“The biggest competitor is really inefficiency. We strive to reduce the cost of the services we provide, and we strive to provide a suite of services that give our customers the offering that they deserve.”
— Ali Mazanderani
03Detailed Report
LSAK
Company LSAK
Period
Q1 2025
CurrencyUSD
Report TypeQuarterly Earnings
GeneratedJun 23, 2026
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Executive Summary
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.
Key Performance Indicators
Revenue
Increasing
145.55M
QoQ: -0.34% | YoY: 6.95%
Gross Profit
Increasing
34.66M
23.81% margin
QoQ: 5.08% | YoY: 21.19%
Operating Income
Decreasing
-45.00K
QoQ: -115.25% | YoY: -119.74%
Net Income
Increasing
-4.54M
QoQ: 9.79% | YoY: 19.62%
EPS
Increasing
-0.07
QoQ: 14.84% | YoY: 22.22%
Revenue Trend
Margin Analysis
Financial Highlights
Group and Margin profile:
- Quarter revenue (USD): 145.55 million; YoY growth 6.95%; QoQ -0.34%.
- Gross margin: 23.8% (Gross Profit USD 34.66m on revenue USD 145.55m).
- EBITDA: 6.82 million USD; EBITDA margin 4.68%.
- Operating income: -0.05 million USD; operating margin: -0.03%.
- Net income: -4.54 million USD; net margin: -3.12%.
- EPS (diluted): -0.07 USD; Weighted average diluted shares: 62.25 million.
- Net revenue concept (RAND): 1.056 billion rand for Q1 2025, representing organic rand growth of 16% YoY; net revenue is defined as gross revenue less prepaid airtime and third-party commissions.
- Cash flow: operating cash flow -$4.14m; free cash flow -$8.10m; cash at period-end $49.6m.
- Balance sheet (USD equivalents): Total assets $551.9m; total liabilities $288.2m; total stockholders’ equity $184.2m; net debt $116.3m; cash and cash equivalents $49.7m.
Segment and product dynamics:
- Merchant division: 122,000 merchants; throughput by Kazang devices growth with supplier payments up 60% to 3.2 billion rand; VAS throughput ex supplier and money transfers up 10% YoY to 5.4 billion rand; card-enabled devices >53,450; total throughput 4.2 billion rand, up 18% YoY. Adumo integration expected to enhance throughput and cross-sell opportunities.
- Consumer division: revenue up 30% YoY to 378 million rand; segment adjusted EBITDA up 99% YoY to 79 million rand; ARPU rose to 91 rand/month from 83 rand; loan book 273 million rand; gross lending 564 million rand; loan disbursements 166 million rand; insurance policies 466,000, up 30% YoY; payout speed for claims remains high (90% paid within 24 hours; 95% within 48 hours).
Guidance and execution:
- FY2025 guidance reaffirmed: total revenue 10–11 billion rand; net revenue 5.2–5.6 billion rand (≈ 35% YoY at midpoint); group adjusted EBITDA 900 million–1 billion rand (≈ 37% YoY at midpoint). Second-quarter guidance: revenue 2.4–2.6 billion rand; net revenue 1.2–1.4 billion rand; group EBITDA 190–210 million rand. Merchant division expected to contribute ~70% of segment EBITDA; consumer ~30%.
- Adumo consolidation: integration ongoing; Q2 results will reflect three-quarters of Adumo contribution in FY2025.
- Leverage and capital allocation: net debt to EBITDA target ~2x; capital allocation flexibility for M&A funding; non-core assets include MobiKwik stake valued at about $76.3 million; monitoring for an orderly disposal.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
145.55M
6.95%
-0.34%
Gross Profit
34.66M
21.19%
5.08%
Operating Income
-45.00K
-119.74%
-115.25%
Net Income
-4.54M
19.62%
9.79%
EPS
-0.07
22.22%
14.84%
Key Financial Ratios
Gross Profit Margin
Fair
23.80%
Gross profit margin is moderate, room for improvement in cost management
Operating Profit Margin
Weak
0.00%
Operating margin is below industry norms, profitability concerns
Net Profit Margin
Weak
-0.03%
Net profit margin is below industry norms, profitability concerns
Return on Assets
Weak
-0.01%
Return on assets suggests inefficient capital allocation
Return on Equity
Weak
-0.02%
Return on equity suggests inefficient capital allocation
Current Ratio
Healthy
2.19
Current ratio shows adequate liquidity to meet short-term obligations