Lesaka Technologies (LSAK)
NASDAQ:LSAK
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Lesaka Technologies
(NASDAQ:LSAK)
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Rating:59Neutral
Price Target:
$5.50
▲(45.89% Upside)
Action:ReiteratedDate:04/02/26
The score is held back primarily by weak profitability and negative/volatile free cash flow despite strong revenue growth. Offsetting this, technicals are supportive and the latest earnings call reinforced improving operating momentum and EBITDA outlook, though valuation is only middling and near-term execution/regulatory and one-off-related risks remain.
Positive Factors
Revenue & margin improvement
Lesaka’s multi-year step-up to ~34% TTM revenue growth and improving gross margins indicate durable scale advantages in payments. Sustained top-line expansion plus margin improvement supports unit economics, enabling potential sustained EBITDA expansion as fixed costs dilute and product leverage rises.
Negative Factors
Weak profitability & cash conversion
Despite revenue growth, Lesaka remains loss‑making with negative net margin and deteriorated free cash flow. Volatile operating cash conversion and negative FCF constrain reinvestment, raise refinancing risk and mean the business must improve cash generation to sustainably fund growth and reduce leverage.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue & margin improvement
Lesaka’s multi-year step-up to ~34% TTM revenue growth and improving gross margins indicate durable scale advantages in payments. Sustained top-line expansion plus margin improvement supports unit economics, enabling potential sustained EBITDA expansion as fixed costs dilute and product leverage rises.
Read all positive factors
Lesaka Technologies (LSAK) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$411.21M
Dividend YieldN/A
Average Volume (3M)37.91K
Price to Earnings (P/E)26.0
Beta (1Y)0.29
Revenue Growth16.48%
EPS Growth-326.01%
CountryUS
Employees2,531
SectorTechnology
Sector Strength88
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)0.08
Shares Outstanding83,920,680
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 Cap1.48
Enterprise Value/Revenue0.82
Enterprise Value/Gross Profit3.23
Enterprise Value/Ebitda281.32
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)0.29
Revenue Forecast (FY)$567.03M
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 by earning fees and other financial income from enabling electronic transactions and providing financial products and services to consumers and merchants. Key revenue streams typically include: (1) transaction-related fees from ...
Lesaka Technologies Earnings Call Summary
Earnings Call Date:Feb 04, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:May 06, 2026
Earnings Call Sentiment Positive
The call presented a strongly positive operational and financial picture driven by robust group revenue growth (16% YoY), a significant 47% increase in adjusted EBITDA, and outsized Consumer and Enterprise momentum (Consumer revenue +38%, active consumers +21%, lending originations +88%, Enterprise revenue +67%). Strategic milestones — Competition Tribunal approval for Bank Zero and the One Lesaka consolidation — position the company for improved funding, margin capture and a unified go‑to‑market. Offsetting these positives are near‑term challenges within Merchant (revenue down 2%, ARPU down 10%, Merchant EBITDA down 6%) due to transformation, pricing pressure, and hardware upgrade investments, plus the presence of non‑recurring gains (ZAR 50m and ZAR 65m) that partly boosted the quarter. Management provided constructive guidance and reiterated full‑year ranges while noting rebrand marketing costs (ZAR 50–75m) and the need for Prudential Authority approval for Bank Zero. On balance, the company shows improving fundamentals and scalable platform dynamics, with manageable short‑term headwinds in Merchant and some one‑offs that temper the headline results.Positive Updates
Net Revenue Growth
Group net revenue of ZAR 1.6 billion in Q2, up 16% year‑on‑year and within guidance.
Negative Updates
Merchant Revenue and ARPU Pressure
Merchant net revenue pulled back 2% year‑on‑year; merchant ARPU declined 10% to ZAR 1,835, driven by lower airtime volumes and margin compression in ADP and acquiring.
Read all updates
Q2-2026 Updates
Positive
Negative
Net Revenue Growth
Group net revenue of ZAR 1.6 billion in Q2, up 16% year‑on‑year and within guidance.
Read all positive updates
Company Guidance
Management guided Q3 net revenue of ZAR 1.65–1.80 billion (midpoint ~ZAR 1.725b, ~27% y/y) and group adjusted EBITDA of ZAR 300–340 million (midpoint ~ZAR 320m, ~37% y/y). For the full year they reaffirmed net revenue of ZAR 6.4–6.9 billion and group adjusted EBITDA of ZAR 1.25–1.45 billion (implying ~21–30% revenue growth and ~36–57% EBITDA growth), with guidance excluding any Bank Zero impact; group adjusted EBITDA guidance includes office‑move costs but excludes potential one‑off rebranding/marketing spend (estimated ZAR 50–75m over the next two quarters). Management also reiterated expectations that leverage (currently 2.5x) will trend lower toward a medium‑term target of ≤2x, CapEx will be below ZAR 400m p.a., and Enterprise is targeted to run at roughly ZAR 40–50m EBITDA per quarter in the near term.Lesaka Technologies Financial Statement Overview
Summary
Income Statement
45
Neutral
Balance Sheet
54
Neutral
Cash Flow
38
Negative
| 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
Positive
3.77
Price Trends
4.74
Positive
4.52
Positive
4.46
Positive
Market Momentum
0.05
Positive
50.29
Neutral
28.57
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 5.00, below the 50-day MA of 4.74, and below the 200-day MA of 4.46, indicating a neutral trend. The MACD of 0.05 indicates Positive momentum. The RSI at 50.29 is Neutral, neither overbought nor oversold. The STOCH value of 28.57 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for LSAK.
Lesaka Technologies Risk Analysis
Lesaka Technologies disclosed 101 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 |
|---|---|---|---|---|---|---|---|
74 Outperform | $330.01M | 37.12 | 17.19% | ― | 32.61% | -8.26% | |
71 Outperform | $1.60B | 27.73 | 9.84% | ― | 10.58% | -45.52% | |
69 Neutral | $476.16M | 12.87 | 22.07% | ― | -6.57% | -29.62% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
60 Neutral | $2.06B | -78.26 | -10.29% | ― | 11.05% | 45.23% | |
59 Neutral | $411.21M | 25.97 | -19.52% | ― | 16.48% | -326.01% | |
47 Neutral | $242.97M | -0.40 | -139.50% | ― | 101.97% | 58.61% |
* Technology Sector Average
LSAK
Lesaka Technologies
4.90
0.46
10.36%
IMXI
International Money Express
15.80
3.90
32.77%
TENB
Tenable Holdings
17.93
-14.94
-45.45%
PAYS
PaySign
5.98
3.99
200.50%
PAYO
Payoneer
4.65
-1.60
-25.60%
BKKT
Bakkt Holdings, Inc. Class A
7.95
-0.62
-7.23%
Lesaka Technologies Corporate Events
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.