v3.26.1
Operating Segments
 9 Months Ended
Mar. 31, 2026
Operating Segments [Abstract]  
Operating Segments
18.
Operating segments
Operating segments
The Company discloses segment information as reflected in the management
information systems reports that its chief operating
decision maker uses in making decisions and to report certain entity-wide disclosures about products and services, and the countries in
which the entity holds material assets or reports material revenues. A description of the Company’s operating segments is contained in
Note 21 to
the Company’s
audited consolidated
financial statements
included in
its Annual Report
on Form 10-K
for the year
ended
June 30, 2025.
The Company’s
chief operating decision maker
(“CODM”) is the Company’s
Executive Chairman. The
Company currently has
three
reportable segments: Merchant, Consumer and Enterprise. The CODM analyzes
the Company’s operating performance primarily
based on these three operational lines, namely,
(i) Merchant, which focuses on
both formal and informal sector
merchants. Formal sector merchants are generally in
urban areas,
have higher
revenues and
have access
to multiple
service providers.
Informal sector
merchants, which
are often
sole proprietors
and
usually
have lower
revenues compared
with formal
section merchants,
operate in
rural areas
or in
informal urban
areas and
do not
always have access to a full-suite of traditional banking products;
(ii) Consumer,
which primarily
focuses on
individuals who
have historically
been excluded
from traditional
financial services
and to whom we offer
transactional accounts (banking), insurance,
lending (short-term loans), payments solutions
(digital wallet) and
various value-added services; and
(iii) Enterprise, which comprises large-scale corporate
and government organizations, including but not
limited to banks, mobile
network operators (“MNOs”) and municipalities, and,
through Recharger,
landlords utilizing Recharger’s
prepaid electricity metering
solution.
Types of products
and services from which each segment derives its revenues
The
Merchant
segment
includes
revenue
generated
from
the
sale
of
Alternative
Digital
Products
(“ADP”)
(select
prepaid
solutions, supplier-enabled payments, international
money transfer and
other) and card-acquiring services
to informal sector
merchants.
It also includes activities related to the provision of goods and
services provided to corporate and other juristic entities. The
Company
earns fees
from
processing activities
performed
(including card
acquiring
and
the provision
of a
payment
gateway
services) for
its
customers, and rental and
license fees from the provision
of point of sales (“POS”)
hardware and software
to the hospitality industry.
The Company also provides cash management and payment services to merchant customers through a digital vault
which is located at
the customer’s
premises and through
which the Company
is able to
provide the services
which generate
processing fee revenue.
The
Merchant segment includes interest earned from the provision of loans to
its customers, refer to Note 16.
The Consumer segment
includes activities related
to the provision
of financial services
to customers,
including a bank
account,
loans and
insurance products.
The Company
charges monthly
administration fees
for all
bank accounts.
Customers that
have a
bank
account managed by the Company are issued cards that can be utilized to withdraw funds at an ATM or to transact at a merchant POS.
The Company
earns processing
fees from
transactions processed
for these
customers. The
Company also
earns fees
on transactions
performed
by
other
banks’
customers
utilizing
its
ATM
(until
June
30,
2023)
or
POS. The
Company
provides
short-term
loans
to
customers in South Africa for which it earns initiation and monthly service fees, and interest revenue from the second quarter of fiscal
2025,
refer to
Note 16.
The Company
writes life
insurance contracts,
primarily
funeral-benefit
policies, and
policy holders
pay the
Company a monthly
insurance premium. The
Company also earns
fees from the
provision of physical
and digital prepaid
and secure
p
ayout solutions for South African businesses.
18.
Operating segments
Operating segments
The Enterprise segment provides its business and government-related customers with transaction
processing services that involve
the collection,
transmittal and
retrieval of
transaction data.
The Company
offers
landlords access
to Recharger
’s
prepaid electricity
metering
solution through
which Enterprise
earns commission
revenue
from prepaid
electricity voucher
sales to
tenants recharging
prepaid meters.
This segment also
includes sales of
hardware and
licenses to customers.
Hardware includes
the sale of
POS devices,
SIM cards and other consumables
which can occur on an ad hoc
basis. Licenses include the right to
use certain technology developed
by the Company.
Segment measure of profit or loss
The
Company
evaluates
segment
performance
based
on
segment
earnings
before
interest,
tax,
depreciation
and
amortization
(“EBITDA”),
adjusted
for
items
mentioned
in
the
sentences
below
(“Segment
Adjusted
EBITDA”),
the
Company’s
reportable
segments’ measure of profit or loss.
The Company obtained
a general
lending facility in
February 2025, which
has been
partially used to
fund a
portion of
its Consumer
lending
during
the
three
and
nine
months
ended
March
31,
2026,
and
interest
related
to
these
borrowings
have
been
allocated
to
Consumer.
The Company
also included
an intercompany
interest expense
in its
Consumer Segment
Adjusted EBITDA
for the
three
and nine months ended March 31, 2025.
The Company does not allocate once-off items, stock-based compensation charges, depreciation and amortization, impairment of
goodwill or other intangible
assets, other items (including
gains or losses on
disposal of investments, fair
value adjustments
to equity
securities), interest
income, certain
interest expense,
income tax
expense or
loss from
equity-accounted investments
to its reportable
segments. Group costs generally include: employee related costs in relation to employees specifically hired for group roles and related
directly
to managing
the US-listed
entity; expenditures
related
to compliance
with the
Sarbanes-Oxley
Act of
2002; non-employee
directors’
fees;
legal
fees;
group
and
US-listed
related
audit
fees;
and
directors
and
officer’s
insurance
premiums.
Once-off
items
represent non-recurring expense items, including costs related to acquisitions and
transactions consummated or ultimately not pursued.
Unrealized
(loss)
gain
for
currency
adjustments
represents
foreign
currency
mark-to-market
adjustments
on
certain
intercompany
accounts.
Interest
adjustment
represents
the
intercompany
interest
expense
included
in
the
Consumer
Segment
Adjusted
EBITDA
during fiscal 2025.
The Stock-based compensation
adjustments reflect stock-based
compensation expense
and are excluded
from the
calculation
of
Segment
Adjusted
EBITDA
and
are
therefore
reported
as
reconciling
items
to
reconcile
the
reportable
segments’
Segment Adjusted EBITDA to the Company’s
loss before income tax expense.
Our CODM does
not review the
components of segment selling,
general and administration
expenses and is
presented with reports
which include revenue, net revenue (a non-GAAP measure) and Segment Adjusted
EBITDA.
18.
Operating segments (continued)
The table below
presents the reconciliation
of revenue from
external customers
to the reportable
segment’s revenue,
significant
expenditures, the Company’s reportable segment’s measure of
profit or loss,
and certain other
segment information for
the three months
ended March 31, 2026 and 2025, respectively,
is as follows:
Three months ended March 31, 2026
Merchant
Consumer
Enterprise
Total
Revenue from external customers
$
126,272
$
38,323
$
18,456
$
183,051
Intersegment revenues
806
-
522
1,328
Segment revenue
(z)
127,078
38,323
18,978
184,379
Less segment-related expenses:
Cost of goods sold, IT processing,
servicing and support
(y)
99,480
12,629
13,143
125,252
Selling, general and
administration
(1)(2)
18,370
12,679
3,710
34,759
Segment adjusted EBITDA
$
9,228
$
13,015
$
2,125
$
24,368
Operating segments
Merchant
Consumer
Enterprise
Group costs
Total
Depreciation and amortization
$
3,613
$
774
$
113
$
6,043
$
10,543
Expenditures for long-lived assets
$
3,764
$
120
$
719
$
-
$
4,603
Three months ended March 31, 2025
Merchant
Consumer
Enterprise
Total
Revenue from external customers
$
128,217
$
24,096
$
9,137
$
161,450
Intersegment revenues
564
-
307
871
Segment revenue
(z)
128,781
24,096
9,444
162,321
Less segment-related expenses:
Cost of goods sold, IT processing,
servicing and support
(y)(A)
104,869
8,373
9,702
122,944
Selling, general and
administration
(A)(1)(3)
16,012
9,390
(391)
25,011
Segment adjusted EBITDA
(A)
$
7,900
$
6,333
$
133
$
14,366
(z) includes interest revenue of:
$
1,793
$
1,400
$
-
$
3,193
(y) includes interest expense of:
$
419
$
890
$
-
$
1,309
Operating segments
Merchant
Consumer
Enterprise
Group costs
Total
Depreciation and amortization
$
3,111
$
255
$
89
$
4,974
$
8,429
Expenditures for long-lived assets
$
3,862
$
191
$
437
$
-
$
4,490
(A) Cost of goods
sold, IT processing, servicing
and support and Selling,
general and administration for
Merchant and Total
for
the three months
ended March 31,
2025 have each
increased by
$
0.2
million and $
0.05
million, respectively, as a
result of the
correction
discussed
in
Note
1.
Segment
Adjusted
EBITDA
for
Merchant
and
Total
for
the
three
months
ended
March
31,
2025
have
each
decreased by $
0.2
million as a result of the correction discussed in Note 1.
(1)
Selling,
general
and
administration
includes
human
capital-related
expenses
(including
base
salary
and
bonus),
IT-related
expenses
(including
software licenses,
hardware
maintenance,
hosting,
and communication
expenses), professional
fees (including
audit, legal,
consulting and
other fees),
lease and
utilities expenses,
the allowance
for credit
losses and
other operating
and support
expenses.
(2) Segment
Adjusted EBITDA
for the three
months ended
March 31,
2026, includes retrenchment
costs for Merchant
of $
0.3
million (ZAR
5.0
million), Consumer of $
0.02
million (ZAR
0.3
million) and Enterprise of $
0.1
million (ZAR
1.1
million).
(3) Segment Adjusted
EBITDA for the
three months ended
March 31, 2025,
includes retrenchment and
reorganization costs for
M
erchant of $
0.7
million (ZAR
12.9
million) and Enterprise of $
0.3
million (ZAR
5.4
million).
18.
Operating segments (continued)
The table below
presents the reconciliation
of revenue from
external customers
to the reportable
segment’s
revenue, significant
expenditures, the Company’s reportable segment’s measure of
profit or loss,
and certain other
segment information for
the nine months
ended March 31, 2026 and 2025, respectively,
is as follows:
Nine months ended March 31, 2026
Merchant
Consumer
Enterprise
Total
Revenue from external customers
$
383,727
$
102,017
$
47,489
$
533,233
Intersegment revenues
2,220
-
1,138
3,358
Segment revenue
(z)
385,947
102,017
48,627
536,591
Less segment-related expenses:
Cost of goods sold, IT processing,
servicing and support
(y)(A)
300,541
33,599
34,456
368,596
Selling, general and
administration
(A)(1)(2)
57,294
37,600
9,354
104,248
Segment adjusted EBITDA
(A)
$
28,112
$
30,818
$
4,817
$
63,747
(z) includes interest revenue of:
$
4,584
$
12,405
$
-
$
16,989
(y) includes interest expense of:
$
972
$
2,367
$
-
$
3,339
Operating segments
Merchant
Consumer
Enterprise
Group costs
Total
Depreciation and amortization
$
10,666
$
1,394
$
287
$
24,658
$
37,005
Expenditures for long-lived assets
$
12,237
$
488
$
1,927
$
-
$
14,652
Nine months ended March 31, 2025
Merchant
Consumer
Enterprise
Total
Revenue from external customers
$
395,896
$
68,097
$
27,241
$
491,234
Intersegment revenues
1,746
-
3,018
4,764
Segment revenue
(z)
397,642
68,097
30,259
495,998
Less segment-related expenses:
Cost of goods sold, IT processing,
servicing and support
(y)(A)
324,109
25,910
24,050
374,069
Selling, general and
administration
(A)(1)(3)
48,214
27,116
5,745
81,075
Segment adjusted EBITDA
(A)
$
25,319
$
15,071
$
464
$
40,854
(z) includes interest revenue of:
$
5,079
$
1,520
$
-
$
6,599
(y) includes interest expense of:
$
1,185
$
2,478
$
-
$
3,663
Operating segments
Merchant
Consumer
Enterprise
Group costs
Total
Depreciation and amortization
$
8,365
$
692
$
283
$
13,588
$
22,928
Expenditures for long-lived assets
$
13,647
$
897
$
830
$
-
$
15,374
(A) Cost of goods sold, IT processing, servicing and support and
Selling, general and administration for Merchant and Total
for
the nine months ended March 31, 2025 have each increased
by $
0.5
million and $
0.2
million, respectively, as a result of the correction
discussed
in
Note
1.
Segment
Adjusted
EBITDA
for
Merchant
and
Total
for
the
nine
months
ended
March
31,
2025
have
each
decreased by $
0.7
million as a result of the correction discussed in Note 1.
Cost of goods sold, IT
processing, servicing and support and
Selling, general and administration
for Merchant and Total
for the
nine months ended March 31, 2026
have each increased by $
0.2
million and $
0.06
million, respectively,
as a result of the correction,
as discussed in
Note 1, to
the amount included
in the captions
Cost of goods
sold, IT processing,
servicing and
support and Selling,
general and
administration for the
three months ended
September 30, 2025.
Segment Adjusted EBITDA
for Merchant
and Total
for
the nine months ended March 31, 2026 have each decreased by $
0.2
million as a result of the correction, as discussed in Note 1, to the
amount included in the caption Segment Adjusted EBITDA for
the three months ended September 30, 2025.
1)
Selling,
general
and
administration
includes
human
capital-related
expenses
(including
base
salary
and
bonus),
IT-related
expenses
(including
software
licenses,
hardware
maintenance,
hosting,
and
communication
expenses),
professional
fees
(including
audit, legal,
consulting and
other fees),
lease and
utilities expenses,
the allowance
for credit
losses and
other operating
and support
expenses.
(2) Segment
Adjusted EBITDA
for the
nine months
ended March
31, 2026,
includes retrenchment
costs for
Merchant of
$
0.7
million (ZAR
12.4
million), Consumer of $
0.2
million (ZAR
2.9
million), and Enterprise of $
0.03
million (ZAR
0.3
million).
(3) Segment
Adjusted EBITDA
for the nine
months ended March
31, 2025,
includes retrenchment
and reorganization
costs for
Merchant of
$
0.7
million (ZAR
12.9
million), Consumer of
$
0.1
million (ZAR
1.5
million) and Enterprise
of $
0.3
million (ZAR
5.6
million).
The reconciliation of the reportable segments’ measures of profit or loss to income (loss) before income tax expense for the three
and nine months ended March 31, 2026 and 2025, is as follows:
Three months ended
Nine months ended
March 31,
March 31,
2026
2025
2026
2025
Reportable segments' measure of profit or loss
(A)
$
24,368
$
14,366
$
63,747
$
40,854
Operating loss: Group costs
(3,756)
(1,772)
(10,263)
(7,541)
Once-off costs
(2,553)
(2,306)
(3,067)
(4,599)
Interest adjustment
-
890
-
2,478
Unrealized (Loss) Gain FV for currency adjustments
(181)
114
16
(102)
Stock-based compensation charge adjustments
(1,334)
(2,497)
(5,140)
(7,518)
Depreciation and amortization
(10,543)
(8,429)
(37,005)
(22,928)
Loss on disposal of equity-accounted investments
-
-
(584)
(161)
Impairment loss
(1)
(1,916)
-
(1,916)
-
Change in fair value of equity securities
(378)
(20,421)
2,593
(54,152)
Other income
-
-
3,883
-
Loss on disposal of equity securities
-
-
(730)
-
Reversal of allowance for doubtful loan receivable
1,500
-
1,500
-
Interest income
1,154
645
2,201
1,952
Interest expense
(A)
(4,477)
(5,869)
(14,081)
(17,251)
Income (Loss) before income tax expense
(A)
$
1,884
$
(25,279)
$
1,154
$
(68,968)
(A) Reportable segments’ measure of profit or loss for the three and nine months ended
March 31, 2025, have decreased by $
0.2
million and $
0.7
million, respectively, as a result of the correction discussed in Note 1. Interest expense
for the three and nine months
ended March 31, 2025, have
increased by $
0.09
million and $
0.3
million, respectively,
as a result of the correction discussed
in Note
1.
Net
loss
before
taxes
for
the
three
and
nine
months
ended
March
31,
2025,
have
decreased
by
$
0.9
million
and
$
0.9
million,
respectively, as a result of
the correction discussed in Note 1.
Reportable
segments’
measure
of
profit
or
loss
and
net
loss
before
taxes
for
the
nine
months
ended
March
31,
2026,
have
decreased by $
0.2
million and $
0.4
million, as a result of the correction, as discussed in Note 1, to the
amount included in the captions
Reportable
segments’
measure of
profit
or loss
and
net loss
before
taxes for
the three
months ended
September 30,
2025.
Interest
expense for the
nine months ended
March 31, 2026, has
increased by $
0.1
million, as a result
of the correction,
as discussed in Note
1, to the amount included in the caption Interest expense for the three
months ended September 30, 2025.
(1) Impairment loss excludes an amount of $
0.7
million which is included in the caption Once-off costs related to the exit of the
ATM
business.
18.
Operating segments (continued)
The segment
information as
reviewed by
the chief operating
decision maker
does not include
a measure of
segment assets per
segment as all of
the significant assets are
used in the operations
of all, rather than
any one, of the
segments. The Company does
not
have dedicated assets
assigned to a
particular operating segment.
Accordingly,
it is not meaningful
to attempt an arbitrary
allocation
and segment asset allocation is therefore not presented.