Nayax Ltd. (NASDAQ:NYAX) shares slid 6.95% in premarket trading Wednesday after the global payments and commerce platform posted third-quarter results that came in below Wall Street expectations and trimmed its full-year revenue targets, citing delays in merger and acquisition activity.
For the quarter, Nayax reported net income of $3.5 million, translating to earnings of $0.09 per share, well under analyst forecasts of $0.22. Revenue reached $104.3 million, missing the consensus estimate of $109.49 million, though the figure still marked a 25.7% year-over-year increase.
Operationally, the company continued to show solid momentum. Payment processing fees jumped 32.5% to $47.7 million, while SaaS revenue climbed 23% to $29.4 million. Total transaction value processed by Nayax rose 34.6% from a year earlier to $1.76 billion.
CEO and Chairman Yair Nechmad said the performance underscored the company’s execution, noting, “It was another strong quarter for Nayax, reflecting the continued execution of our strategy and our focus on profitable growth.”
However, the company cut its 2025 revenue forecast to $400–405 million, down from its earlier range of $410–425 million, pointing to postponed M&A closings. Even so, the revised outlook still implies 27–29% growth from 2024 levels. Adjusted EBITDA expectations were also revised lower, now projected at $60–65 million versus the prior $65–70 million.
Nayax maintained its guidance for at least 25% organic revenue growth for the year, supported by an anticipated uptick in enterprise hardware demand in the fourth quarter and continued strength in recurring revenue.
Margins improved meaningfully: overall gross margin rose to 49.3% from 45.7% last year, and recurring revenue margin expanded to 53.6% from 50.1%. The company’s customer base increased 20.6% year over year to 109,571, with a healthy 122% dollar-based net retention rate.
Looking further ahead, Nayax reiterated its long-term target of roughly 35% annual revenue growth through 2028, along with goals of a 50% gross margin and 30% adjusted EBITDA margin.