Nayax Ltd. (NASDAQ:NYAX) reported third-quarter 2026 revenue of $128 million, representing a 23% increase from $104.3 million in the corresponding period of 2025, although both revenue and adjusted earnings fell below analyst expectations.
The global commerce payments platform provider recorded an adjusted loss of $0.03 per share, compared with the analyst consensus estimate for earnings of $0.13 per share. Revenue also missed the market forecast of $134.39 million.
Despite the quarterly earnings shortfall, Nayax shares advanced 5.77% in premarket trading on Wednesday after the company raised its full-year revenue outlook to reflect the acquisition of IPS Group.
The company now expects 2026 revenue of between $530 million and $540 million, including the contribution from IPS, compared with its original guidance of $510 million to $520 million.
Nayax also reported a 33% increase in adjusted EBITDA to $24.2 million, alongside higher recurring revenue and free cash flow.
Nayax generated revenue of $128 million during the third quarter ended September 30, 2026, compared with $104.3 million in the corresponding period of the previous year.
The increase of approximately $23.7 million reflected growth across the company’s commerce payments and software-related activities.
However, reported revenue was approximately $6.39 million below the analyst consensus estimate of $134.39 million.
The company also recorded an adjusted loss of $0.03 per share, compared with expectations for adjusted earnings of $0.13 per share.
The difference represented an earnings shortfall of $0.16 per share.
Although revenue increased year over year, both quarterly financial measures fell below market forecasts.
Nayax reported recurring revenue from software-as-a-service subscriptions and payment processing fees of $93.5 million.
The figure represented an increase of 21% compared with the corresponding period of 2025.
Recurring revenue accounted for approximately 73% of total quarterly revenue.
The company’s recurring revenue activities include SaaS fees and payments-related services associated with its commerce platform.
The increase contributed to Nayax’s overall revenue growth during the quarter.
The company did not provide a separate breakdown of SaaS subscription revenue and payment processing fees in the supplied results.
Nayax reported adjusted EBITDA of $24.2 million for the third quarter, compared with $18.2 million in the corresponding period of 2025.
The increase of approximately $6 million represented year-over-year growth of 33%.
Adjusted EBITDA accounted for approximately 19% of quarterly revenue.
The company attributed its financial performance to revenue growth, improved margins and operating leverage.
The increase in adjusted EBITDA occurred despite the reported adjusted loss per share and a decline in statutory net income.
Nayax also generated free cash flow of $10 million during the quarter, compared with $3.9 million in the prior-year period.
The increase of $6.1 million reflected higher cash generation compared with the corresponding quarter of 2025.
Nayax reported a gross margin of 49.6% during the third quarter, compared with 49.3% in the corresponding period of 2025.
The increase of 30 basis points represented a record quarterly gross margin for the company.
Management attributed the improvement to higher payment processing margins and benefits from renegotiated contracts with bank acquirers.
Bank acquirers provide services associated with the processing and settlement of merchant card transactions.
Changes to these commercial arrangements contributed to the company’s gross margin performance.
The margin improvement accompanied the increase in recurring revenue and adjusted EBITDA.
Nayax reported a net loss of $1.1 million for the third quarter, compared with net income of $3.5 million in the corresponding period of 2025.
The change represented a year-over-year reduction in reported net income of $4.6 million.
The company attributed the decline primarily to higher stock-based compensation expenses.
Stock-based compensation increased to $6.2 million from $2.6 million in the prior-year quarter.
The increase of $3.6 million contributed to the difference between the company’s statutory financial results and adjusted operating performance.
Despite reporting a net loss, Nayax recorded higher adjusted EBITDA and free cash flow during the period.
Nayax Chief Executive Officer Yair Nechmad commented on the company’s quarterly results and recent acquisition activity.
“Our third-quarter results demonstrated continued growth alongside improved margins, operating leverage and a return to positive free cash flow,” Nechmad said.
“We completed the acquisition of IPS Group on October 1, 2026, expanding our platform into parking.”
The acquisition was completed immediately after the end of the third-quarter reporting period.
IPS Group expands Nayax’s operations into the parking market, adding another area to its commerce payments platform.
The company expects the acquired business to contribute revenue and adjusted EBITDA during the fourth quarter of 2026.
Nayax completed its acquisition of IPS Group on October 1, 2026.
The transaction expands the company’s platform into parking-related commerce and payment services.
Management expects IPS Group to contribute approximately $20 million in revenue during the fourth quarter.
The acquired business is also expected to contribute approximately $5 million to adjusted EBITDA during the same period.
The anticipated contribution has been incorporated into Nayax’s updated full-year revenue guidance.
The acquisition’s financial effects will therefore begin appearing in the company’s consolidated results during the fourth quarter of 2026.
Nayax did not provide additional acquisition-related financial terms in the supplied announcement.
Nayax reaffirmed its original full-year 2026 revenue guidance of between $510 million and $520 million, excluding the additional contribution from IPS Group.
Including the acquisition, the company raised its consolidated revenue outlook to between $530 million and $540 million.
The midpoint of the revised guidance range is $535 million, compared with the analyst consensus estimate of $541.6 million.
The updated midpoint remains approximately $6.6 million below market expectations.
The increase in the guidance range reflects the expected contribution of approximately $20 million from IPS Group during the fourth quarter.
The company also expects the acquired business to add approximately $5 million to fourth-quarter adjusted EBITDA.
The revised outlook reflects Nayax’s expectations for the remainder of 2026, including the financial contribution from its newly acquired parking operations.
Nayax shares increased 5.77% in premarket trading following the release of its third-quarter financial results.
The company reported revenue growth of 23%, although quarterly revenue and adjusted earnings fell below analyst estimates.
Adjusted EBITDA increased 33% to $24.2 million, while recurring revenue reached $93.5 million and gross margin improved to 49.6%.
Nayax also generated $10 million in free cash flow, compared with $3.9 million a year earlier.
The company reported a statutory net loss of $1.1 million, primarily reflecting higher stock-based compensation expenses.
Following the acquisition of IPS Group, Nayax increased its full-year revenue outlook to $530 million–$540 million, incorporating the expected contribution from the parking business.
The company’s fourth-quarter results will provide further information on the integration of IPS Group and its contribution to consolidated revenue and profitability.
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