Q3 2025 Results: Lesaka delivers on guidance, reaffirms FY2025 outlook and projects positive net income in FY2026

JOHANNESBURG, May 7, 2025 - Lesaka Technologies, Inc. (Nasdaq: LSAK; JSE: LSK) today released results for the third quarter of fiscal 2025 ("Q3 2025").

Q3 2025 performance:

• Revenue of $135.7 million (ZAR 2.5 billion) was at the midpoint of our Revenue guidance and compares to $138.2 million (ZAR 2.6 billion) in Q3 2024.
• Net Revenue (a non-GAAP measure) of $73.4 million (ZAR 1.4 billion) was at the midpoint of our Net Revenue guidance increasing 43% in ZAR, from $50.3 million (ZAR 950.6 million) in Q3 2024.
• Operating income of $0.6 million (ZAR 10.9 million) was lower than operating income of $0.8 million (ZAR 15.0 million) in Q3 2024 given the inclusion of $2.3 million (ZAR 42.3 million) once-off transaction costs in Q3 2025, compared $0.9 million (ZAR 17.1 million) in Q3 2024. 
• Net loss, including a tax adjusted $17.0 million (ZAR 310.6 million) non-operating, non-cash, change in fair value of Mobikwik (a non-core asset) charge, increased to $22.1 million (ZAR 404.3 million) compared to a net loss of $4.0 million (ZAR 76.4 million) in Q3 2024.
• Group Adjusted EBITDA (a non-GAAP measure) of $12.8 million (ZAR 236.8 million) improved 29% in ZAR from $9.7 million (ZAR 183.3 million) in Q3 2024, in line with guidance provided.
• GAAP loss per share increased to $0.27 (ZAR 5.02) from $0.06 (ZAR 1.19) in Q3 2024.
• Fundamental earnings (a non-GAAP measure) increased by 98% in ZAR to $3.3 million (ZAR 58.0 million), from $1.6 million (ZAR 29.3 million) in Q3 2024.
• Fundamental earnings per share (a non-GAAP measure) of $0.04 (ZAR 0.72) improved by 60% in ZAR, from $0.02 (ZAR 0.45) in Q3 2024.
• Merchant Division Revenue decreased 10% in ZAR to $103 million (ZAR 1.9 billion), Net Revenue increased 58% in ZAR to $42.3 million (ZAR 782.2 million) and Segment Adjusted EBITDA increased by 7% in ZAR, to $8.1 million (ZAR 149.9 million).
• Consumer Division Revenue and Net Revenue increased 32% in ZAR to $24.1 million (ZAR 445.8 million) and Segment Adjusted EBITDA increased 65% in ZAR, to $6.3 million (ZAR 117.1 million).

(1) Average exchange rates applicable for the quarter for the purposes of translating our results of operations: ZAR 18.40 to $1 for Q3 2025, ZAR 18.88 to $1 for Q3 2024. The ZAR strengthened 2.5% against the U.S. dollar during Q3 2025 when compared to Q3 2024.

Commenting on the results, Lesaka Chairman Ali Mazanderani said, "I am pleased that we have delivered on our guidance for the quarter and can reaffirm FY2025 full year guidance. We are providing Revenue and Net Revenue guidance, and projecting positive net income, for FY2026. At the midpoint of these measures, this implies a 23% growth in Net Revenue and a 42% growth in Group Adjusted EBITDA year-on year."

Outlook: Third Quarter 2025 ("Q3 2025"), reaffirming Full Fiscal Year 2025 ("FY 2025") and complete guidance metrics for Full Fiscal Year 2026 ("FY 2026")

While we report our financial results in USD, we measure our operating performance in ZAR, and as such we provide our guidance accordingly.

For FY2025, the year ending June 30, 2025, we expect:

• Revenue between ZAR 10.0 billion and ZAR 11.0 billion.
• Net Revenue between ZAR 5.2 billion and ZAR 5.6 billion.
• Group Adjusted EBITDA between ZAR 900 million and ZAR 1 billion

  For FY2026, the year ending June 30, 2026, we expect:

• Revenue between ZAR 11.4 billion and ZAR 12.2 billion.
• Net Revenue between ZAR 6.4 billion and ZAR 6.9 billion.
• Group Adjusted EBITDA between ZAR 1.25 billion and ZAR 1.45 billion
• Net Income Attributable to Lesaka to be positive.

Our FY2025 and FY2026 outlook provided:

• Excludes the impact of unannounced mergers and acquisitions that we may conclude.

Management has provided its outlook regarding Net Revenue and Group Adjusted EBITDA, which are non-GAAP financial measures and excludes certain revenue and charges. Management has not reconciled these non-GAAP financial measures to the corresponding GAAP financial measures because guidance for the various reconciling items is not provided. Management is unable to provide guidance for these reconciling items because they cannot determine their probable significance, as certain items are outside of the company's control and cannot be reasonably predicted since these items could vary significantly from period to period. Accordingly, reconciliations to the corresponding GAAP financial measure is not available without unreasonable effort.

Earnings Presentation for Q3 2025 Results

Our earnings presentation will be posted to the Investor Relations page of our website prior to our earnings call.

Webcast

Lesaka will host a webcast to review results on May 8, 2025, at 8:00 a.m. Eastern Time which is 2:00 p.m. South Africa Standard Time ("SAST"). A replay of the results presentation webcast will be available on the Lesaka investor relations website following the conclusion of the live event.

Link to access the results webcast: https://www.corpcam.com/Lesaka08052025

Participants using the webcast will be able to submit questions during the live Question and Answer session.

Following the presentation, an archived version of the webcast will be provided on Lesaka's Investor Relations website.

Our Form 10-Q for the quarter ended March 31, 2025, as filed with the SEC, is available on our company website at www.lesakatech.com.

Use of Non-GAAP Measures

U.S. securities laws require that when we publish any non-GAAP measures, we disclose the reason for using these non-GAAP measures and provide reconciliations to the most directly comparable GAAP measures. The presentation of Group Adjusted EBITDA, Group Adjusted EBITDA margin, Net Revenue, fundamental net (loss) income, fundamental (loss) earnings per share, and headline (loss) earnings per share are non-GAAP measures. Refer to Attachment A for a reconciliation of these non-GAAP measures.

Non-GAAP Measures

Group adjusted EBITDA

Group Adjusted EBITDA is net loss before interest, taxes, depreciation and amortization, adjusted for non-operational transactions (including loss on disposal of equity-accounted investments), loss from equity-accounted investments, stock-based compensation charges and once-off items. Once-off items represent non-recurring expense items, including costs related to acquisitions and transactions consummated or ultimately not pursued. Group Adjusted EBITDA margin is Group Adjusted EBITDA divided by revenue.

Net Revenue

We generate revenue from the provision of transaction-processing services through our various platforms and service offerings. We use these platforms to (a) sell prepaid airtime vouchers ("Pinned Airtime") which was held as inventory, and (b) distribute pre-paid solutions including prepaid airtime vouchers (which we do not hold as inventory) ("Pinless Airtime"), prepaid electricity, gaming vouchers, and other products, to users of our platforms. We act as a principal when we sell Pinned Airtime that were held as inventory and record revenue and cost of sales on a gross basis when sold. We act as an agent in a transaction when we provide pre-paid solutions through our various platforms and services offerings because we do not control the good or service to be provided and we recognize revenue based on the amount that we are contractually entitled to receive for performing the distribution service on behalf of our customers using our platform. Our revenue under GAAP can fluctuate materially due to changes in the revenue mix between these revenue categories. Net Revenue is a non-GAAP measure and is calculated as revenue presented under GAAP less (i) the cost of Pinned Airtime sold by us, and (ii) commissions paid to third parties selling all other agency-based pre-paid solutions (including Pinless Airtime, electricity and other products) provided through our distribution channels. We believe that the use of Net Revenue is meaningful to users of financial information because it seeks to eliminate the impact of the change in the revenue mix from the revenue categories over the periods presented.

Fundamental net earnings (loss) and fundamental earnings (loss) per share

Fundamental net earnings (loss) and earnings (loss) per share is GAAP net loss and loss per share adjusted for the amortization of acquisition-related intangible assets (net of deferred taxes), stock-based compensation charges, and unusual non-recurring items, including costs related to acquisitions and transactions consummated or ultimately not pursued.

Fundamental net loss and loss per share for fiscal 2025 also includes adjustments related to changes in the fair value of equity securities (net of deferred tax), loss on disposal of equity-accounted investments and intangible asset amortization, net related to non-controlling interests.

Fundamental net earnings (loss) and earnings (loss) per share for fiscal 2024 also includes an impairment loss related to an equity-accounted investment, and a reversal of allowance for doubtful loan receivable.

Management believes that the Group Adjusted EBITDA, fundamental net earnings (loss) and fundamental earnings (loss) per share metrics enhance its own evaluation, as well as an investor's understanding, of our financial performance. Attachment A presents the reconciliation between GAAP net loss attributable to Lesaka and these non-GAAP measures.

Headline (loss) earnings per share ("H(L)EPS")

The inclusion of H(L)EPS in this press release is a requirement of our listing on the JSE. H(L)EPS basic and diluted is calculated using net (loss) income which has been determined based on GAAP. Accordingly, this may differ to the headline (loss) earnings per share calculation of other companies listed on the JSE as these companies may report their financial results under a different financial reporting framework, including but not limited to, International Financial Reporting Standards.

H(L)EPS basic and diluted is calculated as GAAP net (loss) income adjusted for the impairment losses related to our equity-accounted investments and (profit) loss on sale of property, plant and equipment. Attachment C presents the reconciliation between our net (loss) income used to calculate (loss) earnings per share basic and diluted and H(L)EPS basic and diluted and the calculation of the denominator for headline diluted (loss) earnings per share.

About Lesaka (www.lesakatech.com)

Lesaka Technologies, (Lesaka™) is a South African Fintech company driven by a purpose to provide financial services and software to Southern Africa's underserviced consumers and merchants. We offer an integrated and holistic multiproduct platform that provides transactional accounts, lending, insurance, merchant acquiring, cash management, software and Alternative Digital Payments ("ADP"). By providing a full-service fintech platform in our connected ecosystem, we facilitate the digitization of commerce in our markets.

Lesaka has a primary listing on NASDAQ (NASDAQ:LSAK) and a secondary listing on the Johannesburg Stock Exchange (JSE: LSK). Visit www.lesakatech.com for additional information about Lesaka Technologies (Lesaka™).

Forward-Looking Statements

This press release contains certain statements that may be considered forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and such statements are subject to the safe harbor created by those sections and the Private Securities Litigation Reform Act of 1995, as amended. Such statements may be identified by their use of terms or phrases such as "expects," "estimates," "projects," "believes," "anticipates," "plans," "could," "would," "may," "will," "intends," "outlook," "focus," "seek," "potential," "mission," "continue," "goal," "target," "objective," derivations thereof, and similar terms and phrases. Forward-looking statements are based upon the current beliefs and expectations of our management and are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified, which could cause future events and actual results to differ materially from those set forth in, contemplated by, or underlying the forward-looking statements. In this press release, statements relating to future financial results and future financing and business opportunities are forward-looking statements. Additional information concerning factors that could cause actual events or results to differ materially from those in any forward-looking statement is contained in our Form 10-K for the fiscal year ended June 30, 2024, and our Form 10-Q for the quarterly period ended March 31, 2025, as filed with the SEC, as well as other documents we have filed or will file with the SEC. We assume no obligation to update the information in this press release, to revise any forward-looking statements or to update the reasons actual results could differ materially from those anticipated in forward-looking statements.

Investor Relations and Media Relations Contacts:

Phillipe Welthagen

Email: [email protected]

Mobile: +27 84 512 5393

Media Relations Contact:

Ian Harrison

Email: [email protected]

Lesaka Technologies, Inc.

Attachment A

Reconciliation of GAAP loss attributable to Lesaka to Group Adjusted EBITDA loss:

Three and nine months ended March 31, 2025 and 2024, and three months ended December 31, 2024

Once-off items are non-recurring in nature, however, certain items may be reported in multiple quarters. For instance, transaction costs include costs incurred related to acquisitions and transactions consummated or ultimately not pursued. The transactions can span multiple quarters, for instance in fiscal 2025 we incurred significant transaction costs related to the acquisition of Adumo over a number of quarters, and the transactions are generally non-recurring.

Indirect tax provision release relates to the reversal of a non-recurring indirect tax provision created in fiscal 2023 which was resolved in fiscal 2025 following settlement of the matter with the tax authority. Income recognized related to closure of legacy businesses represents (i) gains recognized related to the release of the foreign currency translation reserve on deconsolidation of a subsidiaries and (ii) costs incurred related to subsidiaries which we are in the process of deregistering/ liquidation and therefore we consider these costs non-operational and ad hoc in nature.

Year ended June 30, 2024 and 2023

Once-off items are non-recurring in nature, however, certain items may be reported in multiple quarters. For instance, transaction costs include costs incurred related to acquisitions and transactions consummated or ultimately not pursued. The transactions can span multiple quarters, for instance in fiscal 2024 we incurred significant transaction costs related to the acquisition of Adumo over a number of quarters, and the transactions are generally non-recurring.

(Income recognized) Expenses incurred related to closure of legacy businesses represents (i) gains recognized related to the release of the foreign currency translation reserve on deconsolidation of a subsidiaries and (ii) costs incurred related to subsidiaries which we are in the process of deregistering/ liquidation and therefore we consider these costs non-operational and ad hoc in nature. Non-recurring revenue not allocated to segments includes once off revenue recognized that we believe does not relate to either our Merchant or Consumer divisions. Employee misappropriation of company funds represents a once-off loss incurred. Indirect tax provision includes non-recurring indirect taxes which have been provided related to prior periods following an on-going investigation from a tax authority. We incurred separation costs related to the termination of certain senior-level employees, including an executive officer and senior managers, during the fiscal year and we consider these specific terminations to be of a non-recurring nature. The legacy processing adjustments represents amounts we identified during fiscal 2022 related to prior periods that are payable to third parties.

Reconciliation of revenue under GAAP to Net Revenue:

Three and nine months ended March 31, 2025 and 2024, and three months ended December 31, 2024

Reconciliation of GAAP net loss and loss per share, basic, to fundamental net earnings (loss) and earnings (loss) per share, basic:

Three months ended March 31, 2025 and 2024

Nine months ended March 31, 2025 and 2024

Attachment B

Unaudited Condensed Consolidated Financial Statements

LESAKA TECHNOLOGIES, INC.
Unaudited Condensed Consolidated Statements of Operations

LESAKA TECHNOLOGIES, INC.
Unaudited Condensed Consolidated Statements of Cash Flows

LESAKA TECHNOLOGIES, INC.
Unaudited Condensed Consolidated Balance Sheets

(A) We have reclassified an amount of $11,841 from  long-term borrowings to current portion of long-term borrowings , refer to Note 1 to our unaudited condensed consolidated financial statement for the three and nine months ended March, 2025.

Lesaka Technologies, Inc.

Attachment C

Reconciliation of net loss used to calculate loss per share basic and diluted and headline loss per share basic and diluted:

Three months ended March 31, 2025 and 2024

Nine months ended March 31, 2025 and 2024

Calculation of the denominator for headline diluted loss per share

Weighted average number of shares used to calculate headline diluted loss per share represents the denominator for basic weighted-average common shares outstanding and unvested restricted shares expected to vest plus the effect of dilutive securities under GAAP. We use this number of fully diluted shares outstanding to calculate headline diluted loss per share because we do not use the two-class method to calculate headline diluted loss per share.