Lesaka Reaffirms Fiscal 2027 Outlook After Merchant Profit Drop

The Tip Desk · November 4, 2026 · 4 min read

Fiscal first-quarter 2027 Group Adjusted EBITDA fell 17% to ZAR 220.1 million while Consumer and Enterprise earnings rose and the company kept full-year adjusted EPS guidance at ZAR 7.50–8.50.

Lesaka Technologies, Inc. (LSAK), a South African fintech platform, reported first-quarter fiscal 2027 results that it said were in line with expectations and reaffirmed its full-year outlook, even as Merchant profit collapsed and the group swung to a GAAP operating loss.

Group Adjusted EBITDA fell 17% year-on-year to ZAR 220.1 million (USD 13.5 million), from ZAR 266.2 million a year earlier. GAAP operating results swung to a loss of USD 1.1 million (ZAR 17.2 million) from operating income of USD 0.1 million (ZAR 2.4 million). Net loss attributable to Lesaka was USD 4.2 million, or USD 0.05 a share.

GAAP revenue was USD 184.6 million (ZAR 3.01 billion), down 0.6% in rand terms from ZAR 3.02 billion a year earlier. Net revenue, the non-GAAP measure the company uses to strip out prepaid-airtime inventory, third-party commissions and, from this quarter, acquiring network fees, increased 8% to ZAR 1.58 billion (USD 97.2 million). That net-revenue figure sat at the low end of the ZAR 1.58 billion to ZAR 1.66 billion range issued in September. Group Adjusted EBITDA of ZAR 220.1 million was inside the ZAR 200 million to ZAR 240 million range. Adjusted earnings of ZAR 0.72 a share exceeded the ZAR 0.40 to ZAR 0.60 range.

The Merchant segment was the source of the profit decline. Merchant Adjusted EBITDA dropped 51% year-on-year to ZAR 76.9 million (USD 4.7 million). Merchant net revenue fell 7% year-on-year in rand terms to ZAR 674.6 million (USD 41.4 million). Merchant GAAP revenue was USD 119.1 million. The company had said Q1 FY2027 guidance reflected seasonality and expected once-off restructuring costs in the merchant business.

Consumer and Enterprise moved the other way. Consumer Adjusted EBITDA rose 38% year-on-year to ZAR 206.1 million (USD 12.7 million) on 24% revenue growth to ZAR 668.3 million (USD 41.0 million). Enterprise revenue increased 60% year-on-year to ZAR 419.5 million (USD 25.8 million), and Enterprise Adjusted EBITDA rose 28% to ZAR 28.6 million (USD 1.8 million). Enterprise net revenue was ZAR 262.6 million (USD 16.1 million).

Adjusted earnings declined 25% year-on-year to ZAR 60.3 million (USD 3.7 million), or ZAR 0.72 a share, from ZAR 80.9 million (USD 4.6 million) or ZAR 0.97 a share. Once-off items in the Adjusted EBITDA bridge were USD 3.0 million, including USD 2.75 million of Lesaka brand-refresh costs, versus USD 0.27 million a year earlier. The company said the refreshed brand launched in November 2025 and that rollout would take the remainder of 2026.

The movement in the allowance for credit losses was USD 4.5 million in the three months ended September 30, 2026, versus USD 2.6 million a year earlier. Selling, general and administration expense was USD 47.0 million. Interest expense was USD 4.3 million.

Net cash used in operating activities was USD 6.8 million, versus net cash provided of USD 8.9 million a year earlier. Cash, cash equivalents and restricted cash ended the quarter at USD 85.9 million, up from USD 72.3 million a year earlier. Capital expenditures were USD 8.2 million.

Executive Chairman Ali Mazanderani said the company had met its profitability guidance for 17 consecutive quarters and that he was pleased to reaffirm the full-year outlook, which at the midpoint represents adjusted earnings per share of ZAR 8.00, up 23% year-on-year.

For the quarter ending December 31, 2026, Lesaka expects net revenue between ZAR 1.62 billion and ZAR 1.72 billion, Group Adjusted EBITDA between ZAR 280 million and ZAR 320 million, and adjusted earnings per share between ZAR 1.00 and ZAR 1.40. For the year ending June 30, 2027, it reaffirms net revenue between ZAR 7.0 billion and ZAR 7.7 billion, Group Adjusted EBITDA between ZAR 1.45 billion and ZAR 1.60 billion, and adjusted earnings per share between ZAR 7.50 and ZAR 8.50. That full-year range includes the pending Bank Zero acquisition, subject to South African Reserve Bank approval and other closing conditions, and excludes unannounced deals.