Lesaka Technologies (LSAK) AI Stock Analysis

• Market Cap: $392.68M
• Dividend Yield: N/A
• Average Volume (3M): 37.91K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.31
• 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: 1.48
• 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: 56 Neutral
• Price Target: $5.00 ▲(32.63% Upside)

The score is held back primarily by weak underlying financial performance, especially persistent losses and cash flow deterioration. Offsetting this, technicals are constructive with broad moving-average support and positive MACD, and the latest earnings call indicated strong operational momentum and improving leverage. Valuation remains constrained by negative earnings and no dividend data.

Positive Factors

Strong revenue & EBITDA growth

Sustained double-digit top-line growth and large adjusted EBITDA expansion indicate the business is scaling revenue while starting to convert scale into operating leverage. This durable improvement supports reinvestment, reduces structural break-even risk, and strengthens capacity to fund strategic initiatives over months.

Consumer base expansion & ARPU gains

A growing active consumer base plus rising ARPU points to stronger product-market fit and improved monetization per user. Over the medium term this broadens recurring revenue, deepens customer relationships in underbanked segments, and supports cross-sell of higher‑margin services, strengthening long-term unit economics.

Improving leverage & manageable debt

A falling net-debt/EBITDA and low debt-to-equity reflect a manageable capital structure that increases financial flexibility. This durable improvement reduces refinancing risk, allows selective M&A or investment (e.g., Bank Zero integration), and supports operating stability over the next several quarters.

Negative Factors

Persistent unprofitability & low gross margin

Sustained negative profitability and sub‑25% gross margins suggest limited pricing power or high direct costs. Over months this constrains free cash generation, forces reliance on external funding or cost cuts to reach positive returns, and undermines long‑term shareholder value creation if not addressed.

Weak cash generation & deteriorating free cash flow

Sharp deterioration in free cash flow and very low cash conversion indicate structural liquidity strain. Over the medium term, poor cash generation limits capital for growth initiatives, increases dependency on external financing, and raises execution risk for integrations and strategic projects.

Merchant churn & elevated group costs

Merchant churn and declining cash TPV in SME channels signal structural retention and product fit issues in a core revenue stream. Combined with elevated nonrecurring group costs, this pressures margins and cash conversion, making sustainable merchant-led growth and profitability harder over multiple quarters.

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: Positive
• 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 3.77 is below the 20-day moving average (MA) of 4.54, below the 50-day MA of 4.21, and below the 200-day MA of 4.36, indicating a bullish trend. The MACD of 0.15 indicates Positive momentum. The RSI at 58.05 is Neutral, neither overbought nor oversold. The STOCH value of 58.10 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
PAYO	69 Neutral	$1.94B	27.73	9.79%	―	10.58%	-45.52%
IMXI	68 Neutral	$460.94M	12.14	26.84%	―	-6.57%	-29.62%
PAYS	64 Neutral	$270.81M	36.65	20.36%	―	32.61%	-8.26%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
TENB	61 Neutral	$2.76B	-81.18	-8.95%	―	11.05%	45.23%
LSAK	56 Neutral	$392.68M	-4.34	-32.28%	―	16.48%	-326.01%
BKKT	53 Neutral	$599.60M	-3.69	-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.

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.