Key Highlights

• Nayax reported Q2 2026 Revenue of $122.6 million, up 28.2 percent year-over-year, with Recurring Revenue from SaaS and payment processing up 24 percent.

• The company posted a net loss of $10.1 million, compared to Net Income of $11.7 million a year earlier, driven primarily by stock-based compensation expenses of $12.4 million, up from $2.5 million.

• Adjusted EBITDA rose to $14.1 million from $12.6 million, representing a 12 percent Margin , and the company reaffirmed full-year 2026 revenue guidance of $510 million to $520 million.

• Nayax revised its full-year free Cash Flow conversion guidance down to approximately 5 to 10 percent of adjusted EBITDA, from a prior projection of approximately 40 percent, citing accelerated Investment in financial services and EV charging.

Revenue Growth Continues Across Payments and SaaS

Nayax Ltd. ( Nasdaq :NYAX) reported second quarter revenue of $122.6 million, up 28.2 percent from $95.6 million a year earlier, driven by both new and existing customer expansion. Nayax, which also trades on the Tel Aviv Stock Exchange, operates a global commerce, payments, and loyalty platform serving unattended and self-service retail merchants, including vending, EV charging, and amusement operators. Recurring revenue from SaaS subscriptions and payment processing fees grew 24 percent to $87.7 million, representing 72 percent of total revenue, while point-of-sale device revenue rose 40.2 percent to $34.9 million on strong Demand across market segments.

Processing margin improved to 40.5 percent from 39.1 percent, and SaaS margin improved to 76.4 percent from 74.2 percent, both benefiting from renegotiated bank acquirer contracts and growing scale. Hardware margin declined to 28.1 percent from 35.4 percent, primarily reflecting product mix as approximately 65 percent of hardware revenue growth came from the lower-margin Lynkwell EV charging Business , along with modest pressure from higher freight and logistics costs.

Stock-Based Compensation Drives Swing to Net Loss

Nayax reported an operating loss of $6.7 million compared to Operating Income of $9.5 million a year earlier, primarily reflecting stock-based compensation expenses of $12.4 million in the current quarter versus $2.5 million previously, tied in part to a new senior Leadership incentive plan and long-term incentive awards to the company's co-founder CEO and CTO. The prior-year quarter also included a one-time $5.6 million gain related to a Nayax Capital share purchase that did not recur this year, further widening the year-over-year Earnings comparison.

Adjusted net income, which excludes stock-based compensation and other one-time items, was $6.0 million, down from $11.0 million a year earlier, primarily due to higher financial expenses tied to two bond offerings completed in 2025 on the Tel Aviv Stock Exchange. The scale of the stock-based compensation increase means investors should distinguish carefully between the GAAP net loss, which reflects real dilution to shareholders over time, and adjusted profitability measures that management uses to describe underlying operating trends.

Accelerated Investment Reshapes Free Cash Flow Outlook

Nayax revised its full-year free cash flow conversion guidance down to approximately 5 to 10 percent of adjusted EBITDA, a significant reduction from the roughly 40 percent projected as recently as its first quarter earnings release. Management attributed the change to accelerated investment across three areas: financial services, including lending, installment, and card-issuing capabilities; capturing share in the EV charging market through Lynkwell; and securing sourcing of key components and costs, characterizing the shift as a change in the timing of cash flows rather than a change in the underlying operating outlook.

The company also filed an application to establish a non-depository bank in Connecticut and launched Yellow Account, a new embedded banking product for U.S. customers, extending its existing card-issuing infrastructure in the EU, UK, and Israel into its largest market. Regulatory approval of the bank charter is not guaranteed and remains subject to review, meaning the timeline and ultimate scope of the U.S. financial services expansion carries meaningful uncertainty even as the company continues investing ahead of approval.

Conclusion

Nayax delivered continued double-digit revenue growth and margin improvement across its core payments and SaaS businesses, even as a sharp rise in non-cash stock-based compensation pushed the company to a net loss for the quarter. Management's decision to substantially lower free cash flow guidance while reaffirming revenue and adjusted EBITDA targets signals a deliberate near-term trade-off, prioritizing investment in financial services and EV charging infrastructure over cash generation. The regulatory outcome of Nayax's pending U.S. bank charter application and the pace at which Lynkwell's EV charging deployment scales are likely to be significant factors in whether this investment phase produces the growth acceleration management is targeting.