's questions to Lesaka Technologies Inc (LSAK) leadership • Q2 2025
Question
An analyst inquired about the growth outlook for the Merchant Division, considering its recent performance and significant platform investments.
Answer
Steven Heilbron, Head of the Merchant Division, stated that the FY'26 guidance implies considerable growth for the division. He emphasized they are building a platform to capture a larger share of a $2.8 billion addressable market. While the Adumo acquisition positively impacted the quarter's 32% EBITDA growth, Heilbron noted that significant, front-loaded operating expenditure was invested into the Kazang platform. He expects these investments to drive increased, higher-margin throughput and earnings in future quarters.