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Israel's Nayax Q3 revenue rises less than expected after acquisition of IPS Group

By Reuters News


Overview

  • Israel payments platform's Q3 revenue grew 23% yr/yr but missed analyst expectations

  • Adjusted EBITDA for Q3 rose but slightly missed analyst expectations

  • Company completed acquisition of IPS Group, expanding into smart parking technology


Outlook

  • Nayax expects 2026 full-year revenue of $530 mln to $540 mln including IPS acquisition

  • Company sees 2026 full-year adjusted EBITDA of $90 mln to $95 mln

  • Nayax expects 2026 free cash flow conversion from adjusted EBITDA of 5% to 10%


Result Drivers

  • CUSTOMER EXPANSION - Co said revenue growth was driven by expansion among both new and existing customers

  • RECURRING REVENUE - Growth in SaaS and payment processing fees contributed to higher recurring revenue, now 73% of total

  • POS DEVICES DEMAND - Strong demand for POS devices, particularly in EV platform, supported revenue growth


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Revenue

Miss

$128 mln

$135.11 mln (3 Analysts)

Q3 Adjusted EBITDA

Slight Miss*

$24.2 mln

$24.42 mln (3 Analysts)

*Applies to a deviation of less than 1%; not applicable for per-share numbers.


Analyst Coverage

  • The current average analyst rating on the shares is "strong buy" and the breakdown of recommendations is 3 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the miscellaneous fintech infrastructure peer group is "buy."

  • The stock recently traded at 51 times the next 12-month earnings vs. a P/E of 64 three months ago


Reuters Recommended Reads

  • Nov 10 - eToro Q3 net income drops 74% on lower crypto trading

  • Nov 9 - Repay Holdings Q3 revenue up 97%, slightly beats estimates

  • Nov 10 - Revolut granted licence to open bank in Israel


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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