Fintech group Araxi (previously Capital Appreciation) says it has delivered resilient financial performance, growing its revenue to R653 million, amid ongoing low business confidence and sluggish economic growth.
In its latest results for the six months ended 30 September, the group says two of its divisions attracted new clients and secured long-term contracts, diversified their revenue sources, and increased their market share during the period.
The revenue mix continued to evolve, with new products and services launched across various sectors and regions, creating further opportunities for the group going forward.
Healthy underlying performance in this period has been masked by prior-period restatements that increased prior-year headline earnings per share by 29%, it says.
The fintech firm provides payments expertise and software capabilities to create digital solutions for established and emerging financial enterprises and clients in other sectors.
The company changed its name from Capital Appreciation on 3 September 2025.
Divisional performance
The payments division delivered a strong set of financial and operational results for the first half of the financial year, benefiting from healthy terminal sales, substantial growth in terminal licence fees and related services, it says.
The division grew revenue by 23% to R387.2 million, with EBITDA growth of 33% to R184.3 million.
Annuity income in the payments division grew by 22% in the period, enhancing the resilience and predictability of earnings. Point-of-sale terminals in the hands of customers increased by 15% to 446 000, it says.
“There is growing interest among bank clients in serving merchants in lower-tier markets. Payments introduced an Android device designed specifically for this segment, which has been well-received.”
The software division saw revenue and EBITDA impacted by a substantial multi-year software licence fee in the prior year and restructuring costs in the current year. Revenue decreased by 20% to R256.7 million and EBITDA decreased by 83% to R6.9 million.
Software achieved over R190 million in contracted sales, including multi-year agreements that will contribute annuity revenue over several future financial periods. The restructuring is anticipated to yield annualised cost saving of R35 million to R40 million, which is not fully captured in H1 2026’s results, says the company.
Araxi CEO Bradley Sacks states: “Economic activity and demand for digital transformation continues to accelerate.
“Araxi remains cautiously optimistic that the positive momentum observed in recent months will persist for the remainder of the financial year and beyond. Both the payments and software divisions are well-positioned to take advantage of improved conditions, and we are encouraged by the pipelines that have developed recently.”
Araxi says it continues to generate considerable cash and maintains a robust, debt-free balance sheet, with more than R300 million in cash available to support organic growth, pursue acquisition opportunities, make investments and conduct additional share repurchases.
Share