Nayax (NASDAQ:NYAX) reported what management described as a “historic inflection point” in 2025, delivering its first full-year net income while expanding margins and growing its global installed base of connected devices. Executives highlighted increased recurring revenue, improving unit economics in payment processing, and a series of acquisitions aimed at strengthening the company’s vertical software and payments platform.
First full-year net income and expanding recurring revenue
Co-Founder and CEO Yair Nechmad said Nayax delivered “strong 2025 results and a very solid fourth quarter,” emphasizing that the company generated net income of $35.5 million for the year, compared with a loss in the prior year. CFO Sagit Manor echoed the milestone, saying profitability reflected “the true earning power” of the company’s transaction-based recurring revenue model.
Device growth, transaction volume, and ARPU expansion
Nayax ended 2025 with an installed base of 1.46 million managed and connected devices serving around 115,000 customers globally. Total dollar transaction value grew 32% to approximately $6.4 billion, and average transaction value increased to $2.25 from $2.05, which management attributed to continued expansion into higher-value verticals such as EV charging, amusement, and car washes. The company’s take rate was cited at 2.7%.
Average revenue per unit (ARPU) increased to approximately $239, up 11% year-over-year, which Manor said was driven by continued conversion of machines from cash to cashless payments and a favorable mix shift toward higher-value use cases. In response to an analyst question about the sustainability of ARPU growth, management said ARPU has been rising at a low double-digit rate primarily from processing growth, with additional potential from new value-added services.
Margin improvement and cash flow dynamics
Manor said 2025 margin expansion was “structural,” driven by processing economics and operating leverage rather than one-time cost actions. Gross margin rose to 48.2% from 45.1%. Processing margin improved to approximately 38% from around 34%, driven by lower acquiring costs and routing efficiencies. SaaS margins remained around 76%, and hardware margins improved following supply chain optimization and component cost reductions.
Adjusted EBITDA increased to $61.1 million, representing 15.3% of revenue. Net income included a $10.3 million one-time gain related to share purchases of Tigapo and Nayax Capital.
Free cash flow for 2025 was approximately $12 million, or about 20% of adjusted EBITDA, which management said came in below guidance due to deliberate working capital investments. Manor cited two key factors:
- Advance payments to a new contract manufacturer tied to the ramp-up of VPOS Media devices and inventory build ahead of planned 2026 hardware sales.
- Higher accounts receivable driven by strong December hardware sales and expansion of Nayax Capital’s installment portfolio.
Management said these items were “growth-driven” and expected a meaningful portion to reverse as collections normalize in 2026, supporting improved free cash flow conversion.
Acquisitions and integration progress
Nayax executives said 2025 was an active year for M&A. Aaron Greenberg said the company deployed about $52 million to complete five acquisitions: Lynkwell, UPPay, Inepro, the remaining stake in Nayax Capital, and Tigapo. Nechmad also referenced Lynkwell, Tigapo, UPPay, Nayax Capital, and Inepro as strategic acquisitions that expanded the platform, strengthened vertical capabilities, and enhanced geographic reach.
Greenberg provided integration updates:
- Brazil: UPPay has been fully integrated into VMtecnologia, with legal and operational consolidation into one team and unified systems.
- Europe: Inepro has been fully integrated and now operates as Nayax B.V. in the Benelux region, shifting from a distributor model to a direct sales office.
- Tigapo: Nayax acquired the remaining shares to reach 100% ownership. Greenberg said Tigapo provides differentiated software for family entertainment centers, and leadership transitioned under Yinon Raviv.
- Lynkwell: Acquired at year-end to accelerate Nayax’s EV charging verticalization strategy. Nayax consolidated Lynkwell with Nayax Energy and appointed Lynkwell co-founder Jason Zarillo as head of Nayax Energy. The company intends to migrate Nayax Energy software customers to the Lynkwell platform over the coming months.
- Nayax Capital: Nayax purchased the remaining stake from joint venture partners, including Bank Hapoalim and individual investors, bringing the technology fully in-house.
In Q&A, management said it continues to target “a few acquisitions a year” (two to three), citing a pipeline of potential targets. However, the company’s 2026 guidance includes only organic growth and the contribution from Lynkwell, with no additional M&A assumed.
Product, geographic expansion, and 2026 outlook
Nechmad said Nayax launched its new flagship device, VPOS Media, in Europe, Israel, and Australia, highlighting its screen-based consumer experience that can enable advertising, loyalty programs, and engagement at the machine. He also noted several UNO-Mini OEM integrations, positioning Nayax’s readers for factory-level installation and potentially lowering retrofit needs and customer acquisition costs.
On geographic expansion, management highlighted Latin America as a fast-growing region, noting that Nayax’s device base in Brazil doubled year-over-year. Nechmad also said the company invested in regional leadership across Singapore, China, and Japan, and he pointed to Japan as a near-term opportunity, citing VPOS Media certification and expectations for signs of acceleration “in the next year.”
For 2026, management guided to revenue of $510 million to $520 million, including 22% to 25% organic growth plus contribution from Lynkwell. Adjusted EBITDA margin is expected to be around 17%, implying $85 million to $90 million of adjusted EBITDA. The company also expects free cash flow conversion of about 40% of adjusted EBITDA in 2026, reflecting improved working capital dynamics.
Management also reaffirmed progress toward its 2028 framework introduced after the 2021 IPO, which includes $1 billion in revenue, 50% gross margin, and 30% adjusted EBITDA margin, driven by organic growth and strategic M&A.
About Nayax (NASDAQ:NYAX)
Nayax Ltd. is a global fintech company specializing in cashless payment solutions, telematics and management services for unattended retail environments. Founded in 2005 and headquartered in Israel, Nayax develops hardware and software platforms that enable vending machines, kiosks, laundromats, e-commerce and self-checkout points to accept a wide range of payment methods, including credit and debit cards, mobile wallets and contactless NFC transactions.
The company’s product portfolio comprises proprietary point-of-sale terminals—such as the VPOS and Carbon series—as well as a cloud-based management suite known as the Monyx platform.
