Lesaka Technologies (LSAK) AI Stock Analysis

• Market Cap: $391.91M
• Dividend Yield: N/A
• Average Volume (3M): 37.91K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.30
• Revenue Growth: 16.48%
• EPS Growth: -326.01%
• Country: US
• Employees: 2,531
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): 0.08
• Shares Outstanding: 83,920,680
• 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: 1.48
• Enterprise Value/Revenue: 0.78
• Enterprise Value/Gross Profit: 3.09
• Enterprise Value/Ebitda: 268.89
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 0.29
• Revenue Forecast (FY): $567.03M

• Rating: 54 Neutral
• Price Target: $5.00 ▲(32.63% Upside)
• Action: Reiterated Date: 02/28/26
• Date: Action: Reiterated 02/28/26

The score is held back primarily by weak financial quality (ongoing losses and negative free cash flow) despite strong revenue growth and improving gross profitability. The latest earnings call was a positive offset due to upbeat guidance and strong segment momentum, while technicals are modestly supportive; valuation remains constrained by a negative P/E and no dividend.

Positive Factors

Robust revenue growth & improving gross margin

Sustained multi-year revenue acceleration and better gross margins indicate improving unit economics and scale. This supports durable operating leverage, gives room to invest in product and distribution, and increases the likelihood of converting growth into sustained profitability over the medium term.

Strong Consumer and Enterprise scale

Rapid expansion in consumer users, higher ARPU, record lending originations, and outsized enterprise growth diversify revenue sources and deepen network effects. Scale in both segments improves cross-sell, sticky recurring fees, and drives longer-term customer lifetime value and margin stability.

Strategic milestone — Bank Zero approval & One Lesaka consolidation

Regulatory approval for the Bank Zero deal and brand consolidation create structural benefits: stronger funding options, potential lower-cost deposits, balance-sheet flexibility, and unified go‑to‑market. These changes materially improve funding mix and long-term margin capture if final approvals proceed.

Negative Factors

Ongoing net losses and negative ROE

Meaningfully negative ROE and continued net losses signal capital inefficiency and that retained equity isn’t yet producing returns. This constrains the company’s ability to self-fund growth, raises reliance on external financing, and increases execution risk until sustained profitability is achieved.

Weak and inconsistent cash generation; negative free cash flow

Negative and volatile free cash flow limits reinvestment capacity and heightens funding risk, complicating targets to reduce leverage. Inconsistent cash conversion makes long-term planning harder, forces tradeoffs between growth and balance‑sheet repair, and can amplify stress if macro conditions tighten.

Merchant segment pressure and margin compression

The Merchant division is facing structural headwinds from pricing competition, hardware upgrade costs and transformation that compress margins. With Merchant expected flat near term, this reduces revenue diversification and cash from an historically higher‑margin line, slowing group margin recovery.

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

Strong TTM revenue growth and improving gross margin are offset by continued net losses, near-breakeven EBITDA, and weak/negative free cash flow. Balance sheet leverage is moderate but rising, and negative ROE highlights that profitability and cash conversion remain the key gaps.

Income Statement

Revenue growth is strong, with 34% in TTM (Trailing-Twelve-Months) and a clear multi-year step-up in scale versus earlier years. Gross margin has improved versus 2023–2024 levels, supporting better underlying unit economics. However, profitability remains the key issue: TTM (Trailing-Twelve-Months) shows negative operating profit and a net loss (about -6.9% net margin), and while EBITDA has improved to slightly positive, it is still near breakeven—leaving earnings highly sensitive to costs and execution.

Balance Sheet

Leverage is moderate with debt at roughly 1.0x equity in TTM (Trailing-Twelve-Months), and equity remains positive. That said, returns on equity are meaningfully negative (TTM (Trailing-Twelve-Months) ROE around -19%), reflecting that the capital base is not currently generating profits. Debt levels have also risen from 2024, reducing financial flexibility if profitability does not improve.

Cash Flow

Cash generation is weak and volatile. TTM (Trailing-Twelve-Months) operating cash flow is only slightly positive while free cash flow is negative, and free cash flow has deteriorated versus the prior annual period. Earlier years show swings between positive and deeply negative operating cash flow, highlighting inconsistency in converting reported results into sustainable cash generation.

Breakdown	TTM	Jun 2025	Jun 2024	Jun 2023	Jun 2022	Jun 2021
Income Statement
Total Revenue	743.30M	659.70M	564.22M	527.97M	222.61M	130.79M
Gross Profit	188.46M	173.16M	121.55M	110.43M	54.29M	34.54M
EBITDA	2.16M	-50.77M	29.80M	15.38M	-20.70M	-49.52M
Net Income	-51.60M	-87.50M	-17.44M	-35.07M	-43.88M	-38.06M
Balance Sheet
Total Assets	704.64M	653.71M	558.45M	542.23M	656.57M	428.33M
Cash, Cash Equivalents and Short-Term Investments	69.60M	76.52M	59.06M	35.50M	43.94M	198.57M
Total Debt	258.79M	235.37M	166.70M	170.05M	215.19M	18.96M
Total Liabilities	427.99M	392.33M	303.16M	283.33M	342.22M	67.37M
Stockholders Equity	269.52M	254.54M	255.29M	258.91M	314.35M	360.96M
Cash Flow
Free Cash Flow	-14.56M	-26.32M	15.83M	-16.16M	-41.76M	-62.66M
Operating Cash Flow	2.19M	-9.12M	28.79M	410.00K	-37.20M	-58.37M
Investing Cash Flow	-6.30M	-11.34M	-16.41M	-16.46M	-193.69M	47.77M
Financing Cash Flow	4.62M	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: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 4.53, below the 50-day MA of 4.57, and below the 200-day MA of 4.37, indicating a bullish trend. The MACD of 0.02 indicates Negative momentum. The RSI at 55.21 is Neutral, neither overbought nor oversold. The STOCH value of 83.39 is Negative, 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
PAYO	71 Outperform	$1.49B	22.18	10.24%	―	10.58%	-45.52%
IMXI	68 Neutral	$468.96M	12.36	26.84%	―	-6.57%	-29.62%
PAYS	63 Neutral	$195.40M	27.00	20.36%	―	32.61%	-8.26%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
TENB	60 Neutral	$2.29B	-64.06	-9.95%	―	11.05%	45.23%
LSAK	54 Neutral	$391.91M	-7.48	-32.28%	―	16.48%	-326.01%
BKKT	53 Neutral	$246.28M	-1.88	-48.63%	―	101.97%	58.61%

Lesaka Technologies Corporate Events

Lesaka Technologies Updates Executive Compensation and Incentive Plans

On February 25, 2026, Lesaka Technologies’ Remuneration Committee approved a rise in the annual base salary of Lincoln Mali, Chief Executive Officer: Southern Africa, to ZAR 8 million effective February 1, 2026, alongside a one-off bonus of ZAR 3.5 million. On the same date, the Committee also set detailed fiscal 2026 cash incentive frameworks for executives Steven Heilbron, Mali and Dan Smith, tying potential payouts of 20%–120% of base salary to a blend of quantitative financial metrics and qualitative objectives such as M&A execution, integration of the Bank Zero acquisition, culture transformation, regulatory engagement and strengthening Sarbanes-Oxley-compliant internal controls, with broad discretion to adjust or cancel awards based on performance and strategic developments.

The quantitative portion of the awards is linked to measures including group net revenue, adjusted EBITDA, net debt to EBITDA, free cash flow conversion, positive earnings and segment-level EBITDA, with differing weightings for each executive. The qualitative components emphasize enhancing shareholder value by delivering on finance function improvements, treasury and funding processes, risk and control rigor and embedding a high-performance, collaborative culture, signaling a remuneration strategy that closely aligns top management rewards with Lesaka’s financial performance, strategic transactions and governance priorities for 2026.

The most recent analyst rating on (LSAK) stock is a Hold with a $4.50 price target. To see the full list of analyst forecasts on Lesaka Technologies stock, see the LSAK Stock Forecast page.

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.

The most recent analyst rating on (LSAK) stock is a Hold with a $4.00 price target. To see the full list of analyst forecasts on Lesaka Technologies stock, see the LSAK Stock Forecast page.