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Nayax Q2 Earnings Reaffirm Strong Customer Relationships
ByAinvest
Saturday, Aug 16, 2025 12:47 am ET1min read
Nayax's Q2 earnings reaffirm my previous thesis on sticky customer relationships, with a 24% increase in customer count to around 105,000 and churn below 3%. The company's steady progress towards its 2028 profit targets suggests a strong market position and potential for future growth.
Nayax Ltd. (Nasdaq: NYAX, TASE: NYAX) reported its second-quarter 2025 financial results, showcasing robust growth and a strong market position. The company's revenue increased to $95.6 million, up 22% from the prior year, driven by both new and existing customer expansion. Recurring revenue grew by 32%, reaching $70.7 million, representing 74% of total revenue. Gross margin improved to 48.3%, reflecting operational efficiencies and strategic initiatives [1].The company's customer base expanded by 24%, reaching nearly 105,000 customers, with a customer churn rate of 2.8%. This steady growth in customer count and low churn rate supports the thesis on sticky customer relationships. The dollar-based net retention rate remained high at 123%, indicating strong customer satisfaction [1].
Nayax's strategic partnerships, such as with Autel Energy and Lynkwell, and recent acquisitions, including Nayax Capital and Inepro Pay, have contributed to this growth. These initiatives aim to embed Nayax's payment technology into a broader range of products and services, enhancing its market reach and revenue streams [1].
Looking ahead, Nayax reaffirmed its full-year 2025 guidance, projecting revenue growth of between 30% to 35%, with adjusted EBITDA guidance of $65 to $70 million. The company expects at least 50% free cash flow conversion from Adjusted EBITDA for the full year 2025. These projections suggest a strong market position and potential for future growth, aligning with the company's 2028 targets of an annual revenue growth of approximately 35% and a gross margin of 50% [1].
References:
[1] https://www.globenewswire.com/news-release/2025/08/13/3132481/0/en/Nayax-Reports-Second-Quarter-2025-Results.html
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