Nayax Ltd.

Q2 revenue increased 28% year over year to approximately $123 million, including 21% organic growth. Adjusted EBITDA was $14 million, up 12% from the prior-year quarter. Gross margin was 47%; recurring gross margin was 54% versus 53% a year ago; processing margin improved to nearly 41% from 39%; hardware margin was 28.1%. Total dollar transaction value grew 29% to $2.1 billion, ARPU increased 13% to $251, and ATV rose to $2.52 from $2.20. For the first half, revenue increased 30% to approximately $230 million and organic growth was approximately 24%. For full-year 2026, Nayax reaffirmed revenue guidance of $510 million-$520 million and adjusted EBITDA guidance of approximately $85 million-$90 million, but lowered free cash flow conversion guidance to approximately 5%-10% of adjusted EBITDA.

Yair Nechmad said the business is performing strongly because Nayax keeps adding merchants, devices, and recurring monetization on top of its installed base. He emphasized that the company’s “flywheel” is working, with growth coming from cash-to-cashless conversion, higher-value verticals like EV charging, and increasing value per connected device. He was notably optimistic about the company’s next phase, describing financial services as the next layer on top of payments and software and saying he is more confident about Nayax’s direction than ever.

Sagit Manor said Q2 delivered record revenue and record total transaction value, with recurring revenue up 24% and representing about 72% of total revenue. She highlighted margin progress, including gross margin of 47%, recurring gross margin of 54%, processing margin of nearly 41%, and ARPU of $251, up 13% year over year. She also noted cash and short-term deposits of $304 million versus total debt of $349 million, free cash flow of negative $13.1 million in the quarter, and adjusted OpEx of $44 million; she expects adjusted OpEx to be roughly $42 million per quarter in Q3 and Q4, excluding FX. She said full-year stock-based compensation is expected to be about $27 million and explained that the lower free cash flow outlook reflects accelerated investment in financial services, EV, and sourcing.

Analysts pressed management on what is driving growth, especially EV and regional trends, and management said Q2 strength came across geographies and verticals, with EV accelerating in the U.S. and some recent success in Europe. Several questions focused on the reduced free cash flow outlook and hardware margin pressure; management said most of the incremental investments are expected in 2026 and that hardware margin should move back toward Q1 levels in Q3 and Q4. Analysts also asked about the new Connecticut bank charter, and management explained it gives Nayax a path to offer business-only credit services, keep underwriting tied to its own transaction data, and reduce reliance on sponsor banks while preserving control of the customer relationship.