Lesaka Technologies Inc

Lesaka Technologies guided to full-year FY 2027 adjusted EPS of ZAR 7.50 to ZAR 8.50, net revenue of ZAR 7 billion to ZAR 7.7 billion and group adjusted EBITDA of ZAR 1.45 billion to ZAR 1.6 billion, inclusive of Bank Zero, which management expects to complete by December of this year. For the first quarter of FY 2027, the company guided to net revenue of ZAR 1.58 billion to ZAR 1.66 billion, group adjusted EBITDA of ZAR 200 million to ZAR 240 million and adjusted EPS of ZAR 0.40 to ZAR 0.60, reflecting seasonality and expected once-off and restructuring costs in the Merchant business. Executive Chairman Ali Zaynalabidin Mazanderani said FY 2026 delivered on all guidance measures, with net revenue of ZAR 6.33 billion, group adjusted EBITDA of ZAR 1.27 billion and adjusted EPS of ZAR 6.51, turning GAAP net income positive for the full year for the first time since 2022. Group CFO Daniel Smith said the company reached positive full-year GAAP profitability of approximately ZAR 40 million and net cash from operating activities of ZAR 864 million. Head of Corporate Development Steven Heilbron said the Bank Zero acquisition still requires approval from the Prudential Authority and Exchange Control, and that most synergy benefits are expected to accrue during FY 2028.

Lesaka Technologies has gained about 0.2% so far this year, outperforming the average return of -10.1% for the Business Services sector. The company holds a Zacks Rank of #2, or Buy, and its full-year earnings consensus estimate has risen 200% over the past quarter. Within the Technology Services industry, which has lost 3.9% on average this year, Lesaka is also performing better. Another Business Services stock, RB Global, has returned 10.8% year-to-date and also carries a Zacks Rank of #2.