JOHANNESBURG, May 06, 2026 (GLOBE NEWSWIRE) -- Lesaka Technologies, Inc. (Nasdaq: LSAK; JSE: LSK) today released results for the third quarter of fiscal 2026 (“Q3 2026”).
Q3 2026 performance1:
All growth rates are year-on-year between Q3 FY2026 and Q3 FY2025 in ZAR.
(In thousands, except per share data) ZAR
(In thousands, except per share data) Q3 FY26 Q3 FY25 Q3 FY26 Q3 FY25 YoY%Revenue183,051 161,450 2,994,536 2,987,226 0.2%Net Revenue(2)96,368 73,367 1,576,015 1,357,159 16%Operating Income(3)4,085 366 65,013 7,188 804%Net Income (Loss)(3)552 (22,353) 8,383 (409,790) nmGroup Adjusted EBITDA(2)(3)20,612 12,594 337,071 233,026 45%Basic Earnings (Loss) per Share(3)0.01 (0.28) 0.17 (5.15) nmAdjusted Earnings(2)(3)9,077 2,515 148,349 42,917 246%Adjusted Earnings per Share(2)(3)0.11 0.03 1.80 0.52 247% Segment LevelUSD
(In thousands) ZAR
(In thousands) Q3 FY26 Q3 FY25 Q3 FY26 Q3 FY25 YoY%Merchant Revenue127,078 128,781 2,079,232 2,382,982 (13%)Net Revenue(2)45,926 42,279 751,280 782,191 (4%)Segment Adjusted EBITDA(3)9,228 7,900 151,116 146,121 3%Consumer Revenue38,323 24,096 626,514 445,845 41%Segment Adjusted EBITDA13,015 6,333 212,537 117,144 81%Enterprise Revenue18,978 9,444 310,481 174,565 78%Net Revenue(2)13,447 7,863 219,912 145,289 51%Segment Adjusted EBITDA2,125 133 35,047 2,384 1,370%
(1) Average exchange rates applicable for the purpose of translating our results of operations: ZAR 16.77 to $1 for Q3 2026, ZAR 18.40 to $1 for Q3 2025.
(2) Non-GAAP measure. Refer to Attachment A of press release for full reconciliation of non-GAAP measures.
(3) Revised Q3 FY2025 amounts to correct the errors discussed in Note 1 of our Form 10-Q for the period ended March 31, 2026.
Commenting on the results, Lesaka Chairman Ali Mazanderani said, “I am pleased to report another strong quarter for Lesaka as we continue to improve our profitability. We achieved Group Adjusted EBITDA growth of 45% and an Adjusted Earnings per Share of ZAR 1.80, up more than 200% year-on-year. We have built a diversified platform, with multiple levers of sustainable growth that positions us exceptionally well for the years to come.”
Outlook: Full Fiscal Year 2026 (“FY 2026”) guidance
While we report our financial results in USD, we measure our operating performance in ZAR, and as such we provide our guidance accordingly.
For FY2026, the year ending June 30, 2026, we expect:
- Net Revenue between ZAR 6.2 billion and ZAR 6.5 billion.
- Group Adjusted EBITDA between ZAR 1.25 billion and ZAR 1.35 billion.
- Net Income Attributable to Lesaka to be positive.
- Adjusted earnings per share between ZAR 5.50 and ZAR 6.00.
Our FY2026 guidance excludes the impact of the announced acquisition of Bank Zero (which is subject to regulatory approvals and other customary closing conditions) and any unannounced mergers and acquisitions that we may conclude.
Management has provided its outlook regarding Net Revenue, Group Adjusted EBITDA and Adjusted earnings per share, which are non-GAAP financial measures and excludes certain revenue and charges. Management has not reconciled these non-GAAP financial measures to the corresponding GAAP financial measures because guidance for the various reconciling items is not provided. Management is unable to provide guidance for these reconciling items because they cannot determine their probable significance, as certain items are outside of the control of Lesaka and cannot be reasonably predicted since these items could vary significantly from period to period. Accordingly, reconciliations to the corresponding GAAP financial measures are not available without unreasonable effort.
Earnings Presentation for Q3 FY2026 Results
Our earnings presentation will be posted to the Investor Relations page of our website prior to our earnings call.
Webcast Registration
Link to access the results webcast: https://www.corpcam.com/Lesaka07052026
Participants using the webcast will be able to submit questions during the live Question and Answer session. Link to conference call dial-in registration via Chorus Call: https://services.choruscall.it/DiamondPassRegistration/register?confirmationNumber=1737086&linkSecurityString=515af47c8
Dial in details and individual pin to be provided on registration. Participants using the conference call dial-in will be able to ask their questions during the live Question and Answer session
Following the presentation, an archived version of the webcast will be provided on Lesaka’s Investor Relations website.
Use of Non-GAAP Measures
U.S. securities laws require that when we publish any non-GAAP measures, we disclose the reason for using these non-GAAP measures and provide reconciliations to the most directly comparable GAAP measures. The presentation of Group Adjusted EBITDA, Net Revenue, Adjusted Earnings, Adjusted Earnings per Share, and headline (loss) earnings per share are non-GAAP measures. Refer to Attachment A for a reconciliation of these non-GAAP measures.
Non-GAAP Measures
Group Adjusted EBITDA
Group Adjusted EBITDA is net income (loss) before interest, taxes, depreciation and amortization, adjusted for non-operational transactions (including loss on impairment/disposal of equity-accounted investments), impairment loss, loss from equity-accounted investments, stock-based compensation charges and once-off items. Once-off items represent non-recurring expense items, including costs related to acquisitions and transactions consummated or ultimately not pursued.
Net Revenue
Net revenue is a non-GAAP financial measure. Revenue is the financial measure calculated in accordance with GAAP that is most directly comparable to net revenue. We generate revenue from the provision of transaction-processing services through our various platforms and service offerings. We use these platforms to (a) sell prepaid airtime vouchers (“Pinned Airtime”) which was held as inventory, and (b) distribute pre-paid solutions including prepaid airtime vouchers (which we do not hold as inventory) (“Pinless Airtime”), prepaid electricity, gaming vouchers, and other products, to users of our platforms. We act as a principal when we sell Pinned Airtime that were held as inventory and record revenue and cost of sales on a gross basis when sold. We act as an agent in a transaction when we provide pre-paid solutions through our various platforms and services offerings because we do not control the good or service to be provided and we recognize revenue based on the amount that we are contractually entitled to receive for performing the distribution service on behalf of our customers using our platform. Our revenue under GAAP can fluctuate materially due to changes in the revenue mix between these revenue categories. Net Revenue is a non-GAAP measure and is calculated as revenue presented under GAAP less (i) the cost of Pinned Airtime sold by us, and (ii) commissions paid to third parties selling all other agency-based pre-paid solutions (including Pinless Airtime, electricity and other products) provided through our distribution channels. We believe that the use of Net Revenue is meaningful to users of financial information because it seeks to eliminate the impact of the change in the revenue mix from the revenue categories over the periods presented.
Adjusted earnings and Adjusted earnings per share
Adjusted earnings and Adjusted earnings per share is GAAP net income (loss) and income (loss) per share adjusted for the amortization of acquisition-related intangible assets (net of deferred taxes), stock-based compensation charges, and unusual non-recurring items, including costs related to acquisitions and transactions consummated or ultimately not pursued.
Adjusted earnings and Adjusted earnings per share for fiscal 2026 also includes adjustments related to the loss on impairment of equity-accounted investments, impairment loss, ATM exit expenses and impairments, reversal of allowance for doubtful loans receivable, Lesaka rebrand refresh expenses (net of tax), income recognized related to closure of legacy businesses (net of tax), changes in the fair value of equity securities (net of deferred tax), loss on disposal of equity securities, other income and intangible asset amortization, net related to non-controlling interests.
Adjusted earnings and Adjusted earnings per share for fiscal 2025 also includes adjustments related to changes in the fair value of equity securities (net of deferred tax), loss on disposal of equity-accounted investments and intangible asset amortization, net related to non-controlling interests.
Management believes that the Group Adjusted EBITDA, Adjusted earnings and Adjusted earnings per share metrics enhance its own evaluation, as well as an investor’s understanding of our financial performance. Attachment A presents the reconciliation between GAAP net income (loss) attributable to Lesaka and these non-GAAP measures and the reconciliation between the basic weighted-average common shares outstanding and unvested restricted shares expected to vest under GAAP and the denominator used for Adjusted earnings per share.
Headline earnings (loss) per share (“HE(L)PS”)
The inclusion of HE(L)PS in this press release is a requirement of our listing on the JSE. HE(L)PS basic and diluted is calculated using net income (loss) which has been determined based on GAAP. Accordingly, this may differ to the headline (loss) earnings per share calculation of other companies listed on the JSE as these companies may report their financial results under a different financial reporting framework, including, but not limited to, International Financial Reporting Standards.
HE(L)PS basic and diluted is calculated as GAAP net income (loss) adjusted for the loss on sale of equity-accounted investments, impairment losses related to our equity-accounted investments, change in fair value of equity securities, net, impairment losses and (profit) loss on sale of property, plant and equipment. Attachment C presents the reconciliation between our net income (loss) used to calculate earnings (loss) per share basic and diluted and HE(L)PS basic and diluted and the calculation of the denominator for headline diluted earnings (loss) per share.
About Lesaka Technologies, Inc. (www.lesakatech.com)
Lesaka operates a South African fintech company driven by a purpose to provide financial services, software and other business services to Southern Africa's underserviced consumers and merchants. We offer an integrated and holistic multiproduct platform that provides transactional accounts, lending, insurance, merchant acquiring, cash management, software and Alternative Digital Products (“ADP”). We provide targeted solutions and integrations to facilitate payments between consumers, merchants, and enterprises. By providing a full-service fintech platform in our connected ecosystem, we facilitate the digitization of commerce in our markets.
Lesaka has a primary listing on NASDAQ (NASDAQ:LSAK) and a secondary listing on the Johannesburg Stock Exchange (JSE: LSK). Visit www.lesakatech.com for additional information about Lesaka.
Forward-Looking Statements
This press release contains certain statements that may be considered forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and such statements are subject to the safe harbor created by those sections and the Private Securities Litigation Reform Act of 1995, as amended. Such statements may be identified by their use of terms or phrases such as “expects,” “estimates,” “projects,” “believes,” “anticipates,” “plans,” “could,” “would,” “may,” “will,” “intends,” “outlook,” “focus,” “seek,” “potential,” “mission,” “continue,” “goal,” “target,” “objective,” derivations thereof, and similar terms and phrases. Forward-looking statements are based upon the current beliefs and expectations of our management and are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified, which could cause future events and actual results to differ materially from those set forth in, contemplated by, or underlying the forward-looking statements. In this press release, statements relating to future financial results and future financing and business opportunities are forward-looking statements. Additional information concerning factors that could cause actual events or results to differ materially from those in any forward-looking statement is contained in our Form 10-K for the fiscal year ended June 30, 2025 and our Form 10-Q for the quarter ended March 31, 2026, as filed with the SEC, as well as other documents we have filed or will file with the SEC. We assume no obligation to update the information in this press release, to revise any forward-looking statements or to update the reasons actual results could differ materially from those anticipated in forward-looking statements.
Investor Relations and Media Relations Contacts:
Idris Dungarwalla
Email: [email protected]
Mobile: +44 786 225 4852
Akash Dowra
Email: [email protected]
Mobile: +27 83 235 9750
Media Relations Contact:
Ian Harrison
Email: [email protected]
Lesaka Technologies, Inc.
Attachment A
Reconciliation of GAAP income (loss) attributable to Lesaka to Group Adjusted EBITDA:
Three and nine months ended March 31, 2026 and 2025 and three months ended December 31, 2025
Three months ended Nine months ended March 31, Dec 31, March 31, 20262025
2025
2026
2025
Income (Loss) attributable to Lesaka - GAAP(A)$552 $(22,353) $3,645 $(461) $(59,659)(Add) Less net (loss) income attributable to non-controlling interest 115 (20) 14 246 (48) Net income (loss) 437 (22,333) 3,631 (707) (59,611) Earnings from equity accounted investments (56) (12) (110) (166) (89) Net income (loss) before earnings from equity-accounted investments 381 (22,345) 3,521 (873) (59,700) Income tax expense (benefit) 1,503 (2,934) 670 2,027 (9,268) Income (Loss) before income tax expense 1,884 (25,279) 4,191 1,154 (68,968) Loss on disposal of equity securities - - 730 730 - Other income - - (3,883) (3,883) - Change in fair value of equity securities 378 20,421 (2,971) (2,593) 54,152 Net loss on impairment/ disposal of equity-accounted investment - - - 584 161 Reversal of allowance for doubtful loans receivable (1,500) - - (1,500) - Impairment loss(1) 1,916 - - 1,916 - Unrealized loss (gain) FV for currency adjustments 181 (114) (133) (16) 102 Operating income (loss) after PPA amortization and net interest (non-GAAP) 2,859 (4,972) (2,066) (3,608) (14,553) PPA amortization (amortization of acquired intangible assets) 6,044 4,974 9,481 24,659 13,588 Operating income (loss) before PPA amortization after net interest (non-GAAP) 8,903 2 7,415 21,051 (965) Interest expense(A) 4,477 5,869 4,591 14,081 17,251 Interest income (1,154) (645) (508) (2,201) (1,952) Operating income before PPA amortization and net interest (non-GAAP) 12,226 5,226 11,498 32,931 14,334 Depreciation and amortization (excluding amortization of intangibles) 4,499 3,455 4,087 12,346 9,340 Interest adjustment - (890) - - (2,478) Stock-based compensation charges 1,334 2,497 1,945 5,140 7,518 Once-off items (refer below) 2,553 2,306 247 3,067 4,599 Group Adjusted EBITDA - Non-GAAP(A)$20,612 $12,594 $17,777 $53,484 $33,313
(A) Revised FY2025 amounts to correct the errors discussed in Note 1 of our Form 10-Q for the period ended March 31, 2026.
(1) Impairments excludes an amount of $0.7 million which is included in the caption exit of ATM business in the table below.
2025 2025 2026
2025
Once-off items comprises: Transaction costs$466 $1,084 $200 $839 $1,621 Transaction costs related to Adumo, Recharger and Bank Zero acquisitions 144 1,222 47 285 3,174 Lesaka brand refresh 984 - - 984 - Exit of ATM business 1,599 - - 1,599 - Indirect taxes provision release (61) - - (61) (196) Income recognized related to closure of legacy businesses (579) - - (579) - Total once-off items$2,553 $2,306 $247 $3,067 $4,599
Once-off items are non-recurring in nature, however, certain items may be reported in multiple quarters. For instance, transaction costs include costs incurred related to acquisitions and transactions consummated or ultimately not pursued. The transactions can span multiple quarters, for instance in fiscal 2025 we incurred transaction costs related to the acquisition of Recharger over a number of quarters, and the transactions are generally non-recurring.
Exit of ATM business includes expenses incurred to exit our ATM business and the impairment of ATMs recorded in property, plant and equipment.
Rebrand relates to costs incurred related to Lesaka’s new brand launched in November 2025, we expect that it will take the remainder of the 2026 calendar year to roll out the refreshed brand throughout the organization. These are non-recurring costs incurred as a necessary step in a set of strategic initiatives designed to create a “One Lesaka” identity for our customers and our employees.
Indirect tax provision release relates to the reversal of a non-recurring indirect tax provision created in fiscal 2023 which was resolved in fiscal 2025 following settlement of the matter with the tax authority.
Income recognized related to closure of legacy businesses represents (i) gains recognized related to the release of the foreign currency translation reserve on deconsolidation of a subsidiary and (ii) costs incurred related to subsidiaries which we are in the process of deregistering/ liquidation and therefore we consider these costs non-operational and ad hoc in nature.
Year ended June 30, 2025 and 2024
Year ended June 30, 20252024
(in thousands)Net loss attributable to Lesaka(A)$(88,741) $(18,515)(Less) Add net (loss) income attributable to non-controlling interest (130) - Loss attributable to Lesaka – GAAP$(88,871) $(18,515) (Earnings) Loss from equity accounted investments (114) 1,279 Net loss before (earnings) loss from equity-accounted investments (88,985) (17,236) Income tax (benefit) expense (18,198) 3,363 Loss before income tax expense (107,183) (13,873) Reversal of allowance for doubtful EMI loans receivable - (250) Net (gain) loss on disposal of equity-accounted investment 161 - Change in fair value of equity securities 59,828 - Impairment loss 18,863 - Unrealized (gain) loss FV for currency adjustments 23 (83) Operating loss after PPA amortization and net interest (non-GAAP) (28,308) (14,206) PPA amortization (amortization of acquired intangible assets) 21,384 14,419 Operating (loss) income before PPA amortization after net interest (non-GAAP) (6,924) 213 Interest expense(A) 21,824 19,171 Interest income (2,596) (2,294) Operating (loss) income before PPA amortization and net interest (non-GAAP) 12,304 17,090 Depreciation (excluding amortization of intangibles) 12,337 9,246 Stock-based compensation charges 9,550 7,911 Interest adjustment (2,195) - Once-off items (refer below) 17,826 1,853 Group Adjusted EBITDA - Non-GAAP(A)$49,822 $36,100
(A) Revised to correct the errors discussed in Note 1 of our Form 10-Q for the period ended March 31, 2026.
Reconciliation of Revenue under GAAP to Net Revenue:
Three and nine months ended March 31, 2026 and 2025, and three months ended December 31, 2025
Three months endedNine months ended March 31, Dec 31,March 31, 20262025
2025
2026
2025
Revenue – GAAP$183,051 $161,450 $178,734 $533,233 $491,234 Cost of prepaid airtime vouchers sold by us & commissions paid to third parties selling all other agency-based products (86,683) (88,083) (85,331) (256,856) (281,998) Net Revenue (non-GAAP)$96,368 $73,367 $93,403 $276,377 $209,236 Net Revenue / Revenue – GAAP 53% 45% 52% 52% 43% Merchant segment revenue (before eliminations) – GAAP$127,078 $128,781 $131,919 $385,947 $397,642 Cost of prepaid airtime vouchers sold by us & commissions paid to third parties selling all other agency-based products (81,152) (86,502) (83,205) (246,913) (277,192) Merchant Net Revenue (non-GAAP)$45,926 $42,279 $48,714 $139,034 $120,450 Enterprise segment revenue (before eliminations) – GAAP$18,978 $9,444 $14,796 $48,627 $30,259 Cost of prepaid airtime vouchers sold by us & commissions paid to third parties selling all other agency-based products (5,531) (1,581) (2,126) (9,943) (4,806) Enterprise Net Revenue (non-GAAP)$13,447 $7,863 $12,670 $38,684 $25,453
Reconciliation of GAAP net income (loss) and earnings (loss) per share, basic, to adjusted earnings and adjusted earnings per share, basic:
Three months ended March 31, 2026 and 2025
Net income (loss)(USD '000) E(L)PS, basic
(USD) Net income (loss)
(ZAR '000) E(L)PS, basic
(ZAR) 2026
2025
2026 2025
2026
2025
2026 2025
GAAP(A)552 (22,353) 0.01 (0.28) 8,383 (409,790) 0.17 (5.15) Change in fair value of equity securities, net378 16,971 6,043 310,636 Intangible asset amortization, net4,412 3,631 72,110 63,495 Stock-based compensation charge1,334 2,497 21,798 46,222 Transaction costs610 2,306 10,150 42,276 ATM exit expenses and impairments1,599 - 26,792 - Amortization of intangible assets, net of tax - equity accounted investments(94) (82) (1,574) (1,503) Release of valuation allowance related to deferred tax asset in EasyPay Financial Services- (455) - (8,419) Income recognized related to closure of legacy businesses, net(848) - (14,208) - Reversal of allowance for doubtful loans receivable(1,500) - (25,132) - Lesaka rebrand refresh, net of tax718 - 11,885 - Impairment loss(1)1,916 - 32,102 - Adjusted(A)9,077 2,515 0.11 0.03 148,349 42,917 1.80 0.52
(A) Revised FY2025 amounts to correct the errors discussed in Note 1 of our Form 10-Q for the period ended March 31, 2026.
(1) Impairments excludes an amount of $0.7 million which is included in the caption ATM exit expenses and impairments.
Nine months ended March 31, 2026 and 2025
(USD '000) (L)EPS, basic
(USD) Net (loss) income
(ZAR '000) (L)EPS, basic
(ZAR) 2026
2025
2026
2025
2026
2025
2026
2025
GAAP(A)(461) (59,659) (0.01) (0.82) (13,057) (1,085,800) (0.17) (14.79) Change in fair value of equity securities, net(2,593) 43,618 (43,957) 796,257 Stock-based compensation charge5,140 7,518 87,819 136,313 Intangible asset amortization, net18,001 9,919 308,153 176,163 Transaction costs1,124 4,795 19,194 86,434 Other(3,883) (196) (65,353) (3,508) Net loss on impairment/disposal of equity-accounted investment584 161 10,342 2,886 Intangible asset amortization, net related to non-controlling interest(367) (166) (6,296) (3,006) Release of valuation allowance related to deferred tax asset in EasyPay Financial Services- (924) - (16,682) ATM exit expenses and impairments1,599 - 26,792 - Income recognized related to closure of legacy businesses, net(848) - (14,208) - Reversal of allowance for doubtful loans receivable(1,500) - (25,132) - Loss on disposal of equity securities730 - 12,286 - Lesaka rebrand refresh, net of tax718 - 11,885 - Impairment loss(1)1,916 - 32,102 - Adjusted(A)20,160 5,066 0.25 0.07 340,570 89,057 4.15 1.21
(A) Revised FY2025 amounts to correct the errors discussed in Note 1 of our Form 10-Q for the period ended March 31, 2026.
(1) Impairments excludes an amount of $0.7 million which is included in the caption ATM exit expenses and impairments.
Calculation of the denominator for Adjusted earnings per share
March 31, Nine months ended
March 31, 2026 2025 2026 2025 ('000) ('000)Basic weighted-average common shares outstanding and unvested restricted shares expected to vest under GAAP81,845 81,282 81,464 72,333 In the money stock options643 725 643 725 Acquisition related shares- 813 - 813 Weighted average number of shares used to calculate Adjusted earnings per share82,488 82,820 82,107 73,871
Weighted average number of shares used to calculate Adjusted earnings per share represents basic weighted-average common shares outstanding and unvested restricted shares expected to vest plus the effect of stock options that are in the money at the reporting date and shares to be issued related to acquisitions.
Attachment B
Unaudited Condensed Consolidated Financial Statements
Our unaudited condensed consolidated Statements of Operations for the three and nine months ended March 31, 2026 and 2025 in ZAR are presented below. We have translated the results of operations information for the three and nine months ended March 31, 2026 and 2025, provided in the tables below using the actual average exchange rates per month between the USD and ZAR.
Unaudited Condensed Consolidated Statements of Operations Three months ended Nine months ended March 31, March 31, 20262025
2026
2025
(In thousands) (In thousands) REVENUE R2,994,536 R2,987,226 R9,076,273 R8,899,861 EXPENSE Cost of goods sold, IT processing, servicing and support(A) 2,027,838 2,167,948 6,219,138 6,649,460 Selling, general and administration(A) 642,142 602,675 1,913,704 1,661,228 Allowance for credit losses 40,953 31,135 158,310 103,669 Depreciation and amortization 172,553 155,919 632,092 415,665 Impairment loss 43,636 - 43,636 - Transaction costs related to Adumo, Recharger and Bank Zero acquisitions and certain compensation costs 2,401 22,361 4,968 56,809 OPERATING INCOME 65,013 7,188 104,425 13,030 CHANGE IN FAIR VALUE OF EQUITY SECURITIES (6,043) (373,784) 43,957 (988,494)OTHER INCOME - - 65,353 - LOSS ON IMPAIRMENT/DISPOSAL OF EQUITY-ACCOUNTED INVESTMENT - - 10,342 2,886 LOSS ON DISPOSAL OF EQUITY SECURITIES - - 12,286 - REVERSAL OF ALLOWANCE FOR DOUBTFUL LOAN RECEIVABLE (25,132) - (25,132) - INTEREST INCOME 19,086 11,944 37,278 35,347 INTEREST EXPENSE(A) 73,288 108,639 240,274 312,720 INCOME (LOSS) BEFORE INCOME TAX EXPENSE (BENEFIT) 29,900 (463,291) 13,243 (1,255,723) INCOME TAX EXPENSE (BENEFIT) 24,310 (53,650) 33,244 (169,202) NET INCOME (LOSS) BEFORE EARNINGS FROM EQUITY-ACCOUNTED INVESTMENTS 5,590 (409,641) (20,001) (1,086,521) EARNINGS FROM EQUITY-ACCOUNTED INVESTMENTS 938 220 2,789 1,586 NET INCOME (LOSS) 6,528 (409,421) (17,212) (1,084,935)(ADD) LESS NET (LOSS) INCOME ATTRIBUTABLE TO NON-CONTROLLING INTEREST (1,855) 369 (4,155) 865 NET INCOME (LOSS) ATTRIBUTABLE TO LESAKA R8,383 R(409,790) R(13,057) R(1,085,800) Net earnings (loss) per share, in South African Rands: Basic earnings (loss) attributable to Lesaka shareholders R0.17 R(5.15) R(0.17) R(14.79)Diluted earnings (loss) attributable to Lesaka shareholders R0.17 R(5.15) R(0.17) R(14.79) Exchange rate $1: ZAR 16.7685 18.4021 17.1282 18.0393
(A) Revised FY2025 amounts to correct the errors discussed in Note 1 of our Form 10-Q for the period ended March 31, 2026.
Our unaudited condensed consolidated Statements of Cash Flows for the three and nine months ended March 31, 2026 and 2025 in ZAR are presented below. We have translated the cash flow information for the three and nine months ended March 31, 2026 and 2025, provided in the tables below using the actual average exchange rates per month between the USD and ZAR.
2025
2026
2025
(In thousands) (In thousands)Cash flows from operating activities Net income (loss)(A)R6,528 R(409,421) R(17,212) R(1,084,936) Depreciation and amortization 172,553 155,919 632,092 415,665 Impairment loss 43,636 - 43,629 - Movement in allowance for doubtful accounts receivable 40,953 31,135 158,310 103,669 Fair value adjustment related to financial liabilities (3,275) 1,940 (2,784) (2,808) Loss on disposal of equity securities - - 12,286 - Loss on impairment/disposal of equity-accounted investments - - 10,342 2,886 Earnings from equity-accounted investments (938) (220) (2,790) (1,586) Reversal of allowance for doubtful loans receivable (25,132) - (25,132) - Gain on deconsolidation of subsidiary (14,208) - (14,208) - Change in fair value of equity securities 6,043 373,784 (43,957) 988,494 Other income - - (65,353) - Profit on disposal of property, plant and equipment (3,040) (220) (4,037) (959) Movement in interest payable (462) 53,378 (1,062) 117,328 Facility fee amortized 1,504 1,533 4,386 3,989 Stock-based compensation charge 21,798 46,222 87,819 136,313 Dividends received from equity accounted investments 1,681 - 1,681 1,165 Decrease (Increase) in accounts receivable 208,571 199,458 (21,723) 120,835 Increase in finance loans receivable (9,543) (219,419) (516,570) (400,670) Decrease in inventory 120,658 172,817 143,626 78,066 Increase (Decrease) in accounts payable and other payables(A) 29,956 (170,871) 259,888 (322,498) Deferred consideration due to seller of Recharger included in accounts payable and other payables - 20,794 - 20,384 Increase in taxes payable 20,498 18,712 23,041 29,404 Decrease in deferred taxes (9,877) (81,336) (77,436) (251,666) Net cash provided by (used in) operating activities 607,904 194,205 584,837 (46,924)Cash flows from investing activities Capital expenditures (55,871) (52,151) (193,225) (236,150) Proceeds from disposal of property, plant and equipment (10,612) 7,302 5,214 31,206 Acquisition of intangible assets (19,766) (30,907) (57,159) (41,687) Acquisitions, net of cash acquired (180,233) (164,726) (186,040) (234,156) Cash disposed on disposal of subsidiary - - (2,777) - Investment in equity securities - - (4,208) - Proceeds from disposal of equity securities - - 50,000 - Net change in settlement assets 103,944 58,259 115,546 97,813 Net cash used in investing activities (162,538) (182,223) (272,649) (382,975)Cash flows from financing activities Proceeds from bank overdraft 743,928 394,300 1,585,486 1,689,434 Repayment of bank overdraft (482,320) (932,884) (1,404,556) (1,569,781) Long-term borrowings utilized 11,480 3,249,662 81,470 3,495,887 Repayment of long-term borrowings (170,444) (2,485,653) (211,872) (2,730,300) Acquisition of non-controlling interests (59,278) - (59,278) - Acquisition of treasury stock (640) (499) (5,201) (221,976) Proceeds from exercise of stock options - 1,082 - 2,005 Guarantee fee - (9,961) (575) (17,532) Dividends paid to non-controlling interest - (2,398) - (7,744) Net change in settlement obligations (98,170) (59,755) (104,952) (101,935) Net cash (used in) provided by financing activities (55,445) 153,894 (119,481) 538,058 Effect of exchange rate changes on cash 2,901 (4,365) (6,462) (1,438)Net increase in cash, cash equivalents and restricted cash 392,821 161,511 186,244 106,722 Cash, cash equivalents & restricted cash – beginning of period 1,154,179 1,143,653 1,360,756 1,198,442 Cash, cash equivalents & restricted cash – end of periodR1,547,001 R1,305,164 R1,547,001 R1,305,164 Exchange rate $1: ZAR 16.7685 18.4021 17.1282 18.0393
(A) Revised FY2025 amounts to correct the errors discussed in Note 1 of our Form 10-Q for the period ended March 31, 2026.
Our unaudited condensed consolidated balance sheets as of March 31, 2026 and June 30, 2025 in ZAR are presented below. Amounts included in these balance sheets have been calculated using the $ amounts per our balance sheets presented in U.S. dollars and converted to ZAR using the exchange rates noted below.
Note 1: In October 2025, the Company identified that it had understated its June 30, 2025, cost and accumulated depreciation by ZAR 114.5 million. The carrying value of property, plant and equipment reported as of June 30, 2025 was not impacted by the misstatement. Accumulated depreciation has been recast to increase the amount from ZAR 863,552 to ZAR 978,074.
(A) Revised FY2025 amounts to correct the errors discussed in Note 1 of our Form 10-Q for the period ended March 31, 2026.
Attachment C
Reconciliation of net income (loss) used to calculate earnings (loss) per share basic and diluted and headline earnings (loss) per share basic and diluted:
Three months ended March 31, 2026 and 2025
20262025
Net income (loss) (USD’000)(A)552 (22,353)Adjustments: Change in fair value of equity securities, net378 16,971 Income recognized related to closure of legacy businesses(848) - Impairment loss2,604 - Profit on sale of property, plant and equipment(188) (12) Tax effects on above51 3 Net income (loss) used to calculate headline earnings (loss) (USD’000)(A)2,549 (5,391) Weighted average number of shares used to calculate net earnings (loss) per share basic earnings (loss) and headline earnings (loss) per share basic earnings (loss) (‘000)81,845 81,282 Weighted average number of shares used to calculate net earnings (loss) per share diluted earnings (loss) and headline earnings (loss) per share diluted earnings (loss) (‘000)82,024 81,282 Headline earnings (loss) per share: Basic, in USD0.03 (0.07) Diluted, in USD0.03 (0.07)
(A) Revised FY2025 amounts to correct the errors discussed in Note 1 of our Form 10-Q for the period ended March 31, 2026.
Nine months ended March 31, 2026 and 2025
2025
Net loss (USD’000)(A)(461) (59,659)Adjustments: Loss on disposal of equity securities730 - Change in fair value of equity securities, net(2,593) 43,618 Net loss on impairment/disposal of equity-accounted investment584 - Income recognized related to closure of legacy businesses(848) - Impairment loss2,604 - Profit on sale of property, plant and equipment(245) (53) Tax effects on above66 14 Net loss used to calculate headline loss (USD’000)(A)(163) (16,080) Weighted average number of shares used to calculate net loss per share basic loss and headline loss per share basic loss (‘000)81,464 72,333 Weighted average number of shares used to calculate net loss per share diluted loss and headline loss per share diluted loss (‘000)81,464 72,333 Headline loss per share: Basic, in USD- (0.22) Diluted, in USD- (0.22)
(A) Revised FY2025 amounts to correct the errors discussed in Note 1 of our Form 10-Q for the period ended March 31, 2026.
Calculation of the denominator for headline diluted earnings (loss) per share
March 31, Nine months ended
March 31, 2026 2025 2026 2025 ('000) ('000)Basic weighted-average common shares outstanding and unvested restricted shares expected to vest under GAAP81,845 81,282 81,464 72,333 Effect of dilutive securities under GAAP179 - - - Denominator for headline diluted earnings (loss) per share82,024 81,282 81,464 72,333
Weighted average number of shares used to calculate headline diluted loss per share represents the denominator for basic weighted-average common shares outstanding and unvested restricted shares expected to vest plus the effect of dilutive securities under GAAP. We use this number of fully diluted shares outstanding to calculate headline diluted loss per share because we do not use the two-class method to calculate headline diluted loss per share.