Nayax (NYAX) Q4 2024 earnings summary

Executive summary

• Achieved record 2024 revenue of $315.2M, up 34% year-over-year, with recurring revenue growing 47% to $222.3M, now 71% of total revenue.

• Adjusted EBITDA rose more than fourfold to $35.5M, surpassing guidance, with margin improving to 11.3% of revenue and free cash flow of $18M.

• Customer base expanded 32% to over 95,000, and connected devices grew 21% to 1.26M.

• Major acquisitions (VMtecnologia, Roseman, Retail Pro, UpPay) expanded presence in Brazil, Israel, and global retail, contributing to inorganic growth.

• Strategic focus for 2025 includes automated self-service, retail, and energy verticals, with continued emphasis on OEM partnerships and global expansion.

Financial highlights

• Revenue for Q4 2024 was $89M, up 34% year-over-year; recurring revenue in Q4 increased 49% to $63M, 71% of total revenue.

• Gross margin improved to 45.1% for the year (from 37.5%) and 46.1% in Q4; recurring margin reached 53% in Q4.

• Operating profit for 2024 was $3.1M, a $15.5M improvement from the prior year; net income for Q4 was $1.6M.

• Free cash flow reached $18M, reversing a negative $7.8M in 2023; cash and equivalents at year-end totaled $92.5M.

• Transaction value processed increased 36% to $4.9B for the year; payment processing fees grew 45% to $133.8M.

Outlook and guidance

• 2025 revenue guidance: $410M–$425M (30–35% growth), with at least $25M organic growth and adjusted EBITDA of $65M–$70M.

• Targeting 35% annual revenue growth and 50% gross margin by 2028, with adjusted EBITDA margin goal of 30%.

• Seasonality in 2025 expected to mirror 2024, with Q1 slightly lower than Q4 2024 and growth accelerating through the year.