Executive Summary

Revenue was $146.8M (ZAR 2.6B), at the upper end of guidance, while Group Adjusted EBITDA was $11.8M (ZAR 211.8M), exceeding guidance; FY2025 guidance reaffirmed and FY2026 Group Adjusted EBITDA introduced at ZAR 1.25–1.45B .
GAAP EPS was -$0.40, driven by a tax-adjusted $26.6M non-operating, non-cash fair-value change in MobiKwik; non-GAAP fundamental EPS was $0.01, up 12% in ZAR year-over-year .
Merchant net revenue rose 68% Y/Y in ZAR and Consumer net revenue rose 31% Y/Y in ZAR; strong Consumer KPIs (EPE permanent base +16% to 1.4M, ARPU ZAR 94, loan book ZAR 709M) underpin momentum .
Near-term catalysts: comprehensive debt refinance expected in the current quarter, planned MobiKwik monetization post lock-up in mid-May, and positive regulatory developments (ASAPP launch; SARB considering non-bank exemptions) that could accelerate revenue and lower costs .

What Went Well and What Went Wrong

What Went Well

Exceeded Group Adjusted EBITDA guidance and reaffirmed FY2025 ranges; introduced FY2026 EBITDA guidance, signaling confidence in scalability. “We have now delivered on our profitability guidance for ten successive quarters.” — Executive Chairman Ali Mazanderani .
Consumer division delivered strong growth: permanent EPE base 1.4M (+16% Y/Y), ARPU ZAR 94 (+11% Y/Y), gross advances ZAR 617M (+38% Y/Y), book ZAR 709M (+41% Y/Y) with a ~6% loss ratio and improving cross-sell (loan penetration 43%, insurance 35%) .
Merchant acquiring scaled: >80,000 card-enabled POS devices and throughput up to ZAR 11.3B in Q2 (vs ZAR 4.1B in Q2 2024), supported by Adumo integration and Kazang Pay growth (+19% throughput Y/Y) .

What Went Wrong

GAAP net loss of $32.1M and EPS -$0.40 primarily due to a pretax write-down of ZAR 615M on MobiKwik (tax benefit ZAR 117M); non-operating and non-cash but overshadowed the P&L .
Merchant GAAP revenue fell 5% Y/Y in ZAR, with margins pressured by mix shift to lower-commission supplier-enabled payments and front-loaded investment in Kazang operations; management expects a pull-through of higher-margin throughput in future quarters .
Net interest expense rose given higher borrowing to fund Adumo and consumer lending; short-term gearing increased before expected refinance completion this quarter .

Financial Results

Consolidated Performance (USD)

Metric	Q4 2024	Q1 2025	Q2 2025
Revenue ($M)	$146.0	$145.5	$146.8
Operating Income ($M)	$0.3	-$0.05	$0.8
GAAP Net Loss ($M)	-$5.0	-$4.5	-$32.1
GAAP EPS ($)	-$0.08	-$0.07	-$0.40
Fundamental EPS ($)	$0.02	$0.04	$0.01
Group Adjusted EBITDA ($M)	$10.26	$9.36	$11.81

Year-over-Year Snapshot (USD/ZAR)

Metric	Q2 2024	Q2 2025
Revenue ($M, ZAR B)	$143.9; ZAR 2.7	$146.8; ZAR 2.6
Operating Income ($M, ZAR M)	$2.3; ZAR 42.5	$0.8; ZAR 14.2
GAAP EPS ($; ZAR)	-$0.04; ZAR -0.79	-$0.40; ZAR -7.32
Group Adjusted EBITDA ($M; ZAR M)	$9.0; ZAR 167.8	$11.8; ZAR 211.8
Net Revenue (non-GAAP) ($M; ZAR M)	$51.7; ZAR 968.7	$77.1; ZAR ~1,400

Segment Breakdown (USD/ZAR) – Q2 2025 vs Q2 2024

Segment	Q2 2024	Q2 2025
Merchant Revenue ($M; ZAR B)	$117.2; ZAR 2.7	$115.8; ZAR 2.1
Merchant Net Revenue ($M; ZAR M)	$27.2; ZAR 516? (see note)	$47.7; ZAR 854.5
Merchant Segment Adj. EBITDA ($M; ZAR M)	$?; ZAR 140? (see note)	$10.3; ZAR 185.1
Consumer Revenue ($M; ZAR M)	$17.5; ZAR 313.5	$22.9; ZAR 410.7
Consumer Net Revenue ($M; ZAR M)	$17.5; ZAR 313.5	$22.9; ZAR 410.7
Consumer Segment Adj. EBITDA ($M; ZAR M)	$2.7; ZAR 48.1	$4.3; ZAR 77.5

Note: Merchant net revenue and segment EBITDA prior-year figures and Consumer prior-year net revenue/EBITDA are from reconciliation and divisional disclosures in attachments; USD/ZAR amounts reflect reported translations .

Operating Metrics and KPIs (ZAR unless noted)

KPI	Q2 2025
Card-enabled POS devices (Merchant)	>80,000
Merchant acquiring throughput	ZAR 11.3B (vs ZAR 4.1B Q2 2024)
Kazang devices in field	>89,000 (+13% Y/Y)
Kazang ARPU	~ZAR 970/month (+12% Y/Y)
GAAP hospitality sites	9,705; ARPU ZAR 3,300; >60% ARR
Cash vault devices	~4,700 (+4%); throughput ZAR 30.4B (+2%)
Supplier-enabled payments throughput growth	+63% Y/Y
EPE active customers	1.6M (+11% Y/Y); permanent 1.4M (+16%)
Consumer ARPU (permanent EPE)	ZAR 94/month (up from ZAR 85)
Consumer loan gross advances / book	ZAR 617M (+38%) / ZAR 709M (+41%)
Consumer loan loss ratio	~6%
Insurance gross premiums	ZAR 97M (+38%); collection 96%; lapse <20%
Adumo Payouts	~180 corporate clients; ~200k cardholders; ZAR 170M load value

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue	Q3 2025	—	ZAR 2.4B–2.6B	New (issued)
Net Revenue (non-GAAP)	Q3 2025	—	ZAR 1.3B–1.5B	New (issued)
Group Adjusted EBITDA	Q3 2025	—	ZAR 230M–260M	New (issued)
Revenue	FY2025	ZAR 10.0B–11.0B	ZAR 10.0B–11.0B	Maintained
Net Revenue (non-GAAP)	FY2025	ZAR 5.2B–5.6B	ZAR 5.2B–5.6B	Maintained
Group Adjusted EBITDA	FY2025	ZAR 900M–1,000M	ZAR 900M–1,000M	Maintained
Group Adjusted EBITDA	FY2026	—	ZAR 1.25B–1.45B	New (issued)

Earnings Call Themes & Trends

Topic	Previous Mentions (Q4 2024 and Q1 2025)	Current Period (Q2 2025)	Trend
Regulatory and industry structure	Focus on scaling leading independent fintech and consumer improvements	ASAPP launched; SARB considering exemption allowing activity-based regulation for non-banks	Constructive regulatory evolution
Debt and leverage	FY2025 EBITDA guidance increase; net debt/EBITDA improved in FY2024	Comprehensive refinance expected this quarter; path to ~2.1–2.4x net leverage with MobiKwik monetization	Deleveraging underway
M&A integration	Adumo expected to close (Oct 2024)	Adumo integrated; Recharger acquisition closing Q3, expected to contribute ~ZAR 40M EBITDA for 4 months FY25	Platform consolidation and synergies
Merchant performance	Q4: steady progress pre-Adumo close	Scale in POS and throughput; mix shift pressure near term, with expected margin pull-through	Scaling with near-term margin mix headwinds
Consumer growth and cross-sell	Q4: strong EBITDA growth and momentum	ARPU, activations, loan/insurance penetration all rising; product upgrades and digital channels driving	Strengthening
Enterprise pivot	N/A	Restructuring; exiting unprofitable contracts; Recharger strengthens prepaid electricity proposition	Rebuild year with future earnings contribution

Management Commentary

“We exceeded our Group Adjusted EBITDA guidance for the quarter and can re-affirm our FY2025 guidance… Our Group Adjusted EBITDA guidance of ZAR 1.25 billion to ZAR 1.45 billion for FY2026 demonstrates our continued confidence in the Lesaka platform's scalability.” — Ali Mazanderani .
“Post MobiKwik's listing... we now measure this investment applying the closing price… resulting in a pretax write-down of ZAR 615 million… Our intention is to monetize it in a disciplined manner once the lockup expires in mid-May.” — Dan Smith .
“Throughput on [merchant acquiring] devices jumped by ZAR 7.2 billion to ZAR 11.3 billion for the quarter… well supported by Kazang Pay, which saw a 19% year-on-year growth in throughput.” — Steven Heilbron .
“Our active EPE customer base increased to 1.6 million… ARPU is now ZAR 94 per month… loan penetration increased to 43%… insurance up from 31% to 35%.” — Lincoln Mali .
“FY '25 is a build and restructuring year for the Enterprise business… Recharger… expected to close in early March 2025… contribute approximately ZAR 40 million for our FY '25 group adjusted EBITDA for 4 months.” — Naeem Kola .

Q&A Highlights

Sustainability of Consumer growth: Management emphasized three levers — expanding customer base, increasing cross-sell penetration (loans 43%, insurance 35%), and moving beyond grant base via Adumo Payouts and other underserved niches .
FY2026 EBITDA drivers: At midpoint, FY2025 ZAR 950M vs FY2026 ZAR 1,350M (~42% Y/Y); ~25% organic growth excluding Adumo/Recharger, plus integration synergies .
Leverage and refinancing: Gross debt ZAR 3.8B with comprehensive refinance expected in current quarter; net debt/EBITDA could reduce to ~2.4x (LTM) or ~2.1x including full-year Adumo .
Regulatory pathway: SARB’s contemplated Banks Act exemption would enable activity-based regulation for non-banks, potentially accelerating revenue and reducing costs .

Estimates Context

S&P Global consensus estimates for Q2 2025 were unavailable due to a data access limitation at the time of request; therefore, comparison versus Wall Street consensus could not be provided. Results are evaluated versus company guidance: revenue landed at the upper end and Group Adjusted EBITDA exceeded guidance, while GAAP EPS was negative due to a non-cash fair-value adjustment .

Key Takeaways for Investors

Earnings quality: Despite a headline GAAP loss from a non-cash MobiKwik mark-to-market, non-GAAP fundamentals (adjusted EBITDA and fundamental EPS) improved; watch for post-lockup monetization and deleveraging that could re-rate equity risk .
Consumer engine: Rising ARPU, expanding permanent base, and increasing loan/insurance penetration point to durable growth; digital and distribution enhancements should sustain momentum .
Merchant scale and mix: Rapid scale in acquiring and supplier payments drives throughput, but near-term margin mix headwinds require attention; management expects margin pull-through as investments monetize .
FY2026 profitability roadmap: New EBITDA guidance (ZAR 1.25–1.45B) and stated pathway to positive profit after tax in FY2026 underpin medium-term upside if execution and regulatory tailwinds persist .
Balance sheet catalysts: Comprehensive refinance and potential MobiKwik monetization could lower interest burden and reduce net leverage toward ~2x medium-term target .
Regulatory upside: ASAPP launch and SARB’s contemplated exemptions may unlock activity-based regulation for non-banks, improving economics and competitive positioning .
Integration synergies: Adumo and pending Recharger integration should augment Merchant and Enterprise offerings, expanding TAM and cross-sell opportunities across the platform .

LESAKA TECHNOLOGIES INC (LSAK)·Q2 2025 Earnings Summary