Lesaka delivered a mixed but strategically meaningful Q1 2025, underscoring execution of a multi-year platform-build strategy anchored by the Adumo acquisition and a pivot to a multiproduct, customer-centric model. Reported USD revenue of $145.5 million for the quarter, up 6.95% YoY, with net revenue estimated at roughly $60 million (1.056 billion rand) indicating a 16% organic growth rate in rand terms, reflecting a more representative top-line dynamic after the adoption of the net-revenue metric. EBITDA stood at $6.82 million, with operating income essentially breakeven at -$0.05 million, and net income of -$4.54 million. Management reaffirmed the FY2025 guidance and highlighted that the Adumo integration would be reflected in Q2 results, signaling a path to higher scale and improved unit economics through a bundled, cross-sell approach across consumer and merchant segments.
Management reiterated the strategic thesis: accelerate digitization-driven demand in Africa, shift from bank-centric to non-bank fintech solutions, and leverage a broadened product suite to reduce customer acquisition costs while lifting take rates and reducing churn. The group climate remains supportive for growth, albeit with near-term profitability headwinds from ongoing platform investments and one-off integration costs. The outlook includes net revenue guidance of 5.2–5.6 billion rand for FY2025 and group adjusted EBITDA of 900 million to 1 billion rand, with a midpoint implying roughly 30–37% growth on a like-for-like basis depending on the treatment of Adumo-related interest expense. The balance sheet remains cash-generative at the group level, yet with leverage targets to reduce net debt to approximately 2x EBITDA over the medium term and a modest non-core asset holding in MobiKwik.