Nayax Ltd. Q4 FY2025 earnings call

• Financial and operational highlights: Delivered strong 2025 results with $35.5 million net income, a milestone from a loss one year ago. Recurring revenue represents approximately 72% of total revenue. Processing volume at a rate outpacing device growth. - Acquisition strategy: 2025 was productive with $52 million capital deployed in five acquisitions, including LinkWell, UpPay, InterPro, and remaining stakes in Nyex Capital and Tagapo. Acquisitions expanded geographic reach, technological capabilities, and strengthened payment solution ecosystem. - Strategic initiatives: Nyex Capital is being expanded into a broader financial services platform with launch of Yellow Account. E - commerce SDK - based solution initially deployed in EV charging industry, in partnership with Audium. Automated self - service remains foundation with over 40 verticals served globally and expansion in more than 120 countries. EV division expanded into UK and Australia, with acquisition of LinkWell enabling combined payment and AI - enabled software offering for EV charging. Launched new flagship device Vipos Media in Europe, Israel, and Australia. Completed UNO Mini OEM integration to expand distribution channel.

In 2025, total revenue reached $400 million, a 28% year - over - year growth. Recurring revenue increased 29% to approximately $287 million, representing 72% of total revenue. Processing revenue increased by 30% to approximately $174 million. Hardware revenue was approximately $113 million. The installed base reached 1.46 million managed and connected devices. Average revenue per unit (ARPU) increased to approximately $239, up 11% year - over - year. Gross margin was 48.2% in 2025.

• 2026 revenue guidance: $510 to $520 million, inclusive of organic growth of 22% to 25% and contribution from LinkWell acquisition. - Adjusted EBITDA margin expected to be around 17%, range of $85 to $90 million. - Expect free cash flow conversion to improve materially in 2026, with expected 40% of adjusted EBITDA conversion. - Midterm 2028 framework targets $1 billion revenue, 50% gross margin, and 30% adjusted EBITDA margin.

Forward - looking statements are based on assumptions and subject to risks and uncertainties that may cause results to differ materially from projections. Risks and uncertainties can be found in supplementary investor presentation and regulatory filings.

Q: Josh Nichols with B Reilly Securities asked about detail on enterprise hardware deployments in 4Q and how it supports 2026 growth.

A: Yair and Aaron responded that strong hardware sales in Q4 were part of expected organic growth, with hardware sales enabling recurring revenue in various verticals like EV.

Q: Chris Kennedy with William Blair asked about gross margin outlook.

A: Aaron and Yair said gross margin is expected to stay at high level, with processing, SaaS, and hardware margins contributing, and expected to accelerate with device sales growth.

Q: Chris Kennedy also asked about Asia Pacific opportunity.

A: Yair mentioned Japan as a main short - term opportunity, with investment in building platform and foundation for Japanese market and Vipos Media certified in Japan.

Q: Sanjay Sekharani with KBW asked about ARPU expansion and TAM.

A: Aaron responded that ARPU growth from processing will continue, and additional value - added services like embedded financial services will contribute, with TAM related to bringing in services like lending and issuing.

Q: Chris Tseng with UBS asked about net revenue retention and revenue from existing vs new customers.

A: Aaron said net revenue retention rate is expected to stay in range of 2025 (around 120%), and around 75 - 80% of growth comes from existing customers.