Lesaka Technologies (LSAK) AI Stock Analysis

• Market Cap: $372.50M
• Dividend Yield: N/A
• Average Volume (3M): 37.91K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.29
• Revenue Growth: 16.48%
• EPS Growth: -326.01%
• Country: US
• Employees: 2,531
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): 0.06
• Shares Outstanding: 84,086,395
• 10 Day Avg. Volume: 25,302
• 30 Day Avg. Volume: 37,908
• PEG Ratio: -0.01
• Price to Book (P/B): 1.35
• Price to Sales (P/S): 0.52
• P/FCF Ratio: -13.09
• Enterprise Value/Market Cap: 1.56
• Enterprise Value/Revenue: 0.79
• Enterprise Value/Gross Profit: 3.04
• Enterprise Value/Ebitda: -13.14
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 55 Neutral
• Price Target: $4.50 ▲(19.36% Upside)

Lesaka Technologies' overall stock score is 55, driven primarily by its financial performance challenges, including profitability and cash flow issues. However, the company shows promise with strong earnings growth and strategic initiatives highlighted in the earnings call. The recent credit facility further supports potential growth, but valuation concerns remain due to ongoing losses.

Positive Factors

Revenue Growth

Strong revenue growth indicates expanding market presence and effective business strategies, supporting long-term financial health.

Strategic Acquisitions

Acquisitions like Adumo enhance market reach and service offerings, bolstering competitive positioning and growth prospects.

Improved Financial Management

Improved debt management enhances financial flexibility, supporting sustainable growth and investment capacity.

Negative Factors

Profitability Challenges

Ongoing profitability issues can hinder reinvestment and growth, posing risks to long-term financial stability.

Cash Flow Issues

Negative cash flow growth limits operational flexibility and investment in growth initiatives, impacting future performance.

Financial Statement Restatement

Restatements can undermine investor confidence and indicate potential internal control weaknesses, affecting credibility.

Lesaka Technologies Business Overview & Revenue Model

Company Description

Lesaka Technologies (LSAK) is a technology company focused on the financial services sector, primarily in South Africa and the broader African market. The company specializes in providing innovative payment solutions, digital banking services, and value-added financial technology services that cater to both consumers and businesses. Lesaka aims to enhance financial inclusion by leveraging technology to streamline transactions, improve customer experiences, and offer a range of services including payment processing, mobile wallets, and point-of-sale solutions.

How the Company Makes Money

Lesaka Technologies generates revenue through multiple avenues, primarily by charging transaction fees for its payment processing services and commissions from its digital banking solutions. The company also earns income from merchant services, where it provides businesses with point-of-sale systems and payment infrastructure. Additionally, Lesaka may benefit from subscription fees for its value-added services, as well as partnerships with financial institutions and retailers that expand its service offerings. Strategic alliances and collaborations with other technology providers further enhance its capabilities and market reach, contributing to its overall revenue growth.

Lesaka Technologies Financial Statement Overview

Summary

Lesaka Technologies shows revenue growth but struggles with profitability and cash flow management. The income statement highlights challenges in achieving positive margins, while the balance sheet shows a stable capital structure but poor returns on equity. Cash flow issues further exacerbate the company's financial position, indicating a need for strategic improvements to enhance profitability and liquidity.

Income Statement

Lesaka Technologies shows a modest revenue growth rate of 3.62% TTM, indicating some positive momentum. However, the company struggles with profitability, as evidenced by negative net profit and EBIT margins. The gross profit margin is relatively low at 20.20% TTM, suggesting limited pricing power or high cost of goods sold. Overall, the income statement reflects a company facing challenges in achieving profitability despite revenue growth.

Balance Sheet

The balance sheet reveals a moderate debt-to-equity ratio of 0.13 TTM, indicating manageable leverage. However, the return on equity is negative, reflecting ongoing losses and inefficiencies in generating returns for shareholders. The equity ratio stands at 39.73%, suggesting a reasonable level of equity financing. While the company maintains a stable capital structure, its inability to generate positive returns is a concern.

Cash Flow

Cash flow analysis shows a negative free cash flow growth rate of -44.88% TTM, highlighting cash flow challenges. The operating cash flow to net income ratio is low at 0.03 TTM, indicating limited cash generation relative to net income. Additionally, the free cash flow to net income ratio is negative, reflecting cash outflows. Overall, the cash flow statement suggests significant liquidity and cash management issues.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	740.78M	659.70M	564.22M	527.97M	222.61M	130.79M
Gross Profit	191.50M	173.16M	121.55M	110.43M	54.29M	34.54M
EBITDA	-44.36M	-50.77M	29.80M	15.38M	-20.70M	-49.52M
Net Income	-87.26M	-87.50M	-17.44M	-35.07M	-43.88M	-38.06M
Balance Sheet
Total Assets	652.86M	653.71M	558.45M	542.23M	656.57M	428.33M
Cash, Cash Equivalents and Short-Term Investments	72.16M	76.52M	59.06M	35.50M	43.94M	198.57M
Total Debt	230.88M	235.37M	166.70M	170.05M	215.19M	18.96M
Total Liabilities	386.63M	392.33M	303.16M	283.33M	342.22M	67.37M
Stockholders Equity	259.31M	254.54M	255.29M	258.91M	314.35M	360.96M
Cash Flow
Free Cash Flow	-14.63M	-26.32M	15.83M	-16.16M	-41.76M	-62.66M
Operating Cash Flow	3.94M	-9.12M	28.79M	410.00K	-37.20M	-58.37M
Investing Cash Flow	-12.09M	-11.34M	-16.41M	-16.46M	-193.69M	47.77M
Financing Cash Flow	30.48M	29.73M	-7.11M	-19.12M	122.26M	-13.08M

Lesaka Technologies Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3.77
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LSAK, the sentiment is Positive. The current price of 3.77 is below the 20-day moving average (MA) of 4.12, below the 50-day MA of 4.11, and below the 200-day MA of 4.37, indicating a neutral trend. The MACD of 0.10 indicates Negative momentum. The RSI at 58.98 is Neutral, neither overbought nor oversold. The STOCH value of 64.51 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for LSAK.

Lesaka Technologies Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PAYS	70 Outperform	$292.83M	40.76	20.36%	―	32.61%	-8.26%
PAYO	69 Neutral	$2.07B	30.47	9.79%	―	10.58%	-45.52%
IMXI	68 Neutral	$456.48M	12.06	26.84%	―	-6.57%	-29.62%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
TENB	61 Neutral	$2.96B	-88.49	-8.95%	―	11.05%	45.23%
LSAK	55 Neutral	$372.50M	-4.06	-32.28%	―	16.48%	-326.01%
BKKT	48 Neutral	$329.61M	-2.08	-48.63%	―	101.97%	58.61%

Lesaka Technologies Corporate Events

Lesaka Technologies Holds Annual Shareholder Meeting

Lesaka Technologies recently held its Annual Meeting where shareholders voted on several key proposals. All director nominees were elected, KPMG, Inc. was ratified as the independent registered public accounting firm for the fiscal year ending June 30, 2026, executive compensation was approved on an advisory basis, and an amendment to increase the number of shares authorized for issuance by 3,000,000 was passed.

Lesaka Technologies Announces Financial Statement Restatement

On September 10, 2025, Lesaka Technologies, Inc. announced that its unaudited condensed consolidated financial statements for the quarters ended September 30, 2024, December 31, 2024, and March 31, 2025, should be restated due to a re-evaluation of revenue classification. The restatement is expected to increase revenue, offset by a corresponding increase in costs, without impacting operating income, net loss, or cash flows. The financial results are preliminary and subject to change as the restatement analysis and audit process are completed.

Lesaka Technologies Secures ZAR 400 Million Credit Facility

On September 8, 2025, Lesaka Technologies, through its South African subsidiaries Cash Connect Capital and K2020 Connect, finalized a Revolving Credit Facility Agreement with FirstRand Bank Limited. This agreement allows the subsidiaries to borrow up to ZAR 400 million to support their capital advance businesses and replace existing lending arrangements, enhancing their growth potential.