LESAKA TECHNOLOGIES INC (NASDAQ:LSAK) Reports Q4 EPS Beat but Revenue Miss, Stock Falls

LESAKA TECHNOLOGIES INC (NASDAQ:LSAK) reported preliminary fourth-quarter results for fiscal 2025 that showed mixed performance relative to analyst expectations, with the market reacting negatively in after-hours trading.

Q4 2025 Performance vs. Estimates

The South African fintech company reported net revenue of $82.0 million for the quarter ended June 30, 2025, falling significantly short of the $133.6 million analysts had projected. This substantial revenue miss appears to have overshadowed the company’s performance on profitability metrics.

On the earnings front, Lesaka reported adjusted earnings per share of $0.05, which exceeded the analyst consensus estimate of $0.0408. This outperformance was driven by strong operational efficiency and cost management despite the revenue shortfall.

Key quarterly highlights include:

• Net revenue growth of 47% year-over-year in South African rand terms
• Group Adjusted EBITDA of $16.7 million, representing 61% year-over-year growth
• Adjusted earnings of $4.4 million, up 292% from the same quarter last year

Full-Year Results and Market Reaction

For the full fiscal year 2025, Lesaka reported net revenue of $328.7 million and Group Adjusted EBITDA of $50.7 million, representing 33% growth over the previous year. The company noted it achieved its profitability guidance for the year despite what it described as "a strong year for the Group."

The market reaction following the earnings release was notably negative, with the stock declining approximately 5.9% in after-hours trading. This suggests investor concern over the revenue miss and potentially cautious sentiment toward the company's future guidance.

Forward Guidance and Analyst Expectations

Looking ahead, management provided optimistic guidance for fiscal year 2026, expecting:

• Net revenue between ZAR 6.4 billion and ZAR 6.9 billion (approximately $357-385 million using current exchange rates)
• Group Adjusted EBITDA between ZAR 1.25 billion and ZAR 1.45 billion
• Adjusted earnings per share of at least ZAR 4.60, representing over 100% growth from FY2025

This guidance compares favorably to analyst estimates for FY2026 revenue of $646.2 million and EPS of $0.275, suggesting management is more bullish about the company's prospects than the analyst community.

For the first quarter of FY2026, Lesaka expects net revenue between ZAR 1.50 billion and ZAR 1.65 billion and Group Adjusted EBITDA between ZAR 260 million and ZAR 300 million. This guidance appears conservative compared to analyst estimates of $161.2 million in revenue for Q1 2026.

Strategic Context and Restatement Note

The earnings release also disclosed that the company is restating certain interim financial results for fiscal 2025 due to a re-evaluation of revenue classification. Management emphasized that this restatement is not expected to impact operating income, net loss, loss per share, net cash flows, or liquidity.

Chairman Ali Mazanderani commented on the results, stating, "FY2025 was a strong year for the Group, delivering on our profitability guidance and advancing key strategic priorities. We expect to maintain this momentum into FY2026."

Investors seeking more detailed earnings information and future estimates can review additional data through the company's earnings portal.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. The information presented should not be interpreted as a recommendation to buy or sell any security. Readers should conduct their own research and consult with a qualified financial advisor before making investment decisions.