Lesaka Technologies, Inc. · NASDAQ:LSAK
Lesaka Technologies — Q3 FY2025 Earnings Presentation
50 slides from Lesaka Technologies's earnings presentation, May 8, 2025
Slide 1: FY25 Q3 Results Presentation
1 FY25 Q3 Results Presentation May 8, 2025
Slide 2: Safe harbor statement
2 Safe harbor statement The Private Securities Litigation Reform Act of 1995 provides a “safe harbor” for certain forward-looking statements so long as such information is identified as forward-looking and is accompanied by meaningful cautionary statements identifying important factors that could ca
Slide 3: Agenda
3 Agenda Key Developments & Financial Performance Dan Smith Merchant Division Steven Heilbron Consumer Division Lincoln Mali Enterprise Division Naeem Kola Outlook Ali Mazanderani
Slide 4: Key Developments & Financial Performance
4 Key Developments & Financial Performance
Slide 5: Key developments for FY25 Q3
5 Key developments for FY25 Q3 • Record performance in the Consumer division – gaining momentum greater than our 1 Consumer outperformance market share • Highest number of account enrolments, lending and insurance originations in any quarter • Completed acquisition on 3 March 2025 2 Recharger acquis
Slide 6: FY25 Q3 | Continuation of our strong & consistent performance
6 FY25 Q3 | Continuation of our strong & consistent performance Financial period FY25 Q3 FY24 Q3 Growth Ended March 31 Revenue R2 510 million R2 610 million ▼ 4% Net Revenue¹ R1 357 million R951million ▲ 43% Group Adjusted EBITDA¹ R237 million R183 million ▲ 29% Fundamental earnings¹ R58 million R29
Slide 7: Net Revenue and Group Adjusted EBITDA for FY25 Q3
7 Net Revenue and Group Adjusted EBITDA for FY25 Q3 Q3 FY25 Group Adjusted EBITDA includes Net Revenue¹ Group Adjusted EBITDA¹ R20.4m of reorganization costs R237 m 29% yoy 42% yoy R1 357 m R183 m 7% yoy R150 m R951 m 58%yoy R782 m R140 m R496 m 65% yoy R117 m R71 m R338 m 32% yoy R446 m R14 m R2 m
Slide 8: Fundamental earnings for the quarter
8 Fundamental earnings for the quarter Continued growth momentum Fundamental¹ earnings (loss) (ZAR) for the quarter Fundamental¹ earnings (loss) per share (ZAR) for the quarter 98% yoy 60% yoy R0.72 R58 m R0.45 R29 m (R23 m) (R0.35) FY23 Q3 FY24 Q3 FY25 Q3 FY23 Q3 FY24 Q3 FY25 Q3 1. Fundamental earn
Slide 9: Strong growth in operating cash flows
9 Strong growth in operating cash flows Investing in growth - with a path to reduced gearing • Cash generated from business operations increased to R277 million FY24 FY25 FY25 FY25 • Interest paid on bank borrowings decreased to R52 million with the R4.5 billion Summary Group cash flow (Rm) Q4 Q1 Q2
Slide 10: Group Debt Refinance
10 Group Debt Refinance Evolution of an improved risk profile and integration of the Group 7 different debt facilities restructured into 4: Optimising facility mix and tenor • Senior Term Facility A: ZAR 2.1 bn – 4 year bullet Weighted 1 Restructuring has resulted in a simpler • Senior Term Facility
Slide 11: Capital expenditures – investing for growth
11 Capital expenditures – investing for growth FY24 Q3 FY24 Q4 FY25 Q1 FY25 Q2 FY25 Q3 Capex (Rm) (57) (88) (73) (120) (83) Group Adjusted EBITDA (Rm) 183 190 168 212 237 Capex as a % of 31% 46% 44% 57% 35% Growth capex primarily driven by: Group Adjusted EBITDA • R22 m | Cash vaults - Rolled out ne
Slide 12: US GAAP Income Statement for the quarter
12 US GAAP Income Statement for the quarter (FY25 Q3, FY24 Q3) ZAR’000 $’000 % Growth % Growth For the quarter ended March 31 FY25 Q3 FY24 Q3 YoY FY25 Q3 FY24 Q3 YoY Average exchange rate for conversion from ZAR to $ R18.40 R18.88 (2.5%) R18.40 R18.88 (2.5%) Revenue 2 510 061 2 609 913 (4%) 135 670
Slide 13: Segmental EBITDA analysis for the quarter
13 Segmental EBITDA analysis for the quarter (FY25 Q3, FY24 Q3) ZAR’000 $’000 % Growth % Growth For the quarter ended March 31 FY25 Q3 FY24 Q3 YoY FY25 Q3 FY24 Q3 YoY Average exchange rate for conversion from ZAR to $ R18.40 R18.88 (2.5%) R18.40 R18.88 (2.5%) Revenue Merchant 1 905 817 2 111 386 (10
Slide 14: Merchant Division
14 Merchant Division
Slide 15: Holistic offering & innovative solutions for merchants of any size
15 Holistic offering & innovative solutions for merchants of any size Within one payment ecosystem enabling merchants to compete and grow For merchants with real pain points Lesaka is strategically positioned to benefit from secular tailwinds¹ • Limited access to Digital Payments • Cash use will con
Slide 16: Merchant Division Q3 KPIs: Merchant acquiring & Software
16 Merchant Division | Q3 KPIs | Merchant acquiring & Software Merchant Net Revenue R782 million ▲ 58% yoy Merchant EBITDA R150 million ▲ 7% yoy Core products Points of presence (number) Throughput (Rbn) Merchant acquiring1 81 106 R 9.9bn 50 211 42 012 R 3.2bn R 3.9bn FY23 Q3 FY24 Q3 FY25 Q3 FY23 Q3
Slide 17: Merchant Division Q3 KPIs: Cash & Lending
17 Merchant Division | Q3 KPIs | Cash & Lending Merchant Net Revenue R782 million ▲ 58% yoy Merchant EBITDA R150 million ▲ 7% yoy Core products Devices (number) Throughput (Rbn) 2% yoy 2% yoy Cash 4 369 4 465 4 550 R26.2bn R27.0bn R27.5bn FY23 Q3 FY24 Q3 FY25 Q3 FY23 Q3 FY24 Q3 FY25 Q3 Credit disbur
Slide 18: Merchant Division Q3 KPIs: Alternative Digital Payments
18 Merchant Division | Q3 KPIs | Alternative Digital Payments Merchant Net Revenue R782 million ▲58% yoy Merchant EBITDA R150m ▲ 7% yoy ARPU¹ ~R920, ▲ 8% yoy Core products Alternative Digital Payments² Devices (number) Throughput (Rbn) Pay suppliers 16% yoy 4% yoy R5.0bn R5.3bn R4.2bn R0.55 bn Pre-p
Slide 19: Consumer Division
Lesaka Consumer Division
Slide 20: South Africa remains underpenetrated with huge addressable opportunities
20 South Africa remains underpenetrated with huge addressable opportunities Consumer market With real pain points legacy providers are not equipped to address Number of consumers LSM 1 to 6 • Poor customer experience • Limited access to financial services and formal credit • Excessive charges - opaq
Slide 21: Consumer Division | Q3 KPIs
21 Consumer Division | Q3 KPIs Q3: Revenue R446m ▲ 32% yoy Q3: EBITDA R117m ▲ 65% yoy Total consumers¹ 1.9 million+ ARPU² R106 (FY24 Q3: R90 | FY23 Q3: R78) Improving unit economics with significant opportunity to expand: Core products More penetration of existing products & new solutions provided t
Slide 22: Growth in EPE base | Continued momentum in cross selling & upselling
22 Growth in EPE base | Continued momentum in cross selling & upselling initiatives Products and service channels designed to meet our customers’ needs Momentum in driving customer acquisition Consistent ARPU2 evolution driven by strong customer acquisition and momentum in cross selling For the quar
Slide 23: Repositioned EasyPay Everywhere brand
23 Repositioned EasyPay Everywhere brand Digital strategy and optimally located points of presence Delivery against USSD usage strategic focus areas (Indexed to 100) 1. 600 Grow active EPE 500 400 2. Increase ARPU¹ 300 200 3. 100 Optimize costs 0 Mar 23 Sep 23 Mar 24 Sep 24 Mar 25 4. 7 Continue enha
Slide 24: Enterprise
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Slide 25: Enterprise Division | Q3 KPIs
25 Enterprise Division | Q3 KPIs 770+ enterprises: 620+ billers, 150+ corporate clients¹ Enterprise net revenue R146 million ▼ 15% Enterprise EBITDA R2m | FY24 Q3: R14m Core products Advanced technology services to help enterprises engage and transact more efficiently with their customers Bill payme
Slide 26: Enterprise Division | Update on Recharger acquisition
26 Enterprise Division | Update on Recharger acquisition Business Model 500k+ ▲18% R1.3bn+ ▲28% Registered y-o-y Electricity y-o-y Meters1 Throughput Vended1 250k+ ▲15% 95% y-o-y Active ARR2 Meters1 Vending of prepaid electricity tokens provides for highly recurring revenue with high degrees of pred
Slide 27: Outlook
27 Outlook
Slide 28: Forward-looking statements
28 Forward-looking statements Management has provided its outlook regarding net revenue and Group Adjusted EBITDA. which are non-GAAP financial measures and excludes certain revenue and charges. Management has not reconciled these non-GAAP financial measures to the corresponding GAAP financial measu
Slide 29: Reaffirming our FY25 Guidance
29 Reaffirming our FY25 Guidance FY25 Guidance Group Adjusted EBITDA Evolution FY22 to FY25 R900m-R1bn FY24 FY25 Actual Guidance R691m 59% Revenue R10.6bn R10.0bn - R11.0bn R445m Approximate R601m Segment Adjusted EBITDA contribution Net Revenue¹ R3.9bn R5.2bn - R5.6bn R579m 38% (R328m) Group Adjust
Slide 30: FY26 Guidance
30 FY26 Guidance Additional FY26 Guidance Metrics FY26 Guidance FY26 Group Adjusted EBITDA: Drivers of Growth R1.25bn – R1.45bn FY25 to FY26 FY26 Implied Growth from Enterprise Throughput x Take Rate Guidance Midpoint to Midpoint Revenue R11.4 bn – R12.2 bn 12% Merchant Throughput x Take Rate Net Re
Slide 31: Our evolution from FY22 to FY26
31 Our evolution from FY22 to FY26 FY26 Guidance R6.4bn – R6.9bn FY25 Guidance R5.2bn–R5.6bn R3.9bn R3.7bn FY26 Guidance FY25 Guidance R1.25bn–R1.45bn R1.3bn R0.9bn–R1.0bn R691m R445m Positive (R328m) Net Income (R326m) (R667m) (R629m) FY22 FY23 FY24 FY25 FY26 Net Revenue1 Group Adjusted EBITDA Net
Slide 32: Questions
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Slide 33: Appendix
33 Appendix
Slide 34: GAAP Income Statement FY25 year to date
34 GAAP Income Statement FY25 year to date (9 months ended March 31) ZAR’000 $’000 % Growth % Growth For the nine-months ended March 31 FY25 Q3 FY24 Q3 YoY FY25 Q3 FY24 Q3 YoY Average exchange rate for conversion from ZAR to $ 18.04 18.76 (4%) 18.04 18.76 (4%) Revenue 7 754 951 7 842 078 (1%) 428 03
Slide 35: Segmental EBITDA analysis FY25 year to date
35 Segmental EBITDA analysis FY25 year to date (9 months ended March 31) ZAR’000 $’000 % Growth % Growth For the nine-months ended March 31 FY25 Q3 FY24 Q3 YoY FY25 Q3 FY24 Q3 YoY Average exchange rate for conversion from ZAR to $ 18.04 18.76 (4%) 18.04 18.76 (4%) Revenue . Merchant 6 058 673 6 395
Slide 36: Outlook on stock-based compensation charges
36 Outlook on stock-based compensation charges Stock-based compensation charges (in ZAR m) • Current level of SBC reflects higher amounts due to senior executive sign-on that will vest over the next year (by the end of FY26) linked to performance 40 574 • FY24 and FY25 increase relates to appointmen
Slide 37: Glossary by product
37 Glossary by product Merchant acquiring Merchant Division: Adumo and Card Connect provide integrated payment solutions to accept Visa and Mastercard cards Merchant Division: KazangPay provides provide stand-alone payment solutions to accept Visa and Mastercard cards Software Merchant Division: GAA
Slide 38: Glossary by Division
38 Glossary by Division Merchant Adumo Adumo is South Africa’s largest independent payments delivering integrated payment solutions for businesses. Lesaka acquired Adumo in October 2024 GAAP GAAP is the leading Point-of-Sale (“POS”) technology provider to the hospitality sector delivering a comprehe
Slide 39: Use of non-GAAP measures
39 Use of non-GAAP measures U.S. securities laws require that when we publish any non-GAAP measures. we disclose the reason for using these non-GAAP measures and provide reconciliations to the most directly comparable GAAP measures. We have received requests from investors and analysts to provide ad
Slide 40: Reconciliation of non-GAAP measures | Quarterly
40 Reconciliation of non-GAAP measures | Quarterly FY25 Q3 FY24 Q3 FY25 Q3 FY24 Q3 ZAR’000 ZAR’000 $’000 $’000 Average exchange rate for conversion from ZAR to $ 18.40 18.88 18.40 18.88 Loss attributable to Lesaka – GAAP (404 337) (76 415) (22 058) (4 047) Net income attributable to non-controlling
Slide 41: Reconciliation of non-GAAP measures | Net Revenue | Quarter
41 Reconciliation of non-GAAP measures | Net Revenue | Quarter FY25 Q3 FY24 Q3 FY25 Q3 FY24 Q3 Net Revenue - Group ZAR’000 ZAR’000 ZAR’000 ZAR’000 Revenue 2 510 061 2 609 913 135 670 138 194 Cost of prepaid airtime vouchers sold by us & commissions paid to third parties selling all other agency-base
Slide 42: Reconciliation of non-GAAP measures | Quarterly
42 Reconciliation of non-GAAP measures | Quarterly FY25 Q3 FY24 Q3 FY25 Q3 FY24 Q3 ZAR’000 EPS. basic ZAR’000 EPS. basic $’000 EPS. basic $’000 EPS. basic Average exchange rate for conversion from ZAR to $ 18.40 18.88 18.40 18.88 Net loss attributable to Lesaka (GAAP) (404 337) (5.02) (76 415) (1.19
Slide 43: Reconciliation of non-GAAP measures | Year to date
43 Reconciliation of non-GAAP measures | Year to date Year to date Mar 31, Mar 31, Mar 31, Mar 31, 2025 2024 2025 2024 ZAR’000 EPS, basic ZAR’000 EPS, basic $’000 EPS, basic $’000 EPS, basic Average exchange rate for conversion from ZAR to $ 18.04 18.76 18.04 18.76 Net loss attributable to Lesaka (G
Slide 44: Once-off items | Quarterly
44 Once-off items | Quarterly The table below presents the components of once-off items for the periods presented: FY25 Q3 FY24 Q3 FY25 Q3 FY24 Q3 Quarter Quarter ZAR’000 ZAR’000 $’000 $’000 Average exchange rate for conversion from ZAR to $ R18.40 R18.88 R18.40 R18.88 Transaction costs 19 915 5 209
Slide 45: USD | Net Revenue and Group Adjusted EBITDA for FY25 Q3
45 USD | Net Revenue and Group Adjusted EBITDA for FY25 Q3 Q3 FY25 Group Adjusted EBITDA includes Net Revenue¹ Group Adjusted EBITDA¹ R20.4m ($1.1m) of reorganization costs R237 m $13m 29% yoy 42% yoy R1 357 m $74m $10m R183 m R150 m $8m $50m R951 m 7% yoy 58%yoy R782 m $42m $7m R140 m $26m R496 m $
Slide 46: Group Revenue | Quarterly
46 Group Revenue | Quarterly Consistent execution | Continue to deliver on both growth and profitability Group Revenue3 $146m R2 616m R2 629m$147m R2 495m $133m R2 695m R2 711m $146m R2 511m R2 383m $136mR2 402m $134m R2 538m$136m $144m R2 610m$138m $136m R2 138m $125m R2 094m $135m R1 895m $122m $1
Slide 47: Net Revenue | Quarterly
47 Net Revenue | Quarterly Consistent execution | Continue to deliver on both growth and profitability Group Net Revenue3 37% yoy R1 126m $62m R1 395m $78m R1 353m $74m R1 004m R1 004m $61m R928m $50m $54m $53m R1 111m $29m $30m R854m $48m $27m $26m R545m R547m R782m $42m R510m R496m R499m $27m $12m
Slide 48: Group Adjusted EBITDA (loss) Quarterly
48 Group Adjusted EBITDA (loss) Quarterly Consistent execution | Continue to deliver on both growth and profitability Group Adjusted EBITDA (loss)3 29% yoy R237m $13m R 212m$12m R 168m $9m R146m $8m R125m $7m $10m R117m $7m $9m R183m $10m R 190m R150m R59m $4m R168m $8m R40m $3m R58m $3m R150m $8m R
Slide 49: Disaggregation of Revenue
49 Disaggregation of Revenue Third quarter ended 31 March Second quarter ended 31 December Group Q3 2025 Q3 2024 Q3 2023 Q2 2025 Q2 2024 Group revenue 2 510 061 2 609 913 2 402 288 2 629 200 2 694 506 Processing fees 898 985 661 688 609 305 924 319 673 772 Technology products 126 963 34 055 82 845 1
Slide 50: Lesaka
LESQKA
Lesaka Technologies — Q3 FY2025 Earnings Presentation on 6ix