LSAK

Lesaka is scaling revenue impressively — FY2025 sales rose 16.9% to $660M (a 5x jump from $131M in FY2021), fueled by the Adumo, Recharger and GAAP acquisitions that lifted deployed merchant devices to 84,541 (+63%) and pushed throughput to ZAR 35.5B (+127%). At a 0.6x P/S the market is clearly pricing the company as a broken story, and the top-line momentum is genuine. But growth this fast, bought this cheap, usually signals a problem the price is discounting — and here it does.

The overriding concern is the auditor's adverse opinion on internal control over financial reporting: as of June 30, 2025 the company 'has not maintained effective internal control,' with material weaknesses spanning risk assessment, trained resources, control activities, information/communication and monitoring. When a serial acquirer that just issued 32% more shares and grew debt 48% cannot reliably produce its own numbers, every metric below becomes suspect — that is unknowable risk, not a screen-able discount. The excluded acquisitions ($51.7M revenue, $22.8M assets) sit outside even that assessment.