Q2 2026 Lesaka Technologies Inc Earnings Call Transcript
Key Points
- Lesaka Technologies Inc (LSAK) achieved a 47% year-on-year growth in group adjusted EBITDA, indicating strong operational performance.
- The company received Competition Tribunal approval for the combination with Bank Zero, which is expected to deliver meaningful funding and balance sheet benefits.
- Lesaka Technologies Inc (LSAK) reported a significant milestone with its active consumer base exceeding 2 million customers, a 21% increase over the previous year.
- The Consumer division delivered a standout quarter with net revenue rising 38% year on year, marking a record performance.
- The company successfully exited its Cell C stake, receiving ZAR50 million, contributing positively to Q2 results and simplifying its business structure.
- The Merchant division experienced a 2% decline in net revenue due to refocusing efforts and ongoing pricing pressure in the market.
- Merchant ARPU decreased by 10%, primarily driven by lower airtime volumes and continued margin compression.
- The company anticipates flat growth for the Merchant division for the rest of the fiscal year, with a return to growth expected in FY27.
- Lesaka Technologies Inc (LSAK) faces challenges in the Merchant division's transformation, requiring thoughtful planning and disciplined implementation.
- The company reported a leverage ratio of 2.5 times, which remains above its medium-term target of 2 times or lower.
Welcome to Lesaka Technologies' results webcast for the second quarter of fiscal 2026. As a reminder, this webcast is being recorded.(Operator Instructions)
Our press release and investor presentation are available on our Investor Relations website at ir.lesakatech.com. During this call, we will be making forward-looking statements. And I ask you to look at the cautionary language contained in our press release, presentation, and Form 10-Q available on our website.
As a domestic filer in the United States, we report results in US dollars and under US GAAP. However, it is important to note that our operational currency is South African rand, and as such, we analyze our performance in South African rand, which is a non-GAAP measure. This assists investors in understanding the underlying trends in our business.
I will now turn the webcast over to Ali.
Good morning and good afternoon. Thank you for joining us for Lesaka's Q2 and half year results
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