Executive Summary

Q4 FY2025 delivered strong top-line growth with GAAP Revenue $168.5M (+14% YoY) and Net Revenue (non-GAAP) $82.0M (+47% YoY), while Group Adjusted EBITDA rose 61% YoY to $16.7M; GAAP EPS was a loss of $0.35 and Adjusted EPS was $0.05 .
Management reaffirmed FY2026 profitability outlook and introduced Adjusted EPS guidance of at least ZAR 4.60 (>100% YoY), and gave Q1 FY2026 ranges for Net Revenue and Adjusted EBITDA; guidance explicitly excludes the BankZero acquisition impact .
The quarter was affected by several non-cash and once-off items (goodwill impairment, accelerated intangible amortization, MobiKwik fair-value change, and transaction costs), which masked underlying EBITDA strength; management emphasized consistent delivery vs guidance over 12 consecutive quarters .
Wall Street consensus (S&P Global) for Q4 FY2025 was EPS -$0.01* and Revenue $131.0M*; S&P recorded actual EPS $0.05* and actual Revenue $231.7M*, while company-reported GAAP Revenue was $168.5M—both suggest a revenue beat versus consensus, with definitional/restatement effects driving the discrepancy [Values retrieved from S&P Global].

What Went Well and What Went Wrong

What Went Well

Strong Net Revenue and Adjusted EBITDA growth: Net Revenue +47% YoY to $82.0M and Group Adjusted EBITDA +61% YoY to $16.7M; Adjusted EPS rose to $0.05 (vs $0.02 last year), highlighting operational momentum .
Consumer division outperformance: Net Revenue $27.9M (+44% YoY) and Adjusted EBITDA $8.9M (+106% YoY), driven by active customer growth, lending and insurance cross-sell; “Adjusted earnings per share… grew by 211% to R0.99 [Q4]” .
Merchant integration showing early margin uplift: Operating margins improved from 19% in Q3 to 23% in Q4 as brands consolidate under Lesaka and cross-sell accelerates; management expects further efficiency extraction .

What Went Wrong

Significant non-cash and once-off charges widened GAAP losses: goodwill impairments (~ZAR 335M), accelerated intangible amortization (ZAR 46M in Q4; ~ZAR 160M expected next year), MobiKwik fair-value change (ZAR 101M), and transaction costs (ZAR 239M) .
Enterprise division was a build year: FY adjusted EBITDA only ZAR 24M (Q4 ZAR 15M including ZAR 17M restructuring costs), though Q4 run-rate without restructuring implies >ZAR 30M per quarter going forward .
Restatement uncertainty temporarily impacted guidance disclosure: On Sep 10, Lesaka withdrew previously provided FY2026 Revenue guidance due to restatement, later reaffirming Net Revenue guidance on Sep 29 after final disclosures .

Financial Results

Metric	Q4 2024	Q3 2025	Q4 2025
Revenue (GAAP, $USD Millions)	$146.046	$135.670	$168.467
Net Revenue (non-GAAP, $USD Millions)	$54.772	$73.368	$82.005
Group Adjusted EBITDA ($USD Millions)	$10.258	$12.797	$16.718
GAAP EPS (Basic, $USD)	$(0.08)	$(0.27)	$(0.35)
Adjusted EPS (non-GAAP, $USD)	$0.02	$0.04	$0.05
Net Loss ($USD Millions)	$(5.035)	$(22.058)	$(28.770)
Net Revenue / GAAP Revenue (%)	38%	54%	49%

Segment breakdown – Q4 FY2025:

Segment	Revenue (GAAP, $USD Millions)	Net Revenue (non-GAAP, $USD Millions)	Segment Adjusted EBITDA ($USD Millions)
Merchant	$128.957	$44.395	$10.2
Consumer	N/A	$27.9	$8.9
Enterprise (reported in ZAR)	N/A	ZAR 190	ZAR 15

Key KPIs:

KPI	Q3 2025	Q4 2025	Comment/Trend
Merchant operating margin (%)	19%	23%	Early integration benefits; expected further efficiencies
Merchant acquiring points of presence	—	84,541	Expanded footprint with Adumo devices
Kazang Pay devices in field	—	>94,000	Continued device growth in micro merchants
Micro merchant vault deposits (ZAR, YoY)	—	+92% to R13.8B (from R7.2B)	Increasing cash digitization among micro merchants
Merchant lending net loan book (ZAR)	—	R479M; R234M disbursed in Q4	Origination scaled; impairment ~1.4%
Consumer total customers (ZAR-based)	—	1.9M (+23% YoY)	~90% permanent grant customers
Consumer ARPU (ZAR/month)	—	85	+23% over 3 years
Consumer net loan book (ZAR)	—	R996M; R2.5B FY origination; ~6% loss ratio	Slight, non-material loss ratio increase expected

Vs S&P Global consensus (Q4 FY2025):

Metric	Consensus	Actual (S&P)	Company-Reported Actual
Primary EPS ($USD)	-$0.01*	$0.05*	$0.05 Adjusted; GAAP $(0.35)
Revenue ($USD)	$131.0M*	$231.668M*	$168.467M

Values marked with * were retrieved from S&P Global.

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Net Revenue (ZAR)	FY2026	ZAR 6.4–6.9B (Q3 PR)	Reaffirmed ZAR 6.4–6.9B (Sep 29)	Reaffirmed (after temporary withdrawal on Sep 10)
Group Adjusted EBITDA (ZAR)	FY2026	ZAR 1.25–1.45B (Q3 PR)	Reaffirmed ZAR 1.25–1.45B	Maintained
Net Income	FY2026	Positive (Q3 PR)	Positive	Maintained
Adjusted EPS (ZAR)	FY2026	Not previously guided	≥ ZAR 4.60 (>100% YoY)	Introduced (Raised vs FY2025 actual)
Net Revenue (ZAR)	Q1 FY2026	—	ZAR 1.50–1.65B	New
Group Adjusted EBITDA (ZAR)	Q1 FY2026	—	ZAR 260–300M	New
BankZero impact	FY2026	—	Excluded from guidance	Clarified exclusion

Earnings Call Themes & Trends

Topic	Previous Mentions (Q-2: Q2 FY2025; Q-1: Q3 FY2025)	Current Period (Q4 FY2025)	Trend
Profitability delivery vs guidance	Q2: 10th consecutive quarter beating EBITDA guidance ; Q3: Delivered guidance, reaffirmed FY2026 outlook	12th consecutive quarter; strong Adjusted EBITDA; consistent execution	Improving/consistent
Merchant integration & margin uplift	Q2/Q3: Adumo close and integration; merchant Net Rev +68% YoY (Q2), +58% YoY (Q3)	Margin rose from 19%→23%; brand consolidation; cross-sell early wins	Positive margin trajectory
Consumer scale & cross-sell	Q2/Q3: Consumer Net Rev +31–32% YoY; EBITDA +61–65% YoY	1.9M customers (+23% YoY); lending/insurance penetration; ARPU ZAR 85	Strong growth; ARPU rising
Enterprise restructuring	Q3: Distribution and platform expansion, Recharger progress noted	Q4: ZAR 15M EBITDA incl. ZAR 17M restructuring; >ZAR 30M run-rate excl. restructuring	Turning positive; scaling
Restatement (agent vs principal)	—	Interim 10-Qs to be restated; temporary withdrawal of FY2026 revenue guidance (Sep 10)	Resolved in final release; FY2026 Net Rev guidance reaffirmed (Sep 29)
Regulatory updates	—	Positive SA Reserve Bank engagement via Payment Providers Association; opening up payments system	Constructive backdrop
BankZero acquisition synergy	Q2/Q3: Announced (Jun 26); guidance excludes M&A	Integration plans ready; expected debt reduction (~R1B) via holding books in bank; product expansion	Strategic enhancer

Management Commentary

“FY2025 was a strong year for the Group, delivering on our profitability guidance… we are guiding for adjusted EBITDA growth of at least 35%. We… expect adjusted earnings per share to more than double in FY2026 to at least ZAR 4.60” — Chairman Ali Mazanderani .
“Q4’s performance with group adjusted EBITDA in excess of R300 million provides a good indication of our current quarterly earnings run rate… before seasonality, organic growth, and cost savings” — CFO commentary .
“We recorded ZAR 239M of transaction costs… ZAR 46M accelerated amortization… ZAR 335M goodwill impairments… loss of ZAR 101M on sale of MobiKwik… and ZAR 210M deferred tax allowance reversal benefit” — CFO breakdown of non-cash/once-off items .
“BankZero will enable Lesaka to offer merchant bank accounts… and reduce gross debt by about R1 billion… as we build customer deposits” — Strategic rationale .

Q&A Highlights

Growth ranking (Consumer): Focus on account growth (Postbank migrations ~20%), lending product expansion, and insurance beyond EPE base; medium-term expansion with BankZero .
BankZero integration: Detailed plans ready; ~45 people to integrate; profitability expected near closing; timeline targeted by Mar/Apr, before end of FY2026; swift movement of consumer/merchant books dependent on deposit base .
Goodwill impairment detail: Impairments at specific CGUs within acquired groups (e.g., Adumo sub-units), reflecting cash flow expectations differences; overall aggregate valuations comfortable, but accounting requires write-downs .
Competitive landscape: Banks targeting SME validates TAM; Lesaka differentiated by integrated multi-product offering and proprietary distribution; not a market proxy—insurgent with small share and large TAM .
Regulatory tone: SA Reserve Bank moving in the right direction on payment system openness; Association feedback absorbed; awaiting final proposals .

Estimates Context

S&P Global consensus for Q4 FY2025: EPS -$0.01*, Revenue $131.0M*. S&P records actual EPS $0.05* and actual Revenue $231.668M*, while Lesaka’s company-reported GAAP Revenue was $168.467M—both imply a revenue beat vs consensus; the divergence likely reflects restatement-driven classification and differences in “revenue” definitions (GAAP vs adjusted/aggregated) [Values retrieved from S&P Global] .
Adjusted EPS of $0.05 (company) exceeded EPS consensus -$0.01*, while GAAP EPS was a loss of $0.35—sell-side anchors appear closer to adjusted metrics in S&P’s “Primary EPS” [Values retrieved from S&P Global].
Implication: Estimates may need upward revisions for Net Revenue/Adjusted EBITDA trajectory into FY2026 given the Q4 run-rate (>R300M Adjusted EBITDA) and reaffirmed ranges; caution that non-cash/once-off items will not carry forward .

Key Takeaways for Investors

Q4 demonstrated robust underlying growth with Group Adjusted EBITDA strength; non-cash and once-off items obscured GAAP profitability but do not impair operating trajectory .
Reaffirmed FY2026 Net Revenue and Adjusted EBITDA guidance, plus new Adjusted EPS target (≥ZAR 4.60), provide a clear profitability roadmap; near-term Q1 FY2026 guidance will serve as a validation checkpoint .
Merchant integration is yielding margin uplift (19%→23% QoQ) and cross-sell momentum across payments, software, cash, lending; expect continued efficiency gains and ARPU expansion .
Consumer remains a growth engine with rising active base, ARPU, and lending/insurance penetration; credit quality stable (~6% loss ratio), supporting sustainable monetization .
Enterprise is pivoting from restructuring to contribution (>ZAR 30M/quarter run-rate implied excl. restructuring), with bank/retail integrations and Recharger scale providing tailwinds .
BankZero is a strategic catalyst to enhance product breadth, reduce funding costs, and lower gross debt (~R1B), with integration readiness and regulatory timelines targeted by early 2026 .
Near-term trading: Watch for 10-K audit completion and restatement filings, Q1 FY2026 print vs ranges, and updates on BankZero approvals—positive beats on these catalysts can re-rate sentiment.

Citations:
Press release prelim and restatement details
8-K prelim (Item 2.02, non-GAAP framework, reconciliations)
8-K final and press release with GAAP Revenue added; segment detail and reconciliations
Q4 FY2025 earnings call transcript
Prior quarters PRs (Q2/Q3 FY2025)

Note: Values marked with * were retrieved from S&P Global.

LESAKA TECHNOLOGIES INC (LSAK)·Q4 2025 Earnings Summary