Lesaka’s revenue surges as R1.1bn Bank Zero deal nears

Formerly known as Net1 UEPS Technologies, Lesaka is listed on the Johannesburg Stock Exchange and the Nasdaq.

The company delivered strong top-line and operational growth despite widening losses, the results show. Net revenue rose 38% year-on-year to R5.3 billion, while group adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) increased 33% to R922.2 million.

Adjusted earnings climbed 263% to R186.2 million, translating into adjusted earnings per share of R2.29, up 187% from the prior year.

However, the company posted a net loss of R1.6 billion, a 386% increase from R0.3 billion, with basic loss per share widening 284% to R19.49.

In June, Lesaka announced it is acquiring 100% of the issued ordinary shares of Bank Zero, subject to regulatory approvals.

Based on a zero-fee banking model, Bank Zero launched to the public in August 2021. It is co-founded by seven investors, including former First National Bank CEO Michael Jordaan and banking innovator Yatin Narsai.

Providing an update on the deal, the fintech group says: “We announced the proposed acquisition of Bank Zero in June 2025, shortly before our year-end. This is subject to the usual regulatory approvals, and we expect to complete this transaction by the end of our 2026 financial year.”

The strategic rationale for Lesaka’s planned acquisition of Bank Zero is centred on strengthening its overall value proposition, both by broadening its product range and lowering delivery costs across all divisions.

It believes the acquisition will enable Lesaka to expand the range of customers it can serve, while improving responsiveness to their needs.

By bringing key services in-house, the company also aims to reduce its reliance on third-parties and achieve significant cost savings.

The transaction is expected to reduce gross debt by approximately R1 billion through the transfer of a substantial portion of Lesaka’s consumer and merchant credit books into Bank Zero, creating greater flexibility to grow these books at a lower cost.

Lesaka’s extensive distribution network and complementary product suite will also provide Bank Zero with the resources and scale to accelerate its own growth trajectory, it says.

“The transaction will be transformative for both Lesaka and Bank Zero. Its modern, scalable technology stack relying on digital infrastructure and processes, with few third-party dependencies, makes it one of the most efficient banking operations in South Africa.

“Bank Zero is run by an exceptional, experienced and entrepreneurial team who share Lesaka’s vision to better serve consumers and businesses in South Africa. We look forward to welcoming Michael Jordaan to the Lesaka board and Yatin Narsai to our executive leadership team on completion of the transaction.”

Lesaka chairman Ali Mazanderani says: “FY2025 was a strong year for the group, delivering on our profitability guidance and advancing key strategic priorities. We expect to maintain this momentum into FY2026, and are guiding for adjusted EBITDA growth of at least 35%.

“We have also introduced an adjusted earnings per share guidance, expecting this to more than double in FY2026 to at least R4.60, from ZAR 2.29 per share this year.”

During the reporting period, Lesaka merchant division’s net revenue rose by 46% to R3 billion, and segment adjusted EBITDA increased by 20% to R687 million. The firm explains that performance was supported by the inclusion of Adumo for nine months of the year, as well as organic growth in the micro-merchant business.

The consumer division’s net revenue increased by 35% to R1.74 billion, and segment adjusted EBITDA rose by 83% to R435 million.

“A strong growth in our EPE customer base of 23% to 1.9 million, and continued cross-selling success of our lending and insurance products increasing ARPU, resulted in another record performance.”

The enterprise division’s net revenue fell by 9% to R651 million, and segment adjusted EBITDA dropped by 57% to R24 million.

According to the company, this outcome reflects the division’s restructuring during the year, including the closure of non-core businesses and rebuilding of key platforms.

“Enterprise finished the year strongly and is well-positioned to deliver significant growth in FY2026, becoming a substantial contributor to group performance and forming the third pillar of our platform.”