This article first appeared on GuruFocus .
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Revenue:$107 million, a growth of 32% with 26% organic revenue growth.
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Adjusted EBITDA Margin:Expanded to 13%.
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Installed Base:Surpassed 1.5 million devices.
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Customer Base:Reached 120,000 customers globally.
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Total Transaction Value:Grew 33% to approximately $1.8 billion.
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Average Transaction Value (ATV):Increased to $2.36 from $2.06.
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Take Rate:Remained strong at 2.66%.
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Average Revenue Per Unit (ARPU):Increased to $247, up 14% year over year.
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Hardware Revenue:Increased 46% to approximately $28 million.
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Gross Margin:49%, consistent with the prior year's quarter.
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Recurring Margin:Increased to 54% from 52% in the prior year's quarter.
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SaaS Margin:Improved to 76.5% from 75.9%.
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Hardware Margin:33.1% compared to 39.5% in Q1 2025.
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Adjusted OpEx:$39 million, 36% of revenue.
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Adjusted EBITDA:Increased 43% to $14 million.
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Operating Profit:$4 million compared to $1.8 million in the prior-year period.
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Net Income:$1.3 million compared to $1.1 million in the prior-year period.
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Cash and Cash Equivalents:$306 million as of March 31, 2026.
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Short and Long-term Debt:$325 million.
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Free Cash Flow:Negative $6 million for the quarter.
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2026 Revenue Guidance:$510 million to $520 million.
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2026 Adjusted EBITDA Margin Guidance:Approximately 17%.
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Free Cash Flow Conversion:Expected to be approximately 40% of adjusted EBITDA for the year.
Release Date: May 12, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Revenue grew 32% to $107 million, with organic revenue growth of 26%.
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Adjusted EBITDA margin expanded to 13%, demonstrating strong operational leverage.
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Installed base surpassed 1.5 million devices, driving recurring revenue growth.
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Total transaction value grew 33%, with a shift towards higher-value verticals such as EV charging and amusement.
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Hardware sales increased by 46%, driven by strong demand across all markets.
Negative Points
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Hardware margin decreased to 33.1% from 39.5% in the prior year due to product mix and promotions.
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Free cash flow was negative at $6 million, mainly due to infrastructure investments and timing of cash settlements.
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Financial expenses increased by $2.9 million due to interest expenses from bond offerings.
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The take rate decreased from $2.75 to $2.66, influenced by geographical mix.
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Adjusted OpEx had an unfavorable impact of $1.2 million due to foreign currency volatility.
Q & A Highlights
Q: Can you discuss your EV strategy and the EV contribution in the quarter, given the rise in fuel prices? A: Aaron Greenberg, Chief Strategy Officer, explained that Nayax's acquisition of Lynkwell was a strategic move to penetrate the EV industry, focusing on software and payment solutions. Rising fuel prices are seen as a tailwind for EV adoption, particularly in the US. Nayax aims to connect to as many public DC fast chargers as possible and has signed partnerships with ChargeSmart and E-Plug, with more expected in the coming quarters.
Q: What are you seeing in terms of Hardware costs, and how should we think of Hardware gross margin potential for the remainder of the year? A: Sagit Manor, Chief Financial Officer, stated that hardware costs are expected to remain stable, with gross margins around 49% for the year. Q1 had lower margins due to promotions in Europe for the new VPOS Media devices, but margins are expected to improve slightly as the year progresses.
Q: Can you provide more detail on what's driving the expansion of processing margins, and what is the ceiling for these margins? A: Sagit Manor highlighted that processing margins improved to nearly 40% due to renegotiated contracts with major acquirers and enhanced smart-routing capabilities. The geographical mix also played a role, with higher margins in Europe despite a lower take rate. The company continues to push for margin improvements across all areas.
Q: Can you provide an update on the pilot of the Yellow Account and any initial learnings or use cases? A: Aaron Greenberg noted that the Yellow Account pilot is progressing well, with customers appreciating faster payouts. The account serves as a foundation for adding additional services over time, such as lending and e-commerce, which will enhance customer engagement and ARPU growth.
Q: What is the opportunity in Brazil, and how is Nayax capitalizing on it? A: Aaron Greenberg explained that Brazil presents a significant opportunity, especially in the unattended industry. Nayax has aligned its branding and infrastructure in Brazil and plans to introduce the VPOS Media device. The market is largely rental-based, offering high margins comparable to SaaS, and Nayax intends to continue investing in Brazil and Latin America.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
