Lesaka Technologies (LSAK) AI Stock Analysis

• Market Cap: $344.73M
• Dividend Yield: N/A
• Average Volume (3M): 55.83K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.24
• Revenue Growth: 16.92%
• EPS Growth: -304.31%
• Country: US
• Employees: 2,531
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): 0.05
• Shares Outstanding: 83,673,096
• 10 Day Avg. Volume: 54,031
• 30 Day Avg. Volume: 55,826
• PEG Ratio: -0.01
• Price to Book (P/B): 1.35
• Price to Sales (P/S): 1.05
• P/FCF Ratio: -37.79
• Enterprise Value/Market Cap: 1.80
• Enterprise Value/Revenue: 1.04
• Enterprise Value/Gross Profit: 3.81
• Enterprise Value/Ebitda: -12.20
• 1Y Price Target: $5.00
• Price Target Upside: 21.36% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 45 Neutral
• Price Target: $4.00 ▼(-2.91% Downside)

Lesaka Technologies' overall stock score is primarily impacted by its financial performance, which shows modest revenue growth but significant profitability challenges. Technical analysis indicates a bearish trend, and valuation concerns are heightened by a negative P/E ratio. Despite positive guidance from the earnings call, the financial and technical weaknesses weigh heavily on the stock's attractiveness.

Lesaka Technologies Business Overview & Revenue Model

Company Description

Lesaka Technologies, Inc., a financial technology company, provides fintech products and services to unbanked and underbanked individuals and small businesses primarily in South Africa and internationally. The company develops payment technologies to offers financial and value -added services to its customers. It operates through three segments: Processing, Financial services, and Technology. The Processing segment provides transaction processing services that involve the collection, transmittal, and retrieval of all transaction data to its customers. The Financial services segment includes activities related to the provision of financial services to customers, including bank accounts, loans, and life insurance products. This segment also offers short-term loans to customers. The Technology segment sells hardware, such as point of sale devices, SIM cards, and other consumables; and licenses right to use certain technology developed by the company, as well as offers related technology services. The company was formerly known as Net 1 UEPS Technologies, Inc. and changed its name to Lesaka Technologies, Inc. in May 2022. Lesaka Technologies, Inc. was incorporated in 1997 and is headquartered in Johannesburg, South Africa.

How the Company Makes Money

Lesaka Technologies generates revenue through multiple avenues, primarily by charging transaction fees for its payment processing services and commissions from its digital banking solutions. The company also earns income from merchant services, where it provides businesses with point-of-sale systems and payment infrastructure. Additionally, Lesaka may benefit from subscription fees for its value-added services, as well as partnerships with financial institutions and retailers that expand its service offerings. Strategic alliances and collaborations with other technology providers further enhance its capabilities and market reach, contributing to its overall revenue growth.

Lesaka Technologies Financial Statement Overview

Summary

Lesaka Technologies exhibits revenue growth but struggles with profitability and cash flow stability. The balance sheet shows moderate leverage, but declining equity and negative net profit margins are concerns.

Income Statement

Lesaka Technologies has shown a steady revenue growth, with a notable increase from 2022 to TTM (Trailing-Twelve-Months). The gross profit margin improved significantly in the TTM period, indicating better cost management. However, the company remains unprofitable with negative net profit margins, highlighting ongoing operational challenges.

Balance Sheet

The company has a moderate debt-to-equity ratio, which suggests a balanced approach to leveraging. However, the decline in stockholders' equity and a reduced equity ratio raise concerns about financial stability. The return on equity is negative, reflecting operational inefficiencies in generating returns for shareholders.

Cash Flow

Lesaka Technologies has experienced fluctuations in free cash flow, with a negative trend in the most recent TTM period. The operating cash flow is positive but remains low compared to net income, indicating challenges in translating earnings into cash. This suggests potential liquidity risks.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	596.50M	328.70M	564.22M	527.97M	222.61M	130.79M
Gross Profit	162.36M	0.00	121.55M	110.43M	54.29M	34.54M
EBITDA	-50.77M	-27.10M	29.80M	9.99M	-26.50M	1.71M
Net Income	-87.50M	-87.50M	-17.44M	-35.07M	-40.23M	-13.18M
Balance Sheet
Total Assets	657.69M	657.69M	558.45M	542.23M	656.57M	428.33M
Cash, Cash Equivalents and Short-Term Investments	76.52M	76.64M	59.06M	35.50M	43.94M	198.57M
Total Debt	235.37M	225.24M	166.70M	170.05M	215.19M	18.96M
Total Liabilities	396.31M	396.31M	303.16M	283.33M	342.22M	67.37M
Stockholders Equity	254.54M	254.54M	255.29M	258.91M	314.35M	360.96M
Cash Flow
Free Cash Flow	-26.53M	-9.12M	15.83M	-16.16M	-41.76M	-62.66M
Operating Cash Flow	-9.12M	-9.12M	28.79M	410.00K	-37.20M	-58.37M
Investing Cash Flow	-11.34M	-11.34M	-16.41M	-16.46M	-193.69M	47.77M
Financing Cash Flow	29.73M	29.73M	-7.11M	-19.12M	122.26M	-13.08M

Lesaka Technologies Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 4.12
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: 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 4.12 is below the 20-day moving average (MA) of 4.19, below the 50-day MA of 4.47, and below the 200-day MA of 4.60, indicating a bearish trend. The MACD of -0.08 indicates Negative momentum. The RSI at 40.53 is Neutral, neither overbought nor oversold. The STOCH value of 38.40 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for LSAK.

Lesaka Technologies Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PAYO	75 Outperform	$2.11B	22.22	13.86%	―	13.02%	-2.57%
PAYS	71 Outperform	$291.32M	44.14	19.65%	―	27.84%	-13.78%
IMXI	69 Neutral	$430.42M	8.85	36.15%	―	-4.19%	-3.52%
TENB	63 Neutral	$3.52B	―	-12.60%	―	11.41%	33.76%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
LSAK	45 Neutral	$344.73M	―	-33.20%	―	16.92%	-304.31%
BKKT	43 Neutral	$761.28M	―	-70.04%	―	111.83%	73.52%

Lesaka Technologies Corporate Events

Lesaka Technologies Acquires Bank Zero to Boost Fintech

On June 26, 2025, Lesaka Technologies announced a significant acquisition of Bank Zero, a South African digital bank known for its zero-fee banking model. This transaction, involving a combination of shares and cash, is expected to enhance Lesaka’s fintech platform by integrating Bank Zero’s digital banking infrastructure. The acquisition aims to provide comprehensive banking services, unlock synergies, and improve Lesaka’s financial profile by reducing debt and optimizing the balance sheet. The transaction is anticipated to be accretive to shareholders, with Bank Zero expected to be profitable in the following fiscal year. Key executives from Bank Zero will join Lesaka, ensuring continuity and integration post-acquisition.

Lesaka Technologies Sells Stake in Mobikwik for ZAR 290M

On June 26, 2025, Lesaka Technologies completed the sale of its equity interest in One Mobikwik Systems Limited on the Indian Stock Exchange, generating approximately ZAR 290 million in net cash proceeds. This sale, following the expiration of a contractual lock-up period, aligns with Lesaka’s strategy to divest non-core assets and will support strengthening its balance sheet and reducing group debt.