Lesaka Technologies (LSAK) AI Stock Analysis

• Market Cap: $366.44M
• Dividend Yield: N/A
• Average Volume (3M): 25.81K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.28
• Revenue Growth: 4.13%
• EPS Growth: -120.88%
• Country: US
• Employees: 2,531
• Sector: Technology
• Sector Strength: 93
• Industry: Software - Infrastructure
• EPS (TTM): 0.04
• Shares Outstanding: 81,249,400
• 10 Day Avg. Volume: 14,729
• 30 Day Avg. Volume: 25,813
• PEG Ratio: 0.17
• Price to Book (P/B): 1.99
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -25.03
• Enterprise Value/Market Cap: 0.95
• Enterprise Value/Revenue: 0.15
• Enterprise Value/Gross Profit: 2.22
• Enterprise Value/Ebitda: 8.81
• 1Y Price Target: $4.50
• Price Target Upside: -0.22% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 60 Neutral
• Price Target: $5.00 ▲(10.86%Upside)

Lesaka Technologies' overall stock score reflects its potential for growth, supported by strong technical indicators and positive earnings call guidance. However, significant risks remain due to ongoing profitability challenges and a negative valuation outlook. The company's strategic acquisitions and divestments are positive but already factored into the earnings call analysis.

Lesaka Technologies Business Overview & Revenue Model

Company Description

Lesaka Technologies, Inc., a financial technology company, provides fintech products and services to unbanked and underbanked individuals and small businesses primarily in South Africa and internationally. The company develops payment technologies to offers financial and value -added services to its customers. It operates through three segments: Processing, Financial services, and Technology. The Processing segment provides transaction processing services that involve the collection, transmittal, and retrieval of all transaction data to its customers. The Financial services segment includes activities related to the provision of financial services to customers, including bank accounts, loans, and life insurance products. This segment also offers short-term loans to customers. The Technology segment sells hardware, such as point of sale devices, SIM cards, and other consumables; and licenses right to use certain technology developed by the company, as well as offers related technology services. The company was formerly known as Net 1 UEPS Technologies, Inc. and changed its name to Lesaka Technologies, Inc. in May 2022. Lesaka Technologies, Inc. was incorporated in 1997 and is headquartered in Johannesburg, South Africa.

How the Company Makes Money

Lesaka Technologies generates revenue primarily through transaction fees from its payment processing services and point-of-sale solutions. The company earns income by facilitating electronic transactions for merchants and consumers, charging a percentage or fixed fee per transaction. Additionally, Lesaka may have partnerships with banks and financial institutions, leveraging its technology to provide seamless payment solutions and earning revenue through shared transaction fees or service agreements. The company's focus on underserved markets allows it to tap into niche segments, potentially increasing its revenue streams. Strategic partnerships with retailers and telecommunications providers also contribute to its earnings by expanding its service reach and customer base.

Lesaka Technologies Financial Statement Overview

Summary

Lesaka Technologies shows potential with revenue growth and improved gross profit margin. However, ongoing profitability challenges, negative net profit margins, and cash flow constraints remain significant concerns. The balance sheet reflects moderate leverage but declining equity, indicating financial stability issues.

Income Statement

Lesaka Technologies has shown a steady revenue growth, with a notable increase from 2022 to TTM (Trailing-Twelve-Months). The gross profit margin improved significantly in the TTM period, indicating better cost management. However, the company remains unprofitable with negative net profit margins, highlighting ongoing operational challenges.

Balance Sheet

The company has a moderate debt-to-equity ratio, which suggests a balanced approach to leveraging. However, the decline in stockholders' equity and a reduced equity ratio raise concerns about financial stability. The return on equity is negative, reflecting operational inefficiencies in generating returns for shareholders.

Cash Flow

Lesaka Technologies has experienced fluctuations in free cash flow, with a negative trend in the most recent TTM period. The operating cash flow is positive but remains low compared to net income, indicating challenges in translating earnings into cash. This suggests potential liquidity risks.

Breakdown	TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	574.08M	564.22M	527.97M	222.61M	130.79M	151.00M
Gross Profit	157.60M	121.55M	110.43M	54.29M	34.54M	41.99M
EBITDA	-19.75M	29.80M	9.99M	-26.50M	1.71M	-52.73M
Net Income	-63.77M	-17.44M	-35.07M	-40.23M	-13.18M	-67.67M
Balance Sheet
Total Assets	649.20M	558.45M	542.23M	656.57M	428.33M	453.68M
Cash, Cash Equivalents and Short-Term Investments	71.01M	59.06M	35.50M	43.94M	198.57M	217.67M
Total Debt	38.03M	166.70M	170.05M	215.19M	18.96M	20.38M
Total Liabilities	368.22M	303.16M	283.33M	342.22M	67.37M	78.49M
Stockholders Equity	185.23M	255.29M	258.91M	314.35M	360.96M	375.19M
Cash Flow
Free Cash Flow	-15.29M	15.83M	-16.16M	-41.76M	-62.66M	-51.98M
Operating Cash Flow	3.01M	28.79M	410.00K	-37.20M	-58.37M	-46.05M
Investing Cash Flow	-19.95M	-16.41M	-16.46M	-193.69M	47.77M	223.12M
Financing Cash Flow	26.92M	-7.11M	-19.12M	122.26M	-13.08M	-48.84M

Lesaka Technologies Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4.51
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• 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 4.51 is above the 20-day moving average (MA) of 4.46, above the 50-day MA of 4.30, and below the 200-day MA of 4.82, indicating a neutral trend. The MACD of 0.08 indicates Positive momentum. The RSI at 52.95 is Neutral, neither overbought nor oversold. The STOCH value of 32.29 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
BAND	67 Neutral	$462.52M	―	-0.32%	―	18.51%	97.57%
CCSI	61 Neutral	$411.53M	4.87	-94.58%	―	-2.75%	-4.13%
IMXI	61 Neutral	$282.08M	5.55	39.27%	―	-1.90%	0.05%
LSAK	60 Neutral	$366.44M	―	-23.36%	―	4.13%	-120.88%
Sector *	51 Neutral	AU$1.60B	2.48	-31.50%	3.04%	16.21%	-7.40%
RXT	48 Neutral	$344.21M	―	81.52%	―	-6.14%	67.53%
RZLV	46 Neutral	$687.15M	―		―	―	―

Lesaka Technologies Corporate Events

Lesaka Technologies Acquires Bank Zero to Boost Fintech

On June 26, 2025, Lesaka Technologies announced a significant acquisition of Bank Zero, a South African digital bank known for its zero-fee banking model. This transaction, involving a combination of shares and cash, is expected to enhance Lesaka’s fintech platform by integrating Bank Zero’s digital banking infrastructure. The acquisition aims to provide comprehensive banking services, unlock synergies, and improve Lesaka’s financial profile by reducing debt and optimizing the balance sheet. The transaction is anticipated to be accretive to shareholders, with Bank Zero expected to be profitable in the following fiscal year. Key executives from Bank Zero will join Lesaka, ensuring continuity and integration post-acquisition.

Lesaka Technologies Sells Stake in Mobikwik for ZAR 290M

On June 26, 2025, Lesaka Technologies completed the sale of its equity interest in One Mobikwik Systems Limited on the Indian Stock Exchange, generating approximately ZAR 290 million in net cash proceeds. This sale, following the expiration of a contractual lock-up period, aligns with Lesaka’s strategy to divest non-core assets and will support strengthening its balance sheet and reducing group debt.