Fintech firm Nayax's Q2 revenue rises on customer expansion

Overview

• Nayax Q2 revenue rises 22% to $95.6 mln, driven by customer expansion

• Recurring revenue grows 32%, representing 74% of total revenue

• Net income reaches $11.7 mln, including one-time gain from Nayax Capital acquisition

Outlook

• Nayax reaffirms 2025 revenue growth of 30% to 35%

• Company expects 2025 revenue between $410 mln and $425 mln

• Nayax projects 2025 adjusted EBITDA of $65 mln to $70 mln

• Company targets 50% free cash flow conversion from adjusted EBITDA in 2025

Result Drivers

• RECURRING REVENUE GROWTH - Recurring revenue from SaaS and payment processing fees grew 32%, driven by new and existing customer expansion

• GROSS MARGIN IMPROVEMENT - Gross margin improved to 48.3% from 44.3% due to renegotiated contracts with bank acquirers and better supply chain management

• HARDWARE SALES - Strong demand for products, solutions, and technology in both unattended and attended markets maintained hardware revenue at $24.9 mln

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

• Wall Street's median 12-month price target for Nayax Ltd is $47.00, about 6.7% above its August 12 closing price of $43.85

• The stock recently traded at 50 times the next 12-month earnings vs. a P/E of 61 three months ago

Press Release: ID:nGNX8BBsDw

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)