Q2 FY2026
Filed Aug 10, 2026Nayax Reports Second Quarter 2026 Results Revenue of $123 million, revenue growth of 28% Year to Date Organic Revenue growth of 24%, Loss of $10.1 million due to high stock-based compensation expenses, Adjusted Net Income of $6 million and Adjusted EBITDA of $14.1 million.
Revenue, recurring revenue, payment processing fees, SaaS revenue and POS devices revenue all grew year over year, while adjusted EBITDA increased. However, total margin declined, operating income turned to a loss, net income turned to a loss, adjusted net income fell, and free cash flow was negative. The company reaffirmed revenue and Adjusted EBITDA guidance but sharply reduced expected free cash flow conversion.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Revenueother | $122.6 million | – | 28.2% |
| Six-month revenueother | 229,446 U.S. dollars in thousands | – | – |
| Organic Revenue growth, quarternon-GAAP | 21.4% | – | – |
| Organic Revenue growth, year to datenon-GAAP | 24% | – | – |
| Total recurring revenueother | $87.7 million | – | 24.0% |
| Total marginother | 46.9% | – | -1.4% |
| Gross profitother | 57,447 U.S. dollars in thousands | – | – |
| Six-month gross profitother | 109,721 U.S. dollars in thousands | – | – |
| Operating income (loss)other | $(6.7) million | – | – |
| Six-month operating income (loss)other | (2,517) U.S. dollars in thousands | – | – |
| Financial expenseother | 6,239 U.S. dollars in thousands | – | – |
| Profit (loss) for the periodother | $(10.1) million | – | – |
| Six-month profit (loss) for the periodother | (8,837) U.S. dollars in thousands | – | – |
| Basic earnings (loss) per shareother | $(0.269) per share | – | – |
| Diluted earnings (loss) per shareother | $(0.269) per share | – | – |
| Basic adjusted earnings per sharenon-GAAP | $0.161 | – | – |
| Diluted adjusted earnings per sharenon-GAAP | $0.144 | – | – |
| Adjusted net incomenon-GAAP | $6.0 million | – | – |
| Adjusted EBITDAnon-GAAP | $14.1 million | – | – |
| Adjusted EBITDA marginnon-GAAP | 12% of revenue | – | – |
| Adjusted OPEXnon-GAAP | $44.2 million dollars | – | – |
| Adjusted OPEX as a percentage of revenuenon-GAAP | 36.0% of revenue | – | – |
| Cash flow provided from operating activities, first halfother | $2.3 million | – | – |
| Net cash provided by (used in) operating activities, quarterother | (1,259) U.S. dollars in thousands | – | – |
| Free Cash Flownon-GAAP | negative $13.1 million | – | – |
| Total transaction valueother | $2.1 billion | – | 29.1% |
| Number of processed transactionsother | 815 million | – | 12.3% |
| Take rate (payments)other | 2.62% | – | -0.08% |
| Managed and connected devicesother | 1,553 thousand | – | 12.7% |
| Customersother | 125,400 | – | 19.8% |
| ARPUother | $251 | – | 12.6% |
| Weighted average number of basic sharesother | 37,574,900 | – | – |
| Weighted average number of diluted sharesother | 41,870,272 | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Payment processing feesDriven by both new and existing customer expansion. Processing margin improvement reflected the ongoing benefits of renegotiated contracts with several bank acquirers and improved smart-routing capabilities. | $53.9 million | – | 25.1% |
| SaaS revenueSaaS margin improved to 76.4% from 74.2%, reflecting the Company’s growing scale. | $33.8 million | – | 22.5% |
| POS devices revenueStrong demand for products across all market segments. Approximately 65% of hardware revenue growth came from Lynkwell, which has lower HW margin than the VPOS product family. | $34.9 million | – | 40.2% |
Full year 2026 outlook
- Revenue$510 million to $520 million; inclusive of organic revenue growth of 22% to 25%
- NoteAdjusted EBITDA of $85 million to $90 million, representing an adjusted EBITDA margin of about 17%
- NoteFree cash flow conversion from Adjusted EBITDA of approximately 5% to 10%
- NoteMid-term 2028 framework: revenue of $1.0 billion, gross margin of 50%, and Adjusted EBITDA margin of 30%
What drove it
- Revenue increased 28.2% to $122.6 million, driven by both new and existing customer expansion.
- Recurring revenue grew 24.0% to $87.7 million and represented 72% of total revenue.
- Processing margin improved to 40.5% from 39.1%, reflecting renegotiated bank-acquirer contracts and improved smart-routing capabilities.
- ARPU increased to $251, driven by continued conversion of existing machines from cash payments to cashless payments and expansion into EV charging, amusement facilities and car washes.
- Lynkwell deployed DC fast chargers at more than double the pre-acquisition pace, according to the CEO.
- The company filed an application to establish Nayax America Bank Inc. under Connecticut's Innovation Bank Charter framework and launched Yellow Account for U.S. customers.
Concerns
- Total margin declined to 46.9% from 48.3%, as POS devices margin declined to 28.1% from 35.4%.
- Stock-based compensation expenses were $12.4 million in Q2 2026 compared to $2.5 million in the prior-year period.
- Financial expenses, net, increased by $4.3 million dollars as a result of foreign exchange and interest expenses related to two bond offerings completed in 2025 on TASE.
- Free Cash Flow was negative $13.1 million, reflecting Lynkwell’s more capital-intensive business, increased banking infrastructure investments, securing sourcing of key components and costs, and the timing of cash settlements from processing activities.
- The company revised expected free cash flow conversion from Adjusted EBITDA to approximately 5% to 10% from approximately 40% projected in its first-quarter 2026 earnings release.
- During the third quarter of 2026, the company expects to recognize approximately $4.5 million as acceleration of future expenses in profit and loss related to the amendment to deferred consideration and contingent liability for the Nayax Brazil acquisition.
What to watch
- Execution of accelerated investments in financial services, including lending, installment and issuing capabilities.
- The pace of market-share capture in EV charging and the capital intensity of Lynkwell.
- POS devices margin following the higher Lynkwell hardware mix and higher freight and logistics costs.
- Free cash flow conversion against the revised approximately 5% to 10% full-year target.
- Regulatory review of the application to establish Nayax America Bank Inc., which the company stated is not guaranteed.
- The impact of the approximately $48 million Diamond Plan over five years and the approximately $10 million long-term incentive plan over three years.
Balance sheet and cash flow
- As of June 30, 2026, cash and cash equivalents and short-term deposits were $304 million.
- As of June 30, 2026, short-term and long-term debt balances was $349 million.
- Cash and cash equivalents were 302,827 U.S. dollars in thousands as of June 30, 2026, compared with 319,538 U.S. dollars in thousands as of December 31, 2025.
- Restricted cash transferable to customers for processing activity was 129,913 U.S. dollars in thousands as of June 30, 2026, compared with 91,965 U.S. dollars in thousands as of December 31, 2025.
- Debentures were 337,053 U.S. dollars in thousands as of June 30, 2026, compared with 314,064 U.S. dollars in thousands as of December 31, 2025.
- Net cash used in investing activities was (11,203) U.S. dollars in thousands in Q2 2026, compared with (22,631) U.S. dollars in thousands in Q2 2025.
- Capitalized development costs were (9,370) U.S. dollars in thousands in Q2 2026, compared with (6,262) U.S. dollars in thousands in Q2 2025.
- Acquisition of property and equipment was (2,487) U.S. dollars in thousands in Q2 2026, compared with (1,110) U.S. dollars in thousands in Q2 2025.
Analysis
Nayax delivered Q2 2026 revenue of $122.6 million, up 28.2% from $95.6 million. Payment processing fees rose 25.1% to $53.9 million, SaaS revenue rose 22.5% to $33.8 million, and POS devices revenue rose 40.2% to $34.9 million. Recurring revenue increased 24.0% to $87.7 million and represented 72% of total revenue. Organic Revenue growth was 21.4% for the quarter and 24% year to date.
Operating metrics supported the reported revenue growth. Total transaction value increased 29.1% to $2.1 billion, processed transactions increased 12.3% to 815 million, managed and connected devices increased 12.7% to 1,553 thousand, and customers increased 19.8% to 125,400. ARPU increased 12.6% to $251. The company attributed ARPU growth to conversion of existing machines from cash to cashless payments and expansion into verticals with higher transaction values.
Margin performance was mixed. Payment processing margin improved to 40.5% from 39.1%, SaaS margin improved to 76.4% from 74.2%, and total recurring margin improved to 54.3% from 52.8%. These gains did not offset a decline in POS devices margin to 28.1% from 35.4%, leaving total margin at 46.9% versus 48.3%. The company cited Lynkwell, which accounted for approximately 65% of hardware revenue growth and carries lower hardware margin than the VPOS product family, as well as higher freight and logistics costs.
Reported profitability declined sharply, with an operating loss of $6.7 million versus operating income of $9.5 million and a loss of $10.1 million versus net income of $11.7 million. Stock-based compensation expenses rose to $12.4 million from $2.5 million, while financial expenses increased by $4.3 million dollars due to foreign exchange and interest expenses related to the 2025 TASE bond offerings. Adjusted EBITDA increased to $14.1 million from $12.6 million, but adjusted EBITDA margin was 12% of revenue versus 13% of total revenue. Adjusted net income declined to $6.0 million from $11.0 million.
Cash generation was the principal change in the outlook. Q2 Free Cash Flow was negative $13.1 million, and the company revised full-year free cash flow conversion from Adjusted EBITDA to approximately 5% to 10%, from approximately 40% projected after Q1. Nayax reaffirmed full-year revenue guidance of $510 million to $520 million, including organic revenue growth of 22% to 25%, and Adjusted EBITDA guidance of $85 million to $90 million. The company stated that the free cash flow revision reflects accelerated investments in financial services, EV charging market share and key-component sourcing rather than a change in its underlying operating outlook.
Management, verbatim
We had a strong second quarter, with continued execution across the business. Revenue grew 28% to $123 million, with organic revenue growth of 24% year to date, our installed base surpassed 1.55 million devices, and our customer base reached 125,000. Our growth algorithm continues to work, and this quarter we began building the next layer on top of it.
Yair Nechmad, Chief Executive Officer and Chairman of the Board
Not in the filing
stated, not guessed- Previous-release outlook was not provided, so no actual-versus-prior-guidance comparison is included.
- Quarterly prior-quarter revenue, margins, operating income, net income, EPS, Adjusted EBITDA and cash flow values were not reported on their respective line items.
- Dividend and share-repurchase activity were not reported.
- Full-year 2026 gross margin, operating expense and tax-rate guidance were not reported.
- Dollar-based net retention rate was defined but no reported value was provided.
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.