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Lesaka Technologies (LSAK)
NASDAQ:LSAK
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Lesaka Technologies
(NASDAQ:LSAK)
Rating:56Neutral
Price Target:
$4.50
▲(6.13%Upside)
Lesaka Technologies (LSAK) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$341.25M
Dividend YieldN/A
Average Volume (3M)22.50K
Price to Earnings (P/E)―
Beta (1Y)0.28
Revenue Growth4.13%
EPS Growth-120.88%
CountryUS
Employees2,531
SectorTechnology
Sector Strength83
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)0.04
Shares Outstanding81,249,400
10 Day Avg. Volume20,855
30 Day Avg. Volume22,505
Financial Highlights & Ratios
PEG Ratio0.38
Price to Book (P/B)0.88
Price to Sales (P/S)0.00
P/FCF Ratio-14.17
Enterprise Value/Market Cap1.07
Enterprise Value/Revenue0.16
Enterprise Value/Gross Profit2.31
Enterprise Value/Ebitda9.16
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Lesaka Technologies Business Overview & Revenue Model
Company DescriptionLesaka Technologies (LSAK) is a South African financial technology company that specializes in providing secure, efficient, and accessible payment solutions and financial services. The company operates in multiple sectors, including banking, retail, and telecommunications, with a focus on serving underserved communities. Lesaka's core products and services include mobile payment systems, point-of-sale solutions, and financial transaction processing, aimed at enhancing financial inclusion and convenience for both businesses and consumers.
How the Company Makes MoneyLesaka 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 Earnings Call Summary
Earnings Call Date:May 07, 2025
(Q3-2025)
| % Change Since: 8.16%|
Next Earnings Date:Sep 10, 2025
Earnings Call Sentiment Positive
The earnings call reflects a strong overall performance with significant growth in the Consumer division and successful acquisitions enhancing the Merchant and Enterprise divisions. However, the financial impact of MobiKwik's share volatility and reorganization costs in the Merchant division present challenges. Despite these issues, the company achieved record growth in several areas and is well-positioned for future success.Q3-2025 Updates
Positive Updates
Consumer Division Record Growth
The Consumer division had a standout quarter with record EPE transactional account enrollments, lending, and insurance originations. The division reported a 17% year-on-year increase in the customer base to 1.5 million permanent SASSA grant recipients and a 32% revenue growth year-on-year to ZAR 446 million.
Strong Financial Performance
Lesaka delivered revenue of ZAR 2.5 billion, net revenue of ZAR 1.36 billion, and Group adjusted EBITDA of ZAR 237 million, achieving guidance across all metrics. Fundamental earnings grew 98% year-on-year to ZAR 58 million.
Acquisition and Integration Success
The acquisition of Adumo significantly expanded the Merchant division, and the acquisition of Recharger enhanced the Enterprise division's offerings. These acquisitions are key to Lesaka's strategy of building a multi-product fintech platform.
Improved Debt Structure
The refinance of debt facilities resulted in a simpler and more cost-effective structure with advantageous pricing, reducing the cost of debt from 12% to 10.7%, equating to a saving of approximately ZAR 52 million a year.
Enterprise Division Expansion
The acquisition of Recharger marks a significant expansion in the electricity vending business, positioning Lesaka as a key player in this sector with vending throughput growing by 28% year-on-year.
Negative Updates
MobiKwik Share Price Volatility
The volatility of MobiKwik's share price led to a net loss of ZAR 311 million, significantly impacting the overall financial result for the quarter.
Merchant Division Reorganization Costs
The Merchant division incurred approximately ZAR 20 million in reorganization costs due to the integration and strategic realignment processes, impacting profitability.
Challenges in Airtime and Data Sales
Increased competition in airtime and data sales held back growth in prepaid solutions, which only saw a 4% year-on-year increase.
Enterprise Division EBITDA Decline
The Enterprise division reported an EBITDA decline to ZAR 2 million from ZAR 14 million last year due to restructuring costs and exiting unprofitable legacy businesses.
Company Guidance
During the third-quarter fiscal 2025 earnings call, Lesaka Tech provided guidance for both the current financial year ending June 2025 and the upcoming fiscal 2026. For fiscal 2025, the company reaffirmed its revenue guidance of ZAR 10 billion to ZAR 11 billion, with net revenue expected between ZAR 5.2 billion to ZAR 5.6 billion, and Group adjusted EBITDA between ZAR 900 million to ZAR 1 billion. Looking forward to fiscal 2026, Lesaka anticipates revenue in the range of ZAR 11.4 billion to ZAR 12.2 billion, net revenue between ZAR 6.4 billion to ZAR 6.9 billion, and Group adjusted EBITDA of ZAR 1.25 billion to ZAR 1.45 billion. This guidance reflects an anticipated 12% revenue growth, 23% net revenue growth, and a 42% increase in Group adjusted EBITDA from fiscal 2025 to 2026. Additionally, the company expects to achieve positive net income on a U.S. GAAP basis by the end of fiscal 2026.Lesaka Technologies Financial Statement Overview
Summary
Lesaka Technologies shows revenue growth and improved gross margins, yet struggles with profitability and cash flow, reflecting financial challenges.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.62
Positive
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.58
Neutral
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.50
Neutral
| 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 | EBIT |
| 1.60M | 3.59M | -15.35M | -28.28M | -53.87M | -37.91M | EBITDA |
| -19.75M | 29.80M | 9.99M | -26.50M | 1.71M | -52.73M | Net Income Common Stockholders |
| -63.77M | -17.44M | -35.07M | -40.23M | -13.18M | -67.67M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 71.01M | 59.06M | 35.50M | 43.94M | 198.57M | 217.67M | Total Assets |
| 649.20M | 558.45M | 542.23M | 656.57M | 428.33M | 453.68M | Total Debt |
| 38.03M | 166.70M | 170.05M | 215.19M | 18.96M | 20.38M | Net Debt |
| -32.97M | 107.64M | 134.55M | 171.25M | -179.62M | -197.29M | 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
Negative
4.24
Price Trends
4.31
Negative
4.56
Negative
4.83
Negative
Market Momentum
-0.03
Negative
50.65
Neutral
85.62
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LSAK, the sentiment is Negative. The current price of 4.24 is above the 20-day moving average (MA) of 4.19, below the 50-day MA of 4.31, and below the 200-day MA of 4.83, indicating a neutral trend. The MACD of -0.03 indicates Negative momentum. The RSI at 50.65 is Neutral, neither overbought nor oversold. The STOCH value of 85.62 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for LSAK.
Lesaka Technologies Risk Analysis
Lesaka Technologies disclosed 41 risk factors in its most recent earnings report. Lesaka Technologies reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 1 New Risks
1.
We have purchased a significant amount of prepaid airtime voucher inventory which exposes us to market risk for this inventory as well as losses if the mobile network operators are unable to perform. Q1, 2023
Lesaka Technologies Peers Comparison
Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
62 Neutral | $11.91B | 9.99 | -7.22% | 4.96% | 7.31% | -8.91% | |
61 Neutral | $422.34M | ― | -0.32% | ― | 18.51% | 97.57% | |
61 Neutral | $294.67M | 5.80 | 39.27% | ― | -1.90% | 0.05% | |
56 Neutral | $341.25M | ― | -23.36% | ― | 4.13% | -120.88% | |
55 Neutral | $434.00M | 5.07 | -94.58% | ― | -2.75% | -4.13% | |
51 Neutral | $489.78M | ― | ― | ― | -1012.30% | ||
49 Neutral | $289.61M | ― | 81.52% | ― | -6.14% | 67.53% |
* Technology Sector Average
Performance Comparison
LSAK
Lesaka Technologies
4.24
-0.71
-14.34%
IMXI
International Money Express
10.09
-10.30
-50.51%
BAND
Bandwidth
13.95
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-11.65%
RXT
Rackspace Technology
1.20
-1.19
-49.79%
CCSI
Consensus Cloud Solutions
21.91
5.11
30.42%
RZLV
Rezolve AI
1.92
-9.50
-83.19%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.