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Lesaka Technologies (LSAK)
NASDAQ:LSAK
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Lesaka Technologies
(NASDAQ:LSAK)
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Rating:64Neutral
Price Target:
$5.00
▲(16.28% Upside)
Lesaka Technologies' stock score is driven by optimistic earnings call guidance and strategic corporate events, bolstered by technical indicators. However, ongoing financial challenges and valuation concerns weigh on the overall score.
Lesaka Technologies (LSAK) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$358.31M
Dividend YieldN/A
Average Volume (3M)39.11K
Price to Earnings (P/E)―
Beta (1Y)0.23
Revenue Growth-9.60%
EPS Growth-308.21%
CountryUS
Employees2,531
SectorTechnology
Sector Strength88
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)0.05
Shares Outstanding81,249,400
10 Day Avg. Volume80,162
30 Day Avg. Volume39,112
Financial Highlights & Ratios
PEG Ratio0.00
Price to Book (P/B)0.00
Price to Sales (P/S)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap1.70
Enterprise Value/Revenue1.19
Enterprise Value/Gross Profit4.89
Enterprise Value/Ebitda-10.77
Forecast
1Y Price Target
$5.00Price Target Upside16.28% Upside
Rating ConsensusHold
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:Sep 10, 2025
(Q4-2025)
| % Change Since: |
Next Earnings Date:Nov 06, 2025
Earnings Call Sentiment Neutral
The earnings call presented a strong financial performance with significant revenue and EBITDA growth, driven by strategic acquisitions and successful integration. However, challenges in the Enterprise division and increased debt levels, along with significant noncash charges, present areas of concern.Q4-2025 Updates
Positive Updates
Strong Financial Performance
Lesaka finished FY 2025 with net revenue of ZAR 5.3 billion and EBITDA of ZAR 922 million, in line with guidance. Adjusted earnings for the year increased from ZAR 51 million to ZAR 186 million, with earnings per share growing from ZAR 0.80 to ZAR 2.29.
Consumer Division Growth
The Consumer division experienced a standout year with net revenue increasing by 35% to ZAR 1.7 billion and EBITDA growing by 83% to ZAR 435 million.
Merchant Division Expansion
The Merchant division's net revenue increased by 46% to ZAR 3 billion, and EBITDA rose by 20% to ZAR 657 million, driven partly by acquisitions.
Significant M&A Activity
Lesaka completed several strategic acquisitions including Adumo, Recharger, and Bank Zero, while divesting from MobiKwik for ZAR 290 million.
Positive Q4 Performance
Q4 net revenue was 47% higher at ZAR 1.5 billion, with group adjusted EBITDA of ZAR 306 million, up 61% from last year.
Negative Updates
Enterprise Division Decline
Net revenue for the Enterprise division declined by 9% to ZAR 651 million, and EBITDA dropped from ZAR 55 million to ZAR 24 million due to the closure of noncore business units.
Increase in Gross Debt
Gross debt increased as Lesaka raised debt for acquisitions, with net debt to group adjusted EBITDA rising to 2.9x.
Significant Noncash Charges
Lesaka recorded ZAR 239 million in transaction costs, ZAR 335 million in noncash goodwill impairments, and a ZAR 101 million loss on the sale of MobiKwik.
Company Guidance
During the Fourth Quarter Fiscal 2025 Results Webcast, Lesaka Tech provided comprehensive guidance, highlighting strong financial performance and strategic growth initiatives. The company reported net revenue of ZAR 5.3 billion and EBITDA of ZAR 922 million, supporting its annual guidance. Adjusted earnings rose significantly to ZAR 186 million, with earnings per share increasing from ZAR 0.80 to ZAR 2.29. The balance sheet was strengthened by refinancing existing debt facilities, increasing net debt to group adjusted EBITDA to 2.9x, with an annualized Q4 adjusted EBITDA bringing it down to 2.2x. Significant acquisitions included Adumo, Recharger, and Bank Zero, while divesting its stake in MobiKwik for ZAR 290 million. Each of Lesaka's business units showed distinct growth patterns, with the Merchant division growing net revenue by 46% to ZAR 3 billion, the Consumer division by 35% to ZAR 1.7 billion, and the Enterprise division facing a 9% decline to ZAR 651 million. The call emphasized the transformative acquisition of Bank Zero, expected to enhance product offerings and reduce funding costs, alongside guidance for FY 2026 with expected adjusted earnings per share of over ZAR 4.60.Lesaka Technologies Financial Statement Overview
Summary
Lesaka Technologies exhibits revenue growth but struggles with profitability and cash flow stability. The balance sheet shows moderate leverage, but declining equity and negative net profit margins are concerns.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 | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 510.03M | 328.70M | 564.22M | 527.97M | 222.61M | 130.79M |
| Gross Profit | 124.62M | 0.00 | 121.55M | 110.43M | 54.29M | 34.54M |
| EBITDA | -56.53M | -27.10M | 29.80M | 9.99M | -26.50M | 1.71M |
| Net Income | -87.50M | -87.50M | -17.44M | -35.07M | -40.23M | -13.18M |
Balance Sheet | ||||||
| Total Assets | 657.69M | 657.69M | 558.45M | 542.23M | 656.57M | 428.33M |
| Cash, Cash Equivalents and Short-Term Investments | 76.52M | 76.64M | 59.06M | 35.50M | 43.94M | 198.57M |
| Total Debt | 109.31M | 225.24M | 166.70M | 170.05M | 215.19M | 18.96M |
| Total Liabilities | 396.31M | 396.31M | 303.16M | 283.33M | 342.22M | 67.37M |
| Stockholders Equity | 165.59M | 254.54M | 255.29M | 258.91M | 314.35M | 360.96M |
Cash Flow | ||||||
| Free Cash Flow | -22.65M | -9.12M | 15.83M | -16.16M | -41.76M | -62.66M |
| Operating Cash Flow | -9.12M | -9.12M | 28.79M | 410.00K | -37.20M | -58.37M |
| Investing Cash Flow | -11.34M | -11.34M | -16.41M | -16.46M | -193.69M | 47.77M |
| Financing Cash Flow | 29.73M | 29.73M | -7.11M | -19.12M | 122.26M | -13.08M |
Lesaka Technologies Technical Analysis
Negative
4.30
Price Trends
4.58
Negative
4.43
Negative
4.69
Negative
Market Momentum
-0.09
Positive
34.66
Neutral
30.70
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 4.3 is below the 20-day moving average (MA) of 4.59, below the 50-day MA of 4.58, and below the 200-day MA of 4.69, indicating a bearish trend. The MACD of -0.09 indicates Positive momentum. The RSI at 34.66 is Neutral, neither overbought nor oversold. The STOCH value of 30.70 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 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 (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | 429.83M | 8.84 | 36.17% | ― | -4.19% | -3.52% | |
66 Neutral | 540.66M | 6.87 | -112.54% | ― | -1.23% | -11.22% | |
64 Neutral | $358.31M | ― | -33.51% | ― | -9.60% | -308.21% | |
62 Neutral | 551.28M | -53.37 | -2.60% | ― | 14.51% | 58.41% | |
56 Neutral | 1.73B | -20.16 | 454.37% | ― | 0.00% | 0.00% | |
48 Neutral | 344.68M | -0.89 | 32.94% | ― | -4.76% | 56.32% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
Performance Comparison
LSAK
Lesaka Technologies
4.11
-0.44
-9.67%
IMXI
International Money Express
14.48
-4.64
-24.27%
BAND
Bandwidth
18.29
0.72
4.10%
RXT
Rackspace Technology
1.44
-0.98
-40.50%
CCSI
Consensus Cloud Solutions
28.49
5.11
21.86%
RZLV
Rezolve AI
7.11
0.11
1.57%
Lesaka Technologies Corporate Events
M&A TransactionsBusiness Operations and Strategy
Lesaka Technologies Acquires Bank Zero to Boost Fintech
Positive
Jul 2, 2025
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.
M&A TransactionsBusiness Operations and Strategy
Lesaka Technologies Sells Stake in Mobikwik for ZAR 290M
Positive
Jun 30, 2025
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.
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.