Nayax Ltd. ((IL:NYAX)) has held its Q2 earnings call. Read on for the main highlights of the call.
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Nayax Ltd.’s Q2 2025 earnings call painted a picture of robust growth and strategic advancements, with a positive sentiment surrounding the company’s financial performance. The call highlighted significant revenue growth and strategic partnerships, although it also acknowledged the challenges posed by a competitive EV charging market and the company’s reliance on organic growth.
Strong Revenue Growth
Nayax reported a remarkable 22% increase in revenue for Q2 2025 compared to the same period in 2024, reaching $96 million. Notably, recurring revenue saw a 32% rise, now making up 74% of the total revenue, up from 68% in the previous year. This growth underscores the company’s ability to enhance its revenue streams and solidify its financial standing.
Significant Increase in Transaction Value
The company experienced a substantial 34% increase in total transaction value, reaching nearly $1.6 billion. This surge drove a 35% growth in processing revenue for the quarter, highlighting Nayax’s expanding influence in the transaction processing domain.
Major Strategic Partnerships
Nayax announced strategic partnerships that are set to bolster its market position, including a collaboration with Autel Energy to purchase 100,000 UNO Minis for EV chargers. Another key partnership with Lynkwell in the EV charging sector was also emphasized, showcasing Nayax’s strategic focus on expanding its footprint in the EV market.
Improved Profitability
The company’s profitability improved significantly, with gross margins rising to 48.3% from 44.3% in Q2 2024. Adjusted EBITDA increased to nearly $13 million, representing 13% of revenue, and net income reached nearly $12 million, a stark contrast to the net loss of $3 million in the prior-year period.
Customer and Device Base Expansion
Nayax’s customer base expanded by approximately 24% compared to Q2 2024, and the installed base of managed and connected devices grew by 16% to almost 1.38 million devices. This expansion reflects the company’s successful efforts in scaling its operations and enhancing customer engagement.
Dependency on Organic Growth
While Nayax pursues strategic mergers and acquisitions, the primary focus remains on organic growth. This reliance could pose challenges if market conditions shift, necessitating a careful balance between organic and inorganic growth strategies.
EV Charging Market Competition
The competitive landscape of the EV charging market was acknowledged, with Nayax’s success hinging on maintaining technological and strategic advantages. The company’s partnerships in this sector are crucial to sustaining its competitive edge.
Forward-Looking Guidance
Nayax reaffirmed its full-year 2025 guidance, projecting revenue growth of 30% to 35% and adjusted EBITDA between $65 million and $70 million. The company emphasized its strategic partnerships, particularly in the EV charging sector, and its expanding presence in new verticals as key drivers for ongoing market share gains.
In summary, Nayax Ltd.’s Q2 2025 earnings call conveyed a positive outlook, with strong revenue growth, strategic partnerships, and improved profitability. However, the company remains vigilant of the competitive EV charging market and its reliance on organic growth. Investors and market watchers will be keen to see how Nayax navigates these challenges while capitalizing on its strategic initiatives.