Slides
Page 1
1 Q4 and FY25 Results Presentation September 29, 2025
Page 2
2 Safe harbor statement As a domestic filer in the US. we report results in US dollars. under US GAAP. as evident in our 10 -K and 10 -Q filings. It is im portant to note that our operational currency is South African Rand and as such we analyze our performance in South African Rand. Our results reported in US dollars can be significantly affected by the currency fluctuations between the US dollar and the South African Rand and thus we refer investors to results reported in ZAR in analyzing the company’s performance. The Private Securities Litigation Reform Act of 1995 provides a “safe harbor” for certain forward-looking statements so long as such information is identified as forward looking and is accompanied by meaningful cautionary statements identifying important factors that could cause actual results to differ materially from those projected in the information. The use of words such as “may”, “might”, “will”, “should”, “expect”, “plan”, “anticipate”, “believe”, “estimate”, “project”, “intend”, “future”, “potential” or “continue”, and other similar expressions are intended to identify forward-looking statements. All of these forward-looking statements are based on estimates and assumptions by our management that, although we believe to be reasonable, are inherently uncertain. Forward-looking statements involve risks and uncertainties, including, but not limited to, economic, competitive, governmental and technological factors outside of our control, that may cause our business, industry, strategy or actual results to differ materially from the forward-looking statements. These risks and uncertainties may include those discussed in the Company’s annual report on Form 10-K for the year ended June 30, 2025, on file with the Securities and Exchange Commission, and other factors which may not be known to us. Any forward-looking statement speaks only as of its date. We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by law.
Page 3
3 US GAAP Income Statement for the year 1 Adjusted earnings (loss) per share is a non -GAAP measure Refer to Appendix for a full reconciliation of non -GAAP measures ZAR’000 USD’000 FY25 FY24 % Growth FY25 FY24 % Growth Average exchange rate for conversion from ZAR to $ 17.90 18.68 (4%) 17.90 18.68 (4%) Revenue 11 980 399 10 553 233 14% 659 701 564 222 17% Expense (12 461 304) (10 485 978) 19% (686 801) (560 632) 23% Cost of goods sold, IT processing, servicing & support (8 833 924) (8 280 262) 7% (486 546) (442 673) 10% Selling, general and administration (2 388 795) (1 719 992) 39% (131 512) (91 969) 43% Depreciation & amortization (612 298) (442 570) 38% (33 721) (23 665) 42% Impairment loss (334 929) - n/m (18 863) - n/m Reorganization charge - - n/m - - n/m Transaction costs related to Adumo acquisition (291 358) (43 154) 575% (16 159) (2 325) 595% Operating income/(loss) (480 905) 67 255 (815%) (27 100) 3 590 (855%) Change in fair value of equity securities (1 089 871) - n/m (59 828) - n/m Reversal of (allowance) of EMI doubtful debt - 4 741 n/m - 250 n/m Net loss on disposal of equity -accounted investments (2 886) - n/m (161) - n/m Interest income 47 108 42 896 10% 2 596 2 294 13% Interest expense (389,882) (354 048) 10% (21 453) (18 932) 13% (Loss)/Income before income taxes benefit (expense) (1,916 436) (239 156) 701% (105 946) (12 798) 728% Income tax benefit/(expense) 328 347 (62 616) (624%) 18 198 (3 363) (641%) Net Income/(loss) before equity -accounted investments (1 588 089) (301 772) 426% (87 748) (16 161) 443% Income/(loss) from equity -accounted investments 2,035 (24 298) (108%) 114 (1 279) (109%) Net loss (1 586 054) (326 070) 386% (87 634) (17 440) 402% (Add) Less net (loss) income attributable to non -controlling interest 2 307 - n/m 130 - n/m Net loss attributable to the company (1 583 747) (326 070) 386% (87 504) (17 440) 402% Earnings/(loss) per share FY25 FY24 % Growth FY25 FY24 % Growth Basic earnings (loss) per share attributable to Lesaka shareholders (19.49) (5.07) 284% (1.14) (0.27) 322% Diluted earnings (loss) per share attributable to shareholders (20.41) (5.07) 302% (1.14) (0.27) 322% Adjusted earnings (loss) per share attributable to shareholders ¹ 2.29 0.80 187% 0.13 0.04 190%
Page 4
4 US GAAP Income Statement the quarter 1 Adjusted earnings (loss) per share is a non -GAAP measure. Refer to Appendix for a full reconciliation of non -GAAP measures. ZAR’000 USD’000 FY25 Q4 FY24 Q4 % Growth FY25 Q4 FY24 Q4 % Growth Average exchange rate for conversion from ZAR to $ R17.87 R18.47 (3%) R17.87 R18.47 (3%) Revenue 3 080 538 2 711 155 14% 168 467 146 046 15% Expense (3 586 330) (2 705 529) 33% (196 868) (145 751) 35% Cost of goods sold, IT processing, servicing & support (2 193 247) (2 099 186) 4% (119 928) (113 063) 6% Selling, general and administration (626 972) (460 577) 36% (34 299) (24 823) 38% Depreciation & amortization (196 633) (115 162) 71% (10 793) (6 205) 74% Impairment loss (334 929) - n/m (18 863) - n/m Reorganization charge - - n/m - - n/m Transaction costs related to Adumo acquisition (234 549) (30 604) 666% (12 985) (1 660) 682% Operating income/(loss) (505 792) 5 626 (9 090%) (28 401) 295 (9 727%) Change in fair value of equity securities (101 377) - n/m (5 676) - n/m Reversal of (allowance) of EMI doubtful debt - - n/m - - n/m Net loss on disposal of equity -accounted investments - - n/m - - n/m Interest income 11 761 13 587 (13%) 644 732 (12%) Interest expense (82 051) (85 786) (4%) (4 470) (4 620) (3%) (Loss)/Income before income taxes benefit (expense) (677 459) (66 573) 918% (37 903) (3593) 955% Income tax benefit/(expense) 159 145 (27 371) (681%) 8 930 (1 482) (703%) Net Income/(loss) before equity -accounted investments (518 314) (93 944) 452% (28 973) (5 075) 471% Income/(loss) from equity -accounted investments 449 743 (40%) 25 40 (38%) Net loss (517 865) (93 201) 456% (28 948) (5 035) 475% (Add) Less net (loss) income attributable to non -controlling interest 3 172 - n/m 178 - n/m Net loss attributable to the company (514 693) (93 201) 452% (28 770) (5 035) 471% Earnings/(loss) per share FY25 Q4 FY24 Q4 % Growth FY25 Q4 FY24 Q4 % Growth Basic earnings (loss) per share attributable to Lesaka shareholders (6.33) (1.44) 338% (0.35) (0.08) 338% Diluted earnings (loss) per share attributable to shareholders (6.25) (1.48) 323% (0.35) (0.08) 338% Adjusted earnings (loss) per share attributable to shareholders ¹ 0.99 0.32 211% 0.05 0.02 161%
Page 5
5 Key Financial Highlights Merchant Division Consumer Division Enterprise Division Bank Zero Transaction, Operational Update & FY26 Guidance Ali Mazanderani Steven Heilbron Dan Smith Naeem Kola Lincoln Mali Agenda Opening Remarks on FY25 Ali Mazanderani
Page 6
6 FY25 demonstrated strong financial performance “R” = South African Rands. ZAR. 1. Group Adjusted EBITDA, Net Revenue, Adjusted earnings and Adjusted earnings per share are non -GAAP measures. Refer to Appendi x for a reconciliation of non -GAAP measures. Revenue is the financial measure calculated in accordance with GAAP that is most directly comparable to net revenue. However, as a result of the restatement, we are unable to provide GAAP revenue on a historical basis and are therefore unable to provide a reconciliation of net revenue to GAAP revenue. The restatement is expecte d to result in an increase in GAAP revenue, with any increase in GAAP revenue expected to be offset by a corresponding increase in the cost of Pinned Airtime sold by us, resulting in no change to net revenue. 2. Net Debt to Group Adjusted EBITDA ratio is a non -GAAP measure, calculated as net debt at quarter end divided by Group Adjuste d EBITDA (based on the last -twelve months (LTM) actual Group Adjusted EBITDA). Refer to calculation on slide 18. FY24 R922 million ▲ 33% R186 million 2.9 times R2.29 R691 million R51 million 2.5 times R0.80 R5.3 billion ▲ 38%R3.8 billion ▲ 187% ▲ 263% FY25 GrowthFinancial period Ended June 30 Net Revenue¹ Group Adjusted EBITDA¹ Adjusted earnings1 Adjusted earnings per share¹ Net debt / Group Adjusted EBITDA² (Last-twelve months actual EBITDA) FY25 Guidance R5.2 billion to R5.6 billion R900 million to R1 billion ▲ 16% FY25 2.2 times (Q4 EBITDA annualized) Target < 2 times R12.0 billionR10.6 billionRevenue ▲ 14%
Page 7
7 FY25 has been a transformative year • Acquired Adumo (R1.7bn), scaling Merchant division into a multiproduct fintech platform across Southern Africa • Acquired Recharger (R507m), opening a critical new utilities vertical in Enterprise division • Announced acquisition of Bank Zero (R1.1bn), adding full banking capabilities to fintech offering • Exited non-core asset MobiKwik (R290m), using proceeds to reduce gross debt • Refinanced our existing debt facilities and expanded our banking relationships to include both RMB and Investec • Augmented our executive team, implemented our employee share ownership plan, launched graduate recruitment program • Stakeholder engagement: Association of South African Payment Providers (Jan 2025), first Investor Day (March 2025) • Expanded Consumer division with stronger distribution reach and an enhanced product suite • Reorganized Merchant, Enterprise, and Group teams to align focus on core products and strategy FY24 FY25
Page 8
8 R55 m R24 m R237 m R435 m R545 m R657 m R691 m R922 m FY24 FY25 R719 m R651 m R1,295 m R1,744 m R2,049 m R2,995 m R3,845 m R5,291 m FY24 FY25 FY25 Net Revenue and Group Adjusted EBITDA FY25 Net Revenue FY25 Group Adjusted EBITDA 38% YoY YoY growth 46% YoY 35% YoY (9%) YoY 33% YoY YoY growth 20% YoY 83% YoY (57%) YoY ConsumerMerchantLesaka Enterprise Intercompany eliminations Group costs
Page 9
9 Key Financial Highlights
Page 10
10 Key developments for FY25 Q4 Strong financial performance Standout Consumer performance Positive earnings contributions across all three divisions Continued strong top-line and bottom-line growth in Consumer division 1 2 Continued Balance Sheet optimization6 Merchant loan book refinanced - facility upsized to ZAR 400m and cost of funding reduced by 75 basis points Momentum in Enterprise division Execution of our realignment strategy to build a leading enterprise business 4 Unifying our Merchant division Consolidating our brands under a single Lesaka identity3 Exit of MobiKwik stake5 Non-core asset sold with proceeds used to reduce gearing
Page 11
11 FY25 Q4 demonstrated strong growth in financial performance “R” = South African Rands. ZAR. (Last-twelve months actual EBITDA FY24 Q4 R306 million ▲ 61% R80 million 2.9 times R0.99 R190 million R21 million 2.5 times R0.32 R1.5 billion ▲ 47%R1.0 billion ▲ 211% ▲ 292% FY25 Q4 GrowthFinancial period Ended June 30 Net Revenue¹ Group Adjusted EBITDA Adjusted earnings Adjusted earnings per share Net debt / Group Adjusted EBITDA1 ▲ 16% FY25 2.2 times (Q4 EBITDA annualized) Target < 2 times ▲ 14%R3.1 billionR2.7 billionRevenue
Page 12
12 R228 m R190 m R353 m R510 m R545 m R812 m R1,016 m R1,499 m FY24 Q4 FY25 Q4 47% YoY YoY growth 49% YoY 44% YoY (17%) YoY FY25 Q4 Net Revenue and Group Adjusted EBITDA 1. Net Revenue is a non -GAAP measure. Refer to Appendix for reconciliation of non -GAAP measures. FY25 Q4 Net Revenue ConsumerMerchantLesaka EnterpriseIntercompany eliminations FY25 Q4 Group Adjusted EBITDA R9 m R15 m R79 m R162 m R136 m R187 m R190 m R306 m FY24 Q4 FY25 Q4 61% YoY YoY growth 37% YoY 106% YoY 66% YoY FY25 Q4 Group Adjusted EBITDA includes ZAR11.1 m of reorganization costs Group costs
Page 13
13 Financial impact of a transformative year ZAR’000 FY25 Q4 FY24 Q4 Average exchange rate for conversion from ZAR to $ 17,87 18,47 Group Adjusted EBITDA 305 579 190 357 Once -off items (238 974 ) (31 047) Stock -based compensation charges (37 157) (41 912) Depreciation & amortization (55 045) (47 271) PPA amortization (141 588) (67 891) Interest adjustment (5 055) - Impairment loss (334 929) - Unrealized Loss FV for currency adjustments 1 377 3 390 Operating income (loss) (505 792) 5 626 Interest income 11 761 13 587 Interest expense (82 051) (85 786) Reversal of (allowance) of EMI doubtful debt - - Loss on disposal of equity -accounted investment - - Gain related to fair value adjustment to currency options - - Gain on disposal of equity securities - - Change in fair value of equity securities (101 377) - (Loss)/Income before income taxes benefit (expense) (677 459) (66 573) Income tax benefit/(expense) 159 145 (27 371) Net income/(loss) before equity -accounted investments (518 314) (93 944) Income/(loss) from equity -accounted investments 449 743 Net loss (517 865) (93 201) (Add) less net (loss) income attributable to non -controlling interest 3 172 - Net loss attributable to the company (514 693) (93 201) MobiKwik • Sold in June 2025, net proceeds of ZAR 290m utilized to reduce debt • Loss of ZAR 101m compared to carrying value at FY25 Q3 Reversal of deferred tax allowance • Benefit arising from the reversal of deferred tax valuation allowance of ZAR 210m, relating to improved profitability in our consumer lending entity. Non-cash goodwill impairments • Goodwill, in aggregate, for each acquisition made has increased relative to assessment at time of acquisition • However, some individual CGUs were required to be impaired with no equivalency of recognizing “additional” goodwill in other CGUs PPA amortization • Includes ZAR 46m additional PPA amortization of intangible assets (brand names) in unifying our Merchant division Once-off items • ZAR 225m post combination compensation charges related to Recharger acquisition • Transaction costs related to Adumo, Recharger and Bank Zero acquisitions
Page 14
14 Continued growth momentum Adjusted earnings per share (R2.51) R 0.80 R 2.29 FY23 FY24 FY25 Adjusted earnings per share for the year 187% YoY (R0.74) R 0.32 R 0.99 FY23 Q4 FY24 Q4 FY25 Q4 Adjusted earnings per share for the quarter 211% YoY
Page 15
15Continued momentum in growing our operating cash flows | Group Leverage Ratio Investing in growth - with a path to reduced gearing 1. Operating cash flow before working capital related items, movement in loan book funding, bulk airtime purchases, tax paid and interest paid. 2. Working capital includes accounts receivable, accounts payable. vendor wallets. settlement balances and inventory. • Cash generated from business operations of ZAR 378m reflects underlying business growth in FY25 Q4 • Cash utilized in working capital of ZAR 42m primarily due to increase inventory held • Net loan originations sustained its growth trajectory, with Consumer and Merchant loan books requiring ZAR 230m funding • Bulk ADP purchases increased to ZAR 34m with Kazang increase in net investment in inventory • Tax paid of ZAR 49m comprises provisional tax for the financial year • Interest paid on bank borrowings reflects a 4-month charge due to payment of an additional month from FY25 Q3 • Net cash of R116m utilised in operating activities Summary Group cash flow (ZARm) FY25 Q1 FY25 Q2 FY25 Q3 FY25 Q4 Cash generated from business operations ¹ 196 269 277 378 Cash (utilized) generated in working capital ² (193) (81) 156 (42) Movement in loan book funding (28) (149) (217) (230) Cash generated (utilized) from operations after loan book funding (25) 39 216 106 Bulk ADP purchases (funded from short -term facilities) 9 (69) 41 (34) Tax refunds (paid) 1 (58) (9) (49) Cash provided by (used in) operating activities (15) (88) 248 23 Interest paid (58) (76) (52) (139) Net cash provided by (used in) operating activities (73) (164) 196 (116) Net debt position (ZARm) FY24 Q4 FY25 Q1 FY25 Q2 FY25 Q3 FY25 Q4 Debt (2 773) (2 722) (3 762) (4 005) (3 999) Cash on hand¹ 1 074 854 1 142 1 303 1 359 Listed securities held for sale N/A N/A 802 406 - Net debt position (1 699) (1 868) (1 819) (2 296) (2 641) Group Adjusted EBITDA (last -twelve months actual) 691 710 754 807 922 Net debt to Group Adjusted EBITDA ratio 2.5x 2.6x 2.4x 2.8x 2.9x <2.0x Medium term target 2.2x Net debt to EBITDA ratio (Q4 EBITDA annualized) vs.
Page 16
16 R29 m R57 m R31 m R33 m R44 m R63 m R52 m R70 m FY25 Q1 FY25 Q2 FY25 Q3 FY25 Q4 Maintenance Growth Capital expenditures – investing for growth Capex includes intangible assets related to software development costs. Growth capex primarily driven by: • ZAR 34 m | Cash vaults - Continued expansion of Smart Safe product • ZAR 20m | Capitalised development costs - Enhancement of Kazang software platforms/systems - Development of Enterprise Payment Switch and ADP hosting platform • ZAR 5m | Merchant acquiring devices - POS device expansion across Kazang & Adumo Maintenance capex primarily driven by: • ZAR 8m | POS devices across Kazang & Adumo • ZAR 6m | Cash vaults • ZAR 3m | Computer software ZAR m FY24 FY25 Q1 FY25 Q2 FY25 Q3 FY25 Q4 FY25 Capex (242) (73) (120) (83) (103) (378) Group Adjusted EBITDA 691 168 212 237 306 922 Capex % of Group Adjusted EBITDA 35% 43% 57% 35% 34% 41% R73 m R120 m R83 m R103 m
Page 17
17 Merchant Division
Page 18
18 Key developments for FY25 Q4 Scale and product augmentation Integration, optimization, and brand consolidation Cross-sell momentum Expansion into the licensed tavern market The Adumo acquisition enhances our bundled fintech offering & reinforces Lesaka’s strategic position as the leading consolidator in Southern Africa Unifying our brands under Lesaka to optimize solutions, streamline distribution, and drive cross-sell and platform efficiency Early success in cross-selling across our ecosystem-cash, lending, and acquiring integrated into GAAP software and merchant base Strategic push into the licensed tavern market, a vibrant and underserved segment. Fully integrated tavern base enables strategic growth in an underserved market, with expanded product and credit offerings as these merchants manage their working capital cycles 1 2 3 4
Page 19
19 Core products 44,935 51,880 84,541 FY23 Q4 FY24 Q4 FY25 Q4 Merchant Division - FY25 Q4 KPI’s 1. Points of presence is defined as all acquiring enabled point -of-sale devices and online based stores. Points of presence also includes payment lanes which may be non -acquiring enabled but earn revenue in a fixed fee model. All throughput volume are based on acquiring enabled by Lesaka only. 2. ARPU is calculated on a net revenue per site basis, as monthly figure based on a 3 -month rolling average for the quarter endi ng June 30, 2025. Software Merchant acquiring1 ARR >80% ARPU2 R3 144 GAAP sites in field 9 649, YoY ▲5% Merchant Net Revenue FY25 Q4: R811 million ▲ 49% YoY FY25: R2,995 million ▲ 46% YoY Merchant EBITDA FY25 Q4: R187 million ▲ 37% YoY FY25: R657 million ▲ 20% YoY Points of presence¹ Throughput R 12.0 bn R 15.6 bn R 35.5 bn FY23 FY24 FY25 R 3.4 bn R 4.1 bn R 10.0 bn FY23 Q4 FY24 Q4 FY25 Q4 Recurring subscription revenue YoY▲8%
Page 20
20 Merchant Division - FY25 Q4 KPI’s 1. Our lending solutions are offered to merchants through Capital Connect and Adumo Capital, a joint venture with Retail Capital , a division of Tyme Bank, for Merchant Cash Advance (MCA), with a 50:50 profit share. Amounts reflected above includes 100% of Adumo Capital’s credit disbursed and net loan book. Core products 4,393 4,448 4,572 FY23 Q4 FY24 Q4 FY25 Q4 Lending¹ Cash R110.1 bn R112.6 bn R114.8 bn FY23 FY24 FY25 Lending origination volumeNet loan book outstanding R769 m R716 m R917 m FY23 FY24 FY25 R294 m R284 m R479 m FY23 Q4 FY24 Q4 FY25 Q4 3% YoY Devices Throughput Merchant Net Revenue FY25 Q4: R811 million ▲ 49% YoY FY25: R2,995 million ▲ 46% YoY Merchant EBITDA FY25 Q4: R187 million ▲ 37% YoY FY25: R657 million ▲ 20% YoY R26.9 bn R28.1 bn R28.3 bn FY23 Q4 FY24 Q4 FY25 Q4 R180 m R154 m R234 m FY23 Q4 FY24 Q4 FY25 Q4 2% YoY 0.5% YoY
Page 21
21 R14.8 bn R18.1 bn R19.1 bn FY23 FY24 FY25 74,955 87,562 94,345 FY23 Q4 FY24 Q4 FY25 Q4 Core products Merchant Division - FY25 Q4 KPI’s 1. ARPU is calculated on a net revenue per device basis, as monthly figure based on a 3 -month rolling average for the quarter en ding June 30, 2025. ADP ARPU¹ FY25 Q4: R906, ▲ 5% YoY FY25: R938, ▲ 4% YoY Devices Throughput – Prepaid Solutions 8% YoY 6% YoY R12.8 bn R14.9 bn R23.4 bn FY23 FY24 FY25 57% YoY Throughput – Supplier Enabled Payments Merchant Net Revenue FY25 Q4: R811 million ▲ 49% YoY FY25: R2,995 million ▲ 46% YoY Merchant EBITDA FY25 Q4: R187 million ▲ 37% YoY FY25: R657million ▲ 20% YoY R4.0bn R4.6bn R4.8bn FY23 Q4 FY24 Q4 FY25 Q4 4% YoY R3.2bn R4.5bn R6.2bn FY23 Q4 FY24 Q4 FY25 Q4 38% YoY Alternative Digital Products (“ADP”) Prepaid solutions: • Airtime • Electricity • Gaming Supplier enabled payments: • Supplier payments • International money transfers • Bill payments
Page 22
22 Consumer Division
Page 23
23 Key developments for FY25 Q4 Onboarding and Cross-Sell Engine Addressing Customer Needs Distribution Capabilities Improvement to Digital Platforms Launch of Bonngwe, our internal onboarding and digital CRM which allows for a 360-degree view of a consumer and all their product offerings. Substantially improving cross-sell Our improved lending proposition has been very well received, while contributing positively to a higher ARPU Expansion of front-line teams and physical presence to have a wider footprint in the rural communities than ever before Rebuilt our USSD platform which has led to an exponential growth in transactions via USSD from our consumers, saving both time and money 1 2 3 4
Page 24
24 South Africa remains underpenetrated with huge addressable opportunities Source : 1. South African Social Security Agency (“SASSA”) at June 30, 2025. There are ~12m permanent grant beneficiaries in South Africa. In addition, ~9.0m people receive the R350 Social Relief of Dis tress (SRD) grant each month. Lesaka has approximately 2.1 million active consumer customers at June 30, 2025, comprising 1.9 million grant beneficiaries (approximately 90% permanent grant beneficiaries and the balance SRD grant benefic iaries) and 0.2 million EasyPay Payouts cardholders. Lesaka’s 13.6% market share represented above only accounts for Lesaka’s permanent grant beneficiary base, approximately 1.7 million. Consumer market Continued acceleration of account capture in the grant recipient market • Our unique distribution model and deep presence in rural and peri urban areas across South Africa addresses pain points for our customers • Continued headwinds for Post Bank has resulted in large exodus of customers • Gaining customers from Post Bank at a rate much larger than our organic market share and expecting continued growth over the medium term 16.2% 36.3% 13.6% 28.6% 5.3% Account capture Permanent grant beneficiaries 30 June 2025 Big 4 Banks Account Growth: 17% YoY 12.1 million1 Post Bank Account Growth (45%) YoY Lesaka Account Growth 23% YoY Capitec Account Growth 19% YoY
Page 25
25 R 69 R 68 R 70 R 71 R 73 R 74 R 76 R 76 R 78 R 79 R 83 R 85 FY23 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY24 Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY25 Q1 FY25 Q2 FY25 Q3 FY25 Q4 Consistent ARPU evolution driven by strong customer acquisition Notes 1. Average revenue per consumer per month as of June 30, 2025. Number of consumers includes active consumers, both permanent and non -permanent grant beneficiaries, given both are revenue generating. Previously ARPU only accounted for permanent grant beneficiaries. Prior period disclosures have been adjusted (to include permanent and non -permanent grant beneficiaries) for comparability purpo ses. This approach better reflects the financial and operational performance of the division as well as the revenue -generating engagement of our entire consumer base. Number of consumer in calculating ARPU excludes EasyPay Payout cardholders given that this category follows a different monetisation model Active Consumer: Focuses on all revenue generating engagement of consumers over a 90-day period, which more accurately tracks our current and future monetization strategy for the division Net EPE account activations¹ Consumer ARPU (per month) Momentum in driving customer acquisition ▲ 23% Consumer ARPU¹ +348 000 FY25 (FY24 + 235 000) (FY23 + 143 000) For the year +166 000 FY25 Q4 (FY25 Q3 | + 68 000) (FY24 Q4 | + 34 000) For the quarter
Page 26
26 R1,306 m R1,686 m R2,500 m FY23 FY24 FY25 1.3m 1.5m 1.9m 0.2m FY23 Q4 FY24 Q4 FY25 Q4 Core products Consumer Division - FY25 Q4 KPI’s Lending Insurance Transactional accounts Lending Origination VolumeGross Loan Book Outstanding Gross Written Premium Consumer Revenue FY25 Q4: R510 million ▲ 44% YoY FY25: R1,744 million ▲ 35% YoY Consumer EBITDA FY25 Q4: R162million ▲ 106% YoY FY25: R435 million ▲ 83% YoY 48% YoY R415 m R548 m R996 m FY23 Q4 FY24 Q4 FY25 Q4 R229 m R294 m R404 m FY23 FY24 FY25 Consumer Base 40% of Permanent Grant Beneficiaries are Lending Customers as at FY25 Q4 34% of Permanent Grant Beneficiaries are Insurance Customers as at FY25 Q4 R358 m R470 m R780 m FY23 Q4 FY24 Q4 FY25 Q4 66% YoY R60m R81m R114 m FY23 Q4 FY24 Q4 FY25 Q4 38% YoY 41% YoY Active Consumers EasyPay Payout Cardholders 335k 439k 564k FY23 Q4 FY24 Q4 FY25 Q4 28% YoY Loss ratio per year approximately 6% Active policies on book 82% YoY 23% YoY
Page 27
27 Enterprise
Page 28
28 Key developments for FY25 Q4 Channel expansion (ADP) Business organization Went live with Standard Bank, Nedbank and Shoprite to provide ADP solutions to gain further market share Completed the shut-down of legacy business units, focusing Enterprise onto core product offering, with 3 product sub-segments: ADP, Utilities, Payments One-off reorganization impact of ZAR 17m this quarter 1 4 Technology update (Payments) Begun migration of merchant acquiring volumes being processed within Enterprise, away from third-party providers. Full volume migration expected to complete in Q1 FY263 Inorganic strategy (Utilities) Completed the acquisition of Recharger and progressed migration of meter hosting infrastructure into Enterprise technologies2
Page 29
29 Alternative Digital Products (“ADP”) overview Our network effects create a force multiplier to reach new customers through the downstream enterprises we sell to which in turn improves the economics of the upstream enterprises we partner with EnterpriseUpstream Downstream The products we sell… …the Enterprises we sell into Prepaid Content Providers Bill Payment Billers Banking channels Retail channels Fintech channels ~150 ~620 Prepaid Solutions (includes Airtime, Gaming and Electricity) Revenue model: % of volume processed Bill payments Revenue model: Fixed fee per transaction • ~60% Net Revenue contribution • Low margin, wholesale model
Page 30
30 Utilities overview Distributors CustomersEnterprise Our utilities vertical is a turnkey infrastructure provider of prepaid utilities generating a predominately recurring, transaction-based revenue stream The products we sell… Electricity voucher generation Revenue model: % of volume processed Prepaid utility hardware Revenue model: unit sales The enterprises we sell into… Retail Channels The customers who use our products • ~35% Net Revenue contribution • Higher margin offering Private landlords Property managers Electricity purchased from Lesaka ADP Channel
Page 31
31 R 0.8bn R 1.1bn R 1.3bn FY23 FY24 FY25 Enterprise Division – FY25 Q4 KPI’s 1. ADP Division includes only the sale of bill payments, airtime and prepaid electricity as part of product offering. 2. Utilities throughput represents total electricity vend by the Recharger business. Recharger was acquired on 3 rd March 2025 and throughput shown combines historical performance pre -acquisition. Core products Utilities ADP Enterprise Net Revenue FY25 Q4: R190 million (17%) YoY FY25: R651 million (9%) YoY Enterprise EBITDA FY25 Q4: R15 million ▲ 66% YoY FY25: R24 million (57%) YoY Payments Development of proprietary payment solutions to enable payment acceptance for the Group and external Enterprises FY25 Q4 Group Adjusted EBITDA includes R8 m of reorganization costs R 35.1 bn R 38.5 bn R 40.7 bn FY23 FY24 FY25 Throughput - Utilities Throughput - ADP R 8.5m R 9.7 m R 10.3 m FY23 Q4 FY24 Q4 FY25 Q4 R216m R283m R352m FY23 Q4 FY24 Q4 FY25 Q4 6% YoY 6% YoY 26% YoY 25% YoY
Page 32
32 Bank Zero Transaction
Page 33
33 Introducing Bank Zero to the Lesaka platform Notes : Acquisition pending subject to regulatory approval by the Prudential Authority and the South African Reserve Bank and other c ustomary closing conditions Bank Zero • Launched in 2021 as South Africa’s first app-only bank serving consumers and merchants at zero cost • Founding team, including Michael Jordaan, former FNB CEO and Yatin Narsai, former FNB CEO of Retail Banking • Fully digital onboarding experience, creating a low- cost disruptive offering • High focus on fraud prevention, with zero fraud losses since launch Our combined opportunities • Augment the Lesaka platform with banking products • Accelerates Bank Zero’s organic growth by leveraging Lesaka’s distribution • Broadens and improves the value proposition to both consumers and merchants • Consolidates digital infrastructure into one scalable technology stack
Page 34
34 Management team with extensive banking experience Notes : Acquisition pending subject to regulatory approval by the Prudential Authority and the South African Reserve Bank and other c ustomary closing conditions Michael Jordaan Chairman of Bank Zero • Chairman and co-founder of Bank Zero • Previously served as CEO of First National Bank (FNB) between 2004 – 2013 • Founded Montegray Capital, a VC firm focused on innovative and disruptive technology investments Yatin Narsai CEO of Bank Zero • CEO and co-founder of Bank Zero • Previously served as CEO of First National Bank (FNB) Retail Banking Division between 2004 – 2013 • Founding Executive of eBucks, South Africa’s first bank-backed rewards program Liné Wiid CFO of Bank Zero • CFO and co-founder of Bank Zero • Previously served as CEO of First National Bank (FNB) Transactional Banking and Mass Market with over 19 years experience in various senior roles at the bank Lézanne Human Head of Compliance at Bank Zero • Head of Compliance and co-founder of Bank Zero • Previously led First National Bank (FNB) Premier Banking, Savings and Investment divisions • Prior, was CEO of eBucks between 2004 - 2009
Page 35
35 Improve existing value proposition Accelerating our core, expanding new revenue opportunities and strengthening the balance sheet Strategic rationale to the Bank Zero transaction 1 • Consolidate to a modern and proprietary core banking platform for consumers • Reduce third party dependencies • Review sponsorship banking fees • Access float revenue from combined deposit base Augment and expand product offering 2 • Cross-sell banking offering to merchants • Provide alliance banking solutions to Enterprise clients • Subject to approval, launching FX products to open cross-border opportunities Balance sheet optimization3 • Finance growth in lending books through customer deposits, driving stronger lending unit economics • Reduction in the use of bank debt in the group’s Consumer and Merchant Divisions could assist in deleveraging Lesaka’s gross debt by more than ZAR 1.0 billion • This would lead to < 1x Net Debt / Group Adj. EBITDA, assuming successful consolidation Notes : Acquisition pending subject to regulatory approval by the Prudential Authority and the South African Reserve Bank and other c ustomary closing conditions
Page 36
36 Operational Update
Page 37
37 Evolving our business into FY26 People Offices Brand Kagiso Khaole CEO – Merchant Akash Dowra Group Chief Strategy Officer Roland Naidoo COO – Merchant CAPE TOWN 420+ Employees DURBAN 450+ Employees JOHANNESBURG 1 200+ Employees
Page 38
38 FY26 Guidance
Page 39
39 FY26 Guidance 1. The Company withdraws its previously provided FY2026 revenue guidance, which has been withdrawn in light of the restatement. 2. Net Revenue eliminates the effect of changes in revenue mix between agency and principal sales of airtime. FY26 Guidance 1 FY26 guidance excludes the impact of the Bank Zero acquisition and any unannounced mergers and acquisitions that we may concl ude FY25 FY26 YoY Growth Net Revenue ² R5.3 bn R6.4 bn – R6.9 bn 21% - 30% Group Adjusted EBITDA R922 m R1.25 bn - R1.45 bn 36% - 57% Adjusted EPS R2.29 >R4.60 >100% FY25 Q1 FY26 Q1 YoY Growth Net Revenue ² R1.1 bn R1.50 bn – R1.65 bn 42% - 56% Group Adjusted EBITDA R168 m R260 m – R300 m 55% - 78% Net Income Attributable to Lesaka to be positive for FY26
Page 40
40 Questions
Page 41
41 Appendix
Page 42
42 Segmental EBITDA analysis for the quarter ZAR USD For the three months ended June 30 FY25 Q4 FY24 Q4 Growth % FY23 Q4 FY25 Q4 FY24 Q4 Growth % FY23 Q4 Average exchange rate for conversion from ZAR to $ 17.87 18.47 (3%) 18.74 17.87 18.47 (3%) 18.74 Net Revenue Merchant 811 626 545 131 49% 528 968 44 395 29 376 51% 28 225 Enterprise 190 001 228 164 (15%) 106 417 10 396 12 283 (15%) 5 678 Consumer 509 834 353 066 44% 308 989 27 911 19 020 47% 16 487 Total Net Segment revenue 1 511 461 1 126 361 34% 944 374 82 702 60 679 36% 50 390 Not allocated to segments - - n/m - - - n/m 107 649 Eliminations (12 740) (109 867) (88%) - (697) (5 907) (88%) - Total Net Revenue 1 498 721 1 016 494 47% 944 374 82 005 54 772 50% 50 390 Segment EBITDA Merchant 186 701 136 236 37% 158 496 10 219 7 343 39% 8 457 Enterprise 15 309 9 235 66% (9 989) 823 500 65% - Consumer 161 880 78 529 106% 39 993 8 878 4 227 110% 2 134 Total segment EBITDA 363 890 224 000 62% 188 500 19 920 12 070 65% 10 058 Group costs (58 311) (33 643) 73% (42 356) (3 202) (1 812) 77% (2 260) Group Adjusted EBITDA 305 579 190 357 61% 146 144 16 718 10 258 63% 7 798 Once -off items (238 974) (31 047) 670% (1 199) (13 227) (1 684) 685% (64) Stock -based compensation charges (37 157) (41 912) (11%) (25 376) (2 032) (2 258) (10%) (1 354) Depreciation & amortization (55 045) (47 271) 16% (41 303) (2 997) (2 548) 18% (2 203) PPA amortization (141 588) (67 891) 109% (67 266) (7 796) (3 657) 113% (3 590) Interest adjustment (5 055) - n/m - (283) - n/m - Impairment loss (334 929) - n/m (131 921) (18 863) - n/m (7 039) Unrealized Loss FV for currency adjustments 1 377 3 390 (59%) (3 355) 79 184 (57%) (179) Operating income (loss) (505 792) 5,626 (9 090%) (124 276) (28 401) 295 (9 727%) (6 631) Interest income 11 761 13 587 (13%) 10 945 644 732 (12%) 584 Interest expense (82 051) (85 786) (4%) (96 687) (4 470) (4 620) (3%) (5 159) Reversal of (allowance) of EMI doubtful debt - - n/m - - - n/m - Loss on disposal of equity -accounted investment - - n/m (225) - - n/m (12) Gain related to fair value adjustment to currency options - - n/m - - - n/m - Gain on disposal of equity securities - - n/m - - - n/m - Change in fair value of equity securities (101 377) - n/m - (5 676) - n/m - (Loss)/Income before income taxes benefit (expense) (677 459) (66 573) 918% (210 243) (37 903) (3 593) 955% (11 218)
Page 43
43 Segmental EBITDA analysis for the year ZAR USD For the twelve months ended June 30 FY25 FY24 Growth % FY23 FY25 FY24 Growth % FY23 Average exchange rate for conversion from ZAR to $ 17.90 18.68 (4%) 17.94 17.90 18.68 (4%) 17.94 Net Revenue Merchant 2 995 106 2 049 294 46% 2 039 415 164 844 109 607 50% 149 842 Enterprise 651 265 719 306 (9%) 580 644 35 850 38 456 (7%) (7 431) Consumer 1 744 429 1 294 632 35% 1 126 650 96 008 69 211 39% 62 801 Total Net Segment revenue 5 390 800 4 063 232 33% 3 746 709 296 702 217 274 37% 205 212 Not allocated to segments - - - - - - - - Eliminations (99 447) (218 166) (54%) (33 153) (5 461) (11 676) (53%) - Total Net revenue 5 291 353 3 845 066 38% 3 713 556 291 241 205 598 42% 205 212 Segment EBITDA Merchant 657 177 545 472 20% 565 038 36 195 29 170 24% 32 264 Enterprise 23 724 54 924 (57%) 13 778 1 287 2 931 (56%) - Consumer 435 193 237 362 83% 30 049 23 949 12 679 89% 1 675 Total segment EBITDA 1 116 094 837 758 33% 608 865 61 431 44 780 37% 33 939 Group costs (193 853) (146 815) 32% (163 415) (10 743) (7 844) 37% (9 109) Group Adjusted EBITDA 922 241 690 943 33% 445 450 50 688 36 936 37% 24 830 Once -off items (321 900) (34 538) 832% (34 479) (17 826) (1 853) 862% (1 922) Stock -based compensation charges (173 470) (148 001) 17% (131 123) (9 550) (7 911) 21% (7 309) Depreciation & amortization (224 480) (172 861) 30% (155 846) (12 337) (9 246) 33% (8 536) PPA amortization (387 817) (269 709) 44% (269 063) (21 384) (14 419) 48% (15 149) Interest adjustment 39 923 - n/m - 2 195 - n/m - Impairment loss (334 929) - n/m (126 280) (18 863) - n/m (7 039) Unrealized Loss FV for currency adjustments (473) 1 421 (133%) (3 983) (23) 83 (128%) (222) Operating income (loss) (480 905) 67 255 (815%) (275 324) (27 100) 3 590 (855%) (15 347) Interest income 47 108 42 896 10% 33 243 2 596 2 294 13% 1 853 Interest expense (389 882) (354 048) 10% (333 092) (21 453) (18 932) 13% (18 567) Reversal of (allowance) of EMI doubtful debt - 4 741 n/m - - 250 (100%) - Loss on disposal of equity -accounted investment (2 886) - n/m (3 678) (161) - n/m (205) Gain related to fair value adjustment to currency options - - n/m - - - n/m - Gain on disposal of equity securities - - n/m - - - n/m - Change in fair value of equity securities (1 089 871) - n/m - (59 828) n/m - (Loss)/Income before income taxes benefit (expense) (1 916 436) (239 156) 701% (578 851) (105 946) (12 798) 728% (32 266)
Page 44
44 (R55m) (R15m) (R16m) (R13m) R378m R411m R446m R510m R186m R130m R145m R190m R547m R854m R782m R812m R1 056m R1 380m R1 357m R1 499m Q1 Q2 Q3 Q4 (R19m) (R36m) (R53m) (R110m) R291m R313m R338m R353m R139m R182m R170m R228m R499m R510m R496m R545m R909m R969m R951m R1 016m Q1 Q2 Q3 Q4 Consistent execution | Continue to deliver on both growth and profitability Net Revenue | Quarterly FY24 Group Net Revenue FY25 R18.71 R18.71 R18.88 R18.47 R17.72 USD/ZAR exchange rate R17.85 47% yoy R18.40 Totals might not precisely match because of rounding. R17.87 ConsumerMerchantLesaka Enterprise Eliminations
Page 45
45 (R105m) (R19m) (R19m) R22m R127m R127m (R30m) (R67m) (R67m) (R127m) R40m R59m Q3 Q4 Reported¹ Q4 Adjusted¹ R79m R78m R117m R162R7m R3m R15mR136m R185m R150m R187m (R53m) (R50m) (R33m) (R58m) R168m R212m R237m R306m Q1 Q2 Q3 Q4 Consistent execution | Continue to deliver on both growth and profitability Growth rates reflected on a ZAR basis. 1. FY22 Q4 reported includes Pre -existing Lesaka for the full quarter and Connect Group from April 14. 2022 to June 30. 2022. FY22 Q4 adjusted includes an estimate of additional revenue and EBITDA that would have been reported if the Connect Group was acquired at the start of FY22 Q4. 01 April 2022. 2. Segment Adjusted EBITDA is a defined term and is before Group Costs. Refer to Appendix for a full reconciliation of Net incom e to EBITDA. 3. FY23 Enterprise Division is included in the Merchant Division EBITDA. Sums may not add due to rounding. Group Adjusted EBITDA (loss) Quarterly (R32m) R3m R23m R40m R130m R154m R143m R149m (R39m) (R40m) (R41m) (R42m) R58m R117m R125m R146m Q1 Q2 Q3 Q4 R40m R48m R71m R79mR15m R17m R14m R9m R129m R140m R140m R136m (R34m) (R38m) (R42m) (R34m) R150m R168m R183m R 190m Q1 Q2 Q3 Q4 Group Adjusted EBITDA (loss) 3 USD/ZAR exchange rate FY22 $1m $1m R0m R15.61 R15.56 R17.13 R17.52 R17.93 R18.74 R18.71 R18.71 R18.88 R18.47 R17.72 R17.85R15.56 R18.40 R17.87 FY23 FY24 FY25 61% YoY Connect FY22 Q4 contribution prior to acquisition (1 -14 April 2022)Consumer Segment Adj. EBITDA Merchant Segment Adj. EBITDA Group costs Group Adj. EBITDAEnterprise
Page 46
46 Segment Adjusted EBITDA (loss) The Company evaluates segment performance based on segment earnings before interest, tax, depreciation and amortization (“EBI TDA”), adjusted for items mentioned in the next sentence (“Segment Adjusted EBITDA”), the Company’s reportable segments’ measure of profit or loss. The Company i s working on obtaining a separate lending facility to fund a portion of its Consumer lending during the twelve months ended June 30, 2025. The Company has included an intercompany interest expense in its Consumer Segment Adjusted EBITDA for the three and nine months ended March 31, 2025. The Company does not allocate once -off item s, stock -based compensation charges, depreciation and amortization, impairment of goodwill or other intangible assets, other items (including gains or lo sses on disposal of investments, fair value adjustments to equity securities), interest income, certain interest expense, income tax expense or loss from equity -accounted i nvestments to its reportable segments. Group costs generally include: employee related costs in relation to employees specifically hired for group roles and related directly to managing the US -listed entity; expenditures related to compliance with the Sarbanes -Oxley Act of 2002; non -employee directors’ fees; legal fees; group and US -listed related audit fees; and directors and officer’s insurance premiums. Group Adjusted EBITDA (loss) Group Adjusted EBITDA is net loss before interest, taxes, depreciation and amortization, adjusted for non -operational transactio ns (including loss on disposal of equity - accounted investments), loss from equity -accounted investments, stock -based compensation charges and once -off items. Once -off it ems represent non -recurring expense items, including costs related to acquisitions and transactions consummated or ultimately not pursued. Group Adjusted EBITDA margin is Group Adjusted EBITDA divided by revenue. Adjusted earnings and Adjusted earnings per share Adjusted earnings and Adjusted earnings per share is GAAP net loss and loss per share adjusted for the amortization of acquis ition-related intangible assets (net of deferred taxes), stock -based compensation charges, and unusual non -recurring items, including costs related to acquisitions and transacti ons consummated or ultimately not pursued. Adjusted earnings and Adjusted earnings per share for fiscal 2025 also includes adjustments related to the changes in the fai r value of equity securities (net of deferred tax), impairment loss related to goodwill and intangible assets, an adjustment for deferred tax adjustments to the valuation allowa nce for a subsidiary which released its valuation allowance related to net operating losses in full during Q4 2025, loss on disposal of equity -accounted investments and intangibl e asset amortization, net related to non - controlling interests. Adjusted earnings and Adjusted earnings per share for fiscal 2024 also includes an impairment loss rel ated to an equity -accounted investment, unrealized currency loss related to our non -core business which we are in the process of winding down and a reversal of allowanc e for doubtful loan receivable. Management believes that the Group Adjusted EBITDA, Adjusted earnings and Adjusted earnings per share metrics enhance its own evaluation, as well as an investor’s understanding, of our financial performance. Attachment A presents the reconciliation between GAAP net loss attributable to L esaka and these non -GAAP measures. Net Revenue This eliminates the effect of changes in revenue mix between agency and principal sales of airtime, electricity and other pro ducts, which can be material. Net Revenue is calculated as GAAP Revenue less: • the cost of prepaid airtime vouchers sold by us and • commissions paid to third parties selling all other agency -based products (including pinless airtime, electricity and other products) provided through our distribution channels Use of non-GAAP measures U.S. securities laws require that when we publish any non-GAAP measures. we disclose the reason for using these non-GAAP measures and provide reconciliations to the most directly comparable GAAP measures. We have received requests from investors and analysts to provide additional details regarding our reported results, and we provide these non-GAAP measures to enhance our own evaluation. as well as our investors’ and analysts’ understanding. of our financial performance. Management has provided its outlook regarding Net Revenue, Group Adjusted EBITDA and Adjusted earnings per share, which are non- GAAP financial measures and excludes certain revenue and charges. Management has not reconciled these non-GAAP financial measures to the corresponding GAAP financial measures because guidance for the various reconciling items is not provided. Management is unable to provide guidance for these reconciling items because they cannot determine their probable significance, as certain items are outside of the control of Lesaka and cannot be reasonably predicted since these items could vary significantly from period to period. Accordingly, reconciliations to the corresponding GAAP financial measure is not available without unreasonable effort. Defined terms – non-GAAP measures
Page 47
47 Reconciliation of non-GAAP measures | Net Revenue | Year Net Revenue is calculated as GAAP Revenue less: • The cost of prepaid airtime vouchers sold by us, and • Commissions paid to third parties selling all other agency -based products (including pinless airtime. electricity and other products) provided through our distribution channels. ZAR’000 USD’000 Net Revenue - Group FY25 FY24 FY23 FY25 FY24 FY23 Revenue 11 980 399 10 553 233 9 471 800 659 701 564 222 527 971 Cost of prepaid airtime vouchers sold by us & commissions paid to third parties selling all other agency -based products (6 689 046) (6 708 167) (5 758 244) (368 460 ) (358 624) (322 759) Net Revenue 5 291 353 3 845 066 3 713 556 291 241 205 598 205 212 Net Revenue as a percentage of GAAP Revenue reported 44% 36% 39% 50% 36% 39% Net Revenue – Merchant Revenue 9 562 360 8 599 450 7 639 623 526 598 459 790 425 843 Cost of prepaid airtime vouchers sold by us & commissions paid to third parties selling all other agency -based products (6 567 254) (6 550 156) (5 600 208) (361 754) (350 183) (313 859) Net Revenue 2 995 106 2 049 294 2 039 415 164 844 109 607 111 984 Net Revenue as a percentage of GAAP Revenue reported 31% 24% 27% 31% 24% 26% Net Revenue - Enterprise Revenue 773 057 877 317 738 680 42 556 46 897 41 175 Cost of prepaid airtime vouchers sold by us & commissions paid to third parties selling all other agency -based products (121 792) (158 011) (158 036) (6 706) (8 441) (8 900) Net Revenue 651 265 719 306 580 644 35 850 38 456 32 275 Net Revenue as a percentage of GAAP Revenue reported 84% 82% 79% 84% 82% 78%
Page 48
48 Reconciliation of non-GAAP measures | Net Revenue | Quarterly Net Revenue is calculated as GAAP Revenue less: • The cost of prepaid airtime vouchers sold by us, and • Commissions paid to third parties selling all other agency -based products (including pinless airtime. electricity and other products) provided through our distribution channels. ZAR’000 USD’000 Net Revenue - Group FY25 Q4 FY24 Q4 FY23 Q4 FY25 Q4 FY24 Q4 FY23 Q4 Revenue 3 080 538 2 711 155 2 495 398 168 467 146 046 133 149 Cost of prepaid airtime vouchers sold by us & commissions paid to third parties selling all other agency -based products (1 581 817) (1 694 661) (1 523 493) (86 462) (91 274) (81 290) Net Revenue 1 498 721 1 016 494 971 905 82 005 54 772 51 859 Net Revenue as a percentage of GAAP Revenue reported 49% 37% 39% 49% 38% 39% Net Revenue – Merchant Revenue 2 358 795 2 204 409 2 017 493 128 957 118 746 107 649 Cost of prepaid airtime vouchers sold by us & commissions paid to third parties selling all other agency -based products (1 547 169) (1 659 278) (1 488 525) (84 562) (89 370) (79 424) Net Revenue 811 626 545 131 528 968 44 395 29 376 28 225 Net Revenue as a percentage of GAAP Revenue reported 34% 25% 26% 34% 25% 26% Net Revenue - Enterprise Revenue 224 649 263 547 141 385 12 296 14 187 7 544 Cost of prepaid airtime vouchers sold by us & commissions paid to third parties selling all other agency -based products (34 648) (35 383) (34 968) (1 900) (1 904) (1 866) Net Revenue 190 001 228 164 106 417 10 396 12 283 5 678 Net Revenue as a percentage of GAAP Revenue reported 85% 87% 75% 85% 87% 75%
Page 49
49 Reconciliation of non-GAAP measures | Quarterly FY25 Q4 FY24 Q4 FY23 Q4 FY25 Q4 FY24 Q4 FY23 Q4 ZAR’000 ZAR’000 ZAR’000 USD’000 USD’000 USD’000 Average exchange rate for conversion from ZAR to $ 17.87 18.47 18.74 17.87 18.47 18.74 Loss attributable to Lesaka – GAAP (514 693) (93 201) (223 192) (28 770) (5 035) (11 909) Net income attributable to non -controlling interest 3 172 - - 178 - - Net loss (517 865) (93 201) (223 192) (28 948) (5 035) (11 909) (Earnings) from equity accounted investments (449) (743) 47 509 (25) (40) 2 535 Net loss before earnings from equity -accounted investments (518 314) (93 944) (175 683) (28 973) (5 075) (9 374) Income tax (benefit) expense (159 145) 27 371 (34 560) (8 930) 1 482 (1 844) Loss before income tax expense (677 459) (66 573) (210 243) (37 903) (3 593) (11 218) Reversal of (allowance) of EMI doubtful debt - - - - - - Loss on disposal of equity -accounted investment - - 225 - - 12 Impairment loss 334 929 - 131 921 18 863 - 7 039 Change in fair value of equity securities 101 377 - - 5 676 - - Unrealized (gain) loss FV for currency adjustments (1 377) (3 390) 3 355 (79) (184) 179 Operating income (loss) after PPA amortization and net interest (non -GAAP) (242 530) (69 963) (74 742) (13 443) (3 777) (3 988) PPA amortization (amortization of acquired intangible assets) 141 588 67 891 67 266 7 796 3 657 3 590 Operating income/(loss) before PPA amortization after net interest (non -GAAP) (100 942) (2 072) (7 476) (5 647) (120) (398) Interest expense 82 051 85 786 96 687 4 470 4 620 5 159 Interest income (11 761) (13 587) (10 945) (644) (732) (584) Operating income/(loss) before PPA amortization and net interest (non -GAAP) (30 652) 70 127 78 266 (1 821) 3 768 4 177 Interest adjustment 5 055 - - 283 - - Depreciation and amortization (excluding amortization of acquired intangibles) 55 045 47 271 41 303 2 997 2 548 2 203 Stock -based compensation charges 37 157 41 912 25 376 2 032 2 258 1 354 Once -off items 238 974 31 047 1 199 13 227 1 684 64 Group Adjusted EBITDA (Non -GAAP) 305 579 190 357 146 144 16 718 10 258 7 798
Page 50
50 Reconciliation of non-GAAP measures | Yearly FY25 FY24 FY23 FY25 FY24 FY23 ZAR’000 ZAR’000 ZAR’000 USD’000 USD’000 USD’000 Average exchange rate for conversion from ZAR to $ 17.90 18.68 17.94 17.90 18.68 17.94 Loss attributable to Lesaka – GAAP (1 583 747) (326 070) (629 227) (87 504) (17 440) (35 074) Net income attributable to non -controlling interest 2 307 - - 130 - - Net loss (1 586 054) (326 070) (629 227) (87 634) (17 440) (35 074) (Earnings) from equity accounted investments (2 035) 24 298 91 799 (114) 1 279 5 117 Net loss before earnings from equity -accounted investments (1 588 089) (301 772) (537 428) (87 748) (16 161) (29 957) Income tax (benefit) expense (328 347) 62 616 (41 423) (18 198) 3 363 (2.309) Loss before income tax expense (1 916 436) (239 156) (578 851) (105 946) (12 798) (32 266) Reversal of (allowance) of EMI doubtful debt - (4 741) - - (250) - Loss on disposal of equity -accounted investment 2 886 - 3 678 161 - 205 Impairment loss 334 929 - 126 280 18 863 - 7 039 Change in fair value of equity securities 1 089 871 - - 59 828 - - Unrealized (gain) loss FV for currency adjustments 473 (1 421) 3 983 23 (83) 222 Operating income (loss) after PPA amortization and net interest (non -GAAP) (488 277) (245 318) (444 910) (27 071) (13 131) (24 800) PPA amortization (amortization of acquired intangible assets) 387 817 269 709 269 063 21 384 14 419 15 149 Operating income/(loss) before PPA amortization after net interest (non -GAAP) (100 460) 24 391 (175 847) (5 687) 1 288 (9 651) Interest expense 389 882 354 048 333 092 21 453 18 932 18 567 Interest income (47 108) (42 896) (33 243) (2 596) (2 294) (1 853) Operating income/(loss) before PPA amortization and net interest (non -GAAP) 242 314 335 543 124 002 13 170 17 926 7 063 Interest adjustment (39 923) - - (2 195) - - Depreciation and amortization (excluding amortization of acquired intangibles) 224 480 172 861 155 846 12 337 9 246 8 536 Stock -based compensation charges 173 470 148 001 131 123 9 550 7 911 7 309 Once -off items (refer to slide 43) 321 900 34 538 34 479 17 826 1 853 1 922 Group Adjusted EBITDA (Non -GAAP) 922 241 690 943 445 450 50 688 36 936 24 830
Page 51
51 Reconciliation of non-GAAP measures Adjusted Earnings & EPS (ZAR) Notes : Adjusted earnings (loss) and adjusted earnings (loss) per share are non -GAAP measures. Refer to Appendix for a full reconciliati on of non -GAAP measures. Items adjusted for comprises: Change in fair value of equity securities (net), intangible asset amortization (net), stock -based compensation charges, transaction costs, indirect taxes provision release, net loss on disposal of equity -accounted investments, income recognized related to closure of legacy businesses, and other items. From FY25 Q4 onwards, the adjusted earnings definition now includes all adjustment as described and the adjustment of deferre d tax assets recognized. Adjusted Earnings ZAR FY25 Q4 Adj. EPS FY24 Q4 Adj. EPS FY23 Q4 Adj. EPS FY25 Adj. EPS FY24 Adj. EPS FY23 Adj. EPS Net loss attributable to Lesaka (GAAP) (514 693) (6.33) (93 201) (1.44) (223 192) (3.50) (1 583 747) (19.49) (326 070) (5.07) (629 227) (9.89) Change in fair value of equity securities 101 377 - - 897 634 - - Intangible asset amortization, net of tax 103 359 49 563 49 104 279 522 196 875 196 990 Release of valuation allowance related to EPFS deferred tax asset (209 894) (6 362) (36 801) (226 576) (17 000) (26 874) Stock -based compensation charge 37 157 39 482 25 376 173 470 145 571 131 123 Transaction -related costs 237 741 31 047 975 324 175 52 192 15 159 Impairment loss 326 195 - 131 921 326 195 - 126 280 Other 1 233 - 5 079 (2 275) - 19 393 Loss on sale of equity method investment - - 225 2 886 - 3 678 Intangible asset amortization, net related to non -controlling interest (2 091) - - (5 097) - - Impairment of equity method investments - - - - 22 084 19 913 Reversal of allowance for doubtful EMI loans receivable - - - - (4 741) - (Income recognized) Expenses incurred related to closure of legacy businesses - - - - (17 648) 7 086 Change in tax rate - - - - - (23 304) Adjusted earnings (non -GAAP) 80 384 0.99 20 529 0.32 (47 313) (0.74) 186 187 2.29 51 263 0.80 (159 783) (2.51)
Page 52
52 Reconciliation of non-GAAP measures Adjusted Earnings & EPS (USD) Notes : Adjusted earnings (loss) and adjusted earnings (loss) per share are non -GAAP measures. Refer to Appendix for a full reconciliati on of non -GAAP measures. Items adjusted for comprises: Change in fair value of equity securities (net), intangible asset amortization (net), stock -based compensation charges, transaction costs, indirect taxes provision release, net loss on disposal of equity -accounted investments, income recognized related to closure of legacy businesses, and other items. From FY25 Q4 onwards, the adjusted earnings definition now includes all adjustment as described and the adjustment of deferre d tax assets recognized. Adjusted Earnings USD FY25 Q4 Adj. EPS FY24 Q4 Adj. EPS FY23 Q4 Adj. EPS FY25 Adj. EPS FY24 Adj. EPS FY23 Adj. EPS Net loss attributable to Lesaka (GAAP) (28 770) (0.35) (5 035) (0.08) (11 909) (0.19) (87 504) (1.14) (17 440) (0.27) (35 074) (0.55) Change in fair value of equity securities 5 676 - - 49 294 - - Intangible asset amortization, net of tax 5 691 2 670 2 621 15 610 10 543 10 981 Release of valuation allowance related to EPFS deferred tax asset (11 741) (342) (1 964) (12 665) (906) (1 498) Stock -based compensation charge 2 032 2 258 1 354 9 550 7 911 7 309 Transaction -related costs 13 158 1 684 52 17 953 2 805 845 Impairment loss 18 371 - 7 039 18 371 - 7 039 Other 69 - 271 (127) - 1 081 Loss on sale of equity method investment - - 12 161 - 205 Intangible asset amortization, net related to non -controlling interest (117) - - (282) - - Impairment of equity method investments - - - - 1 167 1 110 Reversal of allowance for doubtful EMI loans receivable - - - - (250) - (Income recognized) Expenses incurred related to closure of legacy businesses - - - - (952) 395 Change in tax rate - - - - - (1 299) Adjusted earnings (non -GAAP) 4 369 0.05 1 235 0.02 (2 524) (0.04) 10 361 0.13 2 878 0.04 (8 906) (0.14)
Page 53
53 Once-off items | Quarterly and for the year Once-off items are non -recurring in nature, however, certain items may be reported in multiple quarters. For instance, transacti on costs include costs incurred related to acquisitions and transactions consummated or ultimately not pursued. The transactions can span multiple quarters, for instance in fiscal 2025 we incurred significant transaction costs r elated to the acquisition of Adumo over several quarters and the transactions are generally non -recurring. ZAR’000 $’000 For the quarter FY25 Q4 FY24 Q4 FY23 Q4 FY25 Q4 FY24 Q4 FY23 Q4 Average exchange rate for conversion from ZAR to $ 17.87 18.47 18.74 17.87 18.47 18.74 Transaction costs 3 192 443 1 086 173 24 58 Transaction costs related to Adumo , Recharger, and Bank Zero acquisitions and certain compensation costs 234 549 30 604 - 12 985 1 660 - Separation of employee expense - - 1 481 - - 79 (Income recognized) Expenses incurred related to closure of legacy businesses - - 4 574 - - 244 Non-recurring revenue not allocated to segments - - (27 532) - - (1 469) Employee misappropriation of company funds - - 21 590 - - 1 152 Indirect taxes expense 1 233 - - 69 - - Total once -off items 238 974 31 047 1 199 13 227 1 684 64 The table below presents the components of once -off items for the periods presented: ZAR’000 $’000 For the year FY25 FY24 FY23 FY25 FY24 FY23 Average exchange rate for conversion from ZAR to $ 17.90 18.68 17.94 17.90 18.68 17.94 Transaction costs 32 817 9 032 15 075 1 794 480 850 Transaction costs related to Adumo , Recharger, and Bank Zero acquisitions and certain compensation costs 291 358 43 154 - 16 159 2 325 - Separation of employee expense - - 4 763 - - 262 (Income recognized) Expenses incurred related to closure of legacy businesses - (17 648) 11 341 - (952) 639 Non-recurring revenue not allocated to segments - - (27 532) - - (1 469) Employee misappropriation of company funds - - 22 487 - - 1 202 Indirect taxes expense (2 275) - 7 854 (127) - 438 Total once -off items 321 900 34 538 33 988 17 826 1 853 1 922
Page 54
54 Outlook on stock-based compensation charges • Current level of SBC reflects higher amounts due to senior executive sign-on that will vest over the next year (by the end of FY26) linked to performance • FY24 and FY25 increase relates to appointment of executive chairman • Long-term incentive plan (“LTIP”) awards are indicative of the continued run-rate cost - Medium to long term run rate normalizes over time • Long-term stock-based costs are largely linked to share option values and accrue based on value creation - Options included have a strike price ranging from $6 per share to $14 per share - Restricted stock awards with a vesting target price of $7.60 during fiscal 2028 Stock-based compensation charges (in ZAR m) Exec sign onConnect acquisitionLTIP 25,000 70,794 80,958 99,000 57,349 4,129 8,761 48,331 51,054 39,005 11,255 10,676 15,989 35,465 73,343 75,343 57,594 F22 F23 F24 F25 F26e F27e F28e