Lesaka Technologies, Inc.

For FY2026, net revenue increased 20% to ZAR 6.33 billion, group adjusted EBITDA grew 41% to ZAR 1.27 billion, and adjusted EPS increased 210% to ZAR 6.51. Full-year GAAP net income turned positive at approximately ZAR 40 million. For Q4, net revenue increased 8% to ZAR 1.62 billion, group adjusted EBITDA increased 22% to ZAR 367 million, adjusted earnings were ZAR 199 million, and adjusted EPS rose from ZAR 0.90 to ZAR 2.40. The quarter’s group adjusted EBITDA margin improved to 22.6% from 20.1% a year ago. FY2026 net operating cash flow was ZAR 864 million, capex was ZAR 421 million, and leverage ended at 1.9x versus 2.9x a year ago. For FY2027, the company guided to net revenue of ZAR 7 billion to ZAR 7.7 billion, group adjusted EBITDA of ZAR 1.45 billion to ZAR 1.6 billion, and adjusted EPS of ZAR 7.50 to ZAR 8.50. Q1 FY2027 guidance was net revenue of ZAR 1.58 billion to ZAR 1.66 billion, group adjusted EBITDA of ZAR 200 million to ZAR 240 million, and adjusted EPS of ZAR 0.40 to ZAR 0.60. Management said FY2027 guidance includes Bank Zero, but expects little near-term impact because Bank Zero is near breakeven and synergies should mainly arrive in FY2028.

Ali Mazanderani’s tone was upbeat and identity-driven, emphasizing that FY2026 was a year of execution and platform-building. He highlighted the new “One Lesaka” organization, the refreshed brand launch, and the company’s effort to become more visible and more embedded with customers. Strategically, he focused on product cross-sell, improved merchant integration, and the view that enterprise is now becoming a meaningful growth engine, while merchant acceleration should begin showing more clearly in Q2 and beyond.

Dan Smith focused on financial inflection, cash generation, and a stronger balance sheet. He noted net operating cash flow of ZAR 864 million for FY2026, capex of ZAR 421 million, and positive cash generation of ZAR 443 million after capex. He also highlighted reduced gross debt of about ZAR 3.8 billion from roughly ZAR 4 billion, leverage down to 1.9x, non-operational charges falling from approximately ZAR 1.7 billion to ZAR 35 million, and once-off charges declining from ZAR 322 million to ZAR 91 million. For FY2027, he said group cost run rate should reset to around ZAR 350 million as the company invests in enabling functions, and capex should be about ZAR 450 million operationally plus about ZAR 100 million of non-recurring office consolidation spend.

Analysts pressed on why merchant performance lagged expectations, what the Q1 restructuring would involve, and whether the slowdown would persist. Management said the softness was mainly timing and margin pressure, especially in ADP, and framed the Q1 cost issue as not expected to extend beyond that quarter. Questions also focused on Bank Zero deposit growth, with management pointing to three sources: alliance banking, migrating consumer deposits, and organic retail growth; they said deposits were about ZAR 700 million in April and are expected to exceed ZAR 1 billion by December 2026. On M&A, management said it is still interested in accretive deals and mentioned a few potentially transformative targets, but did not disclose names.