Lesaka delivered a mixed but strategically constructive QQ3 2025, underpinned by Acquisitions and a reoriented operating model. On an IFRS basis, revenue was USD 135.7 million with net income of USD -22.1 million and EBITDA of USD -10.8 million for the quarter, reflecting ongoing investments and one-off items. Management emphasizes a deliberate shift toward higher-margin, multi-product platform growth, anchored by three engines of growth: Consumer, Merchant, and Enterprise. Group adjusted EBITDA, calculated in ZAR, rose 237 million and fundamental earnings increased 98% YoY to 58 million, signaling improving operating leverage at the core even as GAAP profitability remains pressured by non-cash items and strategic reorganization costs.
Key drivers in QQ3 2025 included: (1) the Adumo acquisition expanding the Merchant segment’s scale and product breadth, and (2) the March 2025 closing of Recharger, expanding the Enterprise division’s electricity- and sub-metering capabilities. The company also faced currency effects (rand versus USD) and a material mark-to-market charge related to the MobiKwik investment, contributing to the quarterly net income loss. Cash flow remained positive from operations (USD 10.7 million), with ongoing capex focused on vaults (Smart Safe) and platform enhancements. Management reaffirmed guidance for FY25 revenue growth and highlighted a move toward positive net income on a US GAAP basis in FY26. Investors should monitor: (i) the trajectory of Consumer ARPU and market share gains, (ii) the pace of EBITDA margin expansion in Merchant and Enterprise, and (iii) the integration and monetization of Recharger and MobiKwik-related exposures as principal levers of future profitability.