Lesaka Posts Q4 2026 EPS Beat, Shares Rise on Growth Guidance

Lesaka Technologies Inc. delivered a robust Q4 2026 earnings performance, with adjusted earnings per share (EPS) of $0.15—surpassing analyst expectations of $0.07 by $0.08 or 114%—and a full-year fiscal 2026 adjusted EPS of ZAR 6.51, up 210% year-over-year. The company’s adjusted EBITDA reached a quarterly high of ZAR 367 million, marking a 22% year-over-year increase and a 22.6% margin, while full-year adjusted EBITDA climbed 41% to ZAR 1.27 billion. Despite missing Q4 revenue forecasts by 3.22%, net revenue in rand grew 8% year-over-year to ZAR 1.62 billion, reflecting strong performance in the consumer and enterprise divisions, though the merchant division saw a 10% decline in revenue and a 33% drop in adjusted EBITDA. The company’s first positive full-year GAAP net income since 2022—approximately ZAR 40 million—highlighted operational profitability, while leverage improved to 1.9 times net debt to adjusted EBITDA, down from 2.9 times the prior year. Operating cash flow for FY 2026 was ZAR 864 million, after capital expenditures of ZAR 421 million, leaving a net positive cash generation of ZAR 443 million. Key operational milestones included the launch of Bank Zero’s banking license, which closed its Competition Tribunal approval in November 2025 and is expected to be fully operational by year-end 2026, alongside the onboarding of Paymentology as its first alliance banking partner in April 2026. The company also consolidated its office footprint in Johannesburg in July 2026, with Cape Town and Durban offices following shortly thereafter. Shares of Lesaka rose 2.18% pre-market to $4.69, reflecting investor optimism amid guidance for Q1 2027 net revenue of ZAR 1.58 billion to ZAR 1.66 billion and adjusted EBITDA of ZAR 200 million to ZAR 240 million. Full-year 2027 guidance projects net revenue growth of 10.5% to 21.5% and adjusted EBITDA of ZAR 1.45 billion to ZAR 1.6 billion, with a target of ZAR 18 to ZAR 19 in adjusted EPS by FY 2029. The company’s medium-term ambitions include expanding its active consumer base to 3 million and merchant base to 200,000, with enterprise transaction value (TPV) reaching ZAR 80 billion by June 2029. Analysts have set a price target of $8, representing a 74% upside from the current share price of $4.69, with a 52-week range of $3.62 to $5.54. Lesaka employs approximately 4,000 people and operates across consumer, enterprise, and merchant divisions, leveraging its fintech strategy to drive growth through strategic acquisitions and operational efficiencies.