Lesaka Technologies (LSAK)
NASDAQ:LSAK
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Lesaka Technologies
(NASDAQ:LSAK)
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Rating:61Neutral
Price Target:
$5.00
▲(32.63% Upside)
Action:Reiterated
Date:05/19/26
The score is driven by strong earnings-call momentum and upgraded/tightened guidance, alongside a moderately supportive technical trend. These positives are tempered by only mid-range underlying financial-statement quality (ongoing net losses and margin volatility) and a weak valuation profile due to the very high P/E and lack of dividend support.
Positive Factors
Consumer revenue growth & user expansion
Lesaka's Consumer division shows durable demand: strong user growth, rising ARPU and a rapidly expanding lending book point to recurring fee and interest income. Scaled active users and higher ARPU support sustainable top-line growth and improved unit economics over the medium term.
Negative Factors
Ongoing net losses and margin volatility
Although core EBITDA has turned positive, persistent net losses and a very low TTM gross margin show earnings quality remains fragile. Below‑the‑line charges and margin swings mean sustained profitability relies on consistent gross‑margin improvement and containment of non‑operating expenses.
Read all positive and negative factors
Positive Factors
Negative Factors
Consumer revenue growth & user expansion
Lesaka's Consumer division shows durable demand: strong user growth, rising ARPU and a rapidly expanding lending book point to recurring fee and interest income. Scaled active users and higher ARPU support sustainable top-line growth and improved unit economics over the medium term.
Read all positive factors
Lesaka Technologies (LSAK) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$422.68M
Dividend YieldN/A
Average Volume (3M)37.91K
Price to Earnings (P/E)―
Beta (1Y)0.28
Revenue Growth10.11%
EPS Growth57.87%
CountryUS
Employees2,531
SectorTechnology
Sector Strength88
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)-0.29
Shares Outstanding85,736,220
10 Day Avg. Volume25,302
30 Day Avg. Volume37,908
Financial Highlights & Ratios
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 Cap1.37
Enterprise Value/Revenue0.75
Enterprise Value/Gross Profit3.00
Enterprise Value/Ebitda18.14
Forecast
1Y Price Target
$5.63Price Target Upside49.34% Upside
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)0.3
Revenue Forecast (FY)$589.07M
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...
How the Company Makes Money
Lesaka makes money primarily by earning fees and finance-related income from delivering payments and financial services across its platforms and distribution channels. Key revenue streams include: (1) Payments and transaction services: fees genera...
Lesaka Technologies Earnings Call Summary
Earnings Call Date:May 06, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Sep 10, 2026
Earnings Call Sentiment Positive
The call presents a strongly positive operational and financial story: robust top‑line growth, record and materially improved profitability (group adjusted EBITDA +45%; adjusted EPS +247%), strong cash generation and tighter, upgraded guidance for EPS and profitability for FY26. Consumer and Enterprise divisions were standout performers, driving much of the improvement. Key transitional issues remain in the Merchant division (revenue/ARPU pressure, lower lending originations) and there were several one‑off impairments and rebrand/transition costs, but these are framed as strategic, non‑recurring or deliberate (portfolio optimization, conservative credit posture, integration investments). Overall, the positive operational momentum, balance‑sheet improvement and upgraded guidance materially outweigh the headwinds described.Positive Updates
Group revenue and profitability growth
Net revenue rose 16% year‑on‑year to ZAR 1.58 billion for Q3 FY26; group adjusted EBITDA reached an all‑time quarterly high of ZAR 337 million, up 45% YoY and at the top end of guidance. Adjusted earnings increased 246% to ZAR 148 million and adjusted EPS rose from ZAR 0.52 to ZAR 1.80 (+247%).
Negative Updates
Merchant revenue decline and ARPU compression
Merchant net revenue declined 4% YoY to ZAR 751 million. Aggregate Merchant ARPU decreased 7% YoY, driven by faster growth in lower‑ARPU community merchants and network fee resets in airtime commissions.
Read all updates
Q3-2026 Updates
Positive
Negative
Group revenue and profitability growth
Net revenue rose 16% year‑on‑year to ZAR 1.58 billion for Q3 FY26; group adjusted EBITDA reached an all‑time quarterly high of ZAR 337 million, up 45% YoY and at the top end of guidance. Adjusted earnings increased 246% to ZAR 148 million and adjusted EPS rose from ZAR 0.52 to ZAR 1.80 (+247%).
Read all positive updates
Company Guidance
Management tightened FY‑26 guidance to net revenue of ZAR 6.2–6.5 billion (midpoint ≈ ZAR 6.35bn, ~20% YoY) and group adjusted EBITDA of ZAR 1.25–1.35 billion (midpoint implies ~43% YoY growth) while noting they remain on track to deliver EBITDA and are tightening the range, raised adjusted EPS guidance from “at least ZAR 4.60” to ZAR 5.50–6.00 per share (midpoint >150% YoY), and reaffirmed they expect to be net‑income profitable for FY‑26 on a statutory basis; other key metrics: CapEx to remain below ZAR 400m p.a. (LTM CapEx/EBITDA down from ~46% to 29%), net debt/adjusted EBITDA improved to 2.1x (close to a 2.0x target), Q3 actuals were net revenue ZAR 1.58bn and adjusted EBITDA ZAR 337m, Merchant net revenue is expected to be flat next quarter, and FY‑27/medium‑term guidance will be provided inclusive of the pending Bank Zero acquisition.Lesaka Technologies Financial Statement Overview
Summary
Income Statement
44
Neutral
Balance Sheet
63
Positive
Cash Flow
51
Neutral
| Breakdown | TTM | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 764.90M | 659.70M | 564.22M | 527.97M | 222.61M | 130.79M |
| Gross Profit | 192.61M | 173.16M | 121.55M | 110.43M | 54.29M | 34.54M |
| EBITDA | 31.82M | -50.77M | 29.80M | 15.38M | -20.70M | -49.52M |
| Net Income | -28.99M | -87.50M | -17.44M | -35.07M | -43.88M | -38.06M |
Balance Sheet | ||||||
| Total Assets | 674.95M | 653.71M | 558.45M | 542.23M | 656.57M | 428.33M |
| Cash, Cash Equivalents and Short-Term Investments | 90.70M | 76.52M | 59.06M | 35.50M | 43.94M | 198.57M |
| Total Debt | 247.63M | 235.37M | 166.70M | 170.05M | 215.19M | 18.96M |
| Total Liabilities | 403.65M | 392.33M | 303.16M | 283.33M | 342.22M | 67.37M |
| Stockholders Equity | 271.31M | 254.54M | 255.29M | 258.91M | 314.35M | 360.96M |
Cash Flow | ||||||
| Free Cash Flow | 12.94M | -26.32M | 15.83M | -16.16M | -41.76M | -62.66M |
| Operating Cash Flow | 30.62M | -9.12M | 28.79M | 410.00K | -37.20M | -58.37M |
| Investing Cash Flow | -6.62M | -11.34M | -16.41M | -16.46M | -193.69M | 47.77M |
| Financing Cash Flow | -7.64M | 29.73M | -7.11M | -19.12M | 122.26M | -13.08M |
Lesaka Technologies Technical Analysis
Negative
3.77
Price Trends
4.95
Negative
4.79
Positive
4.54
Positive
Market Momentum
0.02
Positive
48.31
Neutral
30.72
Neutral
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 3.77 is below the 20-day moving average (MA) of 4.95, below the 50-day MA of 4.95, and below the 200-day MA of 4.54, indicating a neutral trend. The MACD of 0.02 indicates Positive momentum. The RSI at 48.31 is Neutral, neither overbought nor oversold. The STOCH value of 30.72 is Neutral, 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 103 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 0 New Risks
Lesaka Technologies Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $397.49M | 38.12 | 21.74% | ― | 43.38% | 66.05% | |
75 Outperform | $1.67B | 24.40 | 10.01% | ― | 7.19% | -36.03% | |
70 Outperform | $2.70B | -255.55 | -3.71% | ― | 10.74% | 74.22% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
61 Neutral | $422.68M | -12.97 | -11.00% | ― | 10.11% | 57.87% | |
50 Neutral | $512.60M | -1.16 | -116.83% | ― | -58.96% | -44.30% | |
40 Underperform | $456.53M | 17.58 | 16.51% | ― | -10.94% | -50.17% |
* Technology Sector Average
LSAK
Lesaka Technologies
4.89
0.65
15.33%
IMXI
International Money Express
14.97
3.94
35.72%
TENB
Tenable Holdings
28.23
-3.99
-12.38%
PAYS
PaySign
7.27
2.82
63.37%
PAYO
Payoneer
5.20
-1.61
-23.64%
BKKT
Bakkt Holdings, Inc. Class A
10.87
-0.77
-6.62%
Lesaka Technologies Corporate Events
Business Operations and StrategyExecutive/Board Changes
Lesaka Extends Executive Chairman Contract and Stock Options
Positive
May 18, 2026
On May 12, 2026, Lesaka Technologies’ board extended Executive Chairman Ali Mazanderani’s U.S. employment agreement from January 31, 2028 to June 30, 2029, maintaining his annual base salary at $600,000 and confirming he remains inelig...
Business Operations and StrategyPrivate Placements and Financing
Lesaka Technologies Updates Banking Facility with Rand Merchant Bank
Positive
Apr 1, 2026
On February 27, 2026, Lesaka Technologies and its subsidiaries entered into an amended and restated Common Terms Agreement and, on March 27, 2026, an Amended and Restated General Banking Facility Agreement with FirstRand Bank’s Rand Merchant...
Business Operations and StrategyExecutive/Board Changes
Lesaka Technologies Updates Executive Compensation and Incentive Plans
Positive
Feb 27, 2026
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 ...
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.