Monitor for Q3 guidance on cost containment and the cybersecurity investigation outcome. The $4.5M Brazil acquisition expense in Q3 will add to the loss trajectory. Watch for any insider selling given the sharp swing to losses and high stock-based compensation. Revenue growth is sustaining, so a return to profitability could reverse sentiment quickly.
Price Chart
Executive Summary
Nayax Ltd. reported Q2 2026 (unaudited) results: revenue grew 28% YoY to $122.6M (Q2) and $229.4M (H1), driven by a 30% increase in recurring revenue (SaaS + payment processing). However, the company swung to an operating loss of $6.7M (Q2) vs a $9.5M profit a year ago, and a net loss of $10.1M (Q2) vs a $11.7M profit. The loss was driven by a $48.9M SG&A expense (up 57% YoY), including $14.1M in share-based compensation in Q2 alone, and a $493K other expense vs a $5.6M gain last year. A cybersecurity incident (ongoing investigation) and amended Brazil acquisition terms (one-time $4.5M acceleration expense in Q3) add overhangs.
Key Facts
- Q2 2026 revenue of $122.6M (+28% YoY from $95.6M), H1 2026 revenue of $229.4M (+30% YoY from $176.7M)
- Q2 2026 operating loss of $6.7M vs operating profit of $9.5M in Q2 2025
- Q2 2026 net loss of $10.1M vs net income of $11.7M in Q2 2025
- H1 2026 net loss of $8.8M vs net income of $18.8M in H1 2025
- SG&A expenses jumped to $48.9M in Q2 2026 (+57% YoY from $31.2M), $85.3M in H1 2026 (+45% YoY)
- Share-based compensation of $14.1M in Q2 2026 alone, $16.5M in H1 2026, up from $4.9M in H1 2025
- Cash and equivalents fell to $302.8M at June 30, 2026 from $319.5M at Dec 31, 2025; operating cash flow was only $2.3M in H1 vs $14.2M a year ago
- Cybersecurity incident investigation ongoing; confirmed exfiltration of 1 driving license, 24 non-PII transaction records, 25 partial card records
- Post-quarter: amended Brazil acquisition terms to a single BRL 35M (~$6.8M) cash payment, triggering ~$4.5M expected one-time expense in Q3 2026
- CEO/CTO granted options for 810K shares each, with performance vesting at share prices between $120-$240; fair value of $4.93M each
Financial Impact
Revenue grew 28% YoY, but the company swung from a $11.7M Q2 net profit to a $10.1M net loss, driven by a 57% jump in SG&A. Operating loss of $6.7M vs $9.5M profit. The bearish shift is material, though revenue growth remains strong.
Risk Factors
- Cybersecurity incident could lead to regulatory fines, litigation, or client churn if PII exposure worsens
- $4.5M one-time expense in Q3 from Brazil acquisition amendment; potential further amortization charges
- Sustained profitability is uncertain given SG&A growth outpacing revenue growth by 2:1; stock-based compensation is dilutive and masks true cash cost structure
- CEO/CTO option grants create potential for future dilution and tie alignment to share price targets ($120-$240) that are far above current levels (~$67); may signal management's confidence in upside but also an overhang
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 5 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 6-K Filing (Primary) | 0001178913-26-003979 |
| Document: zk2635819.htm | 0001178913-26-003979 |
| Document: 0001178913-26-003979-index-headers.html | 0001178913-26-003979 |
| Document: 0001178913-26-003979-index.html | 0001178913-26-003979 |
| Document: 0001178913-26-003979.txt | 0001178913-26-003979 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 6, 2026 20d ago | Press Release | $48.30 $46.61 | ▼ −3.49% | ▼ −3.25% | $50.41 (+4.38%) |
Oct 2, 2026 24d ago | Insider Cluster | $49.00 $49.77 | ▲ +1.57% | ▲ +0.90% | $50.41 (+2.88%) |
Oct 1, 2026 25d ago | 6-K | $49.00 $49.77 | ▲ +1.57% | ▲ +0.90% | $50.41 (+2.88%) |
Oct 1, 2026 25d ago | Press Release | $49.00 $49.77 | ▲ +1.57% | ▲ +0.90% | $50.41 (+2.88%) |
Sep 30, 2026 26d ago | Insider Cluster | $47.71 $48.25 | ▲ +1.13% | ▲ +0.95% | $50.41 (+5.66%) |
Sep 29, 2026 27d ago | Insider Cluster | $44.57 $47.71 | ▲ +7.05% | ▲ +7.25% | $50.41 (+13.10%) |
Sep 29, 2026 27d ago | Insider Cluster | $44.57 $47.71 | ▲ +7.05% | ▲ +7.25% | $50.41 (+13.10%) |
Sep 24, 2026 4w ago | Insider Cluster | $44.75 $45.03 | ▲ +0.63% | ▲ +0.08% | $50.41 (+12.65%) |
Sep 24, 2026 4w ago | Insider Cluster | $44.75 $45.03 | ▲ +0.63% | ▲ +0.08% | $50.41 (+12.65%) |
Sep 22, 2026 4w ago | Insider Cluster | $43.33 $42.63 | ▼ −1.62% | ▼ −0.90% | $50.41 (+16.34%) |
US Market Status
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