Nayax Ltd. ((IL:NYAX)) has held its Q4 earnings call. Read on for the main highlights of the call.
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Nayax Ltd. delivered a notably upbeat earnings call, underscoring a business that is scaling rapidly while finally proving its profitability engine. Management highlighted 28% revenue growth, record margins and the company’s first-ever net income, while acknowledging some near-term cash flow noise from working capital and take-rate swings but expressing strong confidence in the medium-term trajectory.
Historic Profitability Inflection
Nayax crossed a key milestone with 2025 net income of $35.5 million, swinging from a loss in the prior year and underscoring the leverage in its model. Management did note that this figure includes a $10.3 million one-time gain related to share purchases, but still framed the year as a structural inflection in profitability.
Strong Revenue Growth
Total revenue climbed to $400 million in 2025, up 28% year over year, with organic growth running at about 24% as the core business scaled. Momentum intensified into year-end, with Q4 revenue reaching $119.5 million, representing roughly 34% growth and around 30% organically.
Recurring Revenue Mix and Retention
Recurring revenue increased 29% to approximately $287 million, representing about 72% of total sales and giving the model a more predictable base. Net revenue retention remained near 120%, signaling that existing customers are expanding their usage and sticking with the platform.
Platform Scale and Transaction Growth
The installed base reached roughly 1.46 million managed and connected devices, with more than 200,000 devices added during 2025 and about 115,000 customers now on the platform. Total dollar transaction volume processed rose 32% to around $6.4 billion, highlighting deepening payments penetration.
Per-Device Monetization Gains
Average revenue per unit climbed to about $239, up 11% from the prior year, reflecting better monetization of each device. Average transaction value increased to $2.25 from $2.05, while processing revenue jumped 30% to roughly $174 million with the overall take rate holding near 2.7% despite some quarterly volatility.
Margin and Profitability Expansion
Gross margin expanded to 48.2% from 45.1%, driven by mix and scale, while processing margin improved to around 38% from roughly 34% and SaaS margins remained high at about 76%. Adjusted EBITDA rose to $61.1 million, representing 15.3% of revenue and underlining the improving economic profile of the business.
Product, Vertical and Geographic Execution
The company pushed its product roadmap forward with the launch of VPOS Media across Europe, Israel and Australia and completion of UNO Mini OEM integrations. It also broadened its footprint to more than 120 countries, expanded EV capabilities through the Lynkwell deal and doubled its device base in Brazil year over year.
M&A and Balance Sheet Capacity
Nayax deployed about $52 million across five strategic acquisitions, including Lynkwell, UpPay, Inepro, Tigapo and a stake in Nayax Capital, aimed at strengthening capabilities and vertical reach. Management emphasized that with $321 million in cash and short-term deposits, it retains a sizable war chest to pursue further accretive M&A.
Free Cash Flow Shortfall and Working Capital Drag
Free cash flow for 2025 was about $12 million, roughly 20% of adjusted EBITDA and below earlier expectations, due mainly to working capital investments. Advanced payments for VPOS Media inventory and higher receivables from strong December hardware sales weighed on cash conversion, though management expects these effects to unwind over time.
Net Income Includes One-Time Gain
While the move into positive net income is a genuine milestone, management acknowledged that the reported figure was boosted by a $10.3 million one-time gain tied to share purchases in Tigapo and Nayax Capital. Investors were reminded to factor this non-recurring benefit into their assessment of underlying earnings power.
Take Rate Volatility
The company flagged some quarter-to-quarter volatility in its payments take rate, which has drifted lower recently with Q4 described as relatively soft. Mix shifts across geographies and verticals are the key drivers, introducing some variability to earnings even as volumes and device counts continue to climb.
Inventory and AR Build Timing Risk
Management described the inventory build and advanced vendor payments as a timing mismatch rather than a structural issue, expecting cash conversion to normalize as stock is sold and receivables are collected. Still, they admitted that the exact timing of this reversal is uncertain, leaving short-term risk around free cash flow generation.
Leverage and Cash Position
The balance sheet shows $321 million in cash and short-term deposits against $328 million of debt, placing the company near net cash neutrality. Management framed this as a strong position given its cash generation potential, though the limited net cash buffer may constrain the size or structure of any larger future deals.
Guidance Excludes Future M&A
Nayax’s 2026 guidance explicitly assumes only currently closed deals, including Lynkwell, and excludes any additional acquisitions. This creates potential upside if further M&A materializes but also means that sizable transactions could alter both growth and leverage dynamics relative to the stated plan.
Forward-Looking Guidance
For 2026, management is targeting revenue of $510 million to $520 million, implying 22% to 25% organic growth, along with an adjusted EBITDA margin around 17% or roughly $85 million to $90 million and free cash flow conversion near 40% of that figure. They expect to add 200,000 to 250,000 devices, keep net revenue retention near 120% and recurring revenue at about 70% to 72%, while continuing ARPU and transaction value gains as they progress toward longer-term scale and margin goals.
Nayax’s earnings call painted a picture of a company entering a more mature, profitable phase while still growing at a healthy clip. Investors will need to watch cash flow normalization and take-rate trends, but the combination of strong recurring revenue, expanding margins and disciplined M&A leaves the growth story firmly intact for now.