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Operating Segments
 3 Months Ended
Sep. 30, 2025
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. Previously
reported information for the
three months ended September
30, 2024, has been recast
for the change to
the
Company’s
internal
reporting
structure
in
the
second
quarter
of
fiscal
2025
as
described
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 is the Company’s
Executive Chairman. During the second quarter of fiscal 2025,
he changed the Company’s operating
and internal reporting structures to present a new segment, Enterprise, separately.
The
Company
currently
has
three
reportable
segments:
Merchant,
Consumer
and Enterprise.
The
Company’s
chief
operating
decision
maker
(“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
s
olution.
18.
Operating segments
(continued)
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
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.
Through
Recharger,
Enterprise
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 months ended September 30, 2025, 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
months ended September 30, 2024.
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 September 30, 2025 and 2024, respectively,
is as follows:
Three months ended September 30, 2025
Merchant
Consumer
Enterprise
No allocated
Total
Revenue from external customers
$
126,313
$
30,576
$
14,559
$
-
$
171,448
Intersegment revenues
637
-
294
-
931
Segment revenue
126,950
30,576
14,853
-
172,379
Less segment-related expenses:
Cost of goods sold, IT processing,
servicing and support
98,413
10,437
10,521
-
119,371
Selling, general and
administration
(1)(2)
19,347
11,646
3,063
-
34,056
Segment adjusted EBITDA
$
9,190
$
8,493
$
1,269
$
-
$
18,952
Merchant
Consumer
Enterprise
Group costs
Total
Depreciation and amortization
$
3,365
$
309
$
86
$
9,134
$
12,894
Expenditures for long-lived assets
$
4,325
$
281
$
513
$
-
$
5,119
Three months ended September 30, 2024
Merchant
Consumer
Enterprise
No allocated
Total
Revenue from external customers
$
123,063
$
21,072
$
9,433
$
-
$
153,568
Intersegment revenues
588
-
2,450
-
3,038
Segment revenue
123,651
21,072
11,883
-
156,606
Less segment-related expenses:
Cost of goods sold, IT processing,
servicing and support
104,703
8,373
9,702
-
122,778
Selling, general and
administration
(1)(3)
11,394
8,303
1,819
-
21,516
Segment adjusted EBITDA
$
7,554
$
4,396
$
362
$
-
$
12,312
Merchant
Consumer
Enterprise
Group costs
Total
Depreciation and amortization
$
2,227
$
202
$
100
$
3,747
$
6,276
Expenditures for long-lived assets
$
3,886
$
131
$
121
$
-
$
4,138
18.
Operating segments (continued)
(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
September 30, 2025,
includes retrenchment
costs for Merchant
of $
0.2
million (ZAR
3.8
million) and Consumer of $
0.1
million (ZAR
2.6
million).
(3) Segment
Adjusted EBITDA for
the three months
ended September
30, 2024, includes
retrenchments costs
for Consumer
of
$
0.06
million (ZAR
1.1
million) and for Merchant, costs of $
0.01
million (ZAR
0.2
million).
The reconciliation of
the reportable segments’
measures of profit or
loss to loss before
income tax expense for
the three months
ended September 30, 2025 and 2024, is as follows:
Three months ended
September 30,
2025
2024
Reportable segments measure of profit or loss
$
18,952
$
12,312
Operating loss: Group costs
(3,611)
(2,949)
Once-off costs
(267)
(1,805)
Interest adjustment
-
831
Unrealized Gain FV for currency adjustments
64
219
Stock-based compensation charge adjustments
(1,861)
(2,377)
Depreciation and amortization
(12,894)
(6,276)
Loss on impairment of equity-accounted investment
(584)
-
Interest income
539
586
Interest expense
(4,898)
(5,032)
Loss before income tax expense
$
(4,560)
$
(4,491)
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.