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Lesaka Technologies
(NASDAQ:LSAK)
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Rating:60Neutral
Price Target:
$4.50
▼(-0.66% Downside)
Action:Reiterated
Date:09/30/26
LSAK scores highest on improving fundamentals and a constructive earnings-call outlook (return to profitability/positive free cash flow and positive FY 2027 guidance). These strengths are tempered by weak technical momentum (below key moving averages with negative MACD) and a stretched valuation (very high P/E), which together limit the overall score to the low 60s.
Positive Factors
Consumer growth and cross-selling
Strong consumer growth is supported by customer acquisition, market-share gains and deeper product adoption rather than pricing alone. Rising lending, insurance and transactional penetration can increase recurring activity and customer value, supporting durable revenue expansion.
Negative Factors
Merchant revenue compression and weaker monetization
Merchant transaction volumes are growing, but declining take rates and ARPU show that activity is not translating proportionately into revenue. Competitive pressure, commission resets and mix effects could continue to constrain monetization and segment profitability over coming quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Consumer growth and cross-selling
Strong consumer growth is supported by customer acquisition, market-share gains and deeper product adoption rather than pricing alone. Rising lending, insurance and transactional penetration can increase recurring activity and customer value, supporting durable revenue expansion.
Read all positive factors
Lesaka Technologies (LSAK) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$358.74M
Dividend YieldN/A
Average Volume (3M)133.45K
Price to Earnings (P/E)106.1
Beta (1Y)0.31
Revenue Growth9.38%
EPS GrowthN/A
CountryUS
Employees3,861
SectorTechnology
Sector Strength88
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)0.04
Shares Outstanding85,824,100
10 Day Avg. Volume206,135
30 Day Avg. Volume133,452
Financial Highlights & Ratios
PEG Ratio-1.34
Price to Book (P/B)1.34
Price to Sales (P/S)0.53
P/FCF Ratio12.00
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)0.55
Revenue Forecast (FY)$621.14M
Lesaka Technologies Business Overview & Revenue Model
Company Description
Lesaka Technologies, Inc. is a prominent financial technology firm specializing in delivering essential fintech solutions to individuals and small businesses who are either unbanked or underbanked. While its primary focus is on South Africa, the c...
How the Company Makes Money
Lesaka makes money primarily by earning fees and other income tied to payments, financial services distribution, and credit-related activities delivered through its South African operating businesses. Key revenue streams typically include: (1) tra...
Lesaka Technologies Earnings Call Summary
Earnings Call Date:Sep 09, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Nov 10, 2026
Earnings Call Sentiment Positive
The call was strongly positive overall. Lesaka reported substantial growth in group revenue, EBITDA, adjusted EPS, cash generation, and profitability; achieved all FY 2026 guidance measures; delivered record consumer and enterprise performance; reduced leverage; and outlined significant growth and funding opportunities associated with Bank Zero. These strengths outweighed the merchant segment's revenue compression, declining take rates and ARPU, higher planned investment, moderated insurance collections, and remaining regulatory approvals.Positive Updates
Strong Full-Year Financial Performance
FY 2026 net revenue grew 20% to ZAR 6.33 billion, group adjusted EBITDA grew 41% to ZAR 1.27 billion, and adjusted EPS grew 210% to ZAR 6.51.
Negative Updates
Merchant Revenue Growth Was Weak
Merchant FY 2026 net revenue grew only 3% to ZAR 3.1 billion, while core net revenue grew 6% to ZAR 2.8 billion. Management described Merchant as having had a challenging year while businesses were brought together.
Read all updates
Q4-2026 Updates
Positive
Negative
Strong Full-Year Financial Performance
FY 2026 net revenue grew 20% to ZAR 6.33 billion, group adjusted EBITDA grew 41% to ZAR 1.27 billion, and adjusted EPS grew 210% to ZAR 6.51.
Read all positive updates
Company Guidance
For Q1 FY 2027, Lesaka is guiding to net revenue of ZAR 1.58 billion to ZAR 1.66 billion, group adjusted EBITDA of ZAR 200 million to ZAR 240 million, and adjusted EPS of ZAR 0.40 to ZAR 0.60; for FY 2027, it is guiding to net revenue of ZAR 7 billion to ZAR 7.7 billion, group adjusted EBITDA of ZAR 1.45 billion to ZAR 1.6 billion, and adjusted EPS of ZAR 7.50 to ZAR 8.50, inclusive of Bank Zero, which it expects to complete by December of this year. FY 2027 annual group costs are expected to reset to approximately ZAR 350 million, total operational CapEx is expected to be around ZAR 450 million, non-recurring leasehold improvement CapEx approximately ZAR 100 million, and CapEx as a percentage of group adjusted EBITDA is expected to trend down to below 30% in the medium term; working capital guidance is between 1% and 2% of net revenue on an annual basis. Bank Zero is expected to have deposits in excess of ZAR 1 billion by December 2026, achieve break even on a standalone basis by December 2026, and reach a deposit base above ZAR 4 billion by June 2029, representing a compound growth rate of roughly 60%; following lending-book migration by the end of the fourth quarter financial year ended 2027, gross debt is expected to fall to approximately ZAR 2.3 billion and leverage to less than one times by the year ended June 2027. By June 2029, management’s ambitions are 3 million active consumers, 200,000 active merchants, enterprise total TPV of ZAR 80 billion, net revenue growth of more than 20% CAGR to circa ZAR 11 billion, group adjusted EBITDA CAGR of more than 30%, a group adjusted EBITDA margin of more than 25%, adjusted EPS CAGR of more than 40%, and adjusted EPS greater than ZAR 18.Lesaka Technologies Financial Statement Overview
Summary
Income Statement
58
Neutral
Balance Sheet
72
Positive
Cash Flow
63
Positive
| Breakdown | Jun 2026 | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 721.55M | 659.70M | 564.22M | 527.97M | 222.61M |
| Gross Profit | 183.37M | 173.16M | 121.55M | 110.43M | 54.29M |
| EBITDA | 65.95M | -50.77M | 29.80M | 15.38M | -20.70M |
| Net Income | 2.76M | -87.50M | -17.44M | -35.07M | -43.88M |
Balance Sheet | |||||
| Total Assets | 699.29M | 653.71M | 558.45M | 542.23M | 656.57M |
| Cash, Cash Equivalents and Short-Term Investments | 1.34B | 76.52M | 59.06M | 35.50M | 43.94M |
| Total Debt | 255.13M | 235.37M | 166.70M | 170.05M | 215.19M |
| Total Liabilities | 414.96M | 392.33M | 303.16M | 283.33M | 342.22M |
| Stockholders Equity | 284.32M | 254.54M | 255.29M | 258.91M | 314.35M |
Cash Flow | |||||
| Free Cash Flow | 31.80M | -26.32M | 15.83M | -16.16M | -41.76M |
| Operating Cash Flow | 52.44M | -9.12M | 28.79M | 410.00K | -37.20M |
| Investing Cash Flow | -29.27M | -11.34M | -16.41M | -16.46M | -193.69M |
| Financing Cash Flow | -23.45M | 29.73M | -7.11M | -19.12M | 122.26M |
Lesaka Technologies Technical Analysis
Negative
4.53
Price Trends
4.53
Negative
4.69
Negative
4.70
Negative
Market Momentum
-0.12
Positive
37.59
Neutral
31.96
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LSAK, the sentiment is Negative. The current price of 4.53 is above the 20-day moving average (MA) of 4.33, below the 50-day MA of 4.53, and below the 200-day MA of 4.70, indicating a bearish trend. The MACD of -0.12 indicates Positive momentum. The RSI at 37.59 is Neutral, neither overbought nor oversold. The STOCH value of 31.96 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for LSAK.
Lesaka Technologies Risk Analysis
Lesaka Technologies disclosed 88 risk factors in its most recent earnings report. Lesaka Technologies reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Lesaka Technologies Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $715.38M | 44.62 | 30.13% | ― | 46.84% | 125.24% | |
71 Outperform | $2.43B | 50.57 | 7.27% | ― | 6.31% | -48.91% | |
63 Neutral | $3.69B | 550.64 | 2.41% | ― | 9.93% | ― | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
60 Neutral | $358.74M | 106.11 | 1.11% | ― | 9.38% | ― | |
60 Neutral | $339.88M | 18.58 | 11.58% | ― | -13.27% | -62.21% | |
49 Neutral | $383.09M | -1.07 | -16.48% | ― | -70.49% | 33.05% |
* Technology Sector Average
LSAK
Lesaka Technologies
4.13
-0.02
-0.48%
IMXI
International Money Express
11.65
-2.32
-16.61%
TENB
Tenable Holdings
34.99
5.83
19.99%
PAYS
Paysign
12.85
6.56
104.29%
PAYO
Payoneer
7.14
1.09
18.02%
BKKT
Bakkt Holdings, Inc. Class A
8.10
-25.55
-75.93%
Lesaka Technologies Corporate Events
Executive/Board ChangesRegulatory Filings and Compliance
Lesaka Technologies Strengthens Board With New Independent Directors
Positive
Sep 29, 2026
On September 23, 2026, Lesaka Technologies director Mr. Dean Sparrow informed the board of his decision to resign as a director and from all board committees, effective September 25, 2026, with the company stating the move did not arise from any d...
Business Operations and StrategyExecutive/Board Changes
Lesaka Technologies Updates Executive Compensation and Incentive Plans
Positive
Sep 14, 2026
On September 8, 2026, Lesaka Technologies’ remuneration committee approved an increase in annual base salary for Group Chief Financial Officer Dan Smith to ZAR 7,222,500, effective September 1, 2026, reflecting the company’s emphasis o...
Executive/Board ChangesShareholder Meetings
Lesaka Shareholders Approve Stock Options for Chairman
Positive
Aug 3, 2026
On August 3, 2026, Lesaka Technologies shareholders approved a significant stock option grant to Executive Chairman Ali Mazanderani at a special meeting, authorizing 1,000,000 options to acquire common stock at an exercise price of US$5.00 per sha...
Business Operations and StrategyExecutive/Board Changes
Lesaka Extends Executive Chairman Contract, Adds South Africa Role
Neutral
Jul 30, 2026
On December 4, 2023, Lesaka Technologies, Inc. entered into an employment agreement with Executive Chairman Mr. Mazanderani, effective February 1, 2024, which on July 30, 2026 was amended and restated to extend its expiration to June 30, 2029 whil...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.