Lesaka Technologies (NJPA) AI Stock Analysis

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.