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Investing.com -- Nexi S.p.A. (BIT:NEXII) on Wednesday reported Q3 results showing earnings below expectations and a lower margin outlook for the full year, while revenue remained steady.
The Italian payments group posted €927 million in quarterly revenue, up 1.8% from a year earlier, matching company-compiled consensus estimates.
Adjusted earnings before interest, taxes, depreciation and amortization rose 1% to €526 million, equating to a 56.8% margin.
That figure missed consensus expectations of €530 million and 57.2% by 1%. Operating expenses increased 3% year over year, compared with 2% in Q2.
Jefferies in a note said the margin decline of 50 basis points left EBITDA “behind the >50bp guide,” which was revised to “margin expansion confirmed.”
Revenue growth was led by Issuing Solutions, up 6.6% to €297 million against a consensus of €287 million.
Merchant Solutions rose 0.6% to €537 million, missing expectations of €542 million, while Digital Banking Solutions fell 4.8% to €93 million, below consensus for a 0.6% rise.
Overall, the company reported a 3% increase in revenue in the first nine months of 2025, consistent with its “L-MSD” (low- to mid-single-digit) organic growth guidance.
Merchant Solutions total payment volume rose 2% in the quarter. Jefferies cited “volume dynamics and unfavorable volume mix and pricing in eCommerce in Poland,” while Germany grew in double digits, lifting the segment’s take rate 5% year over year to 24.2 basis points.
By region, Italy, which represented 58% of total revenue, was flat year over year after rising 3% in the previous quarter. DACH countries, including Germany, Austria and Switzerland, grew 10%.
Central and Southeastern Europe and the Nordics each increased 2%. Combined, non-Italian operations advanced 4%, up from 3% in the prior quarter.
At the end of June, Nexi’s net debt stood at €5 billion, equivalent to 2.6 times last 12 months’ EBITDA, compared with €5.1 billion at the end of the previous quarter.
In September, the company completed its share buyback program, purchasing 58.6 million shares, or 4.77% of its share capital, for €299 million at an average price of €5.10 per share.
The company reaffirmed its full-year revenue guidance but narrowed its margin target.
Jefferies said Nexi must achieve revenue growth of 4% to 11% in Q4 to reach €906 million to €1.05 billion and expand its EBITDA margin by 50 to 80 basis points, resulting in EBITDA of €490 million to €579 million and a margin of 54.0% to 55.3%.
Nexi’s shares last closed at €4.46, within a 52-week range of €5.96 to €3.90. The company’s market capitalization was €5.8 billion ($6.7 billion).