Nayax Ltd (NYAX) Q2 2025 Earnings Call Highlights: Strong Revenue Growth and Strategic ...

Revenue: Increased 22% over Q2 2024, reaching $96 million. Recurring Revenue: Grew 32% over Q2 2024, representing 74% of total revenue. Adjusted EBITDA: Nearly $13 million, representing 13% of total revenue. Total Transaction Value: Increased by more than 34% over Q2 2024, reaching nearly $1.6 billion. Customer Base: Expanded by approximately 24% compared to Q2 2024, approaching 105,000 customers. Installed Base of Devices: Grew 16% compared to Q2 2024, reaching almost 1.38 million devices. Gross Margin: Improved to 48.3% from 44.3% in Q2 2024. Net Income: Nearly $12 million compared to a net loss of $3 million in the prior-year period. Cash and Cash Equivalents: Totaled $172 million as of June 30, 2025. Free Cash Flow: $5.6 million for the quarter. Full-Year 2025 Revenue Guidance: Growth of 30% to 35%, representing a revenue range of $410 million to $425 million. Full-Year 2025 Adjusted EBITDA Guidance: Between $65 million to $70 million.

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Release Date: August 13, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

Nayax Ltd (NASDAQ:NYAX) reported a 22% increase in revenue over Q2 2024, reaching $96 million, with recurring revenue growing by 32%. The company achieved a low customer churn rate of under 3% annually, indicating strong customer retention and platform stickiness. Nayax Ltd (NASDAQ:NYAX) expanded its customer base by approximately 24% compared to Q2 2024, reaching nearly 105,000 customers. The company announced strategic partnerships in the EV charging market, including a significant deal with Autel Energy for 100,000 UNO Minis. Gross margin improved to 48.3% from 44.3% in the previous year, driven by higher recurring and hardware margins.

Negative Points

Despite strong revenue growth, Nayax Ltd (NASDAQ:NYAX) faces competitive pressures in the EV charging market, requiring continuous innovation. The company's hardware revenue growth was modest, with only a slight increase compared to the prior year's quarter. Nayax Ltd (NASDAQ:NYAX) relies heavily on organic growth, which may pose challenges if market conditions change or competition intensifies. The integration of recent acquisitions, such as Inepro Pay and Nayax Capital, may present operational challenges and require significant resources. The company's guidance for inorganic revenue growth may not reach the initially expected $25 million, indicating potential shortfalls in M&A contributions.

Q & A Highlights

Q: How should we think about the larger opportunity in terms of EV as a percentage of revenue as that starts to scale? A: Yair Nechmad, CEO, explained that Nayax is focused on scaling its business through partnerships like the one with Autel Energy. This partnership allows Nayax to embed its payment solutions in OEM products, which opens up a large market. The EV segment is expected to grow significantly, with higher average transaction prices and gross margins than other verticals.

Story Continues

Q: Are the expected enterprise customer growth and EV ramp more of a 2026 story? A: Yair Nechmad, CEO, and Sagit Manor, CFO, noted that while EV opportunities are emerging, other areas like smart coolers and retrofit projects will contribute to stronger hardware revenue in the second half of 2025. They also see strong transaction value growth, indicating a robust second half.

Q: Can you discuss the Net Revenue Retention (NRR) and its future trend? A: Yair Nechmad, CEO, highlighted that NRR is driven by both service and processing engines. As Nayax expands into higher-ticket verticals like EV charging, the NRR is expected to remain strong. Sagit Manor, CFO, added that the NRR of 123% reflects healthy growth in ARPU and ATV, supported by low churn rates and high customer stickiness.

Q: Can you provide an update on your hospitality and retail initiatives? A: Yair Nechmad, CEO, mentioned that Nayax is building infrastructure for retail and testing initiatives directly with customers. They expect significant developments in the next six months. Aaron Greenberg, CSO, added that in hospitality, Nayax is integrating its technology in Brazil and sees strong demand for its cloud-based solutions.

Q: What is the revenue contribution from M&A year-to-date, and how does Nayax Capital JV fit into this? A: Aaron Greenberg, CSO, stated that the M&A run rate remains around $10 million for the year. Nayax Capital is not expected to contribute significantly to inorganic growth but supports long-term strategy by integrating financing solutions. Nayax plans to complete one to two more acquisitions this year.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

This article first appeared on GuruFocus.

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