Lesaka Technologies Inc (LSAK, Financial) released its 8-K filing on November 6, 2024, detailing its financial performance for the first quarter of fiscal 2025. The company, a provider of payment solutions and financial technologies primarily in South Africa, operates through its Merchant and Consumer segments.
Performance Overview
Lesaka Technologies Inc (LSAK, Financial) reported a revenue of $145.5 million for Q1 2025, surpassing the analyst estimate of $144.67 million. This marks an increase from $136.1 million in the same quarter last year. Despite this revenue growth, the company faced an operating loss of $0.05 million, primarily due to $1.7 million in one-off transaction costs related to the acquisition of Adumo. Excluding these costs, the operating income would have been $1.7 million.
Financial Achievements and Challenges
The company's net loss improved by 23% in ZAR terms, amounting to $4.5 million. The GAAP loss per share also showed improvement, reducing to $0.07 from $0.09 in the previous year. Group Adjusted EBITDA, a non-GAAP measure, increased by 12% to $9.4 million, aligning with the company's guidance range.
Lesaka Chairman Ali Mazanderani stated, “We continue to invest in building the Lesaka platform and to scale as Southern Africa’s leading independent fintech. We achieved the mid-point of our revenue and Group Adjusted EBITDA guidance for Q1 2025.”
Segment Performance
The Consumer Division experienced significant growth, with revenue increasing by 30% to $21.1 million and Segment Adjusted EBITDA nearly doubling to $4.4 million. Conversely, the Merchant Division's revenue remained flat at $125.3 million, with a slight contraction in Segment Adjusted EBITDA by 1% to $7.9 million.
Financial Statements and Key Metrics
Lesaka Technologies Inc (LSAK, Financial) reported a net revenue of $58.8 million, reflecting a 40% margin on GAAP revenue. The company's balance sheet showed a decrease in cash and cash equivalents to $49.8 million from $65.9 million at the beginning of the period, primarily due to cash used in financing activities.
| Metric | Q1 2025 | Q1 2024 |
|---|---|---|
| Revenue | $145.5 million | $136.1 million |
| Operating Income (Loss) | $(0.05) million | $0.2 million |
| Net Loss | $(4.5) million | $(5.7) million |
| Group Adjusted EBITDA | $9.4 million | $8.0 million |
Analysis and Outlook
Lesaka Technologies Inc (LSAK, Financial) has demonstrated resilience in its revenue growth, particularly in the Consumer Division. However, the flat performance in the Merchant Division and the impact of acquisition-related costs highlight ongoing challenges. The company's strategic investments and focus on expanding its fintech platform are crucial for sustaining growth in a competitive market.
Looking ahead, Lesaka Technologies Inc (LSAK, Financial) has reaffirmed its full fiscal year 2025 guidance, expecting revenue between ZAR 10.0 billion and ZAR 11.0 billion and Group Adjusted EBITDA between ZAR 900 million and ZAR 1 billion. The company's ability to manage costs and leverage its platform will be key to achieving these targets.
Explore the complete 8-K earnings release (here) from Lesaka Technologies Inc for further details.
