LSAK: Revenue grew, but Merchant reset costs drove lower EBITDA and EPS

What happened

Lesaka reported net revenue growth of 8% to R1.583bn, while Group Adjusted EBITDA, a measure of operating earnings, fell 17% and Adjusted EPS, adjusted earnings per share, fell 26%. Growth in Consumer and Enterprise was offset by Merchant reset costs, and FY27 guidance anticipates stronger Merchant performance in Q2.

Confirmed

Global impact / market context

The results show that higher revenue did not translate into stronger operating earnings or earnings per share. Merchant reset costs offset growth in other businesses, so the expected improvement in Merchant performance in Q2 matters to whether costs ease and profit recovers.

Analyst inference

The supplied article gives no share-price move, analyst forecasts, or detailed segment figures, so the scale of any surprise cannot be assessed. Investors can compare future Merchant performance and costs with the stated Q2 expectation to judge whether growth becomes more profitable.

Analyst inference

What to watch

1. Check the next reported results for Merchant performance in Q2, which the FY27 guidance anticipates will be stronger; the article does not specify a target level. Confirmed
2. Look for details on Merchant reset costs, including whether they decline; lower costs could help operating earnings recover even if revenue growth moderates. Analyst inference
3. Compare Consumer and Enterprise growth with Merchant results in future updates to see whether gains across those businesses can offset Merchant costs. Analyst inference

Evidence

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