On this page of StockholderLetter.com we present the latest annual shareholder letter from LESAKA TECHNOLOGIES INC — ticker symbol LSAK. Reading current and past LSAK letters to shareholders can bring important insights into the investment thesis.

 •  10/29/2025 Letter Continued (Full PDF)
 •  9/29/2023 LSAK Stockholder Letter
 •  10/2/2024 LSAK Stockholder Letter
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 •  LSAK Benford's Law Stock Score = 97

LSAK Shareholder/Stockholder Letter Transcript:

Lesaka Technologies, Inc. Executive Chairman   s Letter for 2025 Annual Report
FY2025 was another pivotal year for Lesaka as we advanced our mission to build Africa   s leading financial technology platform and
pioneer the digitization of our markets. Each year brings us closer to this goal, supported by continued financial progress, strategic
execution, and a growing culture of innovation.
From a financial performance perspective, we ended the year with Revenue of $659.7 million (ZAR 12.0 billion), and Net Revenue
of $291.2 million (ZAR 5.3 billion)1. Our Group Adjusted EBITDA1 of $50.7 million (ZAR 922.2 million) for the year is in line with
our guidance. Our Adjusted Earnings1 for the year of $10.4 million (ZAR 186.2 million) was up substantially from $2.9 million (ZAR
51.3 million) last year and resulted in Adjusted Earnings1 per share growing from $0.04 (ZAR 0.80) to $0.13 (ZAR 2.29).
From a balance sheet perspective, in February 2025 we refinanced our existing debt facilities and expanded our banking relationships
to include both RMB and Investec. Our Gross Debt increased as we raised debt to fund acquisitions and our Net Debt1 to EBITDA
ratio of 2.2x, on an annualized FY2025 Q4 basis, positions us well to reach our leverage target of below 2x.
From an M&A perspective, we expanded our platform through three acquisitions. In October 2024 we completed the ZAR 1.7 billion
acquisition of Adumo. In March 2025, we completed the ZAR 507 million acquisition of Recharger. In June 2025, we announced the
ZAR 1.1 billion acquisition of Bank Zero and we sold our entire stake in MobiKwik for ZAR 290 million. These transactions deepen
our capabilities and expand our market reach across consumers, merchants, and enterprises.
We continued to invest in our people by augmenting our executive team, launching our graduate programme and implementing an
employee share ownership plan to align value creation across the organization. We strive to be the employer of choice for those driven
by mission and purpose.
We took a leadership role in industry collaboration through the launch of the Association of South African Payment Providers
(   ASAPP   ) in January 2025 with Lincoln Mali assuming the associations presidency, to work in closer collaboration with regulators
and industry stakeholders. In March 2025 we hosted our inaugural Investor Day to better explain our business and the opportunity to
the investment community.
Operationally our three business segments are at different stages of evolution. Our Merchant Segment (   Merchant   ) has grown
materially, through both acquisition and scale. The businesses within Merchant are still being integrated and the focus in the short
term will be on completing that process and unit economics, after which we expect to see an acceleration in organic growth. Our
Consumer Segment (   Consumer   ) delivered another exceptional year. We repositioned our Enterprise Segment (   Enterprise   ) for
sustainable growth after a strategic restructuring and investment in building leading enterprise business to form the third pillar of the
Lesaka platform. This included the closure of non-core business units and the acquisition of Recharger. We could already see this
bearing fruit in the fourth quarter of FY2025. Enterprise will be a material Group Adjusted EBITDA contributor to the Group and
driver of growth in the year ahead.
We go into FY2026 excited at the prospects for Lesaka. Clearly one of the most significant events for the company is the expected
completion of the Bank Zero transaction. Bank Zero is a South African neo-bank with a modern proprietary, scalable technology stack
with a very efficient cost structure that relies on digital onboarding. We do not believe there is a more efficient banking operation in
the country nor one that that has less third party dependencies on its platform. The transaction is, in fact, more an augmentation of
capabilities and team than an acquisition, in that the purchase consideration is predominantly being settled in Lesaka shares and the
Bank Zero team will be joining Lesaka. They saw an ability for us to accelerate their growth given our distribution and complementary
product offering just as we see their ability to accelerate ours. It is an exceptional, experienced and entrepreneurial team who share
our desire to change the game and better serve consumers and merchants in our country.
The size of the prize is big. I think it is easiest to think of the rationale for the transaction in three buckets. Firstly, the addition of Bank
Zero will improve our existing value proposition, especially in Consumer. This is both in terms of the product we can offer and the
cost. From a product perspective, we should reduce dependencies on third parties, improve our responsiveness to clients, increase
availability, reduce friction and expand the range of customers we can address. In terms of cost, we currently have expenses we incur
associated with bank sponsorship both in terms of direct fees and indirectly in foregone interest, or float revenue, which have a negative
drag on our profits. Secondly, the acquisition will increase the range of products that we can offer. Notably we will be able to offer
banking services to our merchant base and to enterprise customers, cross-selling banking into our merchant base and supporting,
fintechs and others, with an    alliance banking    offering that is poorly catered for in the South African market. Bank Zero is in the
process of applying for a Forex License, pending approval, which would open cross-border opportunities for our customers. Thirdly,
following completion of the transaction, we believe we can reduce gross debt by approximately ZAR 1 billion by holding a substantial
portion of the Consumer and Merchant lending books in the bank. This provides greater flexibility in expanding our lending books
and doing so at a lower cost, as we build customer deposits.
1
Net Revenue, Adjusted Earnings and Adjusted Earnings per shares are non-GAAP measures. Refer below for a discussion regarding
these non-GAAP measures. Refer also below and to Item 7 Management   s Discussion and Analysis of Financial Condition and Results
of Operations   Use of non-GAAP measures of our Annual Report on Form 10-K for a discussion regarding our non-GAAP measures
and a reconciliation of Group Adjusted EBITDA to the comparable GAAP measure.

Evolving our business into FY2026, other key corporate developments include the coming year will be the consolidation of our office
and brand footprint.
We currently have more than 40 offices in the group, outside of our branch network, and several brands across the group. We will be
rationalizing our offices over this financial year to less than 20, with a particular focus on consolidating our office environments in
Johannesburg, Cape Town and Durban, the three cities where we have the greatest number of employees. We are in the process of
consolidating our brands and excited for the unveil of a substantially refreshed Lesaka brand, aligning our representation to
stakeholders, employees and customers across the segments we address, and also allowing us to concentrate marketing resource and
spend. We will also increase our investment in brand visibility and customer growth initiatives to drive the next phase of our evolution.
We have the team, the assets, and the market opportunity. We look forward to executing against this potential over the coming year
and continue to drive value for the consumers, merchants and enterprises we serve, as well as create lasting value for our shareholders.
Sincerely,
Ali Mazanderani
Executive Chairman

Financial results at a glance
Consolidated results
(in United States dollar thousands, except percentages, per share data and number of employees)
Revenue ........................................................................
Group Adjusted EBITDA .............................................
Operating (loss) income ................................................
Operating (loss) income margin ...................................
Net loss Lesaka .............................................................
Loss per share:
Basic ($) ..................................................................
Diluted ($) ...............................................................
Adjusted net income (loss)2 ..........................................
Adjusted earnings (loss) per share:
Basic ($)2.................................................................
Number of employees ...................................................
Cash flows (used in) provided by operating activities ..
Cash and cash equivalents ............................................
Total assets ...................................................................
Total equity ...................................................................
2025
659,701
50,688
(27,100)
(4%)
(87,504)
Year Ended June 30
2024
2023
2022
564,222
527,971
222,609
36,936
24,830
(21,570)
3,590
(15,347)
(40,195)
1%
(3%)
(18%)
(17,440)
(35,074)
(43,876)
2021
130,786
(42,563)
(53,872)
(41%)
(38,057)
(1.14)
(1.14)
10,361
(0.27)
(0.27)
2,878
(0.56)
(0.56)
(8,906)
(0.75)
(0.75)
(28,657)
(0.67)
(0.67)
(49,516)
0.13
3,712
(9,122)
76,639
653,710
165,585
0.04
2,522
28,789
65,918
558,450
175,857
(0.16)
2,296
410
58,632
542,234
179,478
(0.50)
2,650
(37,198)
104,800
656,565
234,920
(0.87)
3,075
(58,371)
232,485
453,678
290,213
Operating segments information
(in United States dollar thousands)
Refer to Note 21 in our audited consolidated financial statements for additional information and Item 7 of our Annual Report on
Form 10-K included in this Annual Report for a detailed discussion of our results per operating segment.
Operating Segment
Consolidated revenue:
Merchant
Consumer
Merchant
Subtotal: Operating segments
Corporate/Eliminations
Total consolidated revenue
Group Adjusted EBITDA:
Merchant
Consumer
Merchant
Group costs
Group Adjusted EBITDA
2025
$    000
% of
total
Year ended June 30,
2024
% of
$    000
total

change
526,598
96,008
42,556
665,162
(5,461)
659,701
80%
15%
6%
101%
(1%)
100%
459,790
69,211
46,897
575,898
(11,676)
564,222
81%
12%
8%
101%
(1%)
100%
15%
39%
(9%)
15%
(53%)
17%
36,195
23,949
1,287
(10,743)
50,688
71%
47%
3%
(21%)
100%
29,170
12,679
2,931
(7,844)
36,936
79%
34%
8%
(21%)
100%
24%
89%
(56%)
37%
37%
2
Adjusted net income, earnings per share and Group Adjusted EBITDA are non-GAAP measures. Refer to       Forward looking
statements and use of non-GAAP measures   Use of non-GAAP measures in this Annual Report    for further information regarding
these non-GAAP measures.



 10/29/2025 Letter Continued (Full PDF)