)
provided by financing
activities (55,445) 153,894 (119,481) 538,058
--------- ---------- ---------- ----------
Effect of exchange
rate changes on cash 2,901 (4,365) (6,462) (1,438)
--------- ---------- ---------- ----------
Net increase in cash,
cash equivalents and
restricted cash 392,821 161,511 186,244 106,722
Cash, cash equivalents
& restricted cash --
beginning of period 1,154,179 1,143,653 1,360,756 1,198,442
--------- ---------- ---------- ----------
Cash, cash equivalents
& restricted cash --
end of period R 1,547,001 R 1,305,164 R 1,547,001 R 1,305,164
========= ========== ========== ==========
Exchange rate $1: ZAR 16.7685 18.4021 17.1282 18.0393
(A) Revised FY2025 amounts to correct the errors discussed in Note 1 of our Form 10-Q for the period ended March 31, 2026.
Our unaudited condensed consolidated balance sheets as of March 31, 2026 and June 30, 2025 in ZAR are presented below. Amounts included in these balance sheets have been calculated using the $ amounts per our balance sheets presented in U.S. dollars and converted to ZAR using the exchange rates noted below.
Unaudited Condensed Consolidated Balance Sheets
March 31, June 30,
2026 2025
-------------------- ----------------
(In thousands, except share data)
ASSETS
CURRENT ASSETS
Cash and cash
equivalents R 1,544,886 R 1,358,643
Restricted cash 2,115 2,113
Accounts receivable,
net of allowance and
other receivables 775,794 755,048
Finance loans
receivable, net 1,695,634 1,315,853
Inventory 298,392 418,157
--------------- ---------------
Total current assets
before settlement
assets 4,316,821 3,849,814
Settlement assets 365,578 481,136
--------------- ---------------
Total current assets 4,682,399 4,330,950
PROPERTY, PLANT AND
EQUIPMENT, net of
accumulated
depreciation of -
March: R1,100,437;
June: R978,074 (Note
1) 763,275 797,644
OPERATING LEASE
RIGHT-OF-USE 143,448 172,068
EQUITY-ACCOUNTED
INVESTMENTS 4,042 3,533
GOODWILL 3,532,856 3,540,338
INTANGIBLE ASSETS,
including integrated
platform of- March:
R1,253,095; June:
R1,408,767 2,115,555 2,471,818
DEFERRED INCOME TAXES 191,139 222,901
OTHER LONG-TERM ASSETS 79,843 67,630
--------------- ---------------
TOTAL ASSETS 11,512,557 11,606,882
=============== ===============
LIABILITIES
CURRENT LIABILITIES
Short-term credit
facilities 611,060 434,457
Accounts payable 330,254 352,747
Other payables(A) 1,359,939 1,350,032
Operating lease
liability -- current 74,248 71,146
Current portion of
long-term borrowings 261,430 212,284
Income taxes payable 43,051 24,858
--------------- ---------------
Total current
liabilities before
settlement
obligations 2,679,982 2,445,524
Settlement
obligations 369,041 473,980
--------------- ---------------
Total current
liabilities 3,049,023 2,919,504
DEFERRED INCOME TAXES 497,069 602,281
OPERATING LEASE
LIABILITY - LONG TERM 100,430 108,823
LONG-TERM BORROWINGS 3,176,693 3,352,450
OTHER LONG-TERM
LIABILITIES, including
insurance policy
liabilities 61,746 53,106
--------------- ---------------
TOTAL LIABILITIES 6,884,961 7,036,164
=============== ===============
TOTAL EQUITY AND
REDEEMABLE COMMON
STOCK(A) R 4,627,596 R 4,570,718
=============== ===============
Exchange rate $1: ZAR 17.0568 17.7554
Note 1: In October 2025, the Company identified that it had understated its June 30, 2025, cost and accumulated depreciation by ZAR 114.5 million. The carrying value of property, plant and equipment reported as of June 30, 2025 was not impacted by the misstatement. Accumulated depreciation has been recast to increase the amount from ZAR 863,552 to ZAR 978,074.
(A) Revised FY2025 amounts to correct the errors discussed in Note 1 of our Form 10-Q for the period ended March 31, 2026.
Attachment C
Reconciliation of net income (loss) used to calculate earnings (loss) per share basic and diluted and headline earnings (loss) per share basic and diluted:
Three months ended March 31, 2026 and 2025
2026 2025
Net income (loss) (USD'000)(A) 552 (22,353)
Adjustments:
Change in fair value of equity securities, net 378 16,971
Income recognized related to closure of legacy
businesses (848) -
Impairment loss 2,604 -
Profit on sale of property, plant and equipment (188) (12)
Tax effects on above 51 3
Net income (loss) used to calculate headline
earnings (loss) (USD'000)(A) 2,549 (5,391)
====== =======
Weighted average number of shares used to calculate
net earnings (loss) per share basic earnings
(loss) and headline earnings (loss) per share
basic earnings (loss) ('000) 81,845 81,282
Weighted average number of shares used to calculate
net earnings (loss) per share diluted earnings
(loss) and headline earnings (loss) per share
diluted earnings (loss) ('000) 82,024 81,282
Headline earnings (loss) per share:
Basic, in USD 0.03 (0.07)
Diluted, in USD 0.03 (0.07)
(A) Revised FY2025 amounts to correct the errors discussed in Note 1 of our Form 10-Q for the period ended March 31, 2026.
Nine months ended March 31, 2026 and 2025
2026 2025
------- ----------
Net loss (USD'000)(A) (461) (59,659)
Adjustments:
Loss on disposal of equity securities 730 -
Change in fair value of equity securities, net (2,593) 43,618
Net loss on impairment/disposal of
equity-accounted investment 584 -
Income recognized related to closure of legacy
businesses (848) -
Impairment loss 2,604 -
Profit on sale of property, plant and equipment (245) (53)
Tax effects on above 66 14
Net loss used to calculate headline loss
(USD'000)(A) (163) (16,080)
====== =======
Weighted average number of shares used to calculate
net loss per share basic loss and headline loss
per share basic loss ('000) 81,464 72,333
Weighted average number of shares used to calculate
net loss per share diluted loss and headline loss
per share diluted loss ('000) 81,464 72,333
Headline loss per share:
Basic, in USD - (0.22)
Diluted, in USD - (0.22)
(A) Revised FY2025 amounts to correct the errors discussed in Note 1 of our Form 10-Q for the period ended March 31, 2026.
Calculation of the denominator for headline diluted earnings (loss) per share
Three months ended Nine months ended
March 31, March 31,
-------------------- -------------------
2026 2025 2026 2025
--------- --------- --------- --------
('000) ('000)
Basic weighted-average
common shares
outstanding and unvested
restricted shares
expected to vest under
GAAP 81,845 81,282 81,464 72,333
Effect of dilutive
securities under GAAP 179 - - -
--------- --------- --------- --------
Denominator for
headline diluted
earnings (loss) per
share 82,024 81,282 81,464 72,333
========= ========= ========= ========
Weighted average number of shares used to calculate headline diluted loss per share represents the denominator for basic weighted-average common shares outstanding and unvested restricted shares expected to vest plus the effect of dilutive securities under GAAP. We use this number of fully diluted shares outstanding to calculate headline diluted loss per share because we do not use the two-class method to calculate headline diluted loss per share.
(END) Dow Jones Newswires
May 06, 2026 16:15 ET (20:15 GMT)