LESAKA TECHNOLOGIES INC
For the period ended Mar 31, 2025. Filed May 7, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2025 · Filed May 7, 2025
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-12-31; filed 2025-02-05.
0001562762-25-000019
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-03-31; filed 2025-05-07.
0001562762-25-000106
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 3263 previous paragraphs and 3311 current paragraphs.
1836 unchanged; 83 reworded; 1374 added; 1320 removed; 24 previous and 18 current paragraphs rearranged.
Tables are not compared: 0 previous and 0 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (1374)
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present these non
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-GAAP measures and
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the material risks
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and limitations of
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these measures, as
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well as a
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reconciliation of these
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our Annual
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the year ended
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disclose our
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financial results
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across three
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distinct operating
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divisions:
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Our evolving
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integrated multi-product platform is organized around
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Insights (previously known as Touchsides)
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operations as well as the bulk of Adumo, specifically merchant acquiring and software
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the needs of micro-
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and medium-size businesses in the region, empowering merchants and micro-merchants to transact
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efficiently and
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fulfill their potential.
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Our integrated multi-product range provides merchants
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with card acquiring, cash management,
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lending, software and Alternative
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Digital Payments (“ADP”). ADP includes
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enabled payments (previously referred
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to as our value-
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added services).
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Card Connect and Kazang brands.
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2025 vs
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of approximately
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closing on October 1, 2024, the impact of which is not included in the prior period
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Throughput increased to ZAR
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9.9 billion for the
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quarter, driven mainly by the
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inclusion of Adumo in
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Q3 2025 and
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lower
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than historic year-on-year growth attributable to
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Removed paragraphs (1320)
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Item 2. Management’s Discussion and Analysis of
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present these non-GAAP
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measures and the
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material risks and
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limitations of these
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measures, as well
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as a reconciliation
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of these non-
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materially.
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Beginning in the
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second quarter of fiscal
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year 2025, Lesaka has
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commenced disclosing its
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financial results across
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three distinct
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operating divisions: Merchant, Consumer
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and Enterprise. We are building an
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integrated multiproduct platform that
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is organized around
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The Consumer
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Division (“Consumer”)
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will remain
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substantially the
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same. We
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offer
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consumers a
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transactional account,
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and insurance. On 1 October the Adumo Payouts business officially
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became part of Consumer.
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Insights (previously known
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as Touchsides) operations, as
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the bulk of
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Adumo, specifically its
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merchant acquiring and
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offering will be amongst the most comprehensive
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in the market in
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meeting the
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needs of
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micro and
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Reworded paragraphs (83)
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business and its GAAP hospitality platform. Combined the Lesaka
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way of its GAAP hospitality platform. Combined, we believe the Lesaka offering is the most comprehensive in the market in meeting
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Merchant acquiring includes 80,178 devices deployed under the Adumo, Card Connect and Kazang brands. Q2 2025 is
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Merchant acquiring includes 81,106 devices deployed under the Adumo,
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hospitality industry in Southern Africa, serving clients such as KFC, McDonald’s,
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Africa, serving clients such as KFC, McDonald’s,
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Our cash business remains a vital product in our merchant offering and is a key differentiator for us in the digitalization
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offering and is a key differentiator for us
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pertaining to cash management and security.
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customer base to mitigate their operational risks pertaining to cash management
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Merchants can apply online and have access to funds within 24 hours.
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Merchants can apply online and have access to funds within 24
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for Merchant Cash Advance (“MCA”), with a 50:50 profit share.
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Bank, with a 50:50 profit share.
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Amounts reflected above includes 100% of Adumo
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(1) Amounts reflected above includes 100% of
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Pre-paid solutions throughput for the quarter
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Pre-paid solutions throughput for the quarter (ZAR billions)
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Supplier enabled payments throughput for the
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Supplier enabled payments throughput for the quarter (ZAR
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which is reflected in a healthy throughput growth.
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optimizing our existing fleet, which is reflected in healthy throughput growth.
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Approximate Net EPE account activations
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Approximate Net EPE account activations for the quarter -
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fiscal 2025, from approximately ZAR 85 in the second quarter of fiscal 2024.
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fiscal 2025, from approximately ZAR 90 in the third quarter of fiscal 2024.
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On 1 October the Adumo Payouts business officially became part
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2024, the EasyPay Payouts business officially became part
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a load value of approximately ZAR 170 million for quarter ended December
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load value of approximately ZAR 155 million for quarter ended March
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the end of February 2025. We have included
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At the end of February 2025, we completed the ZAR
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Recent accounting pronouncements not yet adopted
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pronouncements not yet adopted as
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condition, results of operations and cash flows.
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results of operations and cash flows.
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minor differences. We believe that presentation
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We believe that presentation using the average
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measures which are supplementally presented in ZAR, and our internal management
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are supplementally presented in ZAR, and our internal management
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items represent non-recurring expense items,
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Once-off items represent non-recurring
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reflect stock-based compensation expense and are both excluded
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compensation adjustments reflect stock-based compensation expense and are both excluded
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from the calculation of Segment Adjusted EBITDA
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from the calculation of Segment Adjusted
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reported as reconciling items to reconcile the reportable segments’
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EBITDA and are therefore reported as reconciling items to reconcile the reportable segments’ Segment Adjusted EBITDA to our loss
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Our revenues decreased 2% in ZAR, primarily due
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Our revenues decreased 4% in ZAR, primarily due
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-cash fair value loss of $33.7 million during
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-cash fair value loss of $20.4 million during
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the second quarter of fiscal 2025 related to our investment in MobiKwik;
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the third quarter of fiscal 2025 related to our investment in MobiKwik;
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of the inclusion of Adumo; and
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result of the inclusion of Adumo; and
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higher commissions paid related to VAS
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higher commissions paid related to ADP revenue generated, and higher
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revenue generated, and higher insurance-related claims and third-party
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insurance-related claims and third-party transaction fees.
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acquisition and an increase in depreciation expense related to additional
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and an increase in depreciation expense related to additional POS devices deployed
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these condensed consolidated financial statements for additional
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condensed consolidation financial statements for additional information.
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of fiscal 2025 or 2024, respectively.
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fiscal 2025 or 2024,
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calculation for MobiKwik and Cell C.
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for MobiKwik and Cell C.
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Our effective tax rate for fiscal 2025 was impacted by deferred tax impact related to the fair value adjustment to our equity securities,
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Our effective tax rate for fiscal 2025
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Consumer Segment Adjusted EBITDA for the second quarter
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EBITDA for the three
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re-presented to conform with current period presentation.
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re-presented to conform with
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Consumer Segment Adjusted EBITDA. The prior period has been re-presented
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and Consumer Segment Adjusted EBITDA. The prior period has been re-presented
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2025, with the volume of Pinned Airtime sales
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quarter of fiscal 2025, with the volume of Pinned Airtime sales decreasing,
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decreasing, which results in a lower revenue and
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which results in a lower revenue and related cost of sales,
Showing the first 40 of 83 pairs. Open the source sections for the rest.
Rearranged current paragraphs (18)
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our pre-paid solutions and supplier
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was impacted by deferred tax impact related
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Our Segment Adjusted EBITDA margin for the
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result of the inclusion of Adumo; and
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which was partially offset by the inclusion of Adumo,
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Segment Adjusted EBITDA. The prior period has been re-presented to conform
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the year-over-year impact of inflationary increases on
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Our Segment Adjusted EBITDA margin for the year
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Our Segment Adjusted EBITDA margin for the year
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expected to have this facility in place on July 1, 2024, however,
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exchange contracts to support guarantees issued by RMB and Nedbank
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Merchant and Enterprise businesses related to quarter-end transaction processing activities,
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paid taxes totaling $0.1 million in
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2025, we paid $10.6 million related to acquisition of certain businesses, including
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Finbond and $0.25 million related to
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the second (and final) tranche from
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and paid dividends to the non-controlling interest of $0.1 million.
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repaid $84.9 million of those facilities,
Rearranged previous paragraphs (24)
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and supplier enabled payments (previously referred to as our value-added services).
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Segment Adjusted EBITDA to our loss before income
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travel, audit, consulting and legal fees.
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of the inclusion of Adumo; and
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The change in fair value of
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We recorded a loss of $0.2
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million related to the change in
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our investment in an equity security
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to consolidation during fiscal 2025. Refer
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to Note 2 to our consolidated financial statements
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and Enterprise Segment Adjusted EBITDA. The prior period has been
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profitability, which was partially offset by a higher allowance for credit losses following an increase in loan originations in December
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2025 increased compared with the prior
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in the number of individuals allocated to group costs and base salary adjustments,
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positive contribution from our Merchant and Consumer operations
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totaling $0.1 million in other tax
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0.1 million in other tax jurisdictions, primarily in Botswana.
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acquisition of certain businesses, including Adumo.
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African overdraft facilities to fund our ATMs
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we utilized $69.0 million from our South African overdraft facilities to
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and our cash management business through Connect, and repaid
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$66.0 million of those facilities. We utilized $8.6 million of our long-
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repurchase shares of our common stock, fund the acquisition of certain capital expenditures and for working capital requirements. We
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vesting of shares of restricted stock.