Key Highlights

• Net Revenue in ZAR terms grew 8% year over year to ZAR 1.58 billion in Q1 FY2027

• Consumer segment revenue surged 24% to ZAR 668.3 million with Adjusted EBITDA up 38%

• Enterprise segment revenue jumped 60% to ZAR 419.5 million

• FY2027 adjusted Earnings Per Share guidance reaffirmed at ZAR 7.50 to ZAR 8.50, up 23% at midpoint

Lesaka Technologies, Inc.(NASDAQ:LSAK), a Johannesburg-based financial technology company listed on both the Nasdaq and Johannesburg Stock Exchange, released its first-quarter fiscal 2027 results on November 4, 2026. The company, which provides payment processing, lending, and insurance services across South Africa, reported results that management characterised as being in line with expectations, while reaffirming full-year guidance for the 17th consecutive quarter.

Segment-Level Performance

In ZAR terms, total group revenue for Q1 FY2027 came in at ZAR 3.01 billion, down 0.6% year over year. However, net revenue — a non-GAAP measure that excludes pass-through costs — increased 8% to ZAR 1.58 billion. The consumer segment was the standout performer, with revenue rising 24% to ZAR 668.3 million and segment Adjusted EBITDA climbing 38% to ZAR 206.1 million. This reflected continued growth in lending and insurance products offered through the company's consumer-facing channels.

The merchant segment, which is Lesaka's largest by revenue, saw a 13% decline in top-line revenue to ZAR 1.94 billion, with net revenue falling 7% to ZAR 674.6 million. Segment Adjusted EBITDA dropped 51% to ZAR 76.9 million, reflecting cost pressures and a transition in the merchant services portfolio. The enterprise segment delivered 60% revenue growth to ZAR 419.5 million, with Adjusted EBITDA rising 28% to ZAR 28.6 million, pointing to momentum in the company's business-to-business offerings.

Group-Level Financials

At the group level in USD terms, revenue was $184.6 million versus $171.4 million in Q1 FY2026, while net revenue grew to $97.2 million from $83.4 million. Group Adjusted EBITDA was $13.5 million, down from $15.1 million in the prior-year period due to the merchant segment's performance. The company posted a net loss attributable to Lesaka of $4.2 million, an improvement from a $4.7 million loss in Q1 FY2026. Adjusted earnings per share came in at $0.04 versus $0.06 a year earlier.

The Exchange Rate averaged ZAR 16.28 to the dollar during Q1 FY2027, compared with ZAR 17.67 in the year-ago quarter, meaning the appreciation of the rand against the dollar masked some of the underlying ZAR-denominated growth when viewed in USD terms.

Full-Year Outlook and Bank Zero Acquisition

Executive Chairman Ali Mazanderani expressed satisfaction with the results, noting the company has met its profitability guidance for 17 consecutive quarters. For the full fiscal year ending June 30, 2027, Lesaka reiterated its guidance of net revenue between ZAR 7.0 billion and ZAR 7.7 billion, Group Adjusted EBITDA of ZAR 1.45 billion to ZAR 1.60 billion, and adjusted earnings per share of ZAR 7.50 to ZAR 8.50. This guidance incorporates the impact of the pending Bank Zero acquisition, which remains subject to regulatory approval from the South African Reserve Bank.

For Q2 FY2027 specifically, management projected net revenue of ZAR 1.62 billion to ZAR 1.72 billion, with Group Adjusted EBITDA of ZAR 280 million to ZAR 320 million, suggesting anticipated sequential improvement from Q1 levels.

The Road Ahead

Lesaka's Q1 FY2027 results present a mixed picture at the segment level, with consumer and enterprise growth partially offset by merchant-segment headwinds. The company's ability to deliver on its full-year guidance will likely hinge on stabilising the merchant Business while maintaining the momentum in consumer and enterprise. The Bank Zero acquisition, once finalised, could add a digital banking dimension to the company's product suite in what remains a competitive South African Fintech landscape.