10-Q · May 6, 2026
Lesaka Technologies reported strong Q3 2026 results with revenue reaching $183.1 million, and EPS at $0.01, surpassing analyst expectations for EPS while falling short on revenue estimates. Notably, the company raised…
Earnings analysis · 10-K
LSAK earnings analysis
Filed September 9, 2026 · Our reading of the company's report
The latest report
Lesaka delivered a meaningful operating turnaround in fiscal 2026: revenue rose 9% to $721.554 million, operating income returned to $12.681 million, diluted EPS was $0.03, and operating cash flow recovered to $52.444…
Read full summary
Lesaka delivered a meaningful operating turnaround in fiscal 2026: revenue rose 9% to $721.554 million, operating income returned to $12.681 million, diluted EPS was $0.03, and operating cash flow recovered to $52.444 million. Growth and profitability were concentrated in Consumer and Enterprise, while Merchant revenue declined 3% despite higher transaction volumes and ongoing platform integration. Deleveraging to 1.9x net debt/Group Adjusted EBITDA is constructive, but the adverse internal-control opinion, unresolved VAT issues and Bank Zero execution and leverage obligations temper the outlook.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $0.03
What stood out
-
Returned to operating profitability
Revenue increased from $564.222 million in fiscal 2024 to $659.701 million in fiscal 2025 and $721.554 million in fiscal 2026. Operating income improved from a $27.966 million loss in fiscal 2025 to $12.681 million of income in fiscal 2026, lifting the operating margin from (4.2%) to 1.8%.
-
Consumer growth led the turnaround
Consumer was the main earnings driver: revenue rose 49% to $142.631 million and Segment Adjusted EBITDA rose 93% to $46.193 million. Active consumers increased 11% to 2.08 million, while consumer lending originations increased 51% to ZAR 3.769 billion.
-
Enterprise contribution scaled rapidly
Enterprise revenue rose 76% to $74.730 million and Segment Adjusted EBITDA increased to $8.119 million from $1.287 million, primarily reflecting the full-year contribution from Utilities and growth in ADP. Utilities TPV increased 151% year over year to ZAR 1.934 billion.
-
Integrated platform strategy advancing
The company is consolidating Merchant brands and infrastructure under the “One Lesaka” identity, with full brand alignment expected by the end of calendar 2026. Merchant active merchants increased 3% to 131,545 and acquiring TPV increased 27% to ZAR 43.7 billion, although Merchant ARPU declined 5% to ZAR 1,784 per month.
-
Cash generation and leverage improved
Deleveraging progressed materially: net debt to Group Adjusted EBITDA declined from 2.9x at the start of fiscal 2026 to 1.9x at year-end, below the stated medium-term target of 2.0x or lower. Net cash provided by operating activities improved to $52.444 million from $9.122 million of cash used in fiscal 2025.
-
Reinvestment prioritized over dividends
Capital remained focused on the operating platform: fiscal 2026 capital expenditures were $25.049 million, including $19.581 million in Merchant, while the company paid $13.741 million of long-term borrowings. It paid no common-stock dividends in the last two fiscal years and retains earnings to fund expansion.
What to watch
-
Material weaknesses and reporting risk
Management concluded disclosure controls and internal control over financial reporting were not effective as of June 30, 2026, and KPMG issued an adverse opinion. Newly identified weaknesses cover Consumer lending, Consumer insurance, Group payroll, journal entries, Utilities, Lesaka Hospitality, Lesaka Merchant Technologies, Lesaka Payments and insufficient trained resources; corrected items included a $0.4 million current-period revenue misstatement and prior-period revisions.
-
Unresolved VAT and restatement exposure
The company identified historical indirect-tax errors dating back to June 30, 2022, arising from incorrect VAT treatment of gaming voucher transactions. The filing increased fiscal 2025 other payables by approximately $4.0 million and states that additional errors could require further adjustments, restatements, tax payments, penalties or interest.
-
Bank Zero execution and debt obligations
The proposed Bank Zero acquisition remains subject to Prudential Authority and South African Exchange Control approval, with the long-stop date extended to January 31, 2027. Management expects the transaction to reduce gross debt by more than ZAR 1 billion, but failure or delay could impair the expected funding benefits; separately, aggregate borrowings were ZAR 3.5 billion ($210.7 million) at June 30, 2026 and ZAR 200 million ($12.2 million) is scheduled for repayment in March 2027.
Management's outlook
The 10-K provides no quantitative FY2027 revenue or EPS guidance. Management discusses qualitative priorities including continued platform integration, deleveraging, Merchant brand alignment and the proposed Bank Zero transaction.
Earlier filings 4
10-Q · February 4, 2026
Lesaka Technologies (LSAK) reported Q2 FY2026 results surpassing consensus EPS and revenue estimates significantly. Revenue reached $178.7 million, up 1% sequentially and 6% year-over-year, while diluted EPS improved to…
10-Q · November 5, 2025
Lesaka Technologies reported significant revenue growth in Q1 FY2026, with total revenue reaching $171.4 million, up 12% from $153.6 million in Q1 FY2025. Operating losses have narrowed to $45,000 compared to a loss of…
10-Q · May 7, 2025
LSAK reported mixed earnings for Q3 2025, with revenues of $135.67 million, up 4.36% from the estimate but down 3% year-over-year. Operating margins improved to 27.5% alongside a positive EPS of $0.04, surpassing both…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.