Fintech group Lesaka Technologies has issued a correction to its previously reported headline earnings and headline earnings per share (HEPS) for the three- and nine-month periods ended 31 March.
This follows a reassessment of how fair value movements on equity securities were classified under headline earnings calculations.
In a statement today, the company, which is listed on Nasdaq and the JSE, says the revision stems from the treatment of the “change in fair value of equity securities, net” line item in its Q3 FY2026 results released on 7 May.
Lesaka notes the item had been incorrectly excluded from headline earnings in the earlier calculation.
Following a review of the South African Institute of Chartered Accountants Headline Earnings Circular 1/2023, the company says it determined that fair value movements recognised in profit or loss on equity securities within the scope of IFRS 9 must be included in headline earnings, regardless of whether the underlying investment is considered non-core or non-operating.
Lesaka stresses that the correction relates only to headline earnings and HEPS, and does not affect any other reported financial results.
For the three months ended 31 March, net income used to calculate headline earnings was revised down to $2.171 million from $2.549 million, while basic and diluted HEPS remained unchanged at $0.03.
For the prior-year quarter, the adjustment widened headline loss from $5.391 million to $22.362 million, increasing headline loss per share to $0.28 from $0.07.
For the nine months ended 31 March, the correction shifted headline earnings from a previously reported loss of $163 000 to a profit of $2.43 million, while HEPS was restated at $0.03 per share.
The company also revised its nine-month results for the prior year, increasing headline loss to $59.698 million from $16.08 million, with headline loss per share widened to $0.83 from $0.22.
Lesaka points out that the restatement reflects compliance with updated interpretation of accounting guidance and is limited to headline earnings metrics only.
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