Nayax Q1 Earnings Call Highlights

Key Points

• Q1 revenue rose 32% year over year to about $107 million, driven by growth in the installed device base and customer count. Nayax also reported organic revenue growth of 26% and expanded adjusted EBITDA margin to 13%.
• The company’s recurring model continued to strengthen, with recurring revenue up 27% and making up about 74% of total revenue. Total dollar transaction value climbed 33% to roughly $1.8 billion, while device count topped 1.5 million globally.
• Nayax reaffirmed its 2026 outlook, keeping revenue guidance at $510 million to $520 million and adjusted EBITDA margin around 17%. Management highlighted growth priorities in EV charging, Brazil and embedded banking, while saying the M&A pipeline remains active.

Nayax NASDAQ: NYAX reported a strong start to 2026, with first-quarter revenue rising 32% year over year to approximately $107 million as the payments and commerce platform expanded its installed device base and customer count.

Co-Founder and Chief Executive Officer Yair Nechmad said the quarter reflected “strong operational and financial results across the business,” citing organic revenue growth of 26% and an adjusted EBITDA margin that expanded to 13%. The company reaffirmed its full-year financial guidance.

Nayax ended the quarter with more than 1.5 million managed and connected devices and 120,000 customers globally. Nechmad called the device milestone important for the company’s recurring revenue model, saying that as more customers are onboarded and more devices are sold, “more transactions flow through our platform, and the more our recurring revenue compounds.”

Recurring Revenue and Transaction Volume Drive Growth

Chief Financial Officer Sagit Manor said recurring revenue grew 27% in the quarter and represented about 74% of total revenue. Total dollar transaction value increased 33% to roughly $1.8 billion.

Manor said growth was supported by a shift toward higher-value verticals. Average transaction value increased to $2.36 from $2.06 a year earlier, while take rate remained strong at 2.66%. Average revenue per unit rose 14% year over year to $247.

Manor attributed the ARPU improvement to two factors: the continued conversion of existing machines from cash to cashless transactions and Nayax’s expansion into higher-value verticals such as EV charging, amusement and car wash.

Hardware revenue increased 46% year over year to approximately $28 million. Management said demand was strong across all markets, supported in part by the rollout of Nayax’s PIN-on-glass VPOS Media devices in Europe. Nechmad said the product is helping unlock verticals where local regulations require PIN verification for transactions.

Margins Reflect Scale, Promotions Weigh on Hardware

Nayax reported gross margin of 49%, in line with the prior-year quarter. Recurring margin improved to 54% from 52%, supported by gains in payment processing and software-as-a-service profitability.

Processing margin increased to nearly 40%, compared with 36% in the prior-year period. Manor said the improvement reflected renegotiated contracts with several bank acquirers and Nayax’s enhanced smart routing capabilities, which allow the company to route transactions to acquirers more efficiently.

SaaS margin rose to 76.5% from 75.9%. Hardware margin, however, declined to 33.1% from 39.5% a year earlier. Manor said the decrease was primarily due to marketing promotions tied to the newly released PIN-on-glass display media devices in Europe.

Adjusted operating expenses were $39 million, or 36% of revenue, and included a full quarter of Lynkwell expenses. Manor said foreign currency volatility had a $1.2 million unfavorable sequential impact on adjusted operating expenses compared with the fourth quarter of 2025.

Adjusted EBITDA increased 43% to $14 million, representing 13% of revenue, compared with 12% in the first quarter of 2025. Operating profit was $4 million, compared with $1.8 million in the prior-year period, excluding a one-time gain of approximately $6.1 million related to Nayax’s share repurchase of Tigapo in the first quarter of 2025. Net income was $1.3 million, compared with $1.1 million in the prior-year period excluding that gain.

EV Charging, Brazil and Embedded Banking Highlight Strategic Priorities

Management highlighted several areas of strategic expansion, including EV charging, Brazil and embedded banking.

Nechmad said Nayax and Lynkwell made their first joint appearance as a combined brand at the EVCS conference and received strong customer reception. During the question-and-answer portion of the call, Aaron Greenberg said Nayax’s acquisition of Lynkwell represented a further commitment to the EV industry across both software and payments. He said rising gas prices could become a “secular tailwind” for EV adoption in the U.S. if sustained, potentially increasing future utilization of EV chargers.

Greenberg said the company’s EV strategy is to connect to as many public DC fast chargers as possible and that Lynkwell gives Nayax a better opportunity to pursue mid-sized networks with an end-to-end offering. He cited partnerships with ChargeSmart and E-Plug and said the company expects to sign more networks in coming quarters.

In Brazil, Nechmad said Nayax has completed the integration of VMtecnologia and UPPay and is rebranding operations under Nayax Brazil. He said the company has started onboarding new customers as a payment facilitator in the country and plans to bring VPOS Media to the Brazilian market.

Greenberg said Brazil has been “amazing” for Nayax since the acquisition of VMtecnologia and later UPPay, describing the country as a large opportunity for unattended commerce. He also noted that Brazil is largely a rental market for devices, which he said can carry margins more comparable to SaaS.

Nayax is also piloting Yellow, its embedded banking offering for the U.S. market in partnership with Adyen. Nechmad said embedded banking could become an additional monetization layer by leveraging existing customer relationships and transaction data. Greenberg said early customer interest is tied in part to faster payouts, particularly for smaller merchants with daily cash flow needs. He said Yellow could later support additional services such as lending, issuing and e-commerce.

Company Reaffirms 2026 Outlook

Nayax reaffirmed its 2026 revenue guidance of $510 million to $520 million, including organic revenue growth of 22% to 25%. The company continues to expect adjusted EBITDA margin of approximately 17%, representing $85 million to $90 million of adjusted EBITDA.

Manor said Nayax still expects free cash flow conversion from adjusted EBITDA of approximately 40% for the year. The company generated $3.6 million from operating activities in the first quarter, while free cash flow was negative $6 million, mainly due to infrastructure investments and timing of cash settlement from processing activity.

As of March 31, 2026, Nayax had cash, cash equivalents and short-term deposits of $306 million and short- and long-term debt of $325 million.

Management also discussed mergers and acquisitions, saying the pipeline remains active. Nechmad said Nayax is evaluating opportunities that fit its strategy, culture and long-term growth profile. Greenberg said the market has become more favorable for buyers, with many private companies seeking liquidity or growth capital. He said Nayax is engaged in several processes and continues to expect inorganic growth to contribute to its longer-term revenue targets.

About Nayax NASDAQ: NYAX

Nayax Ltd. is a global fintech company specializing in cashless payment solutions, telematics and management services for unattended retail environments. Founded in 2005 and headquartered in Israel, Nayax develops hardware and software platforms that enable vending machines, kiosks, laundromats, e-commerce and self-checkout points to accept a wide range of payment methods, including credit and debit cards, mobile wallets and contactless NFC transactions.

The company’s product portfolio comprises proprietary point-of-sale terminals—such as the VPOS and Carbon series—as well as a cloud-based management suite known as the Monyx platform.

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