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South Africa's Lesaka Technologies Q1 net revenue rises on consumer and enterprise growth 

By Reuters News


Overview

  • South Africa fintech firm's fiscal Q1 revenue rose 8% yr/yr in ZAR terms

  • Adjusted EPS was positive for the quarter, but fell 26% yr/yr in ZAR terms

  • Company reaffirmed full-year outlook, citing 17 consecutive quarters meeting profitability guidance


Outlook

  • Lesaka sees Q2 net revenue between ZAR 1.62 bln and ZAR 1.72 bln

  • Company expects Q2 group adjusted EBITDA between ZAR 280 mln and ZAR 320 mln

  • Lesaka reaffirms FY2027 adjusted EPS guidance of ZAR 7.50 to ZAR 8.50


Result Drivers

  • MERCHANT SEGMENT DECLINE - Merchant revenue fell 13% yr/yr in ZAR terms and segment adjusted EBITDA dropped 51% as the company faced lower transaction volumes

  • CONSUMER AND ENTERPRISE GROWTH - Consumer revenue rose 24% and enterprise revenue climbed 60% yr/yr in ZAR terms, supporting overall group performance


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q1 Net Revenue

$97.22 mln

Q1 Adjusted EPS

$0.04

Q1 Net Loss

Miss

$4.18 mln

$2.79 mln (1 Analyst)

Q1 Adjusted EBITDA

Miss

$13.51 mln

$14.21 mln (1 Analyst)

Q1 Operating Income

-$1.07 mln


Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the financial technology (fintech) peer group is "buy"

  • Wall Street's median 12-month price target for Lesaka Technologies Inc is $7.56, about 89% above its November 3 closing price of $4.00

  • The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 8 three months ago


Reuters Recommended Reads

  • Nov 3 - Payments platform Block's Q3 profit beats estimates

  • Nov 3 - Marqeta Q3 revenue slightly beats estimates on volume growth

  • Nov 3 - Block lifts profit outlook on Cash App strength, reaches preliminary DOJ settlement


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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