Nayax Ltd. Ordinary Shares 2026 Q2 Earnings Call
Review the key takeaways and the transcript of this earnings call.
- Nayax reported second quarter 2026 revenue of approximately $123 million, up 28% year-over-year, with adjusted EBITDA of $40 million.
- For the first half of 2026, revenue increased 30% to approximately $230 million, with organic growth of approximately 24%, consistent with full-year guidance.
- The installed base grew to more than 1.55 million devices globally, serving 125,000 customers across more than 40 verticals.
- Net Revenue Retention remained around 120% with historically low churn.
- Average revenue per unit (ARPU) increased 13% year-over-year to $251, and average transaction value (ATV) rose to $2.52 from $2.20.
- Hardware revenue increased 40% year-over-year to $35 million, with approximately two-thirds of the increase from Lynkwell, reflecting growth in the EV platform.
- Gross margin for the quarter was 47%, with recurring gross margin at 54%, processing margin near 41%, SaaS margin at 76%, and hardware margin at 28.1%.
- Adjusted operating expenses were $44 million, about 36% of revenue, consistent with prior periods.
- Adjusted EBITDA increased 12% to $14 million compared to the prior year's second quarter.
- Net loss was $10.1 million for the quarter, primarily due to $12.4 million in non-cash stock-based compensation expenses.
- Adjusted net income was $6 million, down from $11 million in the prior year quarter, mainly due to higher financial expenses.
- Cash and cash equivalents totaled $304 million, with total debt at $349 million as of June 30, 2026.
- Free cash flow was negative $13.1 million in the quarter, impacted by Lynkwell's project investments, banking infrastructure spending, and timing of cash settlements.
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Transcript
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Hello, everyone, and welcome to Nayax's second quarter 2026 earnings conference call. All participants are at present in a listen-only mode. Following management's formal presentation, instructions will be given for the question and answer session. As a reminder, this conference is being recorded. I will now turn the call over to Mr. Aaron Greenberg.
Please go ahead, Aaron. Thank you, operator, and everyone for joining us today on this conference call.
With me on the call today are Yair Nechmad, Nayax Co-founder and Chief Executive Officer, and Sagit Manor, Chief Financial Officer. Following management's prepared remarks, we will open the call for the question and answer session. Our press release and supplementary investor presentation are available on our investor relations website at ir.nayax.com. As a reminder, during this call, we will be making forward-looking statements. All forward-looking statements on our call today are based on assumptions and therefore subject to risks and uncertainties that may cause results to differ materially from those projected. We have no obligation to update these statements except as required by law. You can read about these risks and uncertainties in a supplementary investor presentation released earlier today in our regulatory filings. In addition, today's call will include a discussion of non-IFRS measures.
Management believes non-IFRS results are useful in order to enhance our understanding of our ongoing performance. However, these measures should be considered as a supplement to and not as a substitute for IFRS financial measures. A reconciliation between Nayax's non-IFRS to IFRS measures can be found in our earnings press release issued earlier today. All key performance indicators are intended to evaluate our business and properly measure factors in a macroeconomic environment to guide and support our decision-making. These key performance indicators may be calculated in a matter different from the industry standards. Finally, please note that all figures in today's call will be reported in USD unless stated otherwise. Yair will start the call with key financial and operational highlights. Following that, I will speak about some of our strategic initiatives in more detail.
Finally, Sagit will go through the details of financial results and discuss the outlook. With that, I would like to turn the call over to Nayax's CEO, Yair Nechmad.
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