Nayax Posts 23% Revenue Growth to $128 Million in Q3 2026

Nayax grew revenue 23% to $128 million in the third quarter of 2026, up from $104 million a year earlier, and posted a record gross margin of 49.6% as its recurring business scaled and adjusted operating expenses fell by more than $4 million.

Adjusted EBITDA (a profitability measure excluding items like depreciation and one-time costs) rose 32.9% to $24.2 million, or 19% of revenue. The company reported a net loss of $1.1 million, versus net income of $3.5 million a year earlier — a swing Chief Financial Officer Sagit Manor attributed to higher financial expenses and stock-based compensation. Adjusted net income moved the other way, climbing to $14.1 million from $10.2 million.

In short: the core engine is accelerating, even as accounting items cloud the bottom line.

How strong is the recurring business?

Recurring revenue grew 21% and now makes up roughly 73% of total revenue, up from about 62% in the first quarter of 2023, according to Co-Founder and CEO Yair Nechmad. Nayax ended the quarter with nearly 1.6 million managed and connected devices and about 131,000 customers globally.

Total transaction value rose 26% to $2.2 billion. Average revenue per unit increased 11% year over year to $255, which Manor tied to converting machines from cash to cashless payments and expanding into higher-value markets such as electric vehicle charging, amusement and car washes.

The margin picture improved across every line:

• Recurring gross margin: 54.8%, up from 53.6%
• Processing margin: 41.6%, up from 39.6%
• SaaS (software-as-a-service) margin: 77.3%, up from 76.3%
• Overall gross margin: 49.6%, a company record

Hardware revenue grew 27% to $34.5 million, driven primarily by the EV platform. Hardware gross margin improved to 35.2% from 28.1% in the second quarter, helped by higher average selling prices and lower costs for the VPOS Media product family.

What does the IPS acquisition change?

Nayax completed its $350 million acquisition of IPS Group on Oct. 1, gaining a foothold in smart parking. Nechmad said IPS serves more than 250,000 parking spaces, and Nayax expects to begin converting IPS payment volume to its own processing platform and to introduce the business to continental Europe over the next 12 months.

Chief Strategy Officer Aaron Greenberg said approximately $500 million in cashless volume already flows through IPS, which historically has not acted as the payment facilitator (the intermediary that manages the transaction flow). An integration could lift processing revenue and margins, though Greenberg cautioned it would take some months to see payment throughput.

Don't expect another big deal soon. Greenberg said Nayax is focused on integrating IPS and reducing leverage, though it remains open to smaller acquisitions that add services, strengthen specific industries or expand selected regions.

Elsewhere, Nechmad highlighted a distribution partnership with Getnet to expand in Latin America, starting with Chile and followed by Brazil, Mexico and Argentina. A separate agreement with Allied Electronics should bring the VPOS Media 5 payment devices to U.S. fuel pumps in the coming months. In EV charging, a network of 2,000 chargers moved onto Nayax's platform using Lynkwell software; EV revenue remains below 10% of company revenue but is growing quickly.

What's the outlook and cash position?

Management reaffirmed 2026 revenue guidance of $510 million to $520 million excluding IPS, including organic growth of 22% to 25%. Including IPS, Nayax now expects full-year revenue of $530 million to $540 million and adjusted EBITDA of roughly $90 million to $95 million, with IPS contributing about $20 million of revenue and $5 million of adjusted EBITDA in the fourth quarter.

Manor said the fourth quarter is seasonally the strongest for the core business, citing orders in hand and a tracked pipeline in EV charging, fuel and retail. The company also expects to deliver more than 10,000 units ordered by a Southeast Asian amusement operator.

Cash generation stayed positive: $18.1 million in operating cash flow and $10 million in free cash flow for the quarter. For the full year, Nayax still expects free cash flow conversion of about 5% to 10% of adjusted EBITDA, excluding IPS, as it invests in financial services, EV deployments and component sourcing. Manor noted Nayax has provided roughly $12 million in short-term operating investments for Lynkwell charging deployments since the start of the year, including about $5 million in the third quarter.

Looking ahead, Manor reiterated the goal of a 30% adjusted EBITDA margin in 2028, saying a 2027 margin between 26% and 28% would fit that trajectory — while stressing no formal 2027 guidance has been issued.

The takeaway: growth is compounding, margins are at records, and 2028 is the number to watch.