Nayax Q3 2026: Margin Gains Offset a Revenue Miss

Nayax posted adjusted diluted EPS of $0.34 in Q3 2026, clearing the $0.28 consensus estimate by nearly 22%. Margin improvement drove the outperformance: revenue of $128.04 million grew 21% year over year but fell short of the $134.39 million analysts had expected, a miss of about 4.7%.

Renegotiated bank-acquirer contracts lifted processing margin to 41.6% from 39.6% in the year-ago period, and a sequential reduction in adjusted operating expenses of more than $4 million helped adjusted EBITDA climb 32.9% to $24.20 million. Gross margin hit a record 49.6% in the quarter, according to CEO Yair Nechmad.

Beneath the non-GAAP headline, the GAAP picture was messier. The company reported a diluted loss per share of $0.03, weighed down by $6.25 million in share-based compensation and a $5.07 million charge tied to an amendment to the consideration for the VM Tecnologia acquisition. Those items are excluded from the adjusted figures that beat estimates.

Nayax closed its $350 million all-cash acquisition of IPS Group, a smart-parking platform with more than 250,000 managed spaces, on October 1, 2026. Management expects IPS to contribute roughly $20 million of revenue in Q4, which is the primary reason full-year 2026 revenue guidance was raised to $530 million to $540 million.

Looking further out, Nayax set a mid-term 2028 target of $1.0 billion in revenue, a 50% gross margin, and a 30% adjusted EBITDA margin. The company also flagged that free cash flow conversion for 2026 is expected at only 5% to 10% of adjusted EBITDA, excluding IPS, as it continues to invest heavily in financial services, EV charging, and supply chain infrastructure. The EPS history shown alongside this report reflects a company that has beaten estimates in most recent quarters but with considerable variability, including misses in Q2 2025 and Q4 2025, context for how the market weighs today's revenue shortfall against the earnings beat.