Lesaka Sees 100% EPS Growth in FY2026, Bank Zero Acquisition, LSK Share Price Rebounds
Lesaka delivered strong growth in FY2025 and now projects a sharp turnaround in profitability, with earnings set to more than double in FY26
Quick overview
Lesaka delivered strong growth in FY2025 and now projects a sharp turnaround in profitability, with earnings set to more than double in FY2026.
FY2025 Performance Recap
Lesaka closed FY2025 on a strong operational note, meeting profitability guidance and advancing several strategic initiatives. Despite widening bottom-line losses caused by non-operating charges, adjusted EBITDA and earnings growth highlighted the company’s underlying strength.
FY2026 Outlook
Profitability Targets that Lesaka projects adjusted EBITDA growth of at least 35% for FY2026. Earnings Forecast shows Adjusted EPS is expected to more than double from ZAR 2.29 in FY2025 to at least ZAR 4.60 in FY2026, while for profitability, management reiterated expectations that net income will turn positive in FY2026.
Chairman Ali Mazanderani commented, “FY2025 was a strong year for the Group, delivering on our profitability guidance and advancing key strategic priorities. We anticipate continuing this momentum into FY2026.”
Bank Zero Acquisition
Alongside earnings, Lesaka announced the acquisition of Bank Zero, pending regulatory approval. The deal is not factored into FY2026 projections but is expected to strengthen the company’s long-term banking and fintech strategy.
Market Reaction and Technical Picture
Following the earnings release, Lesaka’s JSE-listed shares (LSK) initially fell by 18%, sliding from R80 to R65, but quickly rebounded on guidance details. This resilience suggests renewed investor confidence.
LSKJ Chart Monthly – The Daily Rebound Seems Promising
Technically, Lesaka shares have been trading in a sideways range since 2019, with the 100 SMA (green) on the monthly chart acting as a persistent resistance level. The latest rebound indicates buyers may attempt a breakout, but a sustained move above R100–R110 will be key to unlocking further upside.
Lesaka Reports Strong Revenue Growth Despite Higher Losses in FY2025
Lesaka delivered solid top-line growth in FY2025, supported by strong operational momentum, although bottom-line performance was weighed down by non-operating and non-cash charges.
Full-Year 2025 Financial Performance
- Net Revenue: $328.7 million, up 38% YoY in ZAR terms.
- Net Loss: $87.5 million, up 386% YoY, driven by one-off non-operating, non-cash charges and transaction costs.
- Adjusted EBITDA: $50.7 million, up 33% YoY in ZAR terms.
- Basic Loss Per Share: $1.14, up 284% YoY in ZAR terms.
- Adjusted Earnings: $10.4 million, up 263% YoY in ZAR terms.
- Adjusted EPS: $0.13, up 187% YoY in ZAR terms.
Q4 2025 Operational Highlights
- Net Revenue: $82.0 million, up 47% YoY in ZAR terms.
- Net Loss: $28.8 million, up 452% YoY, again due to transaction costs and non-cash charges.
- Adjusted EBITDA: $16.7 million, up 61% YoY in ZAR terms.
- Basic Loss Per Share: $0.35, up 338% YoY in ZAR terms.
- Adjusted Earnings: $4.4 million, up 292% YoY in ZAR terms.
- Adjusted EPS: $0.05, up 211% YoY in ZAR terms.
Forward Guidance for FY2026
Q1 FY2026 Outlook:
- Net Revenue expected between ZAR 1.50 – 1.65 billion.
- Adjusted EBITDA expected between ZAR 260 – 300 million.
Full-Year FY2026 Outlook:
- Net Revenue expected between ZAR 6.4 – 6.9 billion.
- Adjusted EBITDA expected between ZAR 1.25 – 1.45 billion.
- Net Income attributable to Lesaka projected to turn positive.
- Adjusted EPS projected at least ZAR 4.60, signaling over 100% YoY growth.
Conclusion: Lesaka’s FY2025 results confirm the company’s progress in stabilizing operations and expanding revenue. Looking ahead, FY2026 is positioned as a turnaround year, with management guiding toward positive net income and significantly stronger earnings per share. The potential acquisition of Bank Zero adds another strategic layer, enhancing long-term growth prospects.
If profitability targets are achieved and technical resistance is overcome, Lesaka could shift from a stock long trapped in a trading range to a sustainable growth story with improved shareholder returns.
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