Nayax's Impressive Q2 Earnings Showcase Growth and Resilience
Nayax's Growth Journey: Highlights from Q2 Performance
Revenue of $95.6 million, recurring revenue growth of 32%
Gross margin improves to 48.3%
Net income of $11.7 million with Adjusted EBITDA of $12.6 million
Total transaction value up 34%, Customer base increases 24%
Company reaffirms full year guidance
Nayax Ltd. (Nasdaq: NYAX, TASE: NYAX), a leading global payment and loyalty platform, has shared its financial results for the second quarter ended June 30, demonstrating strong momentum and strategic execution.
“This quarter reflects our strategic initiatives paying off, with solid operational and financial growth supported by a robust demand for our innovative solutions. Our focus on key markets like digital payments positions us for continued success as we embrace growing sectors such as electric vehicle charging, smart vending, and family entertainment,” said Yair Nechmad, CEO and Chairman of the Board.
Financial Performance Overview
Here's an in-depth breakdown of our financial highlights for Q2 2025:
- Revenue surged by 22% to $95.6 million compared to $78.1 million, bolstered by expansion across new and existing customers.
- Organic revenue growth reached an impressive 20% for the quarter.
- Recurring revenue from Software as a Service (SaaS) and payment processing fees grew by 32%, amounting to $70.7 million, representing 74% of total revenue.
- Hardware revenue remained consistent at $24.9 million, showing stable demand for our products.
- Gross margin improved to 48.3%, a notable rise from 44.3%, thanks to strategic contract renegotiations and enhanced supply chain efficiencies.
- Operating profit reached $9.5 million, attributable to a one-time gain of $5.6 million from the acquisition of Nayax Capital. Without this gain, operating profit would have been $3.9 million, an increase from the previous year's $0.9 million.
- The net income for the quarter was $11.7 million, up significantly from a net loss of $3.0 million the previous year. Adjusted EBITDA stood at $12.6 million, demonstrating an upward trend in profitability.
- Cash flow from operating activities was strong at $12.9 million, with free cash flow of $5.6 million.
- As of June 30, 2025, the company held $172.3 million in cash and equivalents with total debt standing at $155.7 million.
Operational Metrics and Market Status
Transaction Volume and Customer Base Expansion
The total transaction value increased by 34.3%, reaching nearly $1.6 billion, alongside a 24.5% rise in the number of processed transactions to 726 million.
The take rate for payments maintained stability at 2.7%, reflecting efficient operations and market expansion. Our customer base grew to 105,000, marking a 23.5% increase since last year, a testament to our effective market strategies and customer engagement approaches.
Strategic Partnerships and Acquisitions
Recently, Nayax announced a strategic partnership with Autel Energy, aiming to embed its payment technology into approximately 100,000 EV chargers by 2026. This collaboration marks a significant advancement in improving the payment experience for electric vehicle users.
Additionally, the full acquisition of Nayax Capital enhances our embedded finance services, a growing segment that is set to bolster our recurring revenue per customer, underlining our commitment to providing comprehensive financial solutions.
Outlook and Future Guidance
For the full year 2025, Nayax anticipates revenue growth between 30% and 35%, targeting revenues of $410 million to $425 million. Adjusted EBITDA is expected between $65 million and $70 million, reflecting ongoing operational efficiencies and strategic expansions.
As we look towards the long term, Nayax aims for an annual revenue growth of around 35% heading into 2028, driven by both organic growth and strategic mergers and acquisitions, working towards achieving a gross margin of 50% and an adjusted EBITDA margin of 30%.
Frequently Asked Questions
What were Nayax's total revenues for Q2 2025?
Nayax reported total revenues of $95.6 million for Q2 2025.
How did Nayax's net income change compared to the previous year?
The net income for Q2 2025 was $11.7 million, a significant turnaround from a net loss of $3.0 million during the same period last year.
What strategic partnerships has Nayax formed recently?
Nayax has partnered with Autel Energy to enhance EV charging payments, integrating its technology into thousands of chargers.
What is Nayax's outlook for 2025?
The company expects revenue growth between 30% and 35% in 2025, with an adjusted EBITDA target between $65 million and $70 million.
What has caused the growth in Nayax's customer base?
Strategic market expansions, enhanced product offerings, and effective marketing strategies have contributed to a 23.5% growth in the customer base, now totaling approximately 105,000 customers.
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