Lesaka Technologies Inc (NASDAQ:LSAK) Reports Q2 Profit, Beats Adjusted EPS Estimates
South African fintech firm Lesaka Technologies Inc has reported financial results for its second quarter of fiscal year 2026, ending December 31, 2025. The company's earnings release reveals a pivotal quarter, marked by a return to GAAP profitability and a significant outperformance on a key non-GAAP earnings metric relative to analyst expectations. The market reaction in after-hours trading was sharply positive.
Earnings and Revenue Versus Estimates
The core of the earnings story lies in the comparison between Lesaka's reported figures and the consensus estimates held by analysts. The company's performance on adjusted earnings per share (EPS) was a clear positive surprise.
- Adjusted EPS: Lesaka reported adjusted earnings per share of $0.08 for Q2 FY2026. This result substantially exceeded the analyst consensus estimate, which anticipated an adjusted loss per share of ($0.0102).
- Revenue (Net Revenue): The company reported net revenue of $93.4 million. This figure fell short of the analyst consensus estimate for revenue of $169.3 million. It is critical to note that Lesaka emphasizes "Net Revenue" as a non-GAAP metric, which strips out certain pass-through costs like the cost of pinned airtime sold and third-party commissions to provide a clearer view of its underlying performance. The significant variance suggests analysts were modeling based on the standard GAAP revenue figure.
The market's immediate reaction focused on the earnings beat. Following the release, Lesaka's stock rose approximately 4.6% in after-market trading, indicating investor approval of the company's profitability progress.
Management's Outlook and Forward Guidance
Lesaka's management provided explicit guidance for the upcoming third quarter and reaffirmed its full-year outlook for FY2026. This forward-looking commentary offers a benchmark against analyst expectations.
- Q3 FY2026 Guidance: The company expects Net Revenue between ZAR 1.65 billion and ZAR 1.80 billion (approximately $97.3 million to $106.2 million using the Q2 average rate) and Group Adjusted EBITDA between ZAR 300 million and ZAR 340 million.
- FY2026 Guidance Reaffirmed: For the full fiscal year, Lesaka reaffirmed its previous guidance, which includes:
- Net Revenue between ZAR 6.4 billion and ZAR 6.9 billion.
- Group Adjusted EBITDA between ZAR 1.25 billion and ZAR 1.45 billion, representing 49% growth at the midpoint.
- Positive Net Income Attributable to Lesaka.
- Adjusted earnings per share of at least ZAR 4.60, implying year-on-year growth greater than 100%.
Comparing the revenue outlook to provided analyst estimates is complex due to the difference between GAAP and non-GAAP "Net Revenue" reporting. The analyst sales estimate for the full year 2026 is $738.6 million (GAAP basis), while Lesaka's Net Revenue guidance translates to roughly $377-$406 million, highlighting the importance of the metric definition.
Key Takeaways from the Press Release
Beyond the headline numbers, the earnings release contained several significant announcements:
- Return to GAAP Profitability: Chairman Ali Mazanderani highlighted that this quarter marks the first time since the company's creation in 2022 that it has delivered a positive GAAP net income, reporting $3.6 million compared to a loss of ($32.5 million) in the prior year period.
- Strong Segment Performance: Growth was driven by the Consumer and Enterprise segments. Consumer Segment Adjusted EBITDA surged 106% year-over-year, while the Enterprise segment swung to a profit of $1.4 million from a near-break-even position.
- Guidance Track Record: Management noted this quarter represents the 14th consecutive quarter of meeting its provided guidance.
- Prior Period Revision: The release details an immaterial revision to prior period financials related to the accounting for certain indirect taxes, which has been corrected.
Conclusion
Lesaka's Q2 FY2026 results present a mixed but ultimately positive picture. While the reported net revenue figure missed analyst estimates, the company's decisive beat on adjusted earnings per share and, more importantly, its achievement of GAAP net income for the first time, appear to be the dominant factors for investors. The strong after-hours stock movement suggests the market is rewarding the clear progress toward sustained profitability and the reaffirmation of aggressive full-year growth targets. The company's continued emphasis on its high-growth Consumer and Enterprise segments seems to be bearing fruit.
For a detailed look at Lesaka's historical earnings, future estimates, and analyst projections, you can review the data here.
Disclaimer: This article is for informational purposes only and does not constitute investment advice, financial analysis, or a recommendation to buy or sell any security. Investors should conduct their own research and consult with a qualified financial advisor before making any investment decisions.
