Executive Summary

Q1 FY2026 delivered solid execution: GAAP revenue of $171.45M (+10% YoY in ZAR), Net Revenue (non‑GAAP) of $86.61M (+45% YoY in ZAR), and Group Adjusted EBITDA of $15.34M (+61% YoY in ZAR), achieving guidance; GAAP basic loss per share improved to $(0.05) while non‑GAAP adjusted EPS was $0.06 .
Versus S&P Global consensus, the company produced a clear beat: Revenue $171.45M vs $158.0M estimate; Primary EPS $0.06 vs $(0.02) estimate; EBITDA $13.37M vs $13.15M estimate (EBITDA here is SPGI-defined, separate from company’s non‑GAAP “Adjusted EBITDA” of $15.34M).* Values retrieved from S&P Global.
Management reaffirmed FY2026 guidance (Net Revenue ZAR 6.4–6.9B; Group Adjusted EBITDA ZAR 1.25–1.45B; positive GAAP Net Income; adjusted EPS ≥ ZAR 4.60) and guided Q2 FY2026 Net Revenue ZAR 1.575–1.725B and Group Adjusted EBITDA ZAR 280–320M .
Stock-relevant catalysts: multi-metric beat, confident FY26 reaffirmation, and Bank Zero integration optionality; watch merchant integration costs/seasonality and ongoing portfolio streamlining (e.g., Cell C monetization underpinned at ~ZAR 50M) that may drive sentiment .

What Went Well and What Went Wrong

What Went Well

Non-GAAP growth quality: Net Revenue up 45% YoY (ZAR), Adjusted EBITDA up 61% YoY (ZAR), adjusted EPS up 97% YoY (ZAR), all landing at/near guidance; “13th consecutive quarter” of meeting EBITDA guidance underscores execution discipline .
Consumer segment standout: Adjusted EBITDA up 90% YoY (ZAR 150M); active consumers >1.9M (+24% YoY), ARPU up 13% YoY to ZAR 89, lending originations ZAR 820M vs ZAR 462M, insurance GWP ZAR 120M (+38%) with ~97% collection ratio .
Enterprise traction: Net Revenue ZAR 222M (+19% YoY) and segment Adjusted EBITDA ZAR 22M (+241% YoY), with Utilities TPV +21% YoY and 270k active meters (+16%) supporting margin uplift as platform/product synergies scale .

Management quotes:

“We have met our guidance for the 13th consecutive quarter.”
“Consumer again delivered standout performance… segment adjusted EBITDA increasing 90% to ZAR 150 million.”
“We are pleased to reaffirm our FY2026 annual guidance… and providing Q2 guidance implying ~20% YoY net revenue growth.”

What Went Wrong

GAAP profitability remains negative though improving: Q1 GAAP net loss $(4.30)M and basic loss per share $(0.05); group costs elevated at ZAR 64M due to non‑recurring finance/admin charges (expected to trend toward ~ZAR 55M quarterly) .
Merchant sequential softness and margin oscillation tied to seasonality, mix, and non‑recurring costs; management intentionally kept exclusions minimal, guiding to view run‑rate through next quarter’s guidance and margin band of ~19–25% .
Integration complexity and office/infra consolidation (moving ~40 offices to ~20) will take time; near‑term cost saves not yet quantified and cross‑sell attachment metrics for merchant to be disclosed starting next quarter .

Financial Results

Multi-Period Core Metrics (USD)

Metric	Q3 2025	Q4 2025	Q1 2026
Revenue ($USD Millions)	$135.67	$168.47	$171.45
Net Revenue (non-GAAP, $USD Millions)	$73.37	$82.01	$86.61
Group Adjusted EBITDA ($USD Millions)	$12.80	$16.72	$15.34
Operating Income ($USD Millions)	$0.57	$(28.40)	$0.38
Net Loss Attributable to Lesaka ($USD Millions)	$(22.06)	$(28.77)	$(4.30)
GAAP EPS (Basic, $USD)	$(0.27)	$(0.35)	$(0.05)
Non-GAAP EPS ($USD)	$0.04 (Fundamental EPS)	$0.05 (Adjusted EPS)	$0.06 (Adjusted EPS)

Q1 2026 vs Wall Street Consensus (S&P Global)

Metric	Consensus	Actual	Result
Revenue ($USD Millions)	$158.00*	$171.45	Beat*
Primary EPS ($USD)	$(0.02)*	$0.06	Beat*
EBITDA ($USD Millions)	$13.15*	$13.37*	Slight beat*

*Values retrieved from S&P Global.

Segment Breakdown – Q1 FY2026

Segment	Revenue ($USD Millions)	Net Revenue (non-GAAP, $USD Millions)	Segment Adjusted EBITDA ($USD Millions)
Merchant	$126.95	$44.39	$9.20
Consumer	$30.60	—	$8.50
Enterprise	$14.85	$12.57	$1.30

Note: Consumer Net Revenue was not disclosed in the Q1 press release .

KPIs – Q1 FY2026 Operational Drivers (ZAR)

KPI	Q1 FY2025	Q1 FY2026	YoY
Merchant acquiring TPV (ZAR B)	4.2	9.2	+>100%
Acquiring devices (units)	53,500	~88,000	+64%
Micro merchant cash vaults (sites)	—	4,600	—
ADP TPV (ZAR B)	10.5 (approx., implied from 13% growth to 11.9)	11.9	+13%
Utilities TPV (ZAR M)	~327 (implied; 21% growth to 396)	396	+21%
Registered meters (000s)	—	500	—
Active meters (000s)	~233 (implied; +16% to 270)	270	+16%
Active consumer accounts (MM)	~1.53 (implied; +24% to >1.9 incl. 0.22 non-permanent)	>1.9	+24%
Consumer ARPU (ZAR)	~79 (implied; +13% to 89)	89	+13%
Consumer lending originations (ZAR M)	462	820	+77%
Consumer closing loan book (ZAR M)	564	1,100	+95%
Insurance GWP (ZAR M)	~87 (implied; +38% to 120)	120	+38%
Insurance in-force policies (000s)	~464 (implied; +27% to ~589)	~589	+27%
Insurance collection ratio (%)	~97	~97	stable

Notes: Some prior values are implied from YoY growth rates disclosed; current reported KPIs are cited from Q1 call.

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Net Revenue (ZAR)	Q2 FY2026	—	1.575–1.725B	New
Group Adjusted EBITDA (ZAR)	Q2 FY2026	—	280–320M	New
Net Revenue (ZAR)	FY2026	6.4–6.9B (reaffirmed in Sept prelims)	6.4–6.9B	Maintained
Group Adjusted EBITDA (ZAR)	FY2026	1.25–1.45B	1.25–1.45B	Maintained
GAAP Net Income	FY2026	Positive	Positive	Maintained
Adjusted EPS (ZAR)	FY2026	≥ 4.60	≥ 4.60	Maintained

Note: In Sept 2025 prelims, revenue guidance under GAAP was withdrawn due to restatement; Net Revenue guidance was provided and is consistently reaffirmed here .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q3 FY2025, Q4 FY2025)	Current Period (Q1 FY2026)	Trend
Merchant integration, margin and seasonality	Q3: Adumo consolidation driving net revenue; transaction costs; margin variability	Non‑recurring costs in merchant; margin band 19–25%; guidance better reflects underlying run-rate	Improving run-rate clarity; integration ongoing
Consumer acquisition and monetization	Q3: Strong net revenue/EBITDA growth	Active base >1.9M, ARPU up, lending originations +77% YoY, insurance scaling with ~97% collections	Sustained momentum
Enterprise platform and Utilities	Q3: Enterprise undergoing restructure; Recharger acquisition	ADP TPV +13% YoY; Utilities TPV +21% YoY; active meters +16%	Building scale
Cost rationalization & office consolidation	Not central prior	Plan to consolidate offices (Johannesburg, Cape Town, Durban), reduce locations from ~40 to ~20; savings expected over short-to-medium term	Execution phase
Bank Zero acquisition	Announced previously; integration optionality (June)	Progressing on regulatory timeline; expected completion by end FY2026; deposit funding to delever and boost cash conversion	On track
Portfolio streamlining (Cell C stake)	Prior notes on non-core assets	Agreement to monetize with underpin of ~ZAR 50M upon IPO while retaining upside	De-risking
Restatement context	Sept prelims withdrew GAAP revenue guidance; emphasized Net Revenue	Clean quarter with limited anomalies; guidance reaffirmed	Stabilizing disclosure framework

Management Commentary

Strategy and execution: “We are building the foundations for future growth… unifying our merchant brand and product offerings… rationalizing our infrastructure” .
Consumer momentum: “Our ARPU has increased 13% year on year to ZAR 89… originations amounted to ZAR 820 million… credit loss ratio remains stable” .
Enterprise scale: “Bill payments represent over 75% of ADP volumes… ADP TPV to ZAR 11.9 billion… Utilities TPV increased 21% YoY to ZAR 396 million” .
Guidance confidence: “We are pleased to reaffirm our FY2026 annual guidance… Q2 guidance implies ~20% YoY net revenue growth and ~42% YoY EBITDA growth at midpoints” .

Q&A Highlights

Merchant sequential trends and margins: Seasonality and mix drove sequential changes; some non‑recurring costs were included rather than excluded; look to guidance for underlying run‑rate; margin band ~19–25% .
Cross‑sell trajectory: High attachment of acquiring to ADP already; software also additive; detailed merchant attachment metrics will be disclosed from next quarter .
Cost base rationalization: Office consolidation and platform re‑engineering to remove duplication; significant savings expected over short‑to‑medium term, specifics TBD .
Cell C monetization: Lesaka supportive of IPO; minimum value underpin of ~ZAR 50M with upside optionality post listing .
Consumer runway: Share gains from Postbank migration; penetration runway in lending/insurance; Bank Zero expands addressable consumer beyond grants .

Estimates Context

Revenue beat: Actual $171.45M vs $158.0M consensus (SPGI) – strong top‑line performance.* Values retrieved from S&P Global.
Primary EPS beat: $0.06 vs $(0.02) consensus – non‑GAAP adjusted EPS tracked by SPGI contrasted with GAAP loss per share of $(0.05); investors should note reporting basis differences .* Values retrieved from S&P Global.
EBITDA slight beat: $13.37M vs $13.15M consensus (SPGI); company-reported Group Adjusted EBITDA was higher at $15.34M due to non‑GAAP adjustments .* Values retrieved from S&P Global.
Implication: Consensus likely to rise for FY2026 on demonstrated momentum in Consumer/Enterprise and reaffirmed guidance; watch for modeling shifts to non‑GAAP Net Revenue/Adjusted EBITDA given restatement context .

Key Takeaways for Investors

Multi‑metric beat and FY26 reaffirmation support near‑term positive sentiment; Q2 guidance midpoints imply ~20% YoY Net Revenue and ~42% YoY Adjusted EBITDA growth .
Consumer engine is robust: higher ARPU, rapid originations, stable credit loss, and insurance scaling with ~97% collections – a key driver of cash conversion and margin resilience .
Merchant integration is a 2026 execution theme: expect margin variability within the 19–25% band near term, with medium‑term operating leverage as duplication is removed and cross‑sell deepens .
Enterprise is emerging as a meaningful contributor with ADP scale and Utilities synergy; meter base growth should support recurring vending revenue .
Balance sheet and cash: Net debt/Adjusted EBITDA improved from 2.9x to 2.5x; Bank Zero deposits could lower funding costs and enhance cash conversion, a medium‑term deleveraging catalyst .
Watch list items: integration costs, seasonality in merchant/ADP, execution on office consolidation, and timeline/regulatory progress for Bank Zero .
Trading angle: Near term, the revenue/EPS beats plus confident guidance may drive outperformance; medium term, delivery on cross‑sell, cost savings, and Bank Zero close are key re‑rating levers .

Sources: Q1 FY2026 8‑K earnings release and attachments ; Q1 FY2026 press release ; Q1 FY2026 earnings call transcript ; prior quarter Q3 FY2025 8‑K/press release ; preliminary FY2025 press release/8‑K .

LESAKA TECHNOLOGIES INC (LSAK)·Q1 2026 Earnings Summary