Despite achieving its first full annual profit since its founding in 2022, the Lesaka business segment is experiencing a decline. As a result of restructuring the seller division, which accounts for the largest share of the company's revenue, approximately 30 people have been affected by layoffs. The company does not rule out further dismissals as it integrates four acquired businesses into a single structure.
Lincoln Mali, CEO of Lesaka Southern Africa, told TechCentral that it would be naive to claim that no layoffs will occur, but an exact number cannot be provided while the process is underway.
This segment constitutes the largest part of the group, generating US$509.3 million out of Lesaka Technologies' total revenue of $721.6 million for the 2026 financial year. This specific part of the business is showing declining performance. Lesaka is listed in New York and Johannesburg.
In the fourth quarter, the adjusted profit (Ebitda) of the seller segment fell by 33% to $7.4 million, and the division's revenue dropped by 10% over the year. The rest of the group, conversely, has begun to recover. Mali noted that the restructuring in the seller segment was expected and will take place during the second half of the current financial year.
The company reported a net profit of $2.8 million for the first time in its history, contrasting with a loss of $91 million in the 2025 financial year. Meanwhile, net revenue grew by 20%, and the group's adjusted Ebitda increased by 41%. The seller segment is being rebuilt based on the former businesses Adumo, GAAP, Connect, and Kazang. Mali stated that Lesaka had previously warned that the integration would affect the division's performance, and the company's forecast accounts for this factor. He emphasized that combining these elements presents a huge challenge due to the need to revise overall systems, platforms, and various billing systems.