| Earnings (Loss) Per Share |
14. Earnings (Loss) per share The Company has issued redeemable common stock which is redeemable at an amount other than fair value. Redemption of a class of common stock at other than fair value increases or decreases the carrying amount of the redeemable common stock and is reflected in basic earnings per share using the two-class method. There were no redemptions of common stock, or adjustments to the carrying value of the redeemable common stock during the three months ended March 31, 2026 and 2025, except as described in Note 11. Accordingly, the two-class method presented below does not include the impact of any redemption. The Company’s redeemable common stock is described in Note 14 to the Company’s audited consolidated financial statements included in its Annual Report on Form 10-K for the year ended June 30, 2025. Basic earnings (loss) per share includes shares of restricted stock that meet the definition of a participating security because these shares are eligible to receive non -forfeitable dividend equivalents at the same rate as common stock. Basic earnings (loss) per share has been calculated using the two-class method and basic earnings (loss) per share for the three months ended March 31, 2026 and 2025, reflects only undistributed earnings. The computation below of basic earnings (loss) per share excludes the net loss attributable to shares of unvested restricted stock (participating non-vested restricted stock) from the numerator and excludes the dilutive impact of these unvested shares of restricted stock from the denominator. Diluted earnings (loss) per share has been calculated to give effect to the number of shares of additional common stock that would have been outstanding if the potential dilutive instruments had been issued in each period. Stock options are included in the calculation of diluted earnings (loss) per share utilizing the treasury stock method and are not considered to be participating securities, as the stock options do not contain non-forfeitable dividend rights. The Company has excluded employee stock options to purchase 198,203 shares of common stock from the calculation of diluted loss per share during the three months ended March 31, 2025 because the effect would be antidilutive. The Company has excluded employee stock options to purchase 151,424 206,068 common stock from the calculation of diluted loss per share during the nine months ended March 31, 2026 and 2025 because the effect would be antidilutive. The calculation of diluted earnings (loss) per share includes the dilutive effect of a portion of the restricted stock granted to employees as these shares of restricted stock are considered contingently returnable shares for the purposes of the diluted earnings (loss) per share calculation and the vesting conditions in respect of a portion of the restricted stock had been satisfied. The vesting conditions for all awards made are discussed in Note 17 to the Company’s audited consolidated financial statements included in its Annual Report on Form 10-K for the year ended June 30, 2025. 14. Earnings (Loss) per share (continued) The following table presents net earnings (loss) attributable to Lesaka and the share data used in the basic and diluted earnings (loss) per share computations using the two-class method:
Three months ended Nine months ended March 31, March 31, 2026 2025 2026 2025 (in thousands except (in thousands except percent and percent and per share data) per share data) Numerator: Net earnings (loss) attributable to Lesaka (A) $ 552 $ (22,353) $ (461) $ (59,659) Undistributed Earnings (Loss) (A) 552 (22,353) (461) (59,659) Percent allocated to common shareholders (Calculation 1) 97% 96% 97% 96% Numerator for earnings (loss) per share: basic $ 535 $ (21,546) $ (446) $ (57,507) Denominator Denominator for basic earnings (loss) per share: Weighted-average common shares outstanding 79,300 78,347 78,895 69,724 Effect of dilutive securities: Stock options 179 - - - Denominator for diluted earnings (loss) per share: adjusted weighted average common shares outstanding and assuming 79,479 78,347 78,895 69,724 Earnings (Loss) per share: Basic (A) $ 0.01 $ (0.28) $ (0.01) $ (0.82) Diluted (A) $ 0.01 $ (0.28) $ (0.01) $ (0.82) (Calculation 1) Basic weighted-average common shares 79,300 78,347 78,895 69,724 Basic weighted-average common shares outstanding and unvested restricted shares 81,845 81,282 81,464 72,333 Percent allocated to common shareholders 97% 96% 97% 96% (A) Net loss attributable to Lesaka and Undistributed loss for the three and nine months ended March 31, 2025, have decreased by $ 0.3 0.9 million, respectively, as a result of the correction discussed in Note 1. Net loss attributable to Lesaka and Undistributed loss for the nine months ended March 31, 2026, has decreased by $ 0.4 million, as a result of the correction, as discussed in Note 1, to the amount included in the captions Net loss attributable to Lesaka and Undistributed loss for the three months ended September 30, 2025. The correction of the error did not impact Basic and Diluted loss per share for the three months ended March 31, 2025, or the nine months ended March 31, 2026. Basic and Diluted loss per share for the nine months ended March 31, 2025, each decreased by $ 0.01 6,493,683 shares of the Company’s common stock at prices ranging from $ 4.87 14.00 outstanding during the three and nine months ended March 31, 2026, but were not included in the computation of diluted earnings (loss) per share because the options’ exercise price was greater than the average market price of the Company’s common stock. Options to purchase 5,143,500 shares of the Company’s common stock at prices ranging from $ 6.00 14.00 per share were outstanding during the three and nine months ended March 31, 2025, but were not included in the computation of diluted loss per share because the options’ exercise price was greater than the average market price of the Company’s common stock. The options, which expire at v arious dates through February 3, 2032, were still outstanding as of March 31, 2026. |