Nayax Ends Q1 With 100,000 Customers Globally

Nayax Ltd., a global commerce payments and loyalty platform designed to help merchants scale their business, recently announced its financial results for the first quarter, which ended on March 31, 2025.

“Nayax is off to an excellent start in 2025 as we continue to execute on driving profitable topline growth, improving our recurring revenue mix, increasing our market share, and expanding our geographic footprint,” commented Yair Nechmad, Chief Executive Officer and Chairman of the Board, in a recent press release. “As a key milestone, we ended the quarter with more than 100,000 customers globally, which is a testament to both Nayax being a trusted partner and a leading payments company. I couldn’t be more pleased with where we are today as we continue to scale the business for the long term.”

First Quarter 2025 Financial Highlights

• Revenue increased 27% to $81.1 million from $64.0 million in the prior year period.
• Revenue at constant currency increased 28% to nearly $82 million.
• Organic revenue growth for the quarter was 18%.
• Recurring revenue from SaaS and payment processing fees grew 35%, demonstrating the strength and resilience of our business model. Recurring revenue represented 77% of total revenue.
• Hardware revenues were $19 million, increased of 6% with strong demand for our products, solutions and technology, supporting both the unattended and attended markets.
• Gross margin improved significantly to 49.2% from 43.8%. This was primarily due to:
  • Recurring margin improving to 52.1% from 50.1%, partly from renegotiated contracts with several bank acquirers and the Company’s improved smart-routing capabilities.
  • Hardware margin rose to 39.5% from 27.3% driven by customer sales mix, continuing optimization of our supply chain infrastructure, and better component sourcing and cost.
• Operating profit was $7.9 million and includes a one-time $6.1 million dollars gain from share purchase of Tigapo Ltd. Excluding this one-time gain, operating profit would have been $1.8 million dollars, an improvement of $4.6 million dollars from an operating loss of $2.8 million dollars in last year’ first quarter.
• Net income for the quarter was $7.2 million dollars. Excluding the one-time gain associated with Tigapo, net income would have been $1.1 million dollars, a significant improvement of $6.1 million dollars compared to a net loss of $5.0 million dollars in the prior year period.
• Basic and diluted earnings per share for the quarter ended March 31, 2025 was $0.195 and $0.192, respectively. The basic loss per share for the quarter ended March 31, 2024 was $(0.147) per share.
• Weighted average number of basic and diluted shares were 36,712,748 and 37,267,022, respectively, for the first quarter of 2025, compared the weighted average number of basic shares 33,881,629 for the first quarter of 2024.
• Adjusted EBITDA was $9.7 million, representing a margin of 12% of total revenue. This was an improvement of $6.1 million compared to 6% in the prior year period.
• Cash flow from operating activities of $1.3 million while free cash flow was negative $5.7 million mainly due to the timing of cash settlement from processing activities.
• In March, Nayax completed a note and warrant offering and raised $133.0 million.
• As of March 31, 2025, the Company had $176.8 million in cash and cash equivalents and short-term deposits. Short-term and long-term debt balances was at $142.4 million.

Other Recent Business Highlights

• Total transaction value grew by more than 18% to more than $1.3 billion.
• Number of processed transactions increased 20.4% to 650 million.
• Growth in the customer base continued at a healthy pace, adding nearly 5,000 new customers in the quarter, bringing the total customer base to more than 100,000, an increase of 31% year-over-year.
• The dollar-based net retention rate remained high at 128%, reflecting strong customer satisfaction, while the customer churn rate remained low at 2.8%.
• Completed the acquisition of UPPay and announced strategic partnership with N-and-Group for their products.

2028 Outlook

As for the Company’s 2028 targets, management continues to project an annual revenue growth of approximately 35%, driven by a combination of organic growth and strategic M&A. Management also continues to target a gross margin of 50%, and an adjusted EBITDA margin of 30%, as we continue to drive high margin SaaS revenues and operational efficiency.

It is noted that the financial outlook provided by Nayax constitutes forward-looking information within the meaning of applicable securities laws and is based on a number of assumptions and subject to a number of risks and is current as of today. Unless required by law, Nayax has no obligation to update its guidance.

About Nayax

Nayax is a global commerce enablement, payments and loyalty platform designed to help merchants scale their business. Nayax offers a complete solution including localized cashless payment acceptance, management suite, and loyalty tools, enabling merchants to conduct commerce anywhere, at any time. With foundations and global leadership in serving unattended retail, Nayax has transformed into a comprehensive solution focused on our customers’ growth across multiple channels. As of March 31, 2025, Nayax has 11 global offices, approximately 1,100 employees, connections to more than 80 merchant acquirers and payment method integrations and globally recognized as a payment facilitator. Nayax’s mission is to improve our customers’ revenue potential and operational efficiency. For more information, please visit nayax.com.