Nayax Ltd

Nayax's analyst fair value estimate has been lifted from ₪142.35 to ₪168.10, with the revenue growth assumption rising from 23.36% to 26.43% and the future P/E multiple moving from 24.32x to 27.93x. Jefferies reinstated coverage with a Buy rating and a US$68.30 price target, while Keefe Bruyette upgraded the stock to Outperform with a US$75 price target, citing a shift toward higher margin recurring sales. UBS lowered its price target to US$70 while keeping a Neutral rating, and Barclays cut its target to US$68 with an Equal Weight rating, pointing to a reduced free cash flow outlook. Separately, Nayax and Getnet announced a global partnership to roll out integrated payment acceptance and commerce services for automated self service businesses across Latin America and Iberia, starting in Chile and later extending to Spain, Portugal, Brazil, Mexico and Argentina. Nayax reaffirmed earnings guidance for the year ending 31 December 2026 with revenue projected at US$510m to US$520m, said its M&A pipeline remains active with a target of 2 to 3 mainly software led acquisitions a year, and applied to the Connecticut Department of Banking to establish Nayax America Bank Inc., a non depository innovation bank offering embedded financial services such as corporate cards and working capital solutions to U.S. customers, subject to regulatory review and approval.

Nayax Ltd. has completed its acquisition of IPS Group, Inc. from Windjammer Capital Investors in an all-cash transaction for a total consideration of $350 million. The deal gives Nayax a market-leading smart parking platform with an installed base of more than 250,000 parking spaces across the United States, Canada, the United Kingdom, and Ireland, and expands its addressable cashless opportunity by approximately $85 billion, to approximately $342 billion by 2029. Nayax financed the transaction with cash on hand and approximately $150 million of new debt from Poalim Tech, the banking arm for tech companies of Bank Hapoalim, and First International Bank of Israel. IPS is expected to have FY 2026 revenue of more than $90 million, with more than 60% recurring revenue and approximately 20% organic growth over FY 2025, and Adjusted EBITDA of approximately $21 million; Nayax expects IPS to contribute approximately $20-22 million of revenue and greater than $5 million of Adjusted EBITDA to its FY 2026 results, reflecting the period from October 1, 2026 through December 31, 2026. Chad Randall and the IPS executive team will continue to lead the business from San Diego, California.

Nayax has agreed to acquire smart parking technology provider IPS Group from Windjammer Capital Investors in an all-cash transaction valued at $350 million. The enterprise value represents about 17 times IPS's estimated 2026 adjusted EBITDA excluding synergies, or roughly 12 times when accounting for expected run-rate EBITDA synergies of more than $8 million by 2029. Nayax said the deal is expected to be immediately accretive to gross margin, adjusted EBITDA margin, adjusted EPS, and free cash flow conversion. IPS is expected to generate more than $90 million in fiscal 2026 revenue, with over 60% recurring and organic growth of about 20% from fiscal 2025. The transaction is expected to close in the fourth quarter of 2026, and Nayax shares moved almost 5% higher in Tuesday pre-market trading.

Nayax reported second-quarter revenue of approximately $123 million, up 28% year over year, with adjusted EBITDA of $14 million. The company reaffirmed its full-year 2026 revenue guidance of $510 million to $520 million and adjusted EBITDA of $85 million to $90 million, but lowered its free cash flow conversion outlook to 5% to 10% of adjusted EBITDA due to accelerated investments in EV charging, financial services, and component sourcing. Nayax also announced it has filed an application with the Connecticut Department of Banking to establish Nayax American Bank, a nondepository innovation bank, with a review expected to take about six months. The company's installed base grew to more than 1.55 million devices and its customer base reached 125,000, while total transaction value rose 29% to $2.1 billion.

Nayax LTD. reported second-quarter revenue of $122.6 million, a 28.2% increase year-over-year, beating consensus estimates by $1.62 million. The company posted an EPS of negative $0.27, which may not be comparable to the consensus of $0.13. Recurring revenue from SaaS and payment processing fees grew 24% to $87.7 million, representing 72% of total revenue, while POS devices revenue rose 40.2% to $34.9 million. Nayax reaffirmed its full-year 2026 revenue guidance of $510 million to $520 million, implying organic growth of 22% to 25%. Shares fell 2.5% in pre-market trading.

Nayax Ltd. has filed an application with the Connecticut Department of Banking to establish Nayax America Bank Inc., a non-depository innovation bank under Connecticut’s Innovation Bank framework. The proposed bank would be headquartered in Fairfield County, Connecticut, and wholly owned by Nayax USA Holdings Inc., with Carly Furman as proposed CEO, Sagit Manor as CFO, and Haim Pinto as CTO. Once chartered, the bank would offer embedded financial services such as corporate cards, controlled-spend programs, and working-capital solutions including merchant cash advances and equipment financing, without accepting deposits or operating physical branches. Nayax also announced the launch of Yellow Account, a deposit and debit card service for SMB customers operated by Nayax LLC with Adyen as the sponsoring bank, which will remain the sponsor for customer balances even after the bank is chartered. The application reflects Nayax’s strategy to expand its regulated infrastructure into North America, which already generates approximately 40% of its global revenue, and the review process is expected to take about six months with no guarantee of approval.

Nayax is expected to beat consensus earnings estimates for the quarter ended June 2026, according to Zacks Investment Research. The company is projected to report earnings of $0.09 per share, a year-over-year decline of 43.8%, on revenues of $120.54 million, up 26.1%. The Most Accurate Estimate is higher than the Zacks Consensus Estimate, yielding an Earnings ESP of +7.14%, and the stock carries a Zacks Rank of #3. This combination indicates a likely earnings beat, though Nayax missed estimates last quarter by 62.50% and has beaten twice in the past four quarters. Corpay, another player in the Zacks Financial Transaction Services industry, is also expected to beat estimates with an Earnings ESP of +1.55% and a Zacks Rank of #3.

Nayax has completed its system review and remediation following a suspected information security incident, confirming its systems are now free of unauthorized access and that its production environment and core systems were not impacted. The company's investigation found that exfiltrated information includes a backup of scanned documents, additional business-related information, and mainly backup payment transaction records that do not contain sensitive payment authentication data such as cardholder names, CVV values, or ID information. A significant portion of the transactions were conducted using digital wallets like Apple Pay and Google Pay, where payment credentials consist of single-use tokens that have no value if disclosed. The Board of Directors has resolved not to comply with criminal extortion demands, believing it would not be in the long-term best interests of customers, partners, employees, and shareholders. Nayax does not currently expect a material effect on its financial condition or results of operations, though the full financial impact is not yet determined.

UBS raised its price target on Nayax Ltd. to $75 from $68 while maintaining a Neutral rating, reflecting confidence in the company's execution in digital payments and unattended commerce. The revision follows Nayax's announcement of a strategic partnership with Tellus Power to integrate its AC Level 2 EV charger with Nayax's payment and management platform, aiming to simplify deployment and improve user experience for EV charging operators. Nayax, founded in 2005 and headquartered in Herzliya, Israel, provides cashless payment and management software for unattended retail such as vending machines and EV chargers.

Nayax has added an AI layer to its MoMa mobile management app for unattended and self-service operators. The new features include an AI assistant that answers questions based on the operator's own business data, planogram suggestions using machine-level sales data to recommend product mix and placement changes, and visual recognition planogram suggestions that build a planogram from a photograph up to five times faster than manual mapping. The AI layer is rolling out to MoMa users on iOS and Android in all markets where the app is available. CEO Yair Nechmad said the features help operators know what matters, control decisions with better data, and act faster from anywhere.

Tellus Power has announced a collaboration with Nayax to streamline commercial electric vehicle charging by integrating charging, payment, and management systems into a single platform. The partnership aims to reduce complexities faced by operators by minimizing the need for multiple vendors and enhancing the deployment speed of charging infrastructure. By combining Tellus Power's AC Level 2 Charger with Nayax's payment and management solutions, the initiative seeks to deliver a seamless experience for both operators and EV drivers. The collaboration is intended to support the growing demand for commercial charging infrastructure, meeting evolving industry standards and expectations.