Lesaka Technologies (LSAK) Q2 2026 earnings summary

Executive summary

• Achieved meaningful progress in strategy execution, including regulatory approval for Bank Zero combination, launch of unified One Lesaka brand, and strong organic growth with business simplification and closure of non-core items.

• Revenue for Q2 FY2026 was ZAR 1.6 billion (or $178.7 million), up 16% year-over-year, with net income of $3.6 million, marking the first positive net income since 2022.

• Group Adjusted EBITDA grew 47% year-over-year to ZAR 304 million ($17.8 million), and adjusted earnings per share increased more than sixfold to ZAR 1.34.

• Exited Cell C stake and resolved legacy CPS contract, releasing ZAR 115 million and simplifying operations.

• Workforce of 3,750 focused on providing financial services to underserved consumers and merchants in Southern Africa, with a strong emphasis on distribution and technology.

Financial highlights

• Net revenue for Q2 FY2026 reached ZAR 1.6 billion ($93.4 million), up 16% year-over-year, within guidance.

• Group Adjusted EBITDA was ZAR 304 million ($17.8 million), up 47% year-over-year.

• Adjusted earnings per share increased to ZAR 1.34 ($0.08), up over sixfold year-over-year.

• Cash flows from operations totaled ZAR 419 million; ZAR 385 million reinvested into lending, ZAR 101 million for interest costs.

• Capital expenditure was ZAR 84 million (R52m/$3.9m), with ZAR 48 million directed to growth initiatives.

Outlook and guidance

• Q3 FY2026 net revenue guidance: ZAR 1.65–1.8 billion, midpoint implies 27% growth; Group Adjusted EBITDA guidance: ZAR 300–340 million, midpoint implies 37% growth.

• Full-year FY2026 net revenue guidance reaffirmed at ZAR 6.4–6.9 billion; Group Adjusted EBITDA at ZAR 1.25–1.45 billion; adjusted EPS expected to exceed ZAR 4.60.

• Guidance excludes impact from Bank Zero acquisition and any unannounced M&A; expects continued earnings momentum into FY27.