HERZLIYA, Israel, August 13, 2025 - Nayax Ltd. (Nasdaq: NYAX, TASE: NYAX), a global commerce payments and loyalty platform designed to help merchants scale their business, today announced its financial results for the second quarter ended June 30, 2025.

 

“Our second quarter results reflect the successful execution of our strategic initiatives and the positive momentum of the business. We delivered yet another quarter of strong operational and financial performance driven by profitable revenue growth, robust global demand for our product solutions and services, market share gains, and an ever-expanding geographic footprint of our installed base. Our TAM is large and growing, driven by the shift from cash to digital payments. We expect acceleration in the second half of the year, driven primarily by stronger enterprise hardware sales in emerging segments such as EV chargers, smart coolers and family entertainment centers. With that, we are reaffirming our full year 2025 guidance”, commented Yair Nechmad, Chief Executive Officer and Chairman of the Board.

 

(1) Recurring revenue comprised of SaaS subscription revenue and payment processing fees.

(2) POS devices revenue includes revenues that are derived mainly from the sale of our hardware products.

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Revenue increased 22% to $95.6 million from $78.1 million driven by both new and existing customer expansion. Revenue includes $1.1 million of favorable foreign exchange rate.

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Organic revenue growth for the quarter was 20%.

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Recurring revenue from SaaS and payment processing fees grew 32%, to $70.7 million and represented 74% of total revenue.

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Processing revenue growth continues to demonstrate our success as a scalable and valued payment partner to our diverse customer base as the market continues its cash-to-cashless conversion.

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Hardware revenue was $24.9 million consistent with the prior year period. We continue to see strong demand for our products, solutions and technology, supporting both the unattended and attended markets.

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Gross margin improved to 48.3% from 44.3%. This was primarily due to:

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Recurring margin improved to 52.8% from 51.5%, partly from renegotiated contracts with several bank acquirers and the Company’s improved smart-routing capabilities.

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Hardware margin improved to 35.4% from 28.7% driven by continuing optimization of our supply chain infrastructure, and better component sourcing and cost.

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Operating profit was $9.5 million which includes a one-time gain of $5.6 million mainly due to the share purchase of the remaining 51% of Nayax Capital, an embedded financing solution for operators, previously held as a joint venture.

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Excluding this one-time gain, operating profit would have been $3.9 million, an improvement of $3.0 million from $0.9 million in last year’s second quarter.

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Net income for the quarter was $11.7 million. Excluding a one-time gain associated with the share purchase of Nayax Capital, net income would have been $6.1 million, a significant improvement of $9.1 million compared to a net loss of $3.0 million in the prior year period.

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Basic and diluted earnings per share for the quarter ending June 30, 2025 was $0.316 and $0.308, respectively. The basic loss per share for the quarter ended June 30, 2024 was $(0.083) per share.

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Weighted average number of basic and diluted shares were 36,913,470 and 37,786,355, respectively, for the second quarter of 2025, compared the weighted average number of basic shares 36,223,886 for the second quarter of 2024.

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Adjusted EBITDA was $12.6 million, representing a margin of 13% of total revenue. This compared to Adjusted EBITDA of $8.1 million, representing 10% of total revenue in the prior year period.

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Cash flow provided from operating activities was $12.9 million and free cash flow was $5.6 million.

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As of June 30, 2025, the Company had $172.3 million in cash and cash equivalents and short-term deposits. Short-term and long-term debt balances was at $155.7 million.

(4) Payment service providers typically take a percentage of every transaction in exchange for facilitating the movement of funds from the buyer to the seller. Take rate % (payments) is calculated by dividing the Company’s processing revenue by the total dollar transaction value in the same quarter.

(5) Number of managed and connected devices includes approximately 54,050 generated by recent acquisitions.

(6) Number of customers includes approximately 4,800 related to the recent acquisitions.

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Total transaction value grew by 34.3% to nearly $1.6 billion.

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Number of processed transactions increased 24.5% to 726 million.

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Take rate was 2.7% as the Company continues to expand into additional verticals.

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Total number of managed and connected devices was approximately 1.38 million devices representing an increase of 16.1%. Nayax added more than 48,000 devices in this quarter.

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Growth in the customer base continued at a healthy pace, adding nearly 5,000 new customers in the quarter, bringing the total customer base to nearly 105,000, an increase of 23.5%.

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The dollar-based net retention rate remained high at 123%, reflecting strong customer satisfaction, while the customer churn rate remained low at 2.8%.

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Announced a strategic partnership with Autel Energy, a leading global provider of EV charging solutions, to embed Nayax’s payment technology into approximately 100,000 Autel chargers across North America and Europe by the end of 2026. Autel, one of the fastest-growing EV charging suppliers worldwide with 53% year-over-year revenue growth in 2024, will integrate Nayax’s flexible payment infrastructure into its high-performance AC/DC charger products. The partnership enables faster deployment for operators and improves the charging and payment experience for drivers.

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Acquired the remaining 51% of Nayax Capital, a joint venture we initially launched in 2023. Nayax Capital has now been fully consolidated under our embedded finance division. Embedded finance solutions, such as bank accounts, card issuing, and financing, will bring more value to our customers and increase recurring revenue per customer over time.

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Announced strategic partnership to provide comprehensive payment solutions for Lynkwell, a leading energy infrastructure provider managing thousands of charging stations across North America and manufacturing its AC chargers in the United States. Lynkwell’s ViaLynkTM network is the eighth-largest public charging network in the United States.

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Completed the acquisition of Inepro Pay, a Nayax distributor in the Benelux region. The acquisition expands Nayax’s reach in the region, while improving efficiency and bringing Nayax closer to its customers.

 

Nayax will host two conference calls to discuss its results later today, August 13, 2025. The first will be in English for international investors and the other in Hebrew for Israel-based investors to discuss its second quarter 2025 results.

 

The conference call in English will be held at: 8:30 a.m. Eastern Time / 3:30 p.m. Israel Time / 5:30 a.m. Pacific Time. The conference call in Hebrew will be held at: 9:30 a.m. Eastern Time / 4:30 p.m. Israel time / 6:30 a.m. Pacific Time.

 

Participating on the call will be Yair Nechmad, Chief Executive Officer, Sagit Manor, Chief Financial Officer, and Aaron Greenberg, Chief Strategy Officer

 

For the conference call in English, Nayax encourages participants to pre-register using the link below. Those who pre-register will be given a unique PIN to gain immediate access to the call, bypassing the live operator. Participants may pre-register any time, including up to and after the call/webcast start time. Participants will immediately receive an online confirmation, an email with the dial in number and a calendar invitation for the event.

 

To pre-register, go to:

 

 

For those who are unable to pre-register, kindly join the conference call/webcast by using one of the dial-in numbers or clicking the webcast link below.

 

 

 

WEBCAST LINK: 

 

 

Following the conference call, a replay will be available until August 27, 2025. To access the replay, please dial one of the following numbers:

 

 

 

 

 

An archive of the conference call will also be available on Nayax's Investor Relations website Nayax - Investor Relations.

To access the conference call/webcast in Hebrew, use the link: 

 

Forward-Looking Statements

This press release contains statements that constitute forward-looking statements. Many of the forward-looking statements contained in this press release can be identified by the use of forward-looking words such as “anticipate,” “believe,” “could,” “expect,” “should,” “plan,” “intend,” “estimate” and “potential,” among others. Forward-looking statements include, but are not limited to, statements regarding our intent, belief or current expectations, such as statements in this press release regarding our financial outlook, future business prospects and the impact of recent acquisitions or partnerships involving Autel Energy, Nayax Capital, Lynkwell and Inepro Pay. Forward-looking statements are based on our management’s beliefs and assumptions and on information currently available to our management. Such statements are subject to risks and uncertainties, and actual results may differ materially from those expressed or implied in the forward-looking statements due to various factors, including, but not limited to: our expectations regarding general market conditions, including as a result of the COVID-19 pandemic and other global economic trends; changes in consumer tastes and preferences; fluctuations in inflation, interest rate and exchange rates in the global economic environment; the availability of qualified personnel and the ability to retain such personnel; changes in commodity costs, labor, distribution and other operating costs; our ability to implement our growth strategy; changes in government regulation and tax matters; other factors that may affect our financial condition, liquidity and results of operations; general economic, political, demographic and business conditions in Israel, including the ongoing war in Israel that began on October 7, 2023 and global perspectives regarding that conflict; the success of operating initiatives, including advertising and promotional efforts and new product and concept development by us and our competitors; and other risk factors discussed under “Risk Factors” in our annual report on Form 20-F filed with the SEC on March 4, 2025 (our "Annual Report"). The preceding list is not intended to be an exhaustive list of all of our forward-looking statements. The forward-looking statements are based on our beliefs, assumptions and expectations of future performance, taking into account the information currently available to us. These statements are only estimates based upon our current expectations and projections about future events. There are important factors that could cause our actual results, levels of activity, performance or achievements to differ materially from the results, levels of activity, performance or achievements expressed or implied by the forward-looking statements. In particular, you should consider the risks provided under “Risk Factors” in our Annual Report. You should not rely upon forward-looking statements as predictions of future events. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee that future results, levels of activity, performance and events and circumstances reflected in the forward-looking statements will be achieved or will occur. Each forward-looking statement speaks only as of the date of the particular statement. Except as required by law, we undertake no obligation to update publicly any forward-looking statements for any reason, to conform these statements to actual results or to changes in our expectations.

Use of Non-IFRS Financial Information

In addition to various operational metrics and financial measures in accordance with accounting principles generally accepted under International Financial Reporting Standards, or IFRS, this press release contains financial metrics presented on a constant currency basis as well as Adjusted EBITDA and Free Cash Flow, each of which are non-IFRS financial measures, as a measure to evaluate our past results and future prospects.

Adjusted EBITDA

Adjusted EBITDA is a non-IFRS financial measure that we define as loss for the period excluding finance expenses, tax expense (benefit), depreciation and amortization, share-based compensation costs, non-recurring issuance and acquisition costs and our share in losses of associates accounted for by the equity method.

We present Adjusted EBITDA in this press release because it is a measure that our management and board of directors utilize as a measure to evaluate our operating performance and for internal planning and forecasting purposes. Accordingly, we believe that Adjusted EBITDA provides useful information to investors and others in understanding and evaluating our operating results in the same manner as our management and board of directors.

We believe that Adjusted EBITDA, when taken collectively with financial measures prepared in accordance with IFRS, may be helpful to investors because it provides an additional tool for investors to use in evaluating our ongoing operating results and trends and in comparing our financial results with other companies because it provides consistency and comparability with past financial performance. However, our management does not consider this non-IFRS measure in isolation or as an alternative to financial measures determined in accordance with IFRS.

Adjusted EBITDA is presented for supplemental informational purposes only, has limitations as an analytical tool and should not be considered in isolation or as a substitute for financial information presented in accordance with IFRS. Adjusted EBITDA may be different from similarly titled measures used by other companies. The principal limitation of Adjusted EBITDA is that it excludes significant expenses that are required by IFRS to be recorded in our financial statements, as further detailed above. In addition, it is subject to inherent limitations as it reflects the exercise of judgment by management about which expenses are excluded or included in determining Adjusted EBITDA.

A reconciliation is provided at the end of this press release for Adjusted EBITDA to net profit or loss, the most directly comparable financial measure prepared in accordance with IFRS. Investors are encouraged to review net loss and the reconciliation to Adjusted EBITDA included below and to not rely on any single financial measure to evaluate our business.

Constant Currency

Nayax presents constant currency information to provide a framework for assessing how our underlying businesses performed excluding the effect of foreign currency rate fluctuations. Future expected results for transactions in currencies other than United States dollars are converted into United States dollars using the exchange rates in effect in the last month of the reporting period. Nayax provides this financial information to aid investors in better understanding our performance. These constant currency financial measures presented in this release should not be considered as a substitute for, or superior to, the measures of financial performance prepared in accordance with IFRS.

The Company cannot provide expected net income without unreasonable effort because certain items that impact net income are out of the Company's control and/or cannot be reasonably predicted at this time, of which unavailable information could have a significant impact on the Company’s IFRS financial results.

Free Cash Flow

Net cash provided from operating activities minus capitalized development costs and acquisition of property and equipment. A reconciliation is provided at the end of this press release for Free Cash Flow to Net cash provided from operating activities, the most directly comparable financial measure prepared in accordance with IFRS.

Other Financial Metrics:

Dollar-based net retention rate

Measured as a percentage of Recurring Revenue from returning customers in a given period as compared to the Recurring Revenue from such customers in the prior period, which reflects the increase in revenue and the rate of losses from customer churn.

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CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

 

As of June 30, 2025

(Unaudited)

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CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (UNAUDITED)

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CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (UNAUDITED)

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CONDENSED CONSOLIDATED STATEMENTS OF LOSS (UNAUDITED)

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CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (UNAUDITED)

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CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (UNAUDITED)

 

(*) Presents an amount less than $1 thousand.

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CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (UNAUDITED)

 

 

(*) Presents an amount less than $1 thousand.

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CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (UNAUDITED)

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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

  IFRS to Non-IFRS Reconciliation

 

 

The following is a reconciliation of Operating Cash for the period, the most directly comparable IFRS financial measure, to Free Cash Flow for each of the periods indicated.

 

The following is a reconciliation of OPEX for the period, the most directly comparable IFRS financial measure, to Adjusted OPEX for each of the periods indicated.