Is NYAX a good stock to buy? We came across a bullish thesis on Nayax Ltd. on Beyond the Noise’s Substack by Cristobal Botanch. In this article, we will summarize the bulls’ thesis on NYAX. Nayax Ltd.’s share was trading at $66.31 as of April 24th. NYAX’s trailing and forward P/E were 69.07 and 74.63 respectively according to Yahoo Finance.
Nayax Ltd. operates a global IoT-enabled payments platform focused on unattended self-service environments, combining proprietary payment terminals, SaaS, and embedded financial services across 120 countries and more than 40 verticals. The company controls both hardware and software, installing its devices in vending machines, EV chargers, and laundromats, then monetizing them over time through recurring transaction processing and software revenue, which now accounts for 72% of total revenue.
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After nearly two decades of losses, Nayax reported its first profitable year, generating $35.5 million in net income on $400 million in revenue, up 28%, yet the stock remains modestly valued at approximately 4.2x 2026 estimated enterprise value to revenue despite strong growth, 120% net retention, and low churn of 2.8%.
The inflection point appears structural, driven by processing margin expansion from 34% to 38% following renegotiated bank contracts and the implementation of a proprietary routing system, while 75–80% of growth is derived from existing customers, reinforcing the durability of its model.
Upcoming catalysts include Q1 2026 results expected to confirm $510–520 million annual guidance and the rollout of Yellow Accounts in partnership with Adyen, enabling monetization of financial services across its installed base of 1.46 million devices. With each device generating recurring revenue at minimal incremental cost, Nayax is positioned to scale toward $1 billion in revenue and 30% EBITDA margins by 2028.
Despite liquidity constraints and near-term free cash flow conversion variability, the company’s transition toward a high-margin, recurring payments platform suggests meaningful upside as the market begins to recognize its software-driven economics.
Previously, we covered a bullish thesis on Nayax Ltd. (NYAX) by Shareholdersunite in October 2024, which highlighted strong recurring revenue growth, expanding margins, and positioning in cashless payments through its integrated hardware and SaaS model. NYAX’s stock price has appreciated by approximately 154.64% since our coverage. Cristobal Botanch shares a similar view but emphasizes on profitability inflection and margin expansion.
Nayax Ltd. is not on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 2 hedge fund portfolios held NYAX at the end of the fourth quarter which was 4 in the previous quarter. While we acknowledge the risk and potential of NYAX as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than NYAX and that has 10,000% upside potential, check out our report about this cheapest AI stock.
Disclosure: None.
