Sep 10, 2026 earnings call — Bank Zero acquisition and FY2027 guidance
Full-year FY 2027 guidance: net revenue of ZAR 7 billion to ZAR 7.7 billion.
Revenue $0.1B (est $0.1B) · EPS $0.15 (est $0.09)
Key quotes
"we expect a deposit base in excess of ZAR 1 billion by December 2026."
"Consumer has had an outstanding year. Net revenue grew by 38% to ZAR 2.4 billion,"
"Merchant net revenue declined 10% to ZAR 729 million."
Analyst Q&A 4
Merchant Q4 and Q1 restructuring
Q (Ross Krige · Investec): The analyst asked why merchant performance in Q4 was worse than expected and what the Q1 restructuring will involve and whether it is a one-off.
A: Management said FY 2026 merchant performance was weaker than expected and issues were mainly timing and cost related, notably margin softness in ADP. They said the Q1 restructuring is cost-focused and they do not expect the impact to continue beyond early Q2; guidance reflects that.
"I think that the issues are more issues of timing, relative to anything else." — Ali Mazanderani
ATM exit and bank acquisition effects
Q (Theodore O'Neill · Litchfield Hills): The analyst asked if exiting the ATM business hurt merchant results and whether merchant performance will rebound after the bank acquisition; also asked about promotion and any higher OpEx in 2027.
A: Management said the ATM exit was a deliberate, non-core decision that caused a small, one-time impact and the related costs will not recur. They said merchant transformation should drive growth in H2 and the Bank Zero acquisition adds benefits across divisions, widening products for merchants and consumers; details on promotion and OpEx were not specified yet.
"This is a business that we've highlighted before, that it was not part of the core strategy going forward." — Lincoln C. Mali
Competition from banks and fintechs
Q (Guru Sidaarth · Oppenheimer): The analyst asked how Lesaka will compete as incumbent banks and local fintechs enter the merchant market and what implications to expect.
A: Management said Lesaka has three strategic advantages: modern technology that avoids legacy constraints, a direct human distribution model supported by technology to reach customers where they are, and freedom to iterate without protecting legacy profit pools. They argued these points create efficiency and a competitive moat that should let Lesaka disrupt incumbent banks over time.
"The second structural opportunity we have is the disruption of distribution, and that's embedded in that where you are tagline." — Ali Mazanderani
Consumer/enterprise margins, working capital, Bank Zero capital
Q (Ross Krige · Investec): The analyst asked about medium-to-longer term consumer margins and OpEx, sustainability of enterprise margins, working capital guidance and loan flow expectations for FY 2027, and capital requirements for Bank Zero.
A: Management said enterprise is expected to be the fastest growing segment this year with sustainable growth and room for margin increase. For consumer, margin guidance has averaged around 35% with recent quarter at 38% and they expect operational leverage to push margins up over time, though seasonality can cause quarter-to-quarter swings. They gave working capital guidance of 1% to 2% of net revenue annually, said consumer loan book growth will be funded from free cash flow until Bank Zero, and noted they cannot yet specify Bank Zero capital requirements but have used conservative assumptions in their models.
"For the last quarter, our consumer margin ended up being 38%, a little bit elevated compared to previous quarters." — Dan Smith