Nayax Achieves 32% Recurring Revenue Growth in Latest Quarter
Nayax Reports Strong Growth in Second Quarter Performance
HERZLIYA, Israel - Nayax Ltd. (NASDAQ: NYAX), a leading global payment and loyalty platform, has announced its financial results for the second quarter ended in mid-2025, showcasing significant strides in its operational and financial metrics.
Key Financial Highlights
In Q2 of 2025, Nayax reported a remarkable revenue of $95.6 million, marking a robust 22% increase compared to the prior year. This growth was fueled by both new and existing customers, with organic revenue growing by 20% during the same period.
Highlights from the quarter include:
- Recurring revenue increased by 32% to $70.7 million, representing 74% of total revenue.
- Adjusted EBITDA reached $12.6 million, with a margin of 13% of total revenue, compared to $8.1 million and 10% in Q2 2024.
- Gross margin improved to 48.3%, up from 44.3%, thanks to better contract negotiations and optimization in supply chain processes.
- Operating profit stood at $9.5 million, which included a one-time gain of $5.6 million due to the acquisition of Nayax Capital, an embedded financing solution provider.
- Excluding this gain, operating profit reflected a strong improvement from last year.
Customer and Market Expansion
During this quarter, the total transaction value surged 34% to approximately $1.6 billion. Nayax processed around 726 million transactions, representing a 24.5% increase compared to Q2 2024.
The customer base expanded to roughly 105,000, showcasing a 23.5% growth, which underlines Nayax's commitment to capturing a greater market share as demand for cashless solutions continues to rise.
Operational Metrics and Innovations
Notable operational achievements included:
- The introduction of new payment solutions integrated into approximately 100,000 EV chargers by partnering with various global electric vehicle service providers.
- Maintaining a dollar-based net retention rate of 123%, indicating a high level of customer satisfaction against a low churn rate of just 2.8%.
- The total number of devices managed and connected rose to 1.38 million, with continued strong demand driving device sales.
Future Outlook
Nayax remains optimistic about its financial outlook for 2025, reaffirming guidance of a 30% to 35% revenue growth, reaching between $410 million to $425 million. The company anticipates organic growth of at least 25%, driven primarily by expanding its operational efficiencies and integrations from recent acquisitions.
Investor Engagement
To keep investors engaged, Nayax is hosting a conference call to discuss its Q2 results, led by its CEO Yair Nechmad and CFO Sagit Manor. This call provides a platform for stakeholders to gather insights into Nayax's growth strategies and market positioning.
Frequently Asked Questions
What were Nayax's total revenues for Q2 2025?
Total revenues were reported at $95.6 million, a 22% increase from the prior year.
How much did recurring revenue grow in Q2 2025?
Recurring revenue grew by 32%, reaching $70.7 million.
What contributed to Nayax's improved gross margin?
The gross margin improved to 48.3% due to better contract negotiations and supply chain optimizations.
What is Nayax's forecast for 2025 revenue growth?
Nayax is forecasting revenue growth of 30% to 35%, with an organic growth target of at least 25%.
How many customers does Nayax currently have?
Nayax has approximately 105,000 customers, reflecting a growth of 23.5%.
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