| Operating Segments |
Operating segments The Company discloses segment information as reflected in the management information systems reports that its chief operating decision maker (“CODM”) 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. The Company currently has three Merchant, Consumer and Enterprise. The Company’s CODM is the Company’s Executive Chairman. 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. 21. OPERATING SEGMENTS (continued) The Merchant segment includes revenue generated from the sale of 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 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. 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 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. 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 payout solutions for South African businesses. 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 Utilities 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 year ended June 30, 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 year ended June The Company does not allocate once-off items, stock-based compensation charges, impairment of 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 C ompany’s loss before income tax expense. 21. OPERATING SEGMENTS (continued) Segment measure of profit or loss (continued) Our CODM does not review the components of segment selling, general and administration expenses and is presented with reports which include revenue and segment adjusted EBITDA. 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 years ended June 30, 2026 and 2025, respectively, is as follows:
Merchant Consumer Enterprise Unallocated Total Revenue from external customers $ 506,193 $ 142,443 $ 72,918 $ - $ 721,554 Intersegment revenues 3,142 188 1,812 - 5,142 Segment revenue (z) 509,335 142,631 74,730 - 726,696 Less segment-related expenses: Cost of goods sold, IT processing, servicing and support (y) 395,124 47,606 53,246 - 495,976 Selling, general and administration (1)(2) 78,678 48,832 13,365 - 140,875 Segment adjusted EBITDA $ 35,533 $ 46,193 $ 8,119 $ - $ 89,845 (z) includes interest revenue of: 9,750 27,419 - - 37,169 (y) includes interest expense of: 1,945 5,257 - - 7,202 Merchant Consumer Enterprise Group costs Total Depreciation and amortization $ 14,734 $ 1,742 $ 430 $ 30,440 $ 47,346 Expenditures for long-lived assets $ 19,581 $ 2,890 $ 2,578 $ - $ 25,049
Merchant Consumer Enterprise Unallocated Total Revenue from external customers $ 524,252 $ 96,008 $ 39,441 $ - $ 659,701 Intersegment revenues 2,348 - 3,113 - 5,461 Segment revenue (z) 526,600 96,008 42,554 - 665,162 Less segment-related expenses: Cost of goods sold, IT processing, servicing and support (y)(A) 426,427 35,603 32,549 - 494,579 Selling, general and administration (A)(1)(3) 64,844 36,456 8,718 - 110,018 Segment adjusted EBITDA (A) $ 35,329 $ 23,949 $ 1,287 $ - $ 60,565 (z) includes interest revenue of: 7,231 5,038 - - 12,269 (y) includes interest expense of: 1,671 3,394 - - 5,065 Merchant Consumer Enterprise Group costs Total Depreciation and amortization $ 10,997 $ 968 $ 371 $ 21,385 $ 33,721 Expenditures for long-lived assets $ 18,117 $ 1,500 $ 1,482 $ - $ 21,099 21. 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 year ended June 30, 2024, respectively, is as follows:
Merchant Consumer Enterprise Unallocated Total Revenue from external customers $ 456,069 $ 69,211 $ 38,942 $ - $ 564,222 Intersegment revenues 3,721 - 7,955 - 11,676 Segment revenue (z) 459,790 69,211 46,897 - 575,898 Less segment-related expenses: Cost of goods sold, IT processing, servicing and support (y)(A) 394,238 23,165 37,424 - 454,827 Selling, general and administration (A)(1)(4) 37,218 33,367 6,542 - 77,127 Segment adjusted EBITDA (A) $ 28,334 $ 12,679 $ 2,931 $ - $ 43,944 (z) includes interest revenue of: 6,096 - - - 6,096 (y) includes interest expense of: 1,448 - - - 1,448 Merchant Consumer Enterprise Group costs Total Depreciation and amortization $ 8,141 $ 734 $ 402 $ 14,388 $ 23,665 Expenditures for long-lived assets $ 11,202 $ 1,317 $ 146 $ - $ 12,665 (A) Cost of goods sold, IT processing, servicing and support and Selling, general and administration for Merchant and Total for the year ended June 30, 2026 have each increased by $ 0.2 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 year ended June 30, 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. Cost of goods sold, IT processing, servicing and support and Selling, general and administration for Merchant and Total for the year ended June 30, 2025 have each increased by $ 0.6 0.2 million, respectively, as a result of the correction discussed in Note 1. Segment Adjusted EBITDA for Merchant and Total for the year ended June 30, 2025 have each decreased by $ 0.9 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 year ended June 30, 2024 have each increased by $ 0.6 0.2 million, respectively, as a result of the correction discussed in Note 1. Segment Adjusted EBITDA for Merchant and Total for the year ended June 30, 2024 have each decreased by $ 0.8 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 year ended June 30, 2026, includes retrenchment and reorganization costs for Merchant of $ 0.8 14.0 0.4 7.1 million) and Enterprise of $ 0.1 1.1 (3) Segment Adjusted EBITDA for the year ended June 30, 2025, includes retrenchment and reorganization costs for Merchant of $ 0.8 15.7 0.1 1.5 million) and Enterprise of $ 0.8 13.6 (4) Segment Adjusted EBITDA for the year ended June 30, 2024, includes retrenchment costs for Merchant of $ 0.3 4.9 million) and Consumer of $ 0.2 3.5 21. OPERATING SEGMENTS (continued) The reconciliation of the reportable segments’ measures of profit or loss to income (loss) before income taxes for the years ended June 30, 2026, 2025 and 2024, respectively, is as follows:
2026 2025 2024 Reportable segments measure of profit or loss (A) $ 89,845 $ 60,565 $ 43,944 Operating loss: Group costs (14,103) (10,743) (7,844) Once-off costs (5,452) (17,826) (1,853) Interest adjustment - 2,195 - Unrealized gain (loss) for currency adjustments 53 (23) 83 Stock-based compensation charge adjustments (6,969) (9,550) (7,911) Depreciation and amortization (47,346) (33,721) (23,665) Loss on disposal of equity-accounted investment (Note 9) (584) (161) - Impairment loss (1) (3,347) (18,863) - Change in fair value of equity securities (Note 3) 2,593 (59,828) - Gain on disposal of equity securities (730) - - Other income 3,883 - - Reversal of doubtful loan receivable 1,500 - 250 2,889 2,596 2,294 Interest expense (A) (18,506) (21,824) (19,171) Income (Loss) before income taxes (A) $ 3,726 $ (107,183) $ (13,873) (A) Reportable segments’ measure of profit or loss and net loss before taxes for the year ended June 30, 2026, have decreased by $ 0.2 0.4 million, respectively, 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 year ended June 30, 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. Reportable segments’ measure of profit or loss and net loss before taxes for the year ended June 30, 2025, have decreased by $ 0.9 1.2 million, respectively, as a result of the correction discussed in Note 1. Interest expense for the June 30, 2025, has increased by $ 0.4 million as a result of the correction discussed in Note 1. Reportable segments’ measure of profit or loss and net loss before taxes for the year ended June 30, 2024, have decreased by $ 0.8 1.1 million, respectively, as a result of the correction discussed in Note 1. Interest expense for the June 30, 2024, has increased by $ 0.2 million as a result of the correction discussed in Note 1. (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 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. Long-lived assets based on their geographic location as of June 30, 2026, 2025 and 2024, are presented in the table below:
Long-lived assets 2026 2025 2024 South Africa $ 403,085 $ 392,098 $ 286,700 India - Investment in MobiKwik (Note 9) - - 76,297 Rest of world 8,609 3,055 2,548 Total $ 411,694 $ 395,153 $ 365,545 |