Nayax expands cashless payment network to nearly 1.6 million devices

Nayax, a provider of cashless payment and management technology for vending machines and other unattended retail equipment, reported third-quarter revenue of $128 million, up 23% from $104.3 million a year earlier, according to a press release. The Israeli company said its network of managed and connected devices reached 1.598 million as of Sept. 30, an 11.5% increase from 1.433 million a year earlier. Nayax processed 839 million transactions during the quarter, up 14%, while total transaction value increased 25.5% to $2.21 billion. The figures reflect the company's operations across vending and other markets, including electric vehicle charging, amusement facilities and car washes.

The company attributed part of its growth to the continued conversion of vending machines and other unattended equipment from cash to cashless payments, along with expansion through new distribution partners and equipment manufacturers. Nayax reported that average annual recurring revenue per connected device increased 10.9% to $255, supported by cashless conversions and growth in markets with higher transaction values. Revenue from point-of-sale devices increased 27% to $34.5 million, with particularly strong demand for the company's electric vehicle charging products.

Despite higher revenue, Nayax reported a quarterly net loss of $1.1 million, compared with net income of $3.5 million a year earlier, citing increased financial expenses and stock-based compensation. Adjusted earnings before interest, taxes, depreciation and amortization rose 32.9% to $24.2 million, while free cash flow reached $10 million. The company also completed its $350 million acquisition of parking payment technology provider IPS Group on Oct. 1, expanding its presence beyond vending and traditional unattended retail.