Lesaka Technologies, Inc.

It's happening here in the spaza shops and the spice traders. Here at the taxi ranks and the tolls. It's happening in the small exchanges, the side hustles, the homegrown businesses. We'll be right back. From groceries for tonight's meal to savings for tomorrow's dreams. From data top-ups to down payments. Less Haka is here for all of it and all of us. Here for the small acts and the big steps. Here for traders, city workers, entrepreneurs and families alike. Here for growth hackers and grant recipients, game changers and go-go's. Here in the real world, in real time. Because life isn't happening somewhere else. Life is happening here, now, where you are. Lesaka. Where you are.

Our purpose is clear, to provide financial services and software to underserved consumers and merchants across Southern Africa. This is more than a rebrand and is embodied in a represented set of values we launched to our employees last month. Integrity, collective wisdom, entrepreneurial drive, ownership, bias to action, resilience, empathy, customer first, efficiency, and meritocracy. One Lissaka is a commitment, one platform, one brand, and one shared mission, expanding financial access through technology delivered with a human touch. Aligned with our One Lissaka strategy, in June we will consolidate multiple Gauteng offices into a single location in Johannesburg. This will deliver cost efficiencies over time, but more importantly, cultural efficiencies, enabling closer collaboration, faster decision-making, and stronger integration across teams. We are also making progress consolidating our offices in Cape Town and Durban. Lusaka employs approximately 3,750 people across Southern Africa. Technology underpins our platform, but in the markets we serve, distribution is a key differentiator. Close to half our workforce are focused on growing Lasaka's footprint through sales and marketing. A further 23% focus on servicing and operations, engaging directly with customers and merchants every day. Last mile reach matters, and our teams operate daily at our clients' workplaces, in townships and rural communities, delivering financial services on the ground to the underserved. At the same time, continued innovation is essential. Around 20% of our employees are in technical roles, building platforms, developing products, and supporting our frontline teams. We also benefit from a young, energetic workforce with roughly 60% under the age of 40, with a demographic and gender mix reflective of our society. We continue to simplify the group and ensure capital is deployed where it delivers the greatest return. During the period, we exited our sell-see stake, receiving 50 million rand. We also successfully concluded what we believe to be the final outstanding matter relating to the legacy CPS contract, resulting in the release of 65 million rand of accrual. Both items contributed positively to our Q2 results on a once-off basis, but more importantly, they represent the progress towards a simplified one-less ARCA going forward. It's pleasing to note that group-adjusted EBITDA grew 47% year-on-year, which represents a largely organic growth rate, as the DUMO transactions contribution is represented in both periods. Additionally, our adjusted earnings per share, which excludes the one-off profit contributions mentioned earlier, has increased by more than six times. As previously communicated, we have also simplified how we represent the business to focus on the structural drivers of revenue. Lissaka operates through three complementary divisions, merchant, consumer, enterprise. The growth in our number of engaged customers is a function of our product value proposition and effectiveness of our distribution, whilst ARPU is a function of the level of product penetration per customer and pricing dynamics. 95% of consumers' revenue and 88% of merchants' revenue, respectively, can be explained by these core drivers for this quarter. As a reminder, the consumer ARPU is a function of three products, transactional banking, lending, and insurance, while the merchant ARPU is a function of five products, acquiring, ADP, lending, software, and cash. Enterprise follows a different core driver model, predominantly based on TPV intake rates. These core drivers are a function of corporate billers on the platform and individual commercial arrangements with different channel partners. The enterprise division has three main product offerings, ADP, utilities, and payments. We hope that this gives you as investors a clearer view on how to view the business and how the group generates sustainable value. We will continue to disclose these drivers going forward in an effort to simplify our story and show how we are tracking against our objectives. I will now hand over to Dan to take us through the financials for the period.

Thank you, Ali. Good morning and good afternoon to everyone joining us today. I'm pleased to report that we have delivered on our guidance for the 14th consecutive quarter underscoring the consistency of operational execution and the resilience of a diversified business model. Net revenue for Q2 was within our guidance range, reaching R1.6 billion, a 16% year-on-year increase. Group-adjusted EBITDA came in at R304 million, landing at just above the midpoint of our guidance and reflecting a robust 47% year-on-year increase. Our earnings profile is now approaching like-for-like comparability, with the contribution from our recharge acquisition being the only item not reflected in last year's base. Adjusted earnings, which we regard as the most appropriate indicator of our underlying performance, grew more than six-fold to R111 million for the quarter. Similarly, on a per share basis, our adjusted earnings has grown from 21 cents to R134, a very pleasing result that demonstrates the accretive impact of our acquisitions over time and ability to integrate and improve operational performance. Our leverage ratio stands at 2.5 times, flat on last quarter and significantly down from the 2.9 times at year end. As a reminder, our medium-term target remains two times or lower, which we believe is appropriate given our current structure. You'll also see that we have received competition tribunal approval for the Bank Zero transaction, which will deliver meaningful funding and balance sheet benefits once integrated into the group. Net revenue as a whole came in at R1.6 billion, up 16% on the previous year. Our merchant division net revenue pulled back 2%, primarily due to our refocusing of the merchant distribution force on clients with a high potential for cross-sell and integration, as well as ongoing pricing pressure in the market. As mentioned in previous quarters, Merchant is on a transformative journey. Consumer delivered another standout quarter, with net revenue rising 38% year-on-year to R567 million, marking another record performance for the division. Enterprise continues to show solid progress, delivering R217 million in net revenue, a 67% year-on-year improvement. This reflects the business's post-restructure base and includes inorganic benefits from the recharger acquisition. Lincoln will unpack the drivers behind each division in his operational review. Group-adjusted EBITDA grew 47% year-on-year to $304 million, slightly above the midpoint of our guidance. Merchant segment adjusted EBITDA was 170 million rand, a decrease of 6% from last year. The current fiscal year is transformative for merchant. As outlined in our Q1 investor presentation, we are building the foundations for future growth with a focus on three aspects in particular. Bringing several businesses together, unifying our merchant brand and investing in new product offerings to clients, and rationalizing our infrastructure in order to capture efficiencies. Successfully combining merchants' numerous products and companies into a cohesive go-to-market strategy requires thoughtful planning and disciplined implementation. Our new management team is making good progress and we look forward to driving growth in an industry that is ripe for disruption. Given the transformation, we expect the growth profile of Merchant to be flat for the rest of the fiscal year, with a return to growth in FY27. Consumer achieved yet another excellent performance, with segment-adjusted EBITDA more than doubling to R159 million. With ongoing improvements in distribution and strong cross-sell momentum driving ARPU, we believe consumer remains well positioned for continued growth. In particular, following the strong performance of our lending activities, we expect strong earnings growth in Q3 and Q4. Enterprise delivered R24 million in segment-adjusted EBITDA. We continue to invest in our platform and we expect stronger earnings contributions later this year and into FY27 as new product platforms come online and we internalize merchant acquiring volumes. A quarterly run rate of approximately 40 to 50 million Rand remains our short-term expectation. Our group costs were R50 million this quarter, a pleasing reduction over the previous few quarters and closer to our anticipated long-term run rate. Adjusted earnings per share continued their upward trajectory, rising more than six-fold to R1.34, reflecting the success of our combined organic and inorganic growth strategy. Cash flows from business operations continue to be healthy, totalling R419 million for the quarter and in line with our EBITDA evolution. R385 million of that cash flow was reinvested into our lending operations and R101 million to fund our interest costs. Capital expenditure for the quarter was R84 million, of which R48 million was spent investing in growth. This consists primarily of the continued expansion of our SmartSafe product, capitalization of software development costs, and funding additional merchant acquiring devices. Our leverage ratio came in at two and a half times in line with Q1, despite funding required to grow our lending book. We anticipate our leverage ratio to trend lower through FY26. As mentioned earlier, the Bank Zero transaction will allow us to fund expansionary cash flows from our lending activities with customer deposits, further deleveraging our balance sheet. This will materially increase our cash conversion rate relative to our current funding structure. Over the last five quarters, we are beginning to see the emergence and impact of the platform business we are building. As our business continues to grow through our wide distribution footprint and product innovation, we see a pleasing increase in operating margin, from approximately 15% a year ago to 19% this quarter. Post the transformation of Merchant and the acquisition of Bank Zero, we anticipate that our operating margin will trend towards 30%. Reflecting on our CapEx, we are seeing a similar trend. As stated in previous presentations, we expect our CapEx to be below 400 million Rand a year. On an LTM basis, we see CapEx as a percentage of EBITDA decrease from approximately 46% a year ago to 33% this quarter. These metrics give a clear indication of our improving fundamentals as we scale our platform. I will hand over to Lincoln, who will take you through the revenue drivers and KPIs for merchant, consumer and enterprise. Lincoln.