Lesaka Technologies has reported a strong performance in the 2025 financial year and expects its adjusted earnings per share to double in 2026.
The fintech group reported revenue of R12bn, up 14%, for the year ended June. Group adjusted earnings before interest, tax, depreciation and amortisation (ebitda) were up 33% at R922.2m, achieving the guidance provided.
Adjusted earnings per share were up 187% at R2.29.
While Lesaka, formerly Net1 UEPS, had reported its earnings for the period at the start of September, the group had not disclosed revenue. As a company that sells digital goods such as airtime, recognition of this revenue is challenged by accounting rules that distinguish between the total sale price versus the amount kept as an agent.
Prepaid specialist Blue Label Telecoms has faced a similar challenge about its reporting of “PINless top-ups”. Lesaka aims to focus on net revenue as communicated to investors about a year ago.
However, the group reported a net loss of $87.5m, or R1.6bn, largely due to the inclusion of a tax-adjusted R897.6m nonoperating, noncash charge relating to a change in fair value and sale of MobiKwik, a tax-adjusted noncash charge from impairment losses of R326.2m and one-off transaction costs of R321.9m.
The merchant division grew revenue 11% to R9.6bn, attributable primarily to the nine months’ contribution from Adumo and organic growth. The consumer division’s revenue was 35% higher at R1.7bn, driven by an increase in the active consumer base and continued cross-selling of lending and insurance products.
Lesaka chair Ali Mazanderani said the 2025 financial year was a strong year for the group, as it delivered on its profitability guidance and advanced key strategic priorities.
“We expect to maintain this momentum into financial year 2026, and are guiding for adjusted ebitda growth of at least 35%. We have also introduced adjusted earnings per share guidance, expecting this to more than double in financial year 2026 to at least R4.60, from R2.29 per share this year.”
The 2026 full-year guidance excludes the effects of the Bank Zero acquisition, which is subject to regulatory approval by the Prudential Authority and the SA Reserve Bank, and other customary closing conditions.
Lesaka announced the acquisition of Bank Zero for R1.1bn in June and expects opportunities to flow from the integration.
The JSE- and Nasdaq-listed company said recently the integration of the bank into its operation would result in the group consolidating into a new proprietary core banking platform for consumers, thereby reducing third-party dependencies and giving room to review sponsorship banking fees.
Elsewhere, the group sees an opportunity to cross-sell bank offerings to merchants while providing banking solutions to enterprise clients.
In addition, the group hopes to launch a suite of foreign-currency products that would allow it to play in the competitive cross-border remittances market.
Bank Zero is among a group of challengers — including Discovery Bank, Old Mutual Bank, African Bank and TymeBank — that have sought to disrupt the country’s banking sector in recent years.
Lesaka shares were trading 5.51% higher at R80.19 by the close on Tuesday, valuing the group at $336m (R5.6bn).
Update: September 30 2025
This story has new information and the share price.
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