Lesaka Technologies has delivered a sharp turnaround in its latest full-year earnings guidance update, swinging back into profit for the third quarter as stronger consumer and enterprise performance helped soften weakness in its merchant operation. For South African investors watching the fintech’s progress closely, the full-year earnings guidance lift is a clear signal that management believes the group is now building momentum across multiple parts of the business.
The dual-listed company, which trades on Nasdaq and the JSE, posted net income attributable to shareholders of R8.4-million for the three months ended 31 March 2026. That marks a major improvement from the restated net loss of R409.8-million in the same period last year, with the change driven by better operating leverage and a far smaller fair-value hit on equity securities.
Revenue painted a more mixed picture. Group revenue was essentially flat at R3-billion, edging up just 0.2% year on year. But the cleaner measure of performance, net revenue, climbed 16% to R1.58-billion after stripping out pinned airtime costs and commissions linked to agency-based prepaid products. On the profitability side, adjusted Ebitda rose 45% to R337.1-million, while adjusted earnings per share jumped 247% to R1.80.
Chairman Ali Mazanderani said the latest numbers reflected another strong quarter for the business. He told investors that Lesaka is continuing to improve profitability and has now assembled a diversified platform with several sustainable growth levers. For a company that has spent years reshaping itself, that kind of language matters: it suggests the strategy is no longer just about expansion, but about proving the model can earn consistently.
The standout contributor was the consumer segment, where revenue surged 41% to R626.5-million. Segment adjusted Ebitda climbed even faster, rising 81% to R212.5-million. That performance gives Lesaka a much stronger footing in a market where consumer-facing financial products can scale quickly if the customer base responds.
The enterprise segment also delivered eye-catching growth, albeit from a smaller base. Revenue increased 78% to R310.5-million, while segment Ebitda rocketed 1 370% to R35-million. That kind of leap is not the sort of number that usually tells the full story on its own, but it does show that the segment is moving in the right direction and beginning to contribute more meaningfully to group earnings.
Lesaka Technologies full-year earnings guidance lifted as merchant business cools
The pressure point in the latest results was the merchant segment, which remains the group’s biggest revenue engine. Revenue in that division fell 13% to R2.08-billion, showing the strain of a softer top line in an area that has traditionally carried the business. Still, the revenue trend looks less severe once the mix shift is considered.
Lesaka said the drop in gross revenue largely reflects changes in the balance between pinned airtime, which is booked on a principal basis, and agency-based prepaid products such as Pinless airtime. On a net revenue basis, the decline was a more modest 4% to R751.3-million. Better still, segment adjusted Ebitda edged up 3% to R151.1-million, suggesting the underlying merchant operation is still expanding margins even as headline revenue eases.
The company also flagged a number of once-off items during the quarter. It incurred US$1.6-million in costs linked to the exit of its ATM business, including wind-down expenses and an impairment on ATM equipment. In addition, there was a $984,000 charge tied to the group’s rebrand, which began in November 2025 and will continue rolling out through the rest of 2026 under the “One Lesaka” identity.
That rebrand is more than a cosmetic exercise. As we understand it, Lesaka is trying to unify a business that has grown by layering new services and acquisitions on top of one another. A single brand architecture could help the group present itself more cleanly to customers, partners and investors as it pushes into its next phase of growth.
There is also a larger strategic story in the background: the proposed acquisition of Bank Zero. The digital-only retail bank remains subject to regulatory approval and has been excluded from the latest guidance. That means investors are being asked to value the business on its standalone performance for now, without assuming any contribution from the deal.
For the 2026 financial year ending 30 June, Lesaka now expects net revenue of between R6.2-billion and R6.5-billion. It is also guiding for group adjusted Ebitda of R1.25-billion to R1.35-billion, positive net income attributable to shareholders, and adjusted earnings per share of R5.50 to R6. Importantly, that outlook excludes Bank Zero and any other unannounced M&A activity.
The cash picture also improved materially. Operating cash flow came in at R607.9-million for the quarter, compared with R194.2-million a year earlier. Meanwhile, cash, cash equivalents and restricted cash totalled R1.55-billion, giving the group a much healthier liquidity position heading into the final stretch of the financial year.
Lesaka also corrected its historical numbers after identifying an issue in October 2025. The company restated prior-year comparatives to fix an understatement of property, plant and equipment cost and accumulated depreciation amounting to R114.5-million. It stressed that the carrying value of the assets was not affected, which should limit the accounting impact for readers trying to assess the group’s operational performance.
For investors in South Africa and abroad, the message from this quarter is fairly clear: Lesaka Technologies full-year earnings guidance has been lifted because the business is now showing stronger profitability, better cash generation and more balanced growth across its segments. The merchant unit is under pressure, yes, but the consumer and enterprise businesses are doing enough to keep the story moving in the right direction.