Araxi (AXX) H2 2026 earnings summary

Executive summary

• Completed first full year under new brand Araxi after rebranding from Capital Appreciation in 2025, and concluded the acquisition of 80% of Pay@, significantly expanding growth potential and creating a powerful payments ecosystem.

• Strategic focus on disciplined execution, operational efficiency, and integration of acquired businesses, with strong emphasis on recurring revenue, international expansion, and software innovation.

• Underlying metrics introduced to provide clearer view of operational performance, adjusting for non-recurring items and acquisition-related costs.

• Achieved strong operational performance with cash flow from operations up 25% to ZAR 260 million and recurring Payments licence fees up over 31%.

• Software division saw a 77% increase in underlying EBITDA, driven by cost-saving initiatives and improved sales momentum.

Financial highlights

• Cash flow from operations reached ZAR 260 million, up 25% year-over-year, with cash available for investment at year-end of ZAR 327.6 million.

• Underlying EBITDA increased 5.9% to ZAR 283.2 million; underlying headline EPS up 10.1%; reported EPS down 18% due to one-off items.

• Underlying revenue decreased 3.6% year-over-year, mainly due to timing of large software contracts and terminal delivery delays; reported revenue decreased 6.8% to ZAR 1,166.2 million.

• Dividend of ZAR 0.12 per share declared and maintained for the year.

• Pro forma with Pay@, group revenue would have increased 27% to ZAR 1.5 billion, EBITDA up 54% to ZAR 430 million, and margins improved from 24% to 29%.

Outlook and guidance

• Business well-positioned for growth, with enlarged opportunity set post-Pay@ acquisition and strong pipeline of organic and acquisitive opportunities.

• Payments business remains healthy and advancing; software division has turned the corner with improved efficiency and sales momentum.

• Focus on leveraging Pay@ platform for further innovation and value-added services, including AI and data analytics.

• Strong pipelines across divisions and significant orders already placed for H1'27.

• Economic climate remains a consideration in planning.