Lesaka Technologies reports 42% net revenue growth in Q2’25

Fintech group, Lesaka Technologies, has reported its financial results for the second quarter of 2025, surpassing its profitability guidance and affirming its full-year guidance for 2025. Lincoln Mali, the CEO for Southern Africa, joined CNBC Africa to discuss the Q2 results and the company's future outlook. Lesaka's EBITDA exceeded expectations, increasing by 26% year-on-year. Mali attributed this growth to the strong performance of the merchant and consumer segments. The merchant business saw a 68% growth in net revenue, reaching R185 million in segment adjusted EBITDA. Similarly, the consumer business achieved a 31% growth in net revenue and a 61% increase in segment adjusted EBITDA, totaling R411 million and R77 million, respectively. These robust performances in both segments contributed to Lesaka's overall solid EBITDA growth. Despite the impressive EBITDA growth, operating income witnessed a significant decline compared to the previous year. Mali explained that this decline was mainly due to one-time transactions, such as acquisition-related costs. Additionally, the devaluation of an investment in Mobi Quick in India from R1.3 billion to R800 million impacted the operating income. However, Mali emphasized that this was not a core asset and the company planned to responsibly exit the investment within six months, using the proceeds to reduce debt and enhance the business. Lesaka's consistent delivery on market guidance over ten consecutive periods has gained investor confidence. Mali reaffirmed the 2025 guidance and provided strong forecasts for 2026, with an EBITDA midpoint target of R1.35 billion. The company's optimistic outlook is supported by strategic investments in personnel, technology, and platforms, as well as its comprehensive product offerings across different segments. Mali highlighted that potential risks to achieving these forecasts include operational lapses in integrating acquisitions and making ill-fitting acquisitions. Looking ahead, Mali hinted at possible mergers and acquisitions to fuel future growth. Lesaka's current plan includes integrating the recharger business and Adumo, with a focus on acquiring companies that enhance its solution sets in various markets. In the merchant sector, Lesaka aims to scale up, expand geographically, and diversify product offerings. In the consumer segment, the company seeks to cater to underserved consumers outside the grant environment. While specific targets were not disclosed, Mali expressed a strategic approach towards acquisitions aligned with Lesaka's growth objectives. As Lesaka Technologies continues on its growth trajectory, investors are optimistic about the company's resilience and strategic direction, positioning it favorably for the future.