Lesaka Technologies Files Q2 2025 10-Q

Ticker: LSAK · Form: 10-Q · Filed: Feb 5, 2025 · CIK: 1041514

Lesaka Technologies INC 10-Q Filing Summary
FieldDetail
CompanyLesaka Technologies INC (LSAK)
Form Type10-Q
Filed DateFeb 5, 2025
Risk Levelmedium
Pages15
Reading Time18 min
Key Dollar Amounts$0.001, $1
Sentimentneutral

Sentiment: neutral

Topics: 10-Q, financials, operations, security

TL;DR

Lesaka Tech 10-Q filed: Q2 FY25 results out, includes merchant & other services performance, Nedbank security details.

AI Summary

Lesaka Technologies Inc. filed its 10-Q for the period ending December 31, 2024. The company reported financial results for the second quarter of fiscal year 2025, detailing performance across its operating segments, including the Merchant Segment and Other Products and Services. The filing also includes information on fair value measurements and details regarding ceded and pledged bank accounts as security with Nedbank.

Why It Matters

This filing provides investors with an update on Lesaka Technologies' financial performance and operational status for the second quarter of fiscal year 2025, impacting investment decisions.

Risk Assessment

Risk Level: medium — The filing contains financial performance data and operational details which can influence investment risk.

Key Numbers

Key Players & Entities

FAQ

What were the key financial highlights for Lesaka Technologies in the second quarter of fiscal year 2025?

The 10-Q filing for the period ending December 31, 2024, provides details on the company's financial performance across its operating segments, though specific revenue or profit figures for Q2 FY25 are not explicitly stated in the provided text snippet.

What is the significance of the 'CededAndPledgedBankAccountsAsSecurityMember' with Nedbank?

This indicates that Lesaka Technologies has pledged bank accounts as security to Nedbank, a common practice for securing loans or credit facilities.

What are the main operating segments of Lesaka Technologies mentioned in the filing?

The filing mentions the 'Merchant Segment' and 'Other Products and Services' as key operating segments for Lesaka Technologies.

When did Lesaka Technologies change its name from NET 1 UEPS TECHNOLOGIES INC?

The date of the name change from NET 1 UEPS TECHNOLOGIES INC to Lesaka Technologies Inc. was July 24, 2000.

What does 'FairValueInputsLevel1Member' refer to in the context of fair value measurements?

FairValueInputsLevel1Member refers to Level 1 inputs in the fair value hierarchy, which are unadjusted quoted prices in active markets for identical assets or liabilities that the reporting entity has the ability to access.

Filing Stats: 4,546 words · 18 min read · ~15 pages · Grade level 20 · Accepted 2025-02-05 16:11:22

Key Financial Figures

Filing Documents

Financial Statements

Financial Statements Unaudited Condensed Consolidated Balance Sheets as of December 31, 2024 and June 30, 2024 2 Unaudited Condensed Consolidated Statements of Operations for the three and six months ended December 31, 2024 and 2023 3 Unaudited Condensed Consolidated Statements of Comprehensive (Loss) Income for the three and six months ended December 31, 2024 and 2023 4 Unaudited Condensed Consolidated Statement of Changes in Equity for the three and six months ended December 31, 2024 and 2023 5 Unaudited Condensed Consolidated Statements of Cash Flows for the three and six months ended December 31, 2024 and 2023 9 Notes to Unaudited Condensed Consolidated Financial Statements 10 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 48 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 70 Item 4.

Controls and Procedures

Controls and Procedures 71

OTHER INFORMATION

Part II. OTHER INFORMATION Item 1A.

Risk Factors

Risk Factors 72 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 73 Item 5. Other Information 73 Item 6. Exhibits 74

Signatures

Signatures 75 EXHIBIT 2.2 EXHIBIT 40 EXHIBIT 41 EXHIBIT 42 EXHIBIT 43 EXHIBIT 44 EXHIBIT 45 2

Financial information

Part I. Financial information

Financial Statements

Item 1. Financial Statements LESAKA TECHNOLOGIES, INC. Unaudited Condensed Consolidated Balance Sheets December 31, June 30, 2024 2024 (A) (In thousands, except share data) ASSETS CURRENT ASSETS Cash and cash equivalents $ 60,625 $ 59,065 Restricted cash related to ATM funding and credit facilities (Note 9) 112 6,853 Accounts receivable, net and other receivables (Note 3) 46,203 36,667 Finance loans receivable, net (Note 3) 49,529 44,058 Inventory (Note 4) 27,346 18,226 Total current assets before settlement assets 183,815 164,869 Settlement assets 27,550 22,827 Total current assets 211,365 187,696 PROPERTY, PLANT AND EQUIPMENT, net of accumulated depreciation of - December: $ 48,124 June: $ 49,762 42,295 31,936 OPERATING LEASE RIGHT-OF-USE (Note 17) 7,649 7,280 EQUITY-ACCOUNTED INVESTMENTS (Note 6) 181 206 GOODWILL (Note 7) 200,760 138,551 INTANGIBLE ASSETS, NET (Note 7) 125,964 111,353 DEFERRED INCOME TAXES 6,278 3,446 OTHER LONG-TERM ASSETS, including equity securities (Note 6 and 8) 46,082 77,982 TOTAL ASSETS 640,574 558,450 LIABILITIES CURRENT LIABILITIES Short-term credit facilities for ATM funding (Note 9) - 6,737 Short-term credit facilities (Note 9) 51,152 9,351 Accounts payable 16,704 16,674 Other payables (Note 10) 59,416 56,051 Operating lease liability - current (Note 17) 3,257 2,343 Current portion of long-term borrowings (Note 9) 68,300 3,878 Income taxes payable 1,385 654 Total current liabilities before settlement obligations 200,214 95,688 Settlement obligations 26,882 22,358 Total current liabilities 227,096 118,046 DEFERRED INCOME TAXES 36,260 38,128 OPERATING LEASE LIABILITY - LONG TERM (Note 17) 4,819 5,087 LONG-TERM BORROWINGS (Note 9) 80,357 139,308 OTHER LONG-TERM LIABILITIES, including insurance policy liabilities (Note 8) 3,048 2,595 TOTAL LIABILITIES 351,580 303,164 REDEEMABLE COMMON STOCK 88,957 79,429 EQUITY COMMON STOCK (

business

business offers payment processing, integrated payments and reconciliation solutions to small-and- medium ("SME") merchants in South Africa, Namibia and Botswana, and also provides card issuing program management to corporate clients such as Anglo American and Coca-Cola; The Adumo ISV business, also known as GAAP, has operations in South Africa, Botswana and Kenya, and clients in a further 21 countries, and is the leading provider of integrated point-of-sales software and hardware to the hospitality industry in Southern Africa, serving clients such as KFC, McDonald's, Pizza Hut, Nando's and Krispy Kreme; and, The Adumo Ventures business offers online commerce solutions (Adumo Online), cloud-based, multi-channel point-of-sales solutions (Humble) and an aggregated payment and credit platform for in-store and online commerce (SwitchPay) to SME merchants and corporate clients in South Africa and Namibia. The acquisition continues the Company's consolidation in the Southern African fintech sector. At acquisition, the Company's ecosystem served approximately 1.7 million active consumers, 120,200 merchants, and processes over ZAR 270 billion in throughput (cash, card and VAS) per year. The acquisition of Adumo enhances the Company's strength in both the consumer and merchant markets in which it operates. The total purchase consideration was ZAR 1.67 billion ($ 96.2 million) and comprised the issuance of 17,279,803 shares of the Company's common stock ("Consideration Shares") with a value of $ 82.8 million ( 17,279,803 multiplied by $ 4.79 per share) and cash of $ 13.4 million. The purchase consideration was settled through the combination of the Consideration Shares and a ZAR 232.2 million ($ 13.4 million, translated at the prevailing rate of $1: ZAR 17.3354 as of October 1, 2024) payment in cash. The Company's closing price on the J

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