Araxi (AXX) H2 2025 earnings summary

Executive summary

• Group delivered strong results for FY2025, with revenue up 7.6% to R1.25 billion, driven by robust Payments growth and resilient annuity income streams, while Software faced headwinds but improved in the second half.

• EBITDA increased 23.3% to R333.9 million, with margin expansion to 26.7% due to product mix and cost controls.

• Profit after tax climbed 25.2% to R206.9 million; HEPS up 25.6% and DPS up 20%, marking the 8th consecutive year of dividend growth.

• Halo Dot business moved from Software to Payments to better align with client needs.

• Achieved AWS Premier status and received multiple industry awards.

Financial highlights

• Group revenue rose nearly 8% to approximately ZAR 1.3 billion year-over-year.

• HEPS increased by 25.6%; dividend up 20% to ZAR 0.12 per share.

• Payments division revenue up 21.5%, EBITDA up 25.4% year-over-year.

• Software division revenue down 7.6%, EBITDA margin declined to 11.2%.

• Cash from operations was over ZAR 207 million; cash and equivalents at year-end were over ZAR 400 million.

Outlook and guidance

• Strong organic and acquisitive growth opportunities identified, supported by a healthy, debt-free balance sheet.

• Focus on expanding payments and software solutions domestically and internationally, including Africa, Europe, and Asia.

• Artificial intelligence seen as a key force multiplier for future growth.

• Software division targets sustainable EBITDA margins in the mid-teens, above industry norms.

• Acquisition activity will depend on strategic fit and valuations; economic climate remains a consideration.