Lesaka Technologies Q2 Earnings Exceed Expectations

Written by Emily J. Thompson, Senior Investment Analyst

Source: seekingalpha

Updated: 4d ago

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LSAK-0.34%

Should l Buy LSAK?

Source: seekingalpha

Strong Earnings Report: Lesaka Technologies reported a non-GAAP EPS of $0.08 for Q2, beating expectations by $0.04, which reflects the company's improving profitability and led to a 4.61% increase in after-hours trading.
Revenue Growth: The company achieved revenues of $178.73 million in Q2, marking a 1.4% year-over-year increase and surpassing market expectations by $12.73 million, indicating effective sales strategies and competitive positioning.
Future Guidance: For Q3 FY2026, Lesaka expects net revenue between ZAR 1.65 billion and ZAR 1.80 billion, with adjusted EBITDA projected between ZAR 300 million and ZAR 340 million, showcasing confidence in future growth.
Long-term Growth Potential: The FY2026 net revenue is anticipated to be between ZAR 6.4 billion and ZAR 6.9 billion, with adjusted EBITDA between ZAR 1.25 billion and ZAR 1.45 billion, and an adjusted EPS of at least ZAR 4.60, implying over 100% year-on-year growth, highlighting strong profitability prospects.

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About LSAK

Lesaka Technologies, Inc. is a South African Fintech company, providing financial services and software to Southern Africa's underserviced consumers (business-to-consumer) and merchants (business-to-business). The Company offers a range of integrated payment solutions, including transactional accounts (banking), lending, insurance, payouts, cash management solutions, card acceptance, supplier payments, software services and bill payments. The Company's operating divisions include Consumer Division, Merchant Division and Enterprise Division. Consumer Division offers transactional accounts (banking), insurance, lending and payments solutions to help underserviced consumers. Merchant Division provides merchant acquiring, software, cash management services, lending and ADP, that help merchants and micro-merchants to transact efficiently. Enterprise Division delivers software and payment technology to enterprise clients, who are generally large-scale corporate and government organizations.

About the author

Emily J. Thompson

Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.

Lesaka Technologies Q2 2026 Earnings Call Highlights

3 days agoseekingalpha

Strategic Execution Progress: Lesaka Technologies received Competition Tribunal approval for its merger with Bank Zero and initiated the consolidation of all operating brands under 'One Lesaka,' marking a significant evolution in how the company positions, operates, and scales its business, which is expected to enhance market competitiveness.
Strong Financial Performance: Q2 net revenue reached ZAR 1.6 billion, a 16% year-on-year increase; adjusted EBITDA was ZAR 304 million, reflecting a robust 47% year-on-year growth, demonstrating the company's ongoing revenue and profitability expansion.
Significant Earnings Growth: Adjusted earnings per share surged from ZAR 0.21 to ZAR 1.34, more than sixfold, indicating a substantial improvement in profitability and bolstering investor confidence in the company's financial health.
Optimistic Future Outlook: Management provided Q3 net revenue guidance of ZAR 1.65 billion to ZAR 1.8 billion, implying a growth rate of approximately 27%, while reaffirming full-year net revenue guidance of ZAR 6.4 billion to ZAR 6.9 billion, reflecting strong confidence in future growth prospects.