Lesaka (LSAK) Reports Q1 2027 Results with Strong Consumer Growth Amid Merchant Segment Decline
Lesaka (LSAK) reported its Q1 2027 financial results, characterized by a divergence between its high-performing consumer segment and a struggling merchant division. Net revenue grew 8% year-over-year to ZAR 1.58 billion, fueled by a 24% surge in consumer revenue driven by lending and insurance. However, Group Adjusted EBITDA fell 17% to ZAR 220 million due to lower earnings from the merchant segment and rising group costs. The decline in merchant performance was primarily attributed to the exit of the ATM business and the non-renewal of a key data services contract. Despite these headwinds, management issued optimistic guidance for Q2 2027, projecting Adjusted EPS between ZAR 1.00 and ZAR 1.40, which significantly exceeds current quarterly results. The company reaffirmed its full-year 2027 revenue and EBITDA targets.