Lesaka delivered a solid Q3 2024 financial performance in USD terms, with revenue of $138.2 million representing a modest year-over-year increase of 3.15% and a sequential decrease of 3.96% (in USD). Gross profit was $30.34 million (gross margin ~22.0%), while EBITDA reached $7.22 million and operating income was $1.43 million, underscoring improving profitability despite a challenging macro backdrop in South Africa. Net income remained negative at $-4.05 million, reflecting ongoing investments and one-off costs associated with strategic actions, but fundamental earnings per share (excludes non-operating items) surged 73% quarter-over-quarter to $0.45, and year-to-date fundamental EPS reached positive territory for the first time in recent periods.
Management emphasizes operational momentum across both the Merchant and Consumer divisions, progress in capital-efficient cash and credit offerings, and the strategic value of recent and pending acquisitions (Touchsides closed in April 2024; Adumo announced and awaiting regulatory/shareholder approvals). Notably, Lesaka improved leverage with net debt to EBITDA at roughly 2.6x, and reported positive cash generation in the quarter, even acknowledging Easter-period working capital timing that impacted cash flow. The company reaffirmed FY2024 revenue guidance (R10.7–R11.7 billion Rand) and raised group adjusted EBITDA guidance (including lease expenses) to approximately R685–R705 million for FY24, signaling a credible trajectory if Adumo closes and integration milestones progress as planned. Investors should monitor the evolution of cross-sell effectiveness, currency exposure, regulatory developments affecting cross-border or new markets, and the pace of Adumo/Touchsides integration and monetization.