Nayax shares fall as Q1 revenue misses estimates despite earnings beat

Published 13/05/2025, 14:04
Nayax shares fall as Q1 revenue misses estimates despite earnings beat

Investing.com -- Nayax (TASE:NYAX) Ltd. (NASDAQ:NYAX) reported mixed first quarter results, with earnings surpassing expectations but revenue falling short of analyst estimates. The global commerce payments and loyalty platform provider saw its shares drop 7.9% following the announcement.

For Q1 2025, Nayax posted adjusted earnings per share of $0.19, significantly beating the analyst consensus of $0.02. However, revenue came in at $81.1 million, missing the $85.08 million estimate. Despite the revenue miss, the company reported a 26.7% YoY increase in total revenue.

Nayax CEO Yair Nechmad highlighted the company’s progress, stating, "Nayax is off to an excellent start in 2025 as we continue to execute on driving profitable topline growth, improving our recurring revenue mix, increasing our market share, and expanding our geographic footprint."

The company’s recurring revenue, comprising SaaS and payment processing fees, grew 34.6% YoY to $62.2 million. Gross margin improved significantly to 49.2% from 43.8% in the prior year period.

Nayax reaffirmed its 2025 financial outlook, projecting revenue growth between 30% to 35%, representing a range of $410 million to $425 million on a constant currency basis. The company also maintained its adjusted EBITDA guidance of $65 to $70 million for the full year.

Despite the positive earnings and outlook, investors appeared to focus on the revenue miss, as reflected in the stock’s decline following the earnings release.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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