Araxi (AXX) H1 2026 earnings summary

Executive summary

• Rebranded as Araxi Group/Limited, marking a new chapter with a focus on payments and software divisions, and a debt-free, cash-rich balance sheet exceeding R303 million at period end.

• Payments division delivered strong results, with revenue up 23.2% and EBITDA up 33.1% year-on-year, driven by terminal sales, license fees, and annuity revenue growth.

• Software division's performance was impacted by prior year multi-year license recognition and current year restructuring costs of about R10 million, but underlying EBITDA improved and pipeline for H2 is strengthening.

• Normalised EPS and HEPS grew by 59% and 58% respectively, reflecting robust underlying group performance after adjusting for one-off items and restatements.

• Dividend of 4.50 cents per share declared, consistent with prior year and covered 1.5x by internal cash flow.

Financial highlights

• Group revenue increased 2.3% year-on-year to R652.9 million, with EBITDA up 0.4% to R150.1 million and margin stable at 23.0%.

• Headline earnings per share (HEPS) up 1.8% to 7.82 cents; normalised EPS and HEPS surged by 59% and 58% after restatements.

• Cash flow from operations improved to R89.5 million.

• Terminal estate grew 15% to 446,000 units.

• Terminal license fees and related services up 86% year-on-year, outpacing terminal sales growth.

Outlook and guidance

• Positive outlook for H2 2026, with strong pipelines and significant orders in both payments and software divisions.

• Expectation of continued organic and acquisitive growth, leveraging strong cash position.

• Anticipated cost savings of R35–R40 million annually from software restructuring, with most benefits to be realized in future periods.