v3.25.4
Operating Segments
 6 Months Ended
Dec. 31, 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.
18.
Operating segments (continued)
Operating segments (continued)
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
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 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.
18.
Operating segments (continued)
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 six
months ended
December 31,
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
and six months ended December 31, 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 December 31, 2025 and 2024, respectively,
is as follows:
Three months ended December 31, 2025
Merchant
Consumer
Enterprise
Total
Revenue from external customers
$
131,142
$
33,118
$
14,474
$
178,734
Intersegment revenues
777
-
322
1,099
Segment revenue
(z)
131,919
33,118
14,796
179,833
Less segment-related expenses:
Cost of goods sold, IT processing,
servicing and support
(y)
101,613
10,533
10,792
122,938
Selling, general and
administration
(1)(2)
11,422
4,782
1,312
17,516
Segment adjusted EBITDA
$
18,884
$
17,803
$
2,692
$
39,379
(z) includes interest revenue of:
$
2,104
$
5,323
$
-
$
7,427
(y) includes interest expense of:
$
481
$
1,295
$
-
$
1,776
Operating segments
Merchant
Consumer
Enterprise
Group costs
Total
Depreciation and amortization
$
3,688
$
311
$
88
$
9,481
$
13,568
Expenditures for long-lived assets
$
4,148
$
87
$
695
$
-
$
4,930
Three months ended December 31, 2024
Merchant
Consumer
Enterprise
Total
Revenue from external customers
$
144,615
$
22,929
$
8,672
$
176,216
Intersegment revenues
594
-
261
855
Segment revenue
(z)
145,209
22,929
8,933
177,071
Less segment-related expenses:
Cost of goods sold, IT processing,
servicing and support
(y)(A)
104,703
8,373
9,702
122,778
Selling, general and
administration
(A)(1)(3)
30,417
10,214
(738)
39,893
Segment adjusted EBITDA
(A)
$
10,089
$
4,342
$
(31)
$
14,400
(z) includes interest revenue of:
$
1,610
$
120
$
-
$
1,730
(y) includes interest expense of:
$
374
$
757
$
-
$
1,131
Operating segments
Merchant
Consumer
Enterprise
Group costs
Total
Depreciation and amortization
$
3,027
$
235
$
94
$
4,867
$
8,223
Expenditures for long-lived assets
$
5,899
$
575
$
272
$
-
$
6,746
(A) Cost of goods
sold, IT processing, servicing
and support and Selling,
general and administration for
Merchant and Total
for
the three
months ended
December 31,
2024 have
each increased
by $
0.17
million and
$
0.06
million, respectively,
as a result
of the
correction discussed
in Note 1.
Segment Adjusted
EBITDA for
Merchant and
Total
for the three
months ended
December 31,
2024
have each decreased by $
0.23
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
December 31,
2025, includes
retrenchment costs
for Merchant
of $
0.2
million (ZAR
3.7
million).
(3) Segment
Adjusted EBITDA
for the
three months
ended December
31, 2024,
includes retrenchments
costs for
Consumer of
$
0.01
million (ZAR
0.1
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 six months
ended December 31, 2025 and 2024, respectively,
is as follows:
Six months ended December 31, 2025
Merchant
Consumer
Enterprise
Total
Revenue from external customers
$
257,455
$
63,694
$
29,033
$
350,182
Intersegment revenues
1,414
-
616
2,030
Segment revenue
(z)
258,869
63,694
29,649
352,212
Less segment-related expenses:
Cost of goods sold, IT processing,
servicing and support
(y)(A)
200,026
20,970
21,313
242,309
Selling, general and
administration
(A)(1)(2)
39,959
24,921
5,644
70,524
Segment adjusted EBITDA
(A)
$
18,884
$
17,803
$
2,692
$
39,379
(z) includes interest revenue of:
$
4,391
$
10,237
$
-
$
14,628
(y) includes interest expense of:
$
972
$
2,367
$
-
$
3,339
Operating segments
Merchant
Consumer
Enterprise
Group costs
Total
Depreciation and amortization
$
7,053
$
620
$
174
$
18,615
$
26,462
Expenditures for long-lived assets
$
8,473
$
368
$
1,208
$
-
$
10,049
Six months ended December 31, 2024
Merchant
Consumer
Enterprise
Total
Revenue from external customers
$
267,678
$
44,001
$
18,105
$
329,784
Intersegment revenues
1,182
-
2,711
3,893
Segment revenue
(z)
268,860
44,001
20,816
333,677
Less segment-related expenses:
Cost of goods sold, IT processing,
servicing and support
(y)(A)
221,137
17,040
16,908
255,085
Selling, general and
administration
(A)(1)(3)
30,304
18,223
3,577
52,104
Segment adjusted EBITDA
(A)
$
17,419
$
8,738
$
331
$
26,488
(z) includes interest revenue of:
$
3,286
$
120
$
-
$
3,406
(y) includes interest expense of:
$
766
$
1,588
$
-
$
2,354
Operating segments
Merchant
Consumer
Enterprise
Group costs
Total
Depreciation and amortization
$
5,254
$
437
$
194
$
8,614
$
14,499
Expenditures for long-lived assets
$
9,785
$
706
$
393
$
-
$
10,884
(A) Cost of goods sold, IT processing, servicing and support and
Selling, general and administration for Merchant and Total
for
the six
months
ended
December 31,
2024 have
each increased
by $
0.34
million
and
$
0.12
million,
respectively,
as a
result of
the
correction discussed in Note 1. Segment Adjusted EBITDA
for Merchant and Total for the six months ended December 31,
2024 have
each decreased by $
0.45
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
six months ended
December 31, 2025
have each increased
by $
0.18
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 six months
ended December 31,
2025 have each
decreased by $
0.25
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 six months
ended December 31, 2025,
includes retrenchment costs for
Merchant of $
0.4
million (ZAR
7.4
million) and Consumer of $
0.1
million (ZAR
2.6
million).
(3) Segment Adjusted EBITDA for the six months ended December 31,
2024, includes retrenchments costs for Consumer of $
0.1
million (ZAR
1.2
million) and Enterprise of $
0.0
million (ZAR
0.2
million).
The reconciliation of the reportable segments’ measures of profit or loss to income (loss) before income tax expense for the three
and six months ended December 31, 2025 and 2024, is as follows:
Three months ended
Six months ended
December 31,
December 31,
2025
2024
2025
2024
Reportable segments' measure of profit or loss
(A)
$
20,673
$
14,400
$
39,379
$
26,488
Operating loss: Group costs
(2,896)
(2,820)
(6,507)
(5,769)
Once-off costs
(247)
(488)
(514)
(2,293)
Interest adjustment
-
757
-
1,588
Unrealized Gain (Loss) FV for currency adjustments
133
(435)
197
(216)
Stock-based compensation charge adjustments
(1,945)
(2,644)
(3,806)
(5,021)
Depreciation and amortization
(13,568)
(8,223)
(26,462)
(14,499)
Loss on disposal of equity-accounted investments
-
(161)
(584)
(161)
Change in fair value of equity securities
2,971
(33,731)
2,971
(33,731)
Other income
3,883
-
3,883
-
Loss on disposal of equity securities
(730)
-
(730)
-
Interest income
508
721
1,047
1,307
Interest expense
(A)
(4,591)
(6,266)
(9,604)
(11,382)
Income (Loss) before income tax expense
(A)
$
4,191
$
(38,890)
$
(730)
$
(43,689)
(A) Reportable
segments’ measure of
profit or loss
for the three
and six months
ended December 31,
2024, have decreased
by
$
0.23
million and $
0.45
million, respectively,
as a result of
the correction discussed
in Note 1.
Interest expense for
the three and
six
months
ended
December
31,
2024,
have
increased
by
$
0.09
million
and
$
0.18
million,
respectively,
as
a
result
of
the
correction
discussed in Note 1. Net
income (loss) before taxes for
the three and six months ended
December 31, 2024, have decreased
by $
0.63
million and $
0.63
million, respectively,
as a result of the correction discussed in Note 1.
Reportable segments’ measure of profit or loss and Net income (loss) before taxes for the six months ended December 31, 2025,
have decreased by $
0.25
million and $
0.36
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 income (loss) before taxes for the three months ended September 30,
2025. Interest expense
for the six months
ended December 31,
2025, has increased
by $
0.12
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.
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.