{
  "id": 6571685,
  "title": "Lesaka turns first profit since its Net 1 rebrand",
  "url": "https://urgent.news/2026/09/10/lesaka-turns-first-profit-since-its-net-1-rebrand",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-09-10T09:23:09.000Z",
  "source": {
    "name": "ITWeb",
    "slug": "itweb",
    "url": "https://www.itweb.co.za/article/lesaka-turns-first-profit-since-its-net-1-rebrand/Olx4z7kaLGoq56km"
  },
  "original_language": "en",
  "account": "Lesaka, the dual-listed fintech firm, has reported a net profit for the first time since its creation in 2022, following a brand refresh and integration strategy. Executive Chairman Ali Mazanderani expressed delight at reaching full-year net profitability, as the company reported a $2.8 million (R47.3 million) net profit for the 2026 fiscal year. This marked a stark contrast to the $91 million (R1.63 billion) loss incurred during the previous year.\n\nThe positive turn of events comes after Lesaka underwent a comprehensive rebranding exercise, aimed at creating a unified identity for its various business units under the 'One Lesaka' moniker. The company's CEO, Chris Meyer, joined the organization in 2021, following controversy over its social grants business, which had been accused of misusing beneficiary data to sell financial products. At the time, the company was reportedly burning more than R500 million annually and operating at a loss.\n\nDespite the initial financial challenges, Lesaka has managed to deliver on its 2026 financial year guidance and exceed the top end of its adjusted earnings per share (EPS) guidance range. In February 2026, the company had projected adjusted EPS to be at least R4.60, which later increased to the range of R5.50 to R6.00 in Q3. Ultimately, the full-year adjusted EPS came in at R6.51, outperforming expectations.\n\nRevenue for the year increased by 1.7% to R12.2 billion, while adjusted earnings before interest, tax, depreciation, and amortisation (EBITDA) rose by 41% to R1.28 billion. However, the growth was not evenly distributed across all business units. Merchant revenue declined by 10% to R8.61 billion, while consumer revenue grew by 38% to R2.4 billion and enterprise revenue surged by 62% to R1.26 billion.\n\nLesaka's rebranding efforts have been met with mixed results. While the consumer unit enjoyed record year, with robust customer acquisition and cross-sell results driving profitability, the merchant segment faced a 10% revenue decline. The company spent $3 million (R50.75 million) on the brand refresh in 2026 and another $1.6 million (R27.1 million) exiting its ATM business. Despite these costs, Lesaka remains optimistic about its future prospects, with Mazanderani stating that the company is entering 2027 with \"real momentum and a platform built for strong, sustainable growth.\"",
  "summary": "The fintech firm swings from a R1.63 billion loss to a R47.3 million profit, as it brings its businesses together under the Lesaka brand.",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}