1. Square (Block) for Southern Africa's unbanked consumers and small businesses.

2. Alipay for Southern Africa's unbanked.

• Consumer Financial Services: Offers accessible banking accounts, debit cards, and money transfer solutions to individuals, especially in underserved markets.
• Merchant Payment Solutions: Provides businesses with point-of-sale (POS) devices, payment processing, and merchant acquiring services to accept electronic payments.
• Business Funding: Supplies small and medium-sized enterprises (SMEs) with working capital loans and other short-term financing options.

Lesaka Technologies (LSAK) serves a diverse customer base in Southern Africa. While the company provides payment solutions and value-added services to a vast network of small and informal merchants (who are business customers), its direct customer base for financial products also significantly includes individuals. Given that its merchant customers are numerous, small, and generally not individually named public companies, the following identifies the major categories of individual customers that Lesaka primarily serves through its Consumer Financial Services segment and indirectly through its merchant network.

Major Categories of Individual Customers for Lesaka Technologies:

• Unbanked and Underbanked Individuals: This core segment includes individuals who historically have limited or no access to traditional banking services due to factors such as income, location, or lack of formal identification. Lesaka targets these individuals by providing accessible and affordable financial solutions, such as the EasyPay Everywhere bank account, enabling them to manage funds, make payments, and access essential financial services.

• Recipients of Social Welfare Grants and Remittances: A significant portion of Lesaka's individual customers consists of those who receive government social grants (such as SASSA grants in South Africa) or rely on remittances from family members. Lesaka's platform offers a secure and convenient channel for these individuals to receive, access, and manage their funds through its extensive banking and merchant network.

• Consumers Seeking Convenient Payment and Value-Added Services: This category encompasses individuals who utilize Lesaka's extensive point-of-sale network for everyday transactions beyond core banking. This includes purchasing prepaid electricity and airtime, paying bills, and accessing other value-added services. These customers value the convenience, accessibility, and reliability offered by Lesaka's distributed infrastructure, often found in local community points of sale.

• Visa Inc. (V)
• Mastercard Incorporated (MA)

Lincoln C. Mali, Chief Executive Officer, Southern Africa

Lincoln C. Mali was appointed as Lesaka Technologies' Chief Executive Officer for Southern Africa on May 1, 2021. He is a financial services executive with over 25 years of experience in the industry. Prior to joining Lesaka, he served as the Head of Group Card and Payments at Standard Bank Group, having held various roles within that organization since 2001. Mali also chaired the board of directors of Diners Club South Africa until April 2021 and was a member of the Central and Eastern Europe, Middle East and Africa Business Council for Visa. He has an MBA from Henley Management College and an LLB from Rhodes University, and has attended an Advanced Management Program at Harvard Business School. Mali has been instrumental in a turnaround at Lesaka, where the company transitioned from burning cash to generating over 500 million rand in cash, and achieved operating income for the first time in five years. He focuses on financial inclusion and the informal market.

Dan Smith, Group Chief Financial Officer

Dan Smith was appointed as Group Chief Financial Officer and joined Lesaka's board on October 1, 2024. He is a Chartered Accountant (South Africa) with over 25 years of corporate finance experience. Prior to this role, Smith was an Investment Director at Value Capital Partners (Pty) Ltd, which is Lesaka's largest shareholder, and has been actively involved in the development of Lesaka since 2021. His experience includes heading the Mergers & Acquisitions investment banking team at Standard Bank South Africa. He has also served on the boards of JSE-listed PPC Limited and ADvTECH Limited.

Naeem Kola, Group Chief Operating Officer

Naeem Kola was appointed as Group Chief Operating Officer of Lesaka Technologies on October 1, 2024. He previously served as the Group Chief Financial Officer from March 1, 2022. Kola has held progressively senior finance roles across the Middle East and Africa, including as Chief Financial Officer of Emerging Markets Payments Group (EMP), a fintech business that grew significantly and integrated five acquisitions during his six-year tenure. After EMP's acquisition by Network International in 2017, he served as an Operations Director and Strategic Advisor to the private equity firm Actis, focusing on fintech businesses. He is a member of The South African Institute of Chartered Accountants.

Ali Mazanderani, Executive Chairman

Ali Mazanderani assumed the role of Executive Chairman of Lesaka Technologies on February 1, 2024. His vision has been instrumental in shaping Lesaka's strategic focus since his board appointment in 2020. Mazanderani is also a co-founder of the European fintech company Teya. He has held director roles at other major fintech firms, including StoneCo and Network International. Additionally, he serves as a Director of Thunes and Kushki, and as President of The European Digital Payments Industry Alliance.

Kagiso Khaole, Chief Executive Officer, Merchant Division

Kagiso Khaole was appointed Chief Executive Officer of the Merchant Division at Lesaka Technologies on September 1, 2025. He brings over a decade of experience in driving growth and innovation at leading global technology companies in Africa. Most recently, Khaole led Starlink's expansion across 25 African markets for SpaceX and previously served as General Manager for sub-Saharan Africa at Uber.

1. Financial Restatement and Securities Fraud Investigation: Lesaka Technologies recently disclosed that its unaudited financial statements for Q3 2024, Q4 2024, and Q1 2025 require restatement due to the misclassification of certain revenues. This error involved recording principal sales as agent sales, which affected reported revenue and cost of goods sold, although the net loss remained unchanged. This restatement has led to a significant decline in the company's stock price and initiated a securities fraud investigation.

2. Geopolitical, Regulatory, and Economic Risks in South Africa: As Lesaka Technologies primarily operates in South Africa, it is highly exposed to the country's economic downturns, geopolitical risks, and regulatory uncertainties. Economic instability can negatively impact merchants, retailers, and account holders, affecting transaction volumes, uptake of financial services, and loan repayment capabilities. Additionally, regulatory changes and political instability in South Africa could threaten the company's operations and profitability. The company is also exposed to currency risk due to most of its revenue being generated in the South African market.

3. Operational Challenges and Acquisition Integration: Lesaka Technologies is undergoing a turnaround and has recently made significant acquisitions, such as the Connect Group, Adumo, and Recharger. The successful execution of its turnaround plan and the seamless integration of these acquired entities are critical to realizing anticipated synergies and growth. Failure to manage operational challenges or integrate acquisitions effectively could disrupt business development and impede the company's growth strategy.

The rapid rise and expansion of digital-first challenger banks and mobile money platforms pose a clear emerging threat to Lesaka Technologies. In South Africa, companies like TymeBank are aggressively targeting Lesaka's core demographic of underbanked and unbanked individuals and small and medium-sized enterprises (SMEs). TymeBank offers low-cost, accessible banking services, leveraging digital technology and strategic partnerships with major retailers for customer onboarding and cash transactions. This direct competition in core services like payment processing, bank accounts, and other financial offerings could erode Lesaka's market share. Additionally, the renewed focus and expansion of mobile money platforms from Mobile Network Operators (MNOs), such as MTN MoMo and Vodacom's M-Pesa, are intensifying competition for basic payment and transfer services among Lesaka's target customer base.

Lesaka Technologies (LSAK) operates as a fintech company primarily focused on financial inclusion in Southern Africa, specifically in South Africa, Namibia, Botswana, Zambia, and Kenya. The company provides a comprehensive suite of financial services and software to underserved consumers, micro-merchants, merchants, and enterprises. Its main products and services include transactional accounts, lending, insurance, merchant acquiring for card acceptance, cash management solutions, supplier payments, and value-added services such as prepaid airtime and bill payments.

Addressable Markets:

• Southern Africa Fintech Market: Lesaka Technologies estimates its serviceable addressable market in Southern Africa to be approximately 250 million people, with a projected net revenue of $12 billion by 2030. The broader African fintech market is anticipated to experience significant growth, with total revenue expected to increase thirteen-fold between 2021 and 2030, positioning Africa as the fastest-growing fintech market during this period. Lesaka also references an addressable GDP of $557 billion and an addressable population of 140 million across Africa.
• South Africa Fintech Market: The South Africa fintech market reached an estimated size of USD 981.32 million in 2024 and is projected to grow to USD 3,688.72 million by 2033, at a Compound Annual Growth Rate (CAGR) of 15.85% from 2025 to 2033. Other estimates place the South Africa fintech market size at USD 6.56 billion in 2022, with a projection to reach USD 19.68 billion by 2029 at a CAGR of 20.10% (2023-2029). Another source values the market at USD 7.08 billion in 2023, expected to reach USD 14.86 billion by 2033, growing at a CAGR of 7.70% from 2023 to 2033. The payment and fund transfer segment is identified as the largest application segment within this market.
• South Africa Informal Market: This sector, crucial for Lesaka's focus on micro-merchants and underbanked consumers, accounts for 30% of South Africa's GDP, with an estimated value of over R300 billion (approximately $16.7 billion). Currently, only 10% of payments in this market are digital, with the vast majority (90%) still conducted in cash, indicating a substantial opportunity for digitization.
• South Africa Digital Payments: Digital payment transaction volume in South Africa is increasing at a 29.8% CAGR, from $15.4 billion in 2024 to $456.7 billion in 2029.
• South Africa Open Banking Market: This market generated USD 334.6 million in revenue in 2024 and is expected to reach USD 1,516.6 million by 2030, demonstrating a CAGR of 28.9% from 2025 to 2030. The payments segment is particularly lucrative within this market.
• Middle East & Africa Cash Management System Market: The cash management system market in the Middle East & Africa is projected to reach US$ 3,545.5 million by 2030, with a CAGR of 14.2% from 2025 to 2030.

• Strategic Acquisitions and Integration: Lesaka Technologies is driving future revenue growth through strategic acquisitions such as Adumo, which has scaled its Merchant division into a multi-product fintech platform across Southern Africa, and Recharger, which has opened a new utilities vertical in its Enterprise division. The announced acquisition of Bank Zero is also expected to contribute by adding full banking capabilities to its fintech offering. These acquisitions are crucial for enhancing revenue and expanding Lesaka's operational capabilities.
• Expansion of Consumer and Merchant Segments: The company anticipates continued growth in its consumer division, particularly through increased uptake of consumer lending and insurance products, which are offered via platforms like EasyPay. Concurrently, Lesaka aims to grow its merchant base by expanding its digital offerings and leveraging its integrated, multi-product fintech platform to serve underserved businesses.
• Enhanced Fintech Offerings and Market Penetration in Southern Africa: Lesaka is focused on capitalizing on the significant fintech opportunities in Southern Africa by expanding its comprehensive platform, which includes transactional accounts, lending, insurance, merchant acquiring, and cash management. The company emphasizes actively reaching customers in underserved areas through its extensive field force to increase market share.

Share Repurchases

• In May 2023, Lesaka Technologies repurchased approximately 250,000 common shares at a price of $3.26 per share.

Share Issuance

• Lesaka issued 17.2 million shares to Adumo shareholders as part of the acquisition of Adumo, completed on October 1, 2024.
• In August 2024, shareholders approved a proposal for the issuance of new common stock shares related to the acquisition of Adumo RF (Pty) Ltd.
• As part of the announced acquisition of Bank Zero on June 26, 2025, Lesaka will issue shares of common stock to the sellers.

Outbound Investments

• On October 1, 2024, Lesaka completed the acquisition of Adumo for an effective purchase consideration of ZAR 1.67 billion, paid through a combination of cash and the issuance of 17.2 million shares.
• Lesaka announced the acquisition of Bank Zero on June 26, 2025, which is pending regulatory approval. This acquisition involves a consideration of up to ZAR 91.0 million ($5.1 million) in cash and Lesaka shares.
• The company successfully integrated the acquisition of Recharger into its operations during fiscal year 2025.

Capital Expenditures

• Net capital expenditures for FY2025, net of proceeds from disposal, were $(3,881) million, for FY2024 were $(4,265) million, for FY2023 were $(15,261) million, and for FY2022 were $(11,100) million.
• Capital expenditure for Q1 FY2026 was ZAR 90 million, with ZAR 51 million allocated to growth initiatives.
• Expected annual capital expenditure for FY2026 is projected to remain below ZAR 400 million, primarily focused on the expansion of the Smart Safe product, capitalization of software development, and funding additional merchant acquiring devices.