Hannes Leitner

Hannes Leitner asked about Nayax's acquirer optimization strategies, the company's M&A appetite (including potential for larger acquisitions and a catch-up in 2026), and the impact of competitor mergers in the U.S. market.

Answer

Yair Nechmad, Co-Founder and CEO, detailed Nayax's semi-automatic transaction routing for optimal acceptance rates and cost reduction, leveraging high transaction volume for negotiation. Aaron Greenberg, Chief Strategy Officer, confirmed a prudent M&A approach, with potential for larger (non-transformational) acquisitions by 2026 to meet the $200 million inorganic target by 2028. He also noted Nayax is tracking the Canal Open 365 merger but remains confident in its market share due to technology and customer service.

Hannes Leitner asked about Nayax's acquirer optimization strategies, given the strong processing growth and recurring gross profits. He also sought an update on Nayax's M&A appetite, including potential changes in acquisition size, expectations for M&A catch-up in 2026, and the inorganic contribution to 2028 targets. Finally, he inquired about market dynamics in the U.S., specifically regarding the merger of competitors Canal Open 365 and any resulting opportunities or changes.

Answer

Yair Nechmad (Co-Founder and CEO) explained that Nayax is moving towards semi-automatic and eventually automatic routing of BIN cards to optimize for the best acceptance rate and cost, leveraging over 3 billion transactions and negotiating power with acquirers and customers. He emphasized control over margins and the focus on organic growth as the main driver. Aaron Greenberg (Chief Strategy Officer) stated that Nayax remains prudent with M&A but has an appetite for larger, non-transformational acquisitions (potentially over $100 million enterprise value) to meet the $200 million inorganic contribution target for 2028, with a focus on cultural fit and digestibility. He confirmed the bond raise for acquisitions and noted that while tracking the Canal Open 365 merger, Nayax is not afraid of consolidation, winning market share through technology, customer service, and end-to-end support, and sees better M&A opportunities outside the U.S. currently. Sagit Manor (CFO) clarified that the Q3 gap to consensus was due to delayed M&A, impacting Q3 and Q4 guidance. Aaron Greenberg further detailed that multiple M&As were delayed, including Integral Vending (expected to close by year-end) and another acquisition dropped due to due diligence, shifting contributions to 2026. He reiterated the importance of organic growth and catalysts like embedded banking and e-commerce for ARPU increase.

Asked about measures to mitigate risks from competitors' irrational pricing and requested an update on the embedded finance offering within Platforms. Also questioned whether Platform growth comes from winning international business or entire accounts from competitors.

Answer

The executive stated Adyen is well-positioned for pricing discussions by focusing on total cost of ownership. On embedded finance, issuing is growing well but remains small, and the capital product is live but not a major 2025 growth driver. Platform growth is driven by both winning international expansions and taking over entire businesses for large clients.

Asked how the company plans to achieve Q4 growth given headwinds from large customers ramping down, and inquired about geographic growth drivers, particularly in the U.S.

Answer

The executive emphasized that the business is managed on net revenue, not volume, and no single customer determines their net revenue outcome. He expressed confidence in broad-based growth. He also clarified that North America and EMEA are the two largest and fastest-growing regions, with North America remaining a key target market with strong growth.