Fintech group Lesaka Technologies has reported a strong start to its 2026 financial year, posting solid growth, with revenue of R3 billion, up 10%, and profitability across all its business segments, despite still recording a small overall loss.
In its quarterly results released this morning, the company reported net revenue up 45% year-on-year to R1.5 billion for the first quarter ended September, driven by momentum in its consumer, merchant and enterprise divisions.
Formerly known as Net1 UEPS Technologies, Lesaka is listed on the JSE and Nasdaq.
Group adjusted EBITDA climbed 61% to R270.6 million, matching the firm’s earlier guidance.
Although Lesaka remained in the red, its net loss narrowed 6% to R75.9 million, while adjusted earnings surged 150% to R87.3 million. Adjusted earnings per share almost doubled to R1.07, signalling improving operational efficiency and profitability, it says.
Lincoln Mali, CEO of Lesaka Southern Africa, comments: “These results mark a strong start to our financial year, demonstrating consistent and resilient growth momentum. Year-on-year, we achieved 45% growth in net revenue.
“Adjusted earnings per share increased 97%, reflecting organic growth and the accretive effect of our acquisitions. We have reaffirmed our full-year group adjusted EBITDA guidance of R1.25 billion to R1.45 billion, representing a 46% increase at the midpoint. Our consumer business again delivered a standout performance, with a 90% increase in segment adjusted EBITDA to R150 million for the quarter.
“Our merchant business grew segment adjusted EBITDA by 20% and is focused on unifying our brand and product offering to clients. The enterprise business segment adjusted EBITDA increased threefold to R22 million for the quarter, becoming a more significant contributor to the group.”
Lesaka's merchant business provides a suite of financial services and software solutions to formal and informal small to medium enterprises, with a focus on enabling the digitisation of commerce in historically underserved markets.
The merchant business primarily operates under the Connect, Kazang and Adumo brands.
Lesaka completed the acquisition of Adumo, a South African payments processor, in October 2024. In February 2024, the group acquired software-as-a-service solutions firm Touchsides from Heineken SA for an undisclosed sum.
Lesaka also completed the acquisition of Recharger, a prepaid electricity metering and payments business with over 460 000 registered meters, in March 2025.
According to the company, these acquisitions are part of its strategy to expand its market share and create a vertically-integrated fintech platform serving consumers and merchants across Southern Africa.
The group’s consumer business, primarily offered through its EasyPay Everywhere brand, provides a range of financial services aimed at the historically under-serviced consumer market in Southern Africa, including social grant recipients.
The company says it remains focused on scaling its fintech ecosystem across Southern Africa.
Performance across divisions
Merchant division: Revenue rose to R2.2 billion, with net revenue up 43% to R782.8 million. Adjusted EBITDA grew 20% to R162.1 million, as Lesaka continued integrating its various platforms and unifying its product offering to small and mid-sized retailers.
Consumer division: Revenue increased 43% to R539 million, with segment adjusted EBITDA up 90% to R149.7 million, due to growth in lending, insurance and payment services to social grant customers.
Enterprise division: Revenue reached R261.9 million, with net revenue up 19% to R221.6 million. Adjusted EBITDA climbed 241% to R22.4 million, showing the division’s turnaround after last year’s restructuring.
The fintech group has set its sights on sealing its R1.1 billion acquisition of Bank Zero next year.
Based on a zero-fee banking model, Bank Zero launched to the public in August 2021. It is co-founded by seven investors, including former First National Bank CEO Michael Jordaan and banking innovator Yatin Narsai.
The strategic rationale for Lesaka’s planned acquisition of Bank Zero is centred on strengthening its overall value proposition, by broadening its product range and lowering delivery costs across all divisions.
By bringing key services in-house, the company aims to reduce its reliance on third-parties and achieve significant cost savings.
The transaction is expected to reduce gross debt by approximately R1 billion through the transfer of a substantial portion of Lesaka’s consumer and merchant credit books into Bank Zero, creating greater flexibility to grow these books at a lower cost.
Outlook and guidance
Lesaka reaffirmed its full-year guidance for FY2026, forecasting:
- Net revenue between R6.4 billion and R6.9 billion.
- Group adjusted EBITDA between R1.25 billion and R1.45 billion.
- Adjusted earnings per share of at least R4.60, more than doubling last year’s figure, and expecting to achieve positive net income for the first time.
For the second quarter, ending December 2025, Lesaka expects:
- Net revenue between R1.575 billion and R1.725 billion.
- Adjusted EBITDA between R280 million and R320 million.
These projections exclude the impact of Lesaka’s planned Bank Zero acquisition, which is still awaiting regulatory approval.
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