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Lesaka Technologies Inc. (LSAK-1.02%) has submitted its 10-Q filing for the quarterly period ended December 31, 2024.
The filing reports revenue of $146.8 million for the quarter, a 2% increase from $143.9 million in the same period the previous year. The revenue increase was primarily due to the inclusion of Adumo and higher transaction, insurance, and lending revenues, partially offset by a decrease in low-margin prepaid airtime sales.
Cost of goods sold was $101.3 million, down from $114.3 million, attributed to the reduced prepaid airtime sales. Selling, general, and administrative expenses rose to $36.5 million from $21.5 million, impacted by the inclusion of Adumo and increased employee-related expenses.
Operating income for the quarter was $0.8 million, a decrease from $2.3 million in the prior year. The decline was due to higher costs and increased amortization of acquisition-related intangible assets.
A non-cash fair value loss of $33.7 million was recorded, related to the company's investment in MobiKwik. Interest expense increased to $6.2 million from $4.8 million, primarily due to higher borrowings.
The company reported a net loss of $32.1 million, compared to a net loss of $2.7 million in the previous year. The loss was impacted by the fair value adjustment and increased operating expenses.
Lesaka Technologies has outlined a remediation plan to address previously identified material weaknesses in its internal controls over financial reporting, focusing on information technology general controls and goodwill impairment assessment.
The company continues to focus on integrating Adumo's operations and expanding its service offerings across its Merchant, Consumer, and Enterprise divisions.
Lesaka's cash and cash equivalents were reported at $60.6 million as of December 31, 2024, with a net cash outflow from operating activities of $13.3 million for the first half of fiscal 2025.
The filing also details various financial agreements, including a funding facility from RMB to support the acquisition of Adumo and other operational needs.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Lesaka Technologies Inc. quarterly 10-Q report dated February 5, 2025. To report an error, please email earnings@qz.com.