Nayax Ltd.

Q2 2026 revenue increased 28% year over year to approximately $123 million, with 21% organic revenue growth in the quarter and approximately 24% organic growth in the first half. Adjusted EBITDA was $14 million, up 12% year over year. Gross margin was 47%; recurring gross margin was 54% versus 53% a year ago; processing margin improved to nearly 41% versus 39%; hardware margin was 28.1%; ARPU increased 13% to $251; ATV rose to $2.52; total dollar transaction value grew 29% to $2.1 billion. Revenue for the first half was approximately $230 million, and recurring revenue represented about 72% of total revenue. As of June 30, 2026, cash and short-term deposits were $304 million and total debt was $349 million. Management reaffirmed full-year 2026 revenue guidance of $510 million-$520 million and adjusted EBITDA guidance of approximately $85 million-$90 million, while lowering free cash flow conversion guidance to approximately 5%-10% of adjusted EBITDA.

Yair Nechmad characterized the quarter as strong and said the company’s “flywheel is working,” with each new device adding to high-margin recurring revenue. He emphasized that Nayax is expanding beyond payments into software and financial services, and said the bank charter, EV investments, and in-house card/lending capabilities could create new revenue streams on top of the core platform. His tone was notably confident and long-term focused, including the statement that he is “more confident about where Nayax is headed than I have ever been.”

Sagit Manor highlighted record revenue and record total transaction value in Q2, plus continued improvement in ARPU and ATV. She cited 47% gross margin, 54% recurring gross margin, nearly 41% processing margin, and 28.1% hardware margin, noting hardware was pressured by Lynkwell mix and higher freight/logistics costs. She also pointed to $44 million of adjusted OpEx, $12.4 million of stock-based compensation, $6 million of adjusted net income, $2.3 million of operating cash flow in the first half, and negative $13.1 million of free cash flow in Q2, then said adjusted OpEx should be roughly $42 million per quarter in Q3 and Q4 excluding FX.

Analysts focused on what is driving growth by geography and vertical, the impact and timing of EV and bank-charter investments, the hardware margin decline, and how ARPU and organic growth should trend. Management said growth was broad-based across geographies and verticals, EV is accelerating through Lynkwell and Europe is seeing more success, and the bank charter is mainly about controlling data and expanding embedded financial services rather than becoming a bank-first business. On free cash flow, they said the softer conversion is largely a 2026 timing issue from EV, financial services, sourcing, and infrastructure investments, with margins expected to improve in Q3 and Q4 and free cash flow to improve in 2027.