This article first appeared on GuruFocus .
Release Date: May 07, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Nexi SpA ( NEXXY ) reported a 1% year-on-year revenue growth in Q1 2026, with underlying growth at 5%, showcasing resilience despite external headwinds.
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EBITDA increased by 2.6% year-on-year, with a margin expansion to 48.3%, supported by disciplined cost execution.
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The company is on track with strategic initiatives, particularly in ISVs and direct channels, and has strong commercial momentum in e-commerce in Germany and the DACH region.
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Nexi SpA ( NEXXY ) is set to pay a second dividend of $0.30 per share, a 20% increase from the previous year, reflecting strong shareholder value creation.
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The company has reduced its net financial debt to EBITDA ratio to 2.5 times, down from 2.6 at year-end, and has started reducing gross debt by reimbursing about EUR1 billion of maturities.
Negative Points
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Merchant Solutions revenue declined by 1.4% year-on-year, primarily due to bank-related effects in Italy, including loan outflows and contract renegotiations.
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There was some softness in consumer spending, particularly in Germany and the Nordics, impacting volumes.
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Issuing Solutions, despite strong performance, is expected to face increased bank-related effects in the second half of the year, potentially impacting full-year growth.
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The company faces competitive pressure in various markets, with concerns about pricing aggressiveness from new entrants, particularly in the SMB sector.
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Nexi SpA ( NEXXY ) anticipates an increase in operating costs over the coming quarters due to inflationary pressures and continued investment in strategic areas.
Q & A Highlights
Q: Can you provide more details on your EBITDA guidance and the cost plan for the rest of the year? A: Pier Giorgio, CFO: We confirm our EBITDA guidance similar to 2025, expecting a cost base increase of approximately 5% to 6% due to strategic investments and positive phasing in Q1. We anticipate an acceleration in Merchant Solutions in H2 due to strategic initiatives gaining momentum and reduced market risk impact.
Q: Could you elaborate on the underlying growth metrics and the impact of non-volume-driven components? A: Pier Giorgio, CFO: In Q1 '25, 27%-28% of Merchant Solutions revenues were non-volume-driven, compared to 25% in Q1 '26. The difference, around $10 million, is due to phasing effects. The variance is largely explained by national scheme growth and the remuneration from those transactions.
Q: How is the competitive landscape affecting pricing, especially in the SMB sector? A: Bernardo Mingrone, CEO: We face competition across all channels, but our strong distribution partners in banks help preserve margins. We are adapting to the shift towards more direct distribution channels, which generally have lower take rates, but this trend has been ongoing for years.
Q: What are the macro assumptions in your full-year guidance, and how is Germany performing despite softer consumer trends? A: Bernardo Mingrone, CEO: The macro environment is slightly worse than expected, particularly in Germany, but we maintain our guidance. Germany's growth is driven by market share gains and successful sales efforts, particularly in the ISV and partner channels.
Q: Can you discuss the impact of the Bancomat Hub in Italy and its relation to take rates? A: Bernardo Mingrone, CEO: We process 100% of Bancomat's scheme, which has increased volumes but at a lower take rate due to pure processing. This contributes to the take rate discussion, as the volume uplift dilutes the take rate in the quarter.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
