Nayax Ltd. (NYAX)

Price$52.24Cached quoteAs of 2026-09-05 08:06 UTC

AI: Overvalued

Price checkFast growth is real, but today’s valuation still demands strong execution for years.

Nayax carries a market value near $1.9 billion against 2026 revenue guidance of $510 million to $520 million and adjusted EBITDA guidance of $85 million to $90 million. Adjusted EBITDA is a profit measure before financing, taxes, depreciation and selected adjustments. The valuation is roughly 3.6 times guided sales and above 20 times guided adjusted EBITDA before the pending IPS acquisition. That premium looks demanding while reported earnings and free cash flow remain uneven.

Big pictureRecurring revenue supports durability, while cash conversion and rising leverage weaken the margin of safety.

Second-quarter revenue rose 28%, with recurring SaaS and payment-processing revenue making up 72% of sales. Recurring revenue softens transaction and hardware cycles, but payment fees still depend on activity and hardware sales can be lumpy. First-half operating cash flow was only $2.3 million, while second-quarter free cash flow was negative $13.1 million. Management cut 2026 free-cash-flow conversion—the share of adjusted EBITDA becoming cash after investment—to about 5% to 10%. Cash and short-term deposits were about $304 million against roughly $349 million of debt before the IPS deal.

Business strengthScale, customer growth, and recurring margins are improving, but stock compensation remains a real shareholder cost.

Nayax ended the second quarter with about 1.55 million managed devices and 125,400 customers, while transaction value grew 29% and recurring margins improved. Those are strong operating signals, and management still targets substantial margin expansion by 2028. Capital allocation is aggressive: investment is flowing into financial services, EV charging and acquisitions rather than cash returns. Meanwhile, the quarterly IFRS loss included $12.4 million of share-based compensation, and new RSU, PSU and executive option grants create dilution risk.

What could change the storyFaster cash generation could justify the premium; acquisition strain or slowing growth could break it.

The bull case requires organic growth staying around the low-to-mid 20% range, adjusted EBITDA margins moving toward management’s longer-term targets, and IPS delivering its promised synergies and strong cash conversion. The bear case is slower payment or hardware growth, persistently heavy investment, or a difficult integration while leverage rises. IPS is a $350 million all-cash deal funded with cash plus about $150 million of new debt; net leverage, meaning net debt divided by adjusted EBITDA, is expected near 3.8 times at closing.

AI: News

IPS acquisition agreedNayax agreed to buy smart-parking provider IPS Group, materially expanding its parking footprint and leverage.

On August 25, Nayax signed a definitive agreement to acquire IPS Group for $350 million in cash, with closing expected in the fourth quarter subject to approvals. IPS is expected to contribute more than $90 million of 2026 revenue and about $21 million of adjusted EBITDA. Nayax plans to use cash on hand plus roughly $150 million of committed new debt, taking expected net leverage to about 3.8 times at closing.

Second-quarter resultsRevenue stayed strong, but cash flow weakened and stock compensation pushed reported earnings into a loss.

On August 10, Nayax reported second-quarter revenue of $122.6 million, up 28.2%, and adjusted EBITDA of $14.1 million. Recurring revenue grew 24% and recurring margins improved. However, the company reported a $10.1 million net loss, largely reflecting higher share-based compensation, and negative $13.1 million free cash flow. Management kept its revenue and adjusted EBITDA outlook but sharply lowered expected 2026 free-cash-flow conversion.

US bank applicationNayax applied for a non-depository Connecticut bank charter to deepen embedded financial services in North America.

On August 6, Nayax filed to establish Nayax America Bank under Connecticut’s Innovation Bank framework. The proposed bank would not take deposits, but could let Nayax provide corporate cards, controlled-spend programs, and working-capital products more directly. North America generates about 40% of company revenue, so approval could deepen customer relationships and economics. The upside depends on regulatory approval and disciplined execution, while the buildout adds investment and compliance demands.

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Revenue

2020

2021

2022

2023

2024

2025

Net income

2020

2021

2022

2023

2024

2025

Free cash flow

2020

2021

2022

2023

2024

2025

Total cash / debt

CashTotal debt

2020

2021

2022

2023

2024

2025

Financial statements

	2025	2024	2023	2022	2021	2020
Revenue	$400.4M	$314.0M	$235.5M	$173.5M	$119.1M	$78.8M
Gross profit	$193.0M	$141.5M	$88.3M	$60.0M	$48.2M	$37.2M
Gross margin	48.19%	45.07%	37.49%	34.60%	40.43%	47.19%
Research & development	$30.0M	$25.4M	$21.9M	$22.1M	$19.0M	$9.3M
Operating expenses	$155.4M	$138.4M	$100.7M	$94.1M	$70.6M	$39.4M
Operating income	$37.6M	$3.1M	−$12.4M	−$34.0M	−$22.5M	−$2.2M
Operating margin	9.38%	0.99%	−5.26%	−19.62%	−18.87%	−2.82%
EBITDA	$46.2M	$10.6M	−$7.9M	−$30.7M	−$20.3M	−$661,000
EBITDA margin	11.54%	3.37%	−3.37%	−17.68%	−17.03%	−0.84%
Net income	$35.5M	−$5.6M	−$15.9M	−$37.5M	−$24.8M	−$6.1M
Net profit margin	8.87%	−1.79%	−6.75%	−21.62%	−20.79%	−7.72%
Basic EPSper basic share	$0.96	-$0.16	-$0.48	-$1.14	-$0.82	-$0.25
Diluted EPSper diluted share	$0.94	-$0.16	-$0.48	-$1.14	-$0.82	-$0.25

Review official source filings ↗

Owners

Reported shareholders

Reference date Jun 30, 2026

Reported holdings Number of shares

View holders

Top 20 reported holders of NYAX
Holder	Shares held
Ben-Avi David	6.59M
Y.D. More Investments Ltd	906.48K
Capital World Investors	696.11K
AltraVue Capital, LLC	690.14K
Phoenix Financial Ltd.	465.28K
Harel Insurance Investments & Financial Services Ltd.	454.56K
VANGUARD CAPITAL MANAGEMENT LLC	444.11K
Clal Insurance Enterprises Holdings Ltd	384.52K
Migdal Insurance & Financial Holdings Ltd.	300K
Assenagon Asset Management S.A.	277.11K
Swedbank AB	220K
FRANKLIN RESOURCES INC	178.04K
VANGUARD FIDUCIARY TRUST CO	134.84K
GOLDMAN SACHS GROUP INC	117.6K
JPMORGAN CHASE & CO	90.92K
Legato Capital Management LLC	73.57K
NEW YORK STATE COMMON RETIREMENT FUND	66.35K
Manor Sagit	46.49K
GEODE CAPITAL MANAGEMENT, LLC	38.29K
Ensign Peak Advisors, Inc	38.2K

Bars compare reported share counts. A matching total for this share class and reporting period is unavailable, so percentages are not shown.

Source: SEC Form 4/A ↗Updated Sep 29, 2026 · Quarterly data

Insider buys & sells

Jul 1, 2024–Jun 30, 2026

Buys0$0.00 disclosed value

Sells (SEC code S)39$5.85M disclosed value

Transaction	Insider	Type	Shares	Price	Value	Owned after
Jun 29, 2026Form 4	Manor SagitCFO	SellOrdinary Shares	214	$63.86	$13.7K	46.5K
Jun 29, 2026Form 4	Sever MichalCMO	SellOrdinary Shares	35	$63.89	$2.2K	17.3K
Jun 29, 2026Form 4	Greenberg Aaron SamuelCSO	SellOrdinary Shares	54	$63.85	$3.4K	25.6K
Jun 29, 2026Form 4	Tepper OrenCRO	SellOrdinary Shares	74	$63.80	$4.7K	19.0K
Jun 29, 2026Form 4	Furman Carly LisanneCEO NAYX North America	SellOrdinary Shares	109	$64.42	$7.0K	21.2K