With the signing and announcement of the Adumo transaction yesterday, which remains subject to shareholder votes and regulatory approvals, we anticipate continuing to consolidate the market and cement our position as the leading independent fintech platform in Southern Africa.
— Ali Mazanderani
03Detailed Report
LSAK
Company LSAK
Period
Q3 2024
CurrencyUSD
Report TypeQuarterly Earnings
GeneratedJun 23, 2026
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Executive Summary
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.
Key Performance Indicators
Revenue
Increasing
138.19M
QoQ: -3.96% | YoY: 3.15%
Gross Profit
Increasing
30.34M
21.95% margin
QoQ: 2.41% | YoY: 5.83%
Operating Income
Increasing
1.43M
QoQ: -37.31% | YoY: 176.90%
Net Income
Increasing
-4.05M
QoQ: -49.50% | YoY: 30.46%
EPS
Increasing
-0.06
QoQ: -50.00% | YoY: 34.21%
Revenue Trend
Margin Analysis
Financial Highlights
Revenue and profitability:
- Revenue: $138.194 million for Q3 2024, up 3.15% YoY; QoQ decline of 3.96%. Commentary notes a higher mix of PIN-less top-ups vs PIN-based airtime impacting revenue recognition; impact partially offset by continued VAS growth and cash management services.
- Gross profit: $30.34 million; gross margin ~22.0% (0.2195 in reported ratio).
- EBITDA: $7.22 million; EBITDA margin near 5.22% (EBITDA/Revenue ~0.052)
- Operating income: $1.425 million (operating margin ~1.03%). One-off costs related to Adumo acquisition ($0.6 million) are highlighted in the call as part of operating items.
- Net income: $(4.05) million; net income margin: approximately (−2.93%). Rationale includes non-cash amortization related to acquired intangibles and one-off acquisition costs.
- Basic and diluted EPS: $(0.06) per share; fundamental earnings per share (adjusted) rose 73% QoQ to $0.45, and YTD fundamental EPS was about ZAR 0.64 per share.
Liquidity and leverage:
- Net debt to group adjusted EBITDA: 2.6x at quarter end, improving from 4.2x a year ago and 2.9x at Q2 2024.
- Net cash provided by operating activities: Rand 118 million for the quarter (approx. USD equivalent not explicitly disclosed in the US GAAP presentation; management highlighted positive quarterly operating cash flow and an earlier Easter-related working capital timing). Year-to-date cash from operations was Rand 190 million, versus Rand 163 million for the first 3 quarters of the prior year.
- Cash on hand: Rand 1.0 billion at quarter end; after adjusting for working capital movements (Kazang Pay settlement), net cash stood at Rand 0.798 billion.
Cash flow and capital expenditures:
- Free cash flow: Rand 16.1 million for the quarter; capital expenditures were Rand 5.6 million (growth capex of ~Rand 4.6 million focused on Merchant device deployment and cash vaults).
- Free cash flow yield and cash conversion improved as the business benefits from ongoing cost discipline and revenue growth in Consumer and Merchant segments.
Balance sheet and asset quality:
- Total current assets: Rand 185.78 million; total assets: Rand 551.49 million; total liabilities: Rand 298.97 million; total stockholders’ equity: Rand 252.52 million.
- Long-term debt: Rand 136.31 million; total debt: Rand 154.62 million; net debt was Rand 95.01 million.
Market and operating context:
- Management reaffirmed FY24 revenue guidance of Rand 10.7–11.7 billion; updated group adjusted EBITDA guidance to Rand 685–705 million (inclusive of lease expenses), reflecting a >50% YoY growth target; earlier guidance before including lease expenses had been higher, but the updated presentation aligns with SEC feedback. The Adumo transaction, if completed, is expected to further expand the addressable market and cross-sell opportunities in both Consumer and Merchant segments.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
138.19M
3.15%
-3.96%
Gross Profit
30.34M
5.83%
2.41%
Operating Income
1.43M
176.90%
-37.31%
Net Income
-4.05M
30.46%
-49.50%
EPS
-0.06
34.21%
-50.00%
Key Financial Ratios
Gross Profit Margin
Fair
22.00%
Gross profit margin is moderate, room for improvement in cost management
Operating Profit Margin
Weak
1.03%
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
1.60
Current ratio shows adequate liquidity to meet short-term obligations