Nayax swings to loss on executive stock plan and cuts cash flow outlook
Nayax reported second-quarter revenue of $123 million on August 10, up 28 percent from $95.6 million a year earlier, but swung to a loss of $10.1 million from net income of $11.7 million in the same quarter of 2025, according to the company’s results release. The Israeli commerce and payments platform attributed the reversal primarily to a $12.4 million increase in non-cash stock-based compensation.
Adjusted net income was $6 million, down from $11 million a year earlier, which the company said reflected higher financial expenses. Adjusted earnings before interest, taxes, depreciation and amortization were $14.1 million. The prior-year comparison also included a one-time gain of $5.6 million tied to Nayax buying the remaining 51 percent of Nayax Capital.
“We had a strong second quarter, with continued execution across the business,” chief executive and chairman Yair Nechmad said in the release. The installed base of managed and connected devices passed 1.55 million, and the customer base reached 125,000.
The stock-based compensation stems from two new arrangements introduced during the quarter. A senior leadership incentive scheme the company calls the Diamond Plan carries total consideration of about $48 million over five years. Separately, the board awarded Nechmad and the chief technology officer, both co-founders, a long-term incentive worth about $10 million over three years that vests fully if the share price reaches $240. Nayax shares traded near $68 in the days before the report.
Nayax reaffirmed its full-year revenue guidance of $510 million to $520 million and its adjusted EBITDA guidance of $85 million to $90 million, a margin of about 17 percent. It cut its free cash flow outlook sharply, however, now expecting conversion from adjusted EBITDA of roughly 5 percent to 10 percent for the year, against the approximately 40 percent it projected when reporting first-quarter results in May.
The company said the revision reflects accelerated investment in three areas: financial services including lending, instalment and issuing capabilities, capturing share in electric vehicle charging, and securing component sourcing. Second-quarter revenue included $6.5 million from recent acquisitions.
Nayax maintained the mid-term targets it set out after its 2021 listing, which call for revenue of $1 billion, a gross margin of 50 percent and an adjusted EBITDA margin of 30 percent by 2028. The company trades on the Nasdaq and the Tel Aviv Stock Exchange under the ticker NYAX.
