Lesaka Technologies Inc. Overview
Lesaka is South Africa's largest independent, full-stack fintech platform focused on the underserved end of the market. It runs three linked divisions:
Consumer: transactional accounts, short-term lending and funeral insurance, mainly for social-grant recipients (about 2.1 million active consumers).
Merchant: card acquiring, hospitality POS software, cloud-connected cash vaults, working-capital lending and prepaid/bill-payment products for about 132,000 merchants, from township spaza shops to multi-lane retailers.
Enterprise: payment switching, prepaid procurement, bill-payment rails for 650+ billers, and prepaid electricity sub-metering.
The company emerged from the wreckage of Net1's lost social-grant distribution contract. Between 2022 and 2025 it was rebuilt through the Connect, Adumo and Recharger acquisitions, and it is now buying a deposit-taking licence through Bank Zero. Its differentiation rests on three things:
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face-to-face, "last-mile" distribution in rural and peri-urban areas;
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proprietary visibility into customers' cash flows, used for underwriting;
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cross-selling across a single "One Lesaka" brand.
FY2026 was its first full year of GAAP profitability since 2022.
Company's own description (paraphrased from the FY2026 Form 10-K, Item 1)
Lesaka describes itself as a provider of financial technology to underserviced consumers, merchants and enterprises, aimed at improving how they manage daily finances and at increasing financial inclusion. Its plain-language summary is that it helps customers "pay, receive, borrow, insure and grow" (FY2026 10-K). It delivers this through three divisions:
Merchant: payment acceptance, software, cash management, lending and Alternative Digital Products (ADP), sold through Community and Corporate channels.
Consumer: banking, lending and insurance, principally for social-grant recipients.
Enterprise: payment processing, prepaid and bill-payment infrastructure linking enterprises to consumers and businesses.
The 10-K stresses the ecosystem logic. For example:
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An enterprise biller connected to Lesaka's network collects a payment from a consumer.
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The consumer pays at a nearby merchant using cash withdrawn with a Lesaka debit card.
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The merchant then digitises that cash in a Lesaka vault.
Each participant in that chain is a Lesaka customer.
At 30 June 2026 the company served approximately 132,000 active merchants, about 2.1 million active consumers, and 650+ billers plus 50+ corporate clients (FY2026 10-K). It cites a serviceable addressable market across ~250 million people of about ZAR 416 billion in net revenue by 2030. This is a management estimate built from external sources.
Business and revenue model (independent characterisation)
| Revenue stream | Nature | Segment | Disclosure status |
|---|---|---|---|
| Card acquiring fees (merchant discount rate) | Transaction-based (service) | Merchant | Acquiring TPV ZAR 44bn in FY2026 (+27%); revenue not separately disclosed in USD |
| Cash management (vault fees, cash digitisation, supplier payments) | Transaction plus device-rental (service) | Merchant | Cash TPV ZAR 119bn in FY2026 (+4%) |
| ADP: prepaid airtime, data, electricity, gaming, bill payments, supplier-enabled payments, money transfers | Commission/agency (net) and principal (gross) for pinned airtime held as inventory | Merchant and Enterprise | Merchant ADP TPV ZAR 55bn (+31%); ADP take rate fell 25% in FY2026 |
| POS software (Adumo/GAAP, Unity cloud POS) | Recurring licence/subscription plus hardware | Merchant | Software net revenue ZAR 391M in FY2026 (+34%, per Q4 FY2026 call) |
| Hardware sales (POS terminals, legacy card/SIM production) | Product | Merchant | Excluded from "core" net revenue; not quantified |
| Merchant lending (cash advances, business credit) | Interest and fees | Merchant | Loan book ZAR 463M at June 2026 (+15%) |
| Transactional accounts (EasyPay accounts) | Monthly account and transaction fees | Consumer | ZAR 855M in FY2026 (+24%) |
| Consumer lending (6- and 9-month unsecured loans) | Interest and fees | Consumer | Loan book ZAR 1.4bn (+40%); lending revenue +49% |
| Funeral insurance (Lesaka Life) | Premiums | Consumer | Insurance revenue +42%; Q4 gross written premium ZAR 155M; 753,000 policies |
| Payout cards | Fees | Consumer | About 174,000 active cardholders |
| Prepaid utilities sub-metering (formerly Recharger) | Commission on electricity vended; annuity-like | Enterprise | 382,000 active meters; Q4 utility TPV ZAR 502M |
| Payment switching, tokenisation, security services | Processing fees | Enterprise | Modest; in-house switch processes 40%+ of internal acquiring volumes |
Lesaka is fundamentally a transaction- and balance-sheet-driven financial services platform rather than a software vendor. Revenue is not disclosed by product versus service versus subscription versus licensing. From the 10-K and earnings disclosures, the revenue streams are:
Value-chain position
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In acquiring, Lesaka sits between merchants and sponsor banks (Nedbank, ABSA) and the card schemes (Visa, Mastercard).
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In consumer banking, it operates a sponsored-bank model through African Bank, because it has no banking licence of its own yet.
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In ADP, it is both an aggregator, buying from mobile network operators and utilities, and a distributor through merchants, banks and retailers.
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The pending Bank Zero acquisition would move Lesaka up the chain to licensed deposit-taking, clearing membership and on-balance-sheet funding.
Customer types and end-markets
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Social-grant beneficiaries (about 89% of active consumers are permanent grant beneficiaries).
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Salaried payout cardholders.
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Informal "community" merchants (107,000 at June 2026).
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Formal "corporate" merchants, especially hospitality (25,000).
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Billers: municipalities, utilities, telcos, retailers.
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Banks and fintechs.
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Landlords and tenants (utilities).
Gross versus net revenue. GAAP revenue is heavily distorted by gross-basis pinned-airtime sales. In FY2026, Net Revenue of USD 374.9M was 52% of GAAP revenue of USD 721.6M (FY2026 earnings release). Management guides and is incentivised on Net Revenue and Adjusted EBITDA in ZAR.
Strategy
Stated strategy (FY2025 and FY2026 Form 10-K)
Five-phase strategy (FY2025 10-K). Paraphrased:
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Address: develop or acquire a platform for a specific customer segment.
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Position: gain data access into customers' flows of funds.
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Develop: combine financial, software and hardware into end-to-end solutions.
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Combine: use data to cross-sell and underwrite.
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Consolidate: acquire for revenue and cost synergies.
Go-to-market model (FY2026 10-K):
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Wide breadth of solutions (land-and-expand: 51% of consumers and 46% of merchants use two or more products).
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Differentiated face-to-face reach in rural and peri-urban areas.
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Digital engagement after the in-person sale (app, USSD, digital merchant account).
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Proprietary access to data (underwriting on account and vault flows).
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A unified brand: single Lesaka brand relaunched November 2025; public launch around August 2026, with the tagline theme "where you are".
Core values (FY2026 10-K): expanded to ten — Integrity, Collective Wisdom, Entrepreneurial Spirit, Ownership, Bias to Action, Resilience, Empathy, Customer First, Efficiency, Meritocracy.
Strategic initiatives in the last 24 months
| Initiative | Date | Description | Targets / status |
|---|---|---|---|
| Bank Zero acquisition | Signed Jun 2025; close expected Dec 2026 (long-stop 31 Jan 2027) | Acquire a licensed mutual digital bank (~ZAR 1.1bn) for deposit funding, clearing membership, alliance banking and products such as FX and cross-border payments | Deposits ZAR 400M at signing; over ZAR 700M by Apr 2026; above ZAR 1bn expected Dec 2026; above ZAR 4bn by Jun 2029. Bank Zero expected to break even standalone by Dec 2026. Bank Zero CEO cites synergies above ZAR 100M |
| Lending-book migration | Q4 FY2027 target | Move Consumer (first) then Merchant loan books into Bank Zero, funded by deposits | Gross debt from ZAR 3.8bn to ~ZAR 2.3bn; leverage below 1x by Jun 2027; near-zero gross debt by Jun 2028 if cash is used for debt reduction |
| Consumer sponsorship migration | Q1 FY2028 | Move EasyPay accounts from African Bank to Bank Zero, bringing consumer float on balance sheet | Subject to completion |
| Consumer market expansion | FY2027+ | Extend beyond about 12M permanent grant beneficiaries to about 12M salaried individuals (addressable market about 24M) | 3M active consumers by Jun 2029 |
| Off-base insurance | FY2026 | Funeral cover sold to grant beneficiaries outside the Lesaka base (~3M uninsured) | Launched |
| One Lesaka brand and office consolidation | Nov 2025 – FY2027 | Single brand; Johannesburg HQ (Jul 2026); Cape Town and Durban offices | Brand refresh USD 3.0M once-off cost in FY2026 |
| Merchant restructuring | From Sep 2026 | Revised merchant strategy; sunsetting non-core acquiring products; focus on integrated acquiring plus software (Unity) in Corporate and multi-product layering in Community | One-off costs in Q1 FY2027, possibly into early Q2; merchant-count acceleration expected from Q2 FY2027; 200,000 merchants by Jun 2029 |
| Enterprise as group procurement engine | FY2026–FY2027 | Bulk of merchant electricity volume already routed via Enterprise; remaining ADP volumes to migrate; Mobilemart gives direct mobile-operator integrations | Enterprise TPV ZAR 80bn by Jun 2029; guided as fastest-growing segment in FY2027 |
| In-house payment switch | FY2025–FY2026 | Insourcing acquiring processing | 40%+ of internal merchant acquiring volumes processed in-house |
| ATM exit | H2 FY2026 | Exit of the loss-making ATM ownership business | Completed; exit costs USD 1.6M |
| Non-core asset exits | FY2025–FY2026 | MobiKwik sold; legacy subsidiaries deregistered | Largely complete |
| ESOP | Approved Nov 2024 | 2,490,000 shares to the Lesaka ESOP Trust; supports BEE ownership | Implemented |
| Group cost reset | FY2027 | Invest in data and information systems, people, risk and compliance | Group costs ~ZAR 350M in FY2027 (ZAR 238M in FY2026), stabilising thereafter |
| Capex programme | FY2027 | Operational capex about ZAR 450M plus about ZAR 100M leasehold improvements | Capex/EBITDA to trend below 30% medium term (33% on a trailing basis at Q4 FY2026) |
| Controls remediation | FY2025–FY2027 | Remediate material weaknesses; Sarbanes-Oxley integration of Adumo and Utilities | Ongoing (see Section 19) |
| M&A pipeline | Ongoing | 2–3 "potentially transformative" targets under evaluation plus SADC bolt-ons | Unconfirmed; management insists on accretion |
Management guidance and medium-term ambitions (FY2026 release; Q4 FY2026 call)
| Item | Q1 FY2027 guidance | FY2027 guidance | FY2029 ambition (not guidance) |
|---|---|---|---|
| Net revenue | ZAR 1.58–1.66bn | ZAR 7.0–7.7bn (+11% to +22%) | ~ZAR 11bn (above 20% CAGR) |
| Group Adjusted EBITDA | ZAR 200–240M | ZAR 1.45–1.60bn (+14% to +26%) | Margin above 25% (above 30% CAGR) |
| Adjusted EPS | ZAR 0.40–0.60 | ZAR 7.50–8.50 (+15% to +31%) | Above ZAR 18 (above 40% CAGR; about USD 1 at current FX) |
| Operating KPIs | — | — | 3M consumers; 200k merchants; Enterprise TPV ZAR 80bn |
FY2027 guidance includes Bank Zero (assumed to close in December 2026) but excludes unannounced M&A. Management describes the FY2029 ambitions as a "floor".
Products & Services
Pricing is generally not publicly disclosed except where noted.
Merchant
| Product / brand | Description and capabilities | Target customer | Launch / latest | Pricing model |
|---|---|---|---|---|
| Card acquiring (Community and Corporate) | Card-present acceptance on POS and mobile devices; sponsored by Nedbank and ABSA; scheme compliance with Visa and Mastercard. 73,700 active acquiring merchants in Q4 FY2026; Q4 acquiring TPV ZAR 10.6bn (+6%) | Informal and formal merchants | Legacy Kazang/EFTpos (acquired 2020 via Connect); Adumo acquiring added Oct 2024 | Merchant discount rate per transaction; device rental (not disclosed) |
| Adumo / GAAP hospitality POS software | Integrated restaurant and hospitality POS software and hardware; site management | Restaurants, hospitality chains | Acquired Oct 2024 | Software licence/subscription plus hardware; FY2026 software net revenue ZAR 391M |
| Unity (cloud-native POS) | Cloud POS that bundles software with acquiring into a single integrated offer. 16% of the software base migrated by June 2026 (10% a year earlier) | Hospitality merchants | Rolled out FY2025–FY2026 | Subscription (not disclosed) |
| Cloud-connected cash vaults (Lesaka Cash Management) | In-store smart safes that digitise cash, with instant credit to a digital merchant account. About 4,900 vaults; Q4 cash TPV ZAR 29.8bn (+5%) | Community and corporate retailers | Connect heritage (business acquired 2013 by the Heilbron consortium; joined Lesaka 2022) | Device and service fees, cash-value-linked fees |
| Supplier-enabled payments | Lets community merchants pay suppliers digitally from vault balances. Q4 TPV ZAR 8.9bn (+62%); supplier network more than doubled in two years | Spaza shops, taverns and their suppliers | Expanded FY2024–FY2026 | Low per-transaction fees (lower margin) |
| ADP — prepaid (airtime, data, electricity, gaming) | Merchants sell prepaid products to end consumers; procurement increasingly via Enterprise. Q4 prepaid TPV ZAR 5.7bn (+6%) | Community merchants | Legacy Kazang / Net1 | Commission (agency) or gross margin on pinned airtime |
| Bill payments and international money transfers | Consumers pay bills or send money at merchant locations | Community merchants | Legacy | Fee per transaction |
| Merchant lending (Lesaka Capital; Lesaka Fuel) | Merchant cash advances and business credit, underwritten on vault and card turnover; ZAR 400M revolving facility. Q4 originations ZAR 249M (+20%); book ZAR 463M (+15%) | Existing merchants with transaction history | Connect heritage | Fees and interest; tenors under 12 months |
| Touchsides | Tavern POS plus real-time sales and stock analytics; 10,000+ terminals and 1.5M+ transactions per day at acquisition; long-term data contract with Heineken South Africa | Licensed taverns; beverage brands | Acquired Feb–Mar 2024 | Platform/SaaS fees plus data monetisation |
| Hardware distribution and legacy services | POS device sales and maintenance (Ingenico distribution); legacy bank and SIM card production | Corporates | Legacy | Product sales; excluded from "core" net revenue |
Consumer
| Product / brand | Description and capabilities | Target customer | Launch / latest | Pricing model |
|---|---|---|---|---|
| Lesaka EasyPay transactional account | Low-cost account accessible via debit card, app, web and USSD (works on feature phones without data); account opened and card issued in under five minutes in the field. Banking via African Bank sponsorship | Grant beneficiaries (LSM 1–6) | EasyPay Everywhere heritage; rebranded under Lesaka from Nov 2025 | Monthly account fee plus transaction fees; transactional revenue ZAR 855M in FY2026 |
| Short-term lending (6-month) | Unsecured personal loans underwritten on account cash-flow data; 35% of portfolio | Active account holders | Legacy | Interest and fees under the National Credit Act caps |
| Medium-term lending (9-month, up to ZAR 4,000) | 63% of portfolio by June 2026; Q4 originations ZAR 937M (+20%); book ZAR 1.4bn (+40%) | Repeat borrowers | Introduced FY2025 | Interest and fees |
| ZAR 5,000 9-month loan | Larger advance priced for higher risk | Proven borrowers | Introduced late FY2026 | Risk-based pricing |
| Funeral insurance (Lesaka Life) | Funeral policies cross-sold via the Bonngwe CRM; 753,000 in-force policies (+34%); Q4 gross written premium ZAR 155M (+36%); collection ratio 94% (down from 96%) | Account holders and, since FY2026, grant beneficiaries outside the Lesaka base (~3M uninsured addressable) | Smart Life / EasyPay Insurance heritage; licensed life insurer | Monthly premiums |
| Payout cards | Employer payroll disbursement cards; about 174,000 active cardholders | Salaried and contract workers | Legacy | Fees |
| Bonngwe | Proprietary CRM and onboarding engine for field consultants | Internal | Disclosed FY2026 | — |
Enterprise
| Product / brand | Description and capabilities | Target customer | Launch / latest | Pricing model |
|---|---|---|---|---|
| ADP integration and bill-payment network | Integration technology letting any consumer buy prepaid products or pay bills via retailer networks and banking apps. 650+ billers; Q4 ADP TPV ZAR 12.2bn (+18%), of which bill payments ZAR 9.3bn (+12%) | Banks, retailers, fintechs, municipalities, telcos | EasyPay heritage | Fixed fee per bill payment; commission on prepaid |
| 4All voucher | Internally developed multi-store-of-value voucher redeemable at 40+ partners | Consumers via retail | Disclosed FY2026 | Commission |
| Mobilemart | Direct integrations into the four primary South African mobile network operators, giving preferential rates and supply | Prepaid procurement (group-wide) | Acquired 6 Feb 2026 (USD 2.5M cash) | Procurement margin |
| Atom Operations | Enterprise-focused bolt-on; capabilities not publicly detailed | — | Acquired Dec 2025 (USD 0.7M cash and shares) | — |
| Lesaka Utilities (formerly Recharger) | Prepaid electricity sub-metering and vending for landlords and tenants; ~382,000 active meters (+11%); Q4 utility TPV ZAR 502M (+16%); 500,000+ registered meters at acquisition | Residential landlords, property managers | Acquired Mar 2025 | Commission on every unit vended (annuity) |
| Payment switch and security services | Proprietary switch insourcing parts of the acquiring value chain (40%+ of internal merchant acquiring volumes processed in-house); tokenisation and security services | Internal and enterprise clients | Launched FY2025–FY2026 | Processing fees |
| Alliance banking (post Bank Zero) | Account hosting, card programmes and compliance support for fintechs and retailers; first partner Paymentology onboarded by Bank Zero in April 2026 | Fintechs, marketplaces, retailers | Pending Bank Zero completion | — |
Financial Narrative
All figures are USD M unless stated.
Sources: Q4 earnings releases and 10-K filings for FY2023 (12 Sep 2023), FY2024 (11 Sep 2024), FY2025 (29 Sep 2025) and FY2026 (9 Sep 2026).
FY2025: revised per the FY2026 10-K.
FY2024: as reported in the FY2025 10-K comparatives. The FY2026 10-K re-presents FY2024 with operating income of about 2.8 and a net loss of about 19 (rounded XBRL values via edgar.tools), reflecting further revisions.
Income statement
Notes
Adjusted EBITDA definitions: The USD series uses each year's reported definition; FY2022–FY2023 included lease adjustments. The ZAR row uses the consistent "selected measure" series in the 2026 proxy pay-versus-performance table, which reflects the current definition and revisions.
Adjusted EPS definitions: FY2022–FY2023 are "fundamental EPS". FY2024 is Adjusted EPS per the FY2025 release (USD 0.06 "fundamental" in the original FY2024 release).
FY2025 as originally reported (FY2025 release, 29 Sep 2025): operating loss USD −27.1M; net loss USD −87.5M; basic EPS USD −1.14; Group Adjusted EBITDA USD 50.7M (ZAR 922.2M); Adjusted EPS USD 0.13 (ZAR 2.29).
FY2026 in ZAR (FY2026 release)
Margins and growth
Revenue CAGR
Revenue growth in ZAR by year: FY2023 +180%; FY2024 +11%; FY2025 +14%; FY2026 +1.7%. Adjusted EBITDA margin on FY2026-basis net revenue: 17.1% (FY2025) and 20.2% (FY2026); Q4 FY2026 22.6%.
Commentary — income statement
Scale inflection (FY2022–FY2023): The Connect acquisition closed in April 2022, lifting revenue from USD 222.6M to USD 528.0M and moving Group Adjusted EBITDA from a USD 17.6M loss to a USD 27.7M profit. The Consumer turnaround (cost cuts after the SASSA era) moved that segment from a USD 21.7M loss to break-even.
Gross-to-net noise (FY2024–FY2026): GAAP revenue growth is unreliable as a performance indicator because pinned-airtime gross sales swing with inventory purchases.
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FY2026 GAAP revenue rose only 1.7% in ZAR while Net Revenue rose 20%.
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Computed gross margin expanded from 21.5% to 32.0% over two years, mostly a mix effect as low-margin airtime fell and higher-margin Consumer and Enterprise income grew.
Below-the-line volatility (FY2025): The FY2025 net loss of USD 91.0M (revised) was dominated by non-operating charges:
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USD 59.8M change in fair value of equity securities (MobiKwik);
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USD 18.9M impairment;
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USD 16.2M of acquisition transaction costs (Adumo, Recharger, Bank Zero). Management states non-operational charges fell from about ZAR 1.7bn to ZAR 35M in FY2026, and one-off charges from ZAR 322M to ZAR 91M (Q4 FY2026 call).
Operating leverage (FY2026): Adjusted EBITDA grew 41% in ZAR on 20% net revenue growth. SG&A rose about 24% in USD, reflecting acquisitions, the brand refresh (USD 3.0M) and compliance remediation.
Amortisation drag: D&A rose from USD 23.7M to USD 47.3M, including USD 30.4M of acquired-intangible (purchase price allocation) amortisation in FY2026. This is the main bridge between Adjusted EBITDA (USD 75.7M) and the slim GAAP operating income (USD 12.7M). As acquired intangibles amortise (net intangibles fell from USD 139.2M to USD 123.4M), GAAP earnings should converge upward toward adjusted earnings.
Balance sheet
Notes
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FY2022–FY2023 short-term debt includes ATM-funding facilities (USD 51.3M and USD 23.0M). These were eliminated after the September 2024 African Bank arrangement, under which ATM cash is African Bank's property and sits off balance sheet.
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The FY2025 revised total assets of USD 651.5M compare with USD 653.7M as originally reported, and equity of USD 159.4M with USD 165.6M.
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Aggregate borrowings at 30 June 2026 were ZAR 3.5bn (USD 210.7M), excluding short-term facilities (FY2026 10-K). Management cites gross debt of about ZAR 3.8bn including those facilities (Q4 FY2026 call).
Cash flow
In ZAR, FY2026 operating cash flow was ZAR 864M and capex (PP&E plus intangibles) ZAR 421M, leaving ZAR 443M of positive cash generation (Q4 FY2026 call).
Ratios
Methodology
ROIC: operating income × (1 − 27% South African statutory tax rate) ÷ (total debt + Lesaka equity + redeemable common stock − cash).
Cash conversion cycle: receivable days + inventory days − payable days, using year-end balances against revenue and cost of goods sold. FY2022 is distorted by the part-year consolidation of Connect.
Blank cells: not meaningful because Adjusted EBITDA was negative.
Management-reported leverage: net debt to Group Adjusted EBITDA of 2.9x at June 2025 and 1.9x at June 2026, against a target of 2.0x or lower (Q4 FY2026 call).
Commentary — balance sheet, cash flow and returns
Goodwill-heavy balance sheet: Goodwill plus intangibles (USD 338.7M) exceeds Lesaka equity (USD 205.4M). Tangible equity is negative unless redeemable common stock (USD 79.0M) is counted. Impairment risk is real: USD 7.0M was impaired in FY2023 (pre-existing Merchant) and USD 18.9M in FY2025.
Leverage peaked in FY2025: The Adumo and Recharger financing drove total debt to USD 225.2M (borrowings drawn of USD 190.1M against repayments of USD 149.5M, effectively a refinancing). Leverage then fell to about 2x on EBITDA growth and modest debt repayment. Management's key deleveraging lever is moving roughly half of gross debt, the part funding lending books, onto Bank Zero deposits. That would cut gross debt to about ZAR 2.3bn and leverage below 1x by June 2027, if completed as planned.
Cash conversion improved: FY2026 operating cash flow of USD 52.4M is the best in the five-year window, aided by working-capital release (payables +USD 19.8M, inventory −USD 6.7M) despite USD 34.4M of loan-book growth. Free cash flow before loan-book growth was USD 66.2M, about 87% of Adjusted EBITDA. This supports management's claim that EBITDA is "largely cash", but part of the FY2026 working-capital release is not repeatable; management guides working capital at 1–2% of net revenue annually.
Returns remain sub-economic: ROIC of about 2% and ROE of 1.5% are far below a South African cost of equity, which is typically in the mid-to-high teens. The equity story rests on Adjusted EPS growth and amortisation roll-off rather than current GAAP returns.
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Segment Overview
| Segment | What it contains | Key products / brands | Customers |
|---|---|---|---|
Merchant | Payment acceptance, software, cash management, lending and ADP. Two channels: Community (informal) and Corporate (formal) | Card acquiring (legacy Kazang, EFTpos and Adumo acquiring); Adumo/GAAP POS and Unity cloud POS; cloud-connected cash vaults (Lesaka Cash Management, formerly Cash Connect Management Solutions); Touchsides tavern POS; Lesaka Capital and Lesaka Fuel lending entities; ADP and supplier-enabled payments | ~132,000 active merchants (107,000 community; 25,000 corporate) |
Consumer | Banking, lending and insurance for grant recipients and payout cardholders | Lesaka EasyPay transactional account (card, app, web, USSD); 6- and 9-month unsecured loans; funeral insurance (Lesaka Life, formerly EasyPay Insurance); payout cards; Bonngwe CRM engine | ~2.1 million active consumers |
Enterprise | Payment processing, prepaid procurement, bill-payment infrastructure, prepaid utilities | ADP integration and bill-payment network (650+ billers); 4All multi-store voucher; Mobilemart (direct integrations into the four main mobile network operators); Lesaka Utilities (formerly Recharger); proprietary payment switch; tokenisation and security services | 650+ billers; 50+ corporate clients; ~382,000 active meters |
Merchant | −10% | +3% | −6% |
Consumer | +38% | — | +78% |
Enterprise | +62% | +40% | +474% |
Revenue by Segment
| Metric | FY2025 | FY2026 |
|---|---|---|
Merchant revenue (USD Mn) | 526.6 | 509.3 |
Merchant net revenue (USD Mn) | 164.8 | 183.2 |
Merchant segment adjusted EBITDA (USD Mn) | 35.3 | 35.5 |
Consumer revenue (USD Mn) | 96.0 | 142.6 |
Consumer segment adjusted EBITDA (USD Mn) | 23.9 | 46.2 |
Enterprise revenue (USD Mn) | 42.6 | 74.7 |
Enterprise net revenue (USD Mn) | 35.8 | 54.2 |
Enterprise segment adjusted EBITDA (USD Mn) | 1.3 | 8.1 |
Group costs computed (USD Mn) | -10.7 | -14.1 |
Intersegment revenue eliminations computed (USD Mn) | -5.5 | -5.1 |
Group revenue (USD Mn) | 659.7 | 721.6 |
Group adjusted EBITDA (USD Mn) | 49.8 | 75.7 |
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View Subscription PlansRevenue by Segment — Merchant revenue
| Metric | FY2025 | FY2026 |
|---|---|---|
Merchant revenue (ZAR Mn) | 9,562 | 8,610 |
Merchant net revenue (ZAR Mn) | 2,995 | 3,096 |
Merchant segment adjusted EBITDA (ZAR Mn) | 642 | 602 |
Consumer revenue (ZAR Mn) | 1,744 | 2,402 |
Consumer segment adjusted EBITDA (ZAR Mn) | 435 | 775 |
Enterprise revenue (ZAR Mn) | 773 | 1,256 |
Enterprise net revenue (ZAR Mn) | 651 | 913 |
Enterprise segment adjusted EBITDA (ZAR Mn) | 24 | 136 |
Group costs computed (ZAR Mn) | -194 | -238 |
Segment Margins & Growth (%) and Revenue by Segment (%)
| Metric | FY2025 | FY2026 |
|---|---|---|
Merchant adj EBITDA margin on net revenue (%) | 21.4 | 19.4 |
Consumer adj EBITDA margin on revenue (%) | 24.9 | 32.4 |
Enterprise adj EBITDA margin on net revenue (%) | 3.6 | 15.0 |
Merchant share of segment revenue before eliminations (%) | 79.2 | 70.1 |
Consumer share of segment revenue before eliminations (%) | 14.4 | 19.6 |
Enterprise share of segment revenue before eliminations (%) | 6.4 | 10.3 |
Merchant share of segment net revenue (%) | 55.6 | 48.2 |
Consumer share of segment net revenue (%) | 32.4 | 37.5 |
Enterprise share of segment net revenue (%) | 12.1 | 14.3 |
Revenue by Segment (FY2022–FY2024)
| Metric | FY2022 | FY2023 | FY2024 |
|---|---|---|---|
Merchant revenue legacy basis incl Enterprise (USD Mn) | 156.7 | 463.7 | 498.3 |
Consumer revenue (USD Mn) | 65.9 | 62.8 | 69.2 |
Merchant segment adj EBITDA legacy basis (USD Mn) | 12.6 | 33.5 | 33.4 |
Consumer segment adj EBITDA (USD Mn) | -21.7 | 3.3 | 14.7 |
Group costs computed (USD Mn) | -8.6 | -9.1 | -11.2 |
Revenue by Segment (Quarterly)
| Metric | Q1 FY2026 | Q2 FY2026 | Q3 FY2026 | Q4 FY2026 |
|---|---|---|---|---|
Net revenue (ZAR Mn) | 1,530 | 1,600 | 1,571 | 1,624 |
Group adjusted EBITDA (ZAR Mn) | 271 | 304 | 337 | 367 |
Income Statement and Per-Share Data
| Metric | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|---|
Revenue (USD Mn) | 222.6 | 528.0 | 564.2 | 659.7 | 721.6 |
Cost of goods sold IT processing servicing and support (USD Mn) | 168.3 | 417.5 | 442.7 | 487.2 | 490.8 |
Gross profit computed (USD Mn) | 54.3 | 110.4 | 121.5 | 172.5 | 230.7 |
SG&A including credit loss allowance (USD Mn) | 75.0 | 95.1 | 92.0 | 131.7 | 166.3 |
Depreciation and amortization (USD Mn) | 7.6 | 23.7 | 23.7 | 33.7 | 47.3 |
Impairment reorganisation and transaction costs (USD Mn) | 11.9 | 7.0 | 2.3 | 35.0 | 4.4 |
Operating income (USD Mn) | -40.2 | -15.3 | 3.6 | -28.0 | 12.7 |
EBITDA computed as operating income plus D&A (USD Mn) | -32.6 | 8.4 | 27.3 | 5.7 | 60.0 |
Group Adjusted EBITDA as reported (USD Mn) | -17.6 | 27.7 | 36.9 | 49.8 | 75.7 |
Group Adjusted EBITDA current definition (ZAR Mn) | -339.4 | 432.1 | 675.3 | 906.6 | 1,274.6 |
Interest expense (USD Mn) | 5.8 | 18.6 | 18.9 | 21.8 | 18.5 |
Interest income (USD Mn) | 2.1 | 1.9 | 2.3 | 2.6 | 2.9 |
Pre-tax income (USD Mn) | -39.9 | -32.3 | -12.8 | -107.2 | 3.7 |
Income tax expense or benefit (USD Mn) | 0.3 | -2.3 | 3.4 | -16.0 | 1.4 |
Net income attributable to Lesaka (USD Mn) | -43.9 | -35.1 | -17.4 | -91.0 | 2.8 |
Basic EPS (USD) | -0.75 | -0.56 | -0.27 | -1.19 | 0.03 |
Diluted EPS (USD) | -0.75 | -0.56 | -0.27 | -1.19 | 0.03 |
Adjusted or fundamental EPS non-GAAP (USD) | -0.49 | -0.15 | 0.04 | 0.12 | 0.39 |
Dividends per share (USD) | 0 | 0 | 0 | 0 | 0 |
Weighted average basic shares (M) | 58.4 | 63.1 | 64.2 | 76.5 | 82.1 |
Average ZAR per USD | 15.20 | 17.94 | 18.68 | 17.90 | 16.91 |
Financial Analysis
| Metric | ZAR | YoY |
|---|---|---|
Revenue | ZAR 12181M | +1.7% |
Net Revenue | ZAR 6325M | +20% |
Operating income | ZAR 208.5M | — |
Net income attributable | ZAR 39.8M | — |
Adjusted Earnings | ZAR 539.3M | +229% |
Adjusted EPS | ZAR 6.51 | +210% |
Income Statement and Margin Analysis (%)
| Metric | FY2024 | FY2025 | FY2026 |
|---|---|---|---|
Net revenue FY2025 definition (USD Mn) | 205.6 | 328.7 | — |
Net revenue FY2026 definition (USD Mn) | — | 291.2 | 374.9 |
Net revenue FY2026 definition (ZAR Mn) | — | 5,291 | 6,325 |
Net revenue to GAAP revenue FY2026 definition (%) | — | 44 | 52 |
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View Subscription PlansMargin Analysis (%)
| Metric | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|---|
Gross margin computed (%) | 24.4 | 20.9 | 21.5 | 26.1 | 32.0 |
Operating margin (%) | -18.1 | -2.9 | 0.6 | -4.2 | 1.8 |
EBITDA margin computed (%) | -14.6 | 1.6 | 4.8 | 0.9 | 8.3 |
Adjusted EBITDA margin on revenue (%) | -7.9 | 5.3 | 6.5 | 7.6 | 10.5 |
Net margin (%) | -19.7 | -6.6 | -3.1 | -13.8 | 0.4 |
Revenue growth in USD (%) | 70.2 | 137.2 | 6.9 | 16.9 | 9.4 |
USD by Period
| Period | USD | ZAR |
|---|---|---|
FY2022–FY2026 | 34.2% (Connect-driven) | — |
FY2023–FY2026 | 11.0% | 8.7% (computed from ZAR 9472M to ZAR 12181M) |
Balance Sheet and Share Count (M)
| Metric | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|---|
Total assets (USD Mn) | 656.6 | 542.2 | 558.5 | 651.5 | 699.3 |
Cash and cash equivalents (USD Mn) | 43.9 | 35.5 | 59.1 | 76.5 | 81.4 |
Restricted cash (USD Mn) | 60.9 | 23.1 | 6.9 | 0.1 | 0.1 |
Finance loans receivable net (USD Mn) | 33.9 | 36.7 | 44.1 | 74.1 | 103.8 |
Short-term debt incl current portion of long-term borrowings (USD Mn) | 73.0 | 35.7 | 31.8 | 36.4 | 36.8 |
Long-term borrowings (USD Mn) | 134.8 | 129.5 | 127.5 | 188.8 | 194.6 |
Total debt (USD Mn) | 207.8 | 165.2 | 159.3 | 225.2 | 231.4 |
Net debt computed (USD Mn) | 163.9 | 129.7 | 100.2 | 148.7 | 150.0 |
Redeemable common stock (USD Mn) | 79.4 | 79.4 | 79.4 | 89.0 | 79.0 |
Total Lesaka equity (USD Mn) | 234.9 | 179.5 | 175.9 | 159.4 | 205.4 |
Goodwill (USD Mn) | 162.7 | 133.7 | 138.6 | 199.4 | 215.3 |
Intangible assets net (USD Mn) | 156.7 | 121.6 | 111.4 | 139.2 | 123.4 |
Goodwill plus intangibles (USD Mn) | 319.4 | 255.3 | 249.9 | 338.6 | 338.7 |
Working capital computed (USD Mn) | 71.9 | 61.7 | 57.8 | 79.5 | 99.1 |
Shares outstanding net of treasury (M) | 62.3 | 63.6 | 64.3 | 81.2 | 83.3 |
Cash Flow
| Metric | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|---|
Operating cash flow (USD Mn) | -37.2 | 0.4 | 28.8 | -9.1 | 52.4 |
Capital expenditure PP&E (USD Mn) | 4.6 | 16.2 | 12.7 | 17.2 | 20.6 |
Intangible asset additions (USD Mn) | 0.0 | 0.4 | 0.3 | 3.9 | 4.4 |
Free cash flow OCF less PP&E capex (USD Mn) | -41.8 | -15.8 | 16.1 | -26.3 | 31.8 |
Increase in finance loans receivable within OCF (USD Mn) | 2.0 | 12.4 | 10.0 | 34.6 | 34.4 |
Free cash flow before loan book growth computed (USD Mn) | -39.8 | -3.4 | 26.1 | 8.3 | 66.2 |
Dividends paid to common shareholders (USD Mn) | 0 | 0 | 0 | 0 | 0 |
Share repurchases and treasury stock acquired (USD Mn) | 0.0 | 1.3 | 1.5 | 13.7 | 0.3 |
Acquisitions net of cash acquired (USD Mn) | 202.2 | 0.0 | 1.6 | 12.9 | 11.1 |
Returns & Leverage Ratios (%) and Financial Ratios (x)
| Metric | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|---|
ROE on average Lesaka equity (%) | -17.2 | -16.9 | -9.8 | -54.3 | 1.5 |
ROA on year-end assets (%) | -6.7 | -6.5 | -3.1 | -14.0 | 0.4 |
ROIC computed (%) | -6.1 | -2.9 | 0.7 | -5.1 | 2.1 |
Current ratio (x) | 1.49 | 1.61 | 1.45 | 1.48 | 1.59 |
Total debt to Lesaka equity (x) | 0.88 | 0.92 | 0.91 | 1.41 | 1.13 |
Net debt to Adjusted EBITDA computed (x) | — | 4.7 | 2.7 | 3.0 | 2.0 |
Adjusted EBITDA to interest expense (x) | — | 1.5 | 2.0 | 2.3 | 4.1 |
Asset turnover on year-end assets (x) | 0.34 | 0.97 | 1.01 | 1.01 | 1.03 |
Cash conversion cycle computed (days) | 81 | 31 | 25 | 26 | 19 |
Revenue by Region and Revenue by Region (%)
| Metric | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|---|---|
South Africa revenue (USD Mn) | 127.5 | 215.0 | 505.6 | 537.6 | 624.8 | 679.0 |
Rest of world revenue (USD Mn) | 3.3 | 7.6 | 22.4 | 26.6 | 34.9 | 42.5 |
Total revenue (USD Mn) | 130.8 | 222.6 | 528.0 | 564.2 | 659.7 | 721.6 |
South Africa share of revenue (%) | 97.5 | 96.6 | 95.8 | 95.3 | 94.7 | 94.1 |
South Africa revenue growth (%) | — | 68.7 | 135.2 | 6.3 | 16.2 | 8.7 |
Rest of world revenue growth (%) | — | 128.0 | 196.4 | 18.8 | 30.9 | 22.0 |
Region Assets & Liabilities and Revenue by Region
| Metric | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|---|---|
South Africa long-lived assets (USD Mn) | 50.8 | 359.7 | 300.1 | 286.7 | 392.1 | 403.1 |
India MobiKwik investment (USD Mn) | 76.3 | 76.3 | 76.3 | 76.3 | 0 | 0 |
Rest of world long-lived assets (USD Mn) | 7.0 | 2.8 | 2.2 | 2.5 | 3.1 | 8.6 |
Capital Markets
| Metric | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|---|---|
Lesaka TSR index value of 100 USD invested 30 Jun 2021 | 100 | 109 | 81 | 99 | 95 | 106 |
Peer group TSR index value of 100 USD invested 30 Jun 2021 | 100 | 71 | 83 | 91 | 110 | 116 |
Lesaka by Period
| Period | Lesaka | Peer group |
|---|---|---|
1 year (Jun 2025 – Jun 2026) | +11.6% | +5.5% |
3 years (Jun 2023 – Jun 2026) | +30.9% | +39.8% |
5 years (Jun 2021 – Jun 2026) | +6% | +16% |
Share Count (M) and Dividends & Capital Returns
| Metric | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|---|
Shares outstanding net of treasury at 30 June (M) | 62.3 | 63.6 | 64.3 | 81.2 | 83.3 |
Dividends per share (USD) | 0 | 0 | 0 | 0 | 0 |
Share repurchases and treasury stock acquired (USD Mn) | 0.0 | 1.3 | 1.5 | 13.7 | 0.3 |
Valuation Snapshot
| Multiple | Value | Basis |
|---|---|---|
Market capitalisation | USD 422M | 85.82M shares |
Enterprise value | USD 572M | Market cap + total debt USD 231.4M − cash USD 81.4M (excludes redeemable common stock) |
P/E GAAP trailing | ~164x | GAAP EPS USD 0.03 |
P/E on Adjusted EPS trailing | 12.6x | USD 0.39 |
P/E on FY2027 Adjusted EPS guidance midpoint | ~10.1x | ZAR 8.00 at ZAR 16.49/USD (Q4 FY2026 average; FX assumption) |
EV / Adjusted EBITDA trailing | 7.6x | USD 75.7M |
EV / FY2027 Adjusted EBITDA guidance midpoint | ~6.2x | ZAR 1.525bn at ZAR 16.49/USD |
EV / Sales trailing | 0.79x | GAAP revenue |
EV / Net revenue trailing | 1.53x | USD 374.9M |
P/B | 2.06x | Lesaka equity USD 205.4M |
P/B including redeemable common stock | 1.48x | USD 284.4M |
Analyst Conclusions
Guidance and consensus
FY2027 guidance (FY2026 release, Bank Zero included from an assumed December 2026 close):
-
Net revenue ZAR 7.0–7.7bn.
-
Group Adjusted EBITDA ZAR 1.45–1.60bn.
-
Adjusted EPS ZAR 7.50–8.50.
Q1 FY2027 is guided soft (Adjusted EBITDA ZAR 200–240M versus ZAR 271M a year earlier) because of seasonality and one-off Merchant restructuring costs. FY2029 ambitions are net revenue ~ZAR 11bn, Adjusted EBITDA margin above 25% and Adjusted EPS above ZAR 18.
Independent consensus estimates are not reliably available. Vendor data imply analyst EPS growth forecasts above 60% per year on a GAAP base (Simply Wall St), which is not directly comparable.
Bull case
-
Bank Zero transforms the funding model.
-
Moving ~ZAR 1.5bn of lending-book funding from bank debt to deposits cuts interest cost and takes leverage below 1x by June 2027.
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Near-zero gross debt by FY2028 would release free cash flow for buybacks or accretive M&A.
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Interest expense was already USD 18.5M against Adjusted EBITDA of USD 75.7M in FY2026.
-
-
Consumer and Enterprise compound faster than Merchant can shrink.
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Consumer EBITDA +78% and Enterprise +474% in FY2026.
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The two divisions already contribute more segment EBITDA (ZAR 911M) than Merchant (ZAR 602M).
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Mix shift alone lifts group margins, consistent with the Q4 margin of 22.6%.
-
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The valuation discounts execution risk too heavily.
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About 6x FY2027 guided EBITDA and about 10x guided Adjusted EPS.
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Amortisation roll-off and the end of non-operational charges (from ZAR 1.7bn to ZAR 35M) should drive GAAP earnings toward adjusted earnings.
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Insiders bought heavily at about USD 5.
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Bear case
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Merchant is in structural decline.
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Q4 net revenue −10% and EBITDA −33%, with take rates falling across ADP, cash and acquiring.
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Capitec, Nedbank–iKhokha and Yoco are attacking the formal SME base.
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Restructuring may not restore growth, and Merchant is still about 48% of net revenue.
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Reporting quality and controls.
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Two consecutive years of revisions, an Item 4.02 non-reliance, adverse ICFR findings and an ongoing VAT review raise the risk of further corrections.
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This constrains institutional ownership and the multiple, and Bank Zero adds prudential-reporting complexity.
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Ambition versus near-term math.
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The FY2027 guidance midpoint implies about 23% Adjusted EPS growth against a stated CAGR above 40%, so FY2028–FY2029 must accelerate sharply.
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That acceleration depends on Bank Zero timing (long-stop already extended), capital requirements not yet set by the regulator, and SASSA grant stability.
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Dilution of about 12% for Bank Zero plus 5M executive options weighs on per-share outcomes.
-
Catalysts and monitorables (next 12 months)
| Expected timing | Catalyst / monitorable | What to watch |
|---|---|---|
| ~4 Nov 2026 | Q1 FY2027 results | Size of Merchant restructuring costs; whether EBITDA lands within ZAR 200–240M |
| 18 Nov 2026 | AGM | Votes on director elections and say-on-pay |
| Dec 2026 – Jan 2027 | Bank Zero Prudential Authority and exchange-control approvals; completion | Final capital requirements; long-stop of 31 Jan 2027 |
| Feb 2027 | Q2 FY2027 results | Merchant net-adds (management promised visible acceleration); festive-season loan-book funding |
| Ongoing | Remediation of material weaknesses | Clean ICFR status in the FY2027 10-K |
| Ongoing | SARB payment-activities Directive and National Payment System Bill finalisation; COFI Bill progress | Compliance cost and licensing changes |
| Ongoing | SASSA grant policy (SRD continuity, beneficiary reviews) | Consumer base and insurance collection ratio |
| H1 calendar 2027 | Announcement of transformative or SADC M&A | Accretion and financing mix |
| By Q4 FY2027 | Lending-book migration to Bank Zero | Gross debt trajectory toward ZAR 2.3bn |
| Quarterly | KPIs | Merchant ARPU and take rates; consumer ARPU; Enterprise TPV; leverage |
Analyst verdict
Lesaka has completed the hardest part of its post-Net1 reinvention. It has assembled, through Connect, Adumo and Recharger, the broadest independent fintech platform serving South Africa's underserved consumers and merchants. FY2026 converted that platform into the first full year of GAAP profit since 2022, 41% Adjusted EBITDA growth in ZAR, and leverage below management's 2x target. The Consumer franchise is the jewel. It is growing share in a shrinking grant market, layering lending and insurance onto sticky accounts, and earning segment margins now above 30%. Enterprise has quietly become a credible third leg.
The investment debate now turns on two binary-feeling issues. The first is Bank Zero. If approvals land on time and lending books migrate to deposit funding, the balance sheet de-risks dramatically and the FY2029 ambition (Adjusted EPS above ZAR 18) becomes plausible rather than aspirational. The second is Merchant: half of net revenue, losing take rate faster than it gains volume, and now under restructuring. Until Merchant stabilises, group growth depends on the smaller divisions outrunning its decline.
Overlaying both is a governance and reporting discount that management has not yet earned the right to remove. This reflects repeated revisions and material weaknesses, and an Executive Chairman structure with heavy VCP-linked influence.
At about 6x guided FY2027 EBITDA and about 10x guided Adjusted EPS, the shares appear to price in meaningful execution risk but little of the Bank Zero optionality. On balance, the analyst view is constructive but conditional. Failure on either would leave Lesaka as a modest-return, single-country lender-distributor whose adjusted metrics flatter its economic returns.
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View Subscription PlansExecutive Leadership
Executive Leadership Team
| Name | Title | In role since | Age | Prior roles | Education |
|---|---|---|---|---|---|
Ali Mazanderani | Executive Chairman | 1 Feb 2024 (director since 2020) | 44 | Co-founder and chair of Teya; partner at Actis; boards of StoneCo (2016–2022), Network International (2020–2021), Thunes, Kushki; OC&C; First National Bank | Postgraduate economics at Pretoria, Oxford and LSE; INSEAD MBA; Masters in Business Law (St Gallen) |
Dan Smith | Group CFO | 1 Oct 2024 (director since 2024) | 54 | Partner at VCP (2021–2024); founder of DLS Advisors; head of M&A at Standard Bank SA; Nomura, PwC Corporate Finance, SG Hambros; ADvTECH director | BCom, BAcc, HDip Tax (Wits); CA(SA) |
Naeem Kola | Group COO | 1 Oct 2024 (Group CFO Mar 2022 – Sep 2024) | ~53 (52 per FY2025 10-K) | CFO of Emerging Markets Payments Group; Network International; Actis | CA(SA) |
Lincoln Mali | CEO: Southern Africa | 1 May 2021 (director since 2021) | 58 | Head of Group Card and Payments at Standard Bank (2001–2021); chaired Diners Club SA; Visa CEMEA council; founding president of the Association of South African Payment Providers (ASAPP) | BA, LLB (Rhodes); MBA (Henley); Harvard Advanced Management Program |
Steven Heilbron | Head of Corporate Development and M&A | 1 Jan 2023 (joined with Connect 2022; director since 2022) | 61 | CEO of Connect 2013–2022; global head of private banking and joint CEO of Investec Bank plc | CA(SA) |
Directors' Remuneration
| Executive | Salary | Bonus | Stock awards | Option awards | Non-equity incentive | Other | Total |
|---|---|---|---|---|---|---|---|
Ali Mazanderani | 600,000 | 0 | 0 | 0 | 0 | 0 | 600,000 |
Dan Smith | 392,781 | 0 | 0 | 0 | 354,875 | 0 | 747,656 |
Steven Heilbron | 400,000 | 0 | 0 | 0 | 400,000 | 0 | 800,000 |
Naeem Kola | 400,000 | 0 | 0 | 0 | 300,000 | 12,000 | 712,000 |
Lincoln Mali | 456,927 | 220,140 | 697,500 | 0 | 354,874 | 0 | 1,729,441 |
Board of Directors
| Director | Role | Age | Director since | Independent | Committees | Background |
|---|---|---|---|---|---|---|
Ali Mazanderani | Executive Chairman | 44 | 2020 | No | Capital Allocation | See above |
Kuben Pillay | Lead Independent Director (non-executive chairman Jun 2020 – Jan 2024) | 65 | 2020 | Yes | Remuneration; Nominating and Corporate Governance (Chair); Social and Ethics | Chairman of Sabvest; former Primedia CEO and chair; former Cell C chair (2017–2019); retiring as OUTsurance lead independent director Nov 2026; BA LLB (Wits), MCJ (Howard) |
Antony Ball | Non-executive director | 67 | 2020 | Yes | Remuneration (Chair); Nominating; Capital Allocation (Chair) | Co-founder and chair of VCP (largest shareholder); co-founder and former CEO of Brait; CA(SA); Rhodes Scholar |
Nonkululeko Gobodo | Non-executive director | 65 | 2021 | Yes | Audit and Risk; Social and Ethics (Chair) | First black female CA in South Africa; founder of SizweNtsalubaGobodo; boards of Clicks, PPC, Shoprite; Chancellor of Walter Sisulu University |
Ekta Singh-Bushell | Non-executive director | 54 | 2018 | Yes | Audit and Risk (Chair); Nominating; Social and Ethics | Boards of Sunbelt Rentals and ChargePoint; former Federal Reserve Bank of New York; former EY global CISO; CPA |
Venessa Naidoo | Non-executive director | 62 | 2023 | Yes | Audit and Risk; Remuneration | Chair of OUTsurance Group; Fortress Real Estate board; CA(SA) |
Carolina Lacerda | Non-executive director | 54 | Sep 2026 | Yes | Audit and Risk; Capital Allocation | Former head of investment banking Brazil at UBS; boards of PagSeguro, BB Seguridade, Vivara, IHS Towers, China Three Gorges Brasil; Columbia MBA |
James Oates | Non-executive director | 53 | Sep 2026 | Yes | Audit and Risk | Former UBS Chief Audit Executive and Chief Compliance Officer; Raisin SE audit and risk chair |
Steven Heilbron | Executive director | 61 | 2022 | No | — | See above |
Lincoln Mali | Executive director | 58 | 2021 | No | Social and Ethics | See above |
Dan Smith | Executive director | 54 | 2024 | No | — | See above |
Board & Management Changes
| Date | Change | Context |
|---|---|---|
1 Feb 2024 | Mazanderani becomes Executive Chairman; Meyer departs as Group CEO; Pillay becomes Lead Independent Director | Leadership reset ahead of Adumo |
1 Oct 2024 | Dan Smith appointed Group CFO; Naeem Kola moves to Group COO | Integration of Adumo and Recharger |
Sep 2026 | Carolina Lacerda and James Oates join board | Audit, risk and compliance depth after material weaknesses; Bank Zero readiness |
25 Sep 2026 | Dean Sparrow (CEO of Crossfin, an Adumo selling shareholder) resigns from board | Not explained in proxy |
2026 proxy | Naeem Kola not among the 11 director nominees | Remains Group COO |
Major Shareholders
| Holder | Shares (M) | % of outstanding | As of / source |
|---|---|---|---|
Value Capital Partners (Pty) Ltd | 15.64 | 18.2 | Filing 20 Jan 2026 (aktien.guide / stocksguide) |
International Finance Corporation | 8.65 | 10.1 | 16 Apr 2026 (same) |
Rathbones Group plc | 7.29 | 8.5 | 13F (Boardroom Alpha, Aug 2026) |
Morgan Stanley & Co. LLC | 5.11 | 6.0 | 31 Mar 2026; likely custodial or brokerage |
Goldman Sachs & Co. | 5.08 | 5.9 | 31 Mar 2026; likely custodial or brokerage |
Apis Growth 13 Ltd (Adumo seller) | 4.80 | 5.6 | 31 Dec 2025 (down 1.80M) |
Hosking Partners LLP | 2.77 | 3.2 | 13F (Boardroom Alpha) |
Potomac Capital Management | 1.11 | 1.3 | 13F (Boardroom Alpha) |
Barclays plc | 0.27 | 0.3 | 13F (Boardroom Alpha) |
Intrepid Family Office LLC | 0.25 | 0.3 | 13F (Boardroom Alpha) |
Competitive Landscape
Competitors by Segment
| Segment / product | Competitors | Notes |
|---|---|---|
Merchant — card acquiring | Standard Bank, FNB, ABSA, Nedbank; Yoco; iKhokha (owned by Nedbank since 1 Dec 2025, ~ZAR 1.6bn deal); Capitec Business (78,000 entrepreneurs; merchant turnover ZAR 98.6bn in FY2026); Sureswipe | Banks dominate core acquiring; fintech-bank consolidation is intensifying |
Merchant — ADP / VAS / informal | Flash; BLU Label Unlimited (formerly Blue Label Telecoms); Shop2Shop; Pay@; Ukheshe | Prepaid distribution; commission resets by mobile operators |
Merchant — cash management | Fidelity, G4S, Cashnet; banks | Corporate cash in structural decline (~−2%) |
Merchant — lending | Lulalend; Merchant Capital; Retail Capital; banks | Lesaka deliberately constrained merchant book growth in FY2026 |
Merchant — hospitality software | Fragmented POS vendors (not individually named in filings) | Adumo/Unity positioning |
Consumer — accounts | Capitec (26M clients); TymeBank; African Bank; FNB; Standard Bank; Absa; Nedbank; Postbank / SASSA card | Lesaka is the grant-beneficiary specialist (14.9% share of grant beneficiaries) |
Consumer — lending and insurance | Microfinance lenders; funeral insurers; Capitec (insurance income +38% in FY2026) | Lesaka cross-sells to its own base only |
Enterprise | BankservAfrica; Pay@; eCentric; Transaction Junction; VAS aggregators; fragmented prepaid electricity vendors | No single competitor covers the full Enterprise suite (FY2026 10-K) |
Peer Comparison FY2026
| Metric | Lesaka (FY Jun-2026) | Capitec Bank Holdings (FY Feb-2026) | BLU Label Unlimited (FY May-2026) |
|---|---|---|---|
Revenue | ZAR 12.18bn (net revenue ZAR 6.33bn) | Net interest income ZAR 24.1bn plus non-interest income ZAR 28.3bn | ZAR 13.0bn reported (core ex-Cell C ZAR 9.4bn) |
Revenue growth | +1.7% (net revenue +20%) | NII +14–19%; non-interest income +19% | −7% |
Profitability | Adjusted EBITDA ZAR 1.27bn (20% of net revenue); GAAP net income ZAR 40M | Headline earnings ZAR 16.8bn (+23%); ROE 31% | Net loss ~ZAR 4.9bn; core EBITDA ZAR 923M; core headline earnings ZAR 681M |
Customers | 2.1M consumers; 132k merchants | 26M clients | Not compiled |
