v3.26.1
Income Taxes (Tables)
12 Months Ended
Jun. 30, 2026
Income Taxes [Abstract]  
Component Of Income (Loss) Before Income Taxes
2026
2025
2024
Domestic: South Africa
(A)
$
11,233
$
(35,554)
$
(5,480)
Foreign:
(7,507)
(71,629)
(8,393)
United States
(11,993)
(12,322)
(8,705)
Other
(1)
4,486
(59,307)
312
Income (Loss) before income tax expense (benefit)
(A)
$
3,726
$
(107,183)
$
(13,873)
(A) Income
(loss) before
income tax
expense (benefit)
to Net
income (loss)
attributable to
Lesaka for
the year
ended June
30,
2025
and
2024
decreased
by
$
1.2
million
and
$
1.1
million,
respectively,
in
order
to
correct
the
error
discussed
in
Note
1
to
the
consolidated statement of operations.
(1) Amount
for the
year ended
June 30,
2025, includes
the impact
of the
change in
fair value
of equity
securities discussed
in
Note 6 related to MobiKwik.
Provision For Income Taxes By Location Of Taxing Jurisdiction
2026
2025
2024
Current tax expense
$
10,880
$
5,757
$
5,766
Domestic: South Africa
8,412
5,582
5,634
Foreign:
2,468
175
132
Other
2,468
175
132
Deferred tax (benefit) expense
(A)
(9,451)
(21,739)
(2,712)
Domestic: South Africa
(A)
(9,483)
(11,601)
(2,716)
Foreign:
32
(10,138)
4
United States
-
(10,120)
-
Other
32
(18)
4
Foreign tax credits generated - United States
-
-
309
Income tax expense (benefit)
$
1,429
$
(15,982)
$
3,363
(A) Deferred tax expense (benefit) and South Africa for the year ended June
30, 2025, have decreased by $
2.2
million as a result
of the correction discussed in Note 1.
Reconciliation Of Income Taxes
2026
Income taxes at the South African statutory income tax rate
1,007
27.00
%
Foreign Tax Effects
United States
Statutory income tax rate difference between the United States federal and South Africa rates
720
19.32
%
Non-taxable other
(95)
(2.55)
%
Non-deductible other expenses
308
8.26
%
Changes in valuation allowances
(5,847)
(156.92)
%
Prior years under provision
281
7.54
%
Prior year global intangible low-taxed income ("GILTI")
3,565
95.68
%
Current year GILTI
4,306
115.57
%
Botswana
Statutory income tax rate difference between Botswana and South Africa
(94)
(2.52)
%
Namibia
Statutory income tax rate difference between Namibia and South Africa
60
1.61
%
Withholding taxes
124
3.33
%
Zambia
Withholding taxes
189
5.07
%
Germany
Statutory tax rate difference between other jurisdictions and South Africa
(27)
(0.72)
%
Non-taxable: Other
(156)
(4.19)
%
Prior years (over) under provision
(242)
(6.49)
%
Netherlands
Non-taxable income related to an allowance for doubtful loans receivable reversed
(479)
(12.86)
%
Other jurisdictions
Other
6
0.16
%
Changes in Valuation Allowances: South Africa
21,878
587.17
%
Nontaxable or Nondeductible Items: South Africa
Non-deductible goodwill impairment
103
2.76
%
Non-deductible interest expense paid on borrowings
924
24.80
%
Non-deductible consulting fees
135
3.62
%
Non-deductible penalties
54
1.45
%
Non-deductible interest expense paid to taxing authorities
83
2.23
%
Non-deductible other expenses
143
3.84
%
Non-deductible rebrand costs
304
8.16
%
Non-deductible loss on disposal of business
204
5.48
%
Non-taxable gain on consolidation
(286)
(7.68)
%
Non-taxable other income
(320)
(8.59)
%
Deferred tax asset related to capital loss generated
(25,026)
(671.66)
%
Other: South Africa
Prior years (over) under provision
(545)
(14.63)
%
Withholding taxes
280
7.51
%
Other
(128)
(3.44)
%
Income tax expense / Effective tax rate
1,429
38.33
%
2025
2024
Income taxes at South African income tax rates
27.00
%
27.00
%
Non-deductible interest expense
(1.29)
%
(24.55)
%
Movement in valuation allowance
(A)
3.55
%
(22.15)
%
Non-deductible transaction costs
(4.19)
%
(5.91)
%
Goodwill impairment
(4.22)
%
-
-
Capital gains tax rate differential
-
-
1.62
%
Prior year adjustments
0.22
%
(1.37)
%
Non-deductible items
(A)
(3.42)
%
0.93
%
Foreign tax credits
0.03
%
0.19
%
Foreign tax rate differential
(2.77)
%
-
Effective tax rate
14.91
%
(24.24)
%
(A) Movement
in valuation
allowance decreased
from
5.62
% to
3.55
%, and
non-deductible
items increased
from (
3.23
%) to
(
3.42
%) as a result of the correction discussed in Note 1.
Schedule Of Income Taxes Paid Net Of Refunded Received
2026
Jurisdiction
Domestic: South Africa
$
9,332
Foreign:
1,100
Namibia
780
All other
320
Total income
taxes paid, net of refunds received
$
10,432
Schedule Of Deferred Tax Assets And Liabilities
June 30,
June 30,
2026
2025
Total
deferred tax assets
Net operating loss carryforwards
$
57,083
$
63,740
Capital loss carryforwards
32,104
7,094
Provisions and accruals
8,630
6,648
Equity investments
5,567
29,475
Operating lease liability
6,010
-
Foreign tax credit carryforwards
-
12,300
Other
4,642
4,604
Total
deferred tax assets before valuation allowance
114,036
123,861
Valuation
allowances
(A)
(92,143)
(109,468)
Total
deferred tax assets, net of valuation allowance
21,893
14,393
Total
deferred tax liabilities:
Intangible assets
31,215
36,403
Operating lease right-of-use
4,735
-
Other
1,852
1,573
Total
deferred tax liabilities
37,802
37,976
Reported as
Long-term deferred tax assets, net
12,470
10,338
Long-term deferred tax liabilities, net
28,379
33,921
Net deferred tax liabilities
$
15,909
$
23,583
(A) Valuation
allowances as of June 30, 2025, has increased by $
2.2
million as a result of the correction discussed in Note 1.
Movement In Valuation Allowance
Total
Equity
investments
Capital loss
carry-
forwards
Net
operating
loss carry-
forwards
Foreign tax
credit
carry-
forwards
Other
July 1, 2023
$
109,120
$
27,782
$
8,485
$
38,381
$
32,599
$
1,873
Charged to statement of operations
5,061
-
665
3,163
-
1,233
Reversed to statement of operations
(1,865)
-
-
(1,793)
(72)
-
Foreign currency adjustment
2,371
1,004
103
1,215
-
49
Net change in the valuation allowance
5,567
1,004
768
2,585
(72)
1,282
July 1, 2024
$
114,687
$
28,786
$
9,253
$
40,966
$
32,527
$
3,155
Charged to statement of operations
6,241
-
977
4,063
-
1,201
Reversed to statement of operations
(A)
(10,630)
-
-
(8,469)
-
(2,161)
Utilized
(25,528)
-
(3,226)
(2,002)
(20,227)
(73)
Acquired in business combinations
22,976
-
-
20,354
-
2,622
Foreign currency adjustment
1,722
690
90
887
-
55
Net change in the valuation allowance
(5,219)
690
(2,159)
14,833
(20,227)
1,644
June 30, 2025
109,468
29,476
7,094
55,799
12,300
4,799
Charged to statement of operations
28,374
-
25,026
1,645
-
1,703
Reversed to statement of operations
(12,340)
(631)
-
(11,361)
-
(348)
Utilized
(40,243)
(25,026)
(977)
(1,537)
(12,300)
(403)
Foreign currency adjustment
6,884
1,748
961
3,850
-
325
Net change in the valuation allowance
(17,325)
(23,909)
25,010
(7,403)
(12,300)
1,277
June 30, 2026
$
92,143
$
5,567
$
32,104
$
48,396
$
-
$
6,076
(A) Reversed
to statement
of operations
during the
year ended
June 30,
2025, has
decreased by
$
2.2
million as
a result of
the
correction discussed in Note 1.