Hello, everyone, and welcome to Nayax's Fourth Quarter and Full Year 2025 Earnings Conference Call. [Operator Instructions] As a reminder, this conference is being recorded. I would now like to turn the call over to Mr. Aaron Greenberg. Please go ahead, Aaron.

Thank you, operator and everyone, for joining us today on this conference call. With me on the call today are Yair Nechmad, Nayax Co-Founder and Chief Executive Officer; and Sagit Manor, Chief Financial Officer. Following management's prepared remarks, we will open the call for the question-and-answer session. Our press release and supplementary investor presentation are available on our Investor Relations website at ir.nayax.com. As a reminder, during this call, we will be making forward-looking statements. All forward-looking statements on our call today are based on assumptions and therefore, subject to risks and uncertainties that may cause results to differ materially from those projected. We have no obligation to update these statements, except as required by law. You can read about these risks and uncertainties in our supplementary investor presentation released earlier today and our regulatory filings. In addition, today's call will include a discussion of non-IFRS measures. Management believes non-IFRS results are useful in order to enhance our understanding and our ongoing performance. However, these measures should be considered as a supplement to and not as a substitute for IFRS financial measures. A reconciliation between Nayax's non-IFRS to IFRS measures can be found in our earnings press release issued earlier today. All key performance indicators are intended to evaluate our business and properly measure factors in a macroeconomic environment to guide and support our decision-making. These performance indicators may be calculated in a manner different from the industry standards. And finally, please note that all figures in today's call will be reported in U.S. dollars unless stated otherwise. Yair will start the call with key financial and operational highlights. Following that, I will continue with details about our acquisition strategy and 2 new initiatives we are working on. Finally, Sagit will go through the details of our financial results and discuss the outlook. And with that, I would like to turn the call over to Nayax's CEO, Yair Nechmad. Yair?

Thank you, Aaron, and thank you all for joining us today. We delivered strong 2025 results and a very solid fourth quarter. For the first time in our company's history, we delivered strong net income, $35.5 million compared to a loss just 1 year ago, a milestone that reflects the true earning power of our business model. In 2025, we continued to scale profitability to record margin, advance our strategic priorities and executed well across the organization. I want to recognize the entire Nayax team for their dedication and hard work, as these results reflect their commitment to our success. We're at an important stage Nayax's evolution. The foundation we've built over the past 20 years is now translating into consistent profitable growth. Recurring revenue continued to grow and represent approximately 72% of total revenue for the year, compounding month after month across around 115,000 customers globally. Margins continue to improve, driven by smart-routing payment optimization, lower acquiring costs, supply chain efficiency and ongoing technology enhancement as we continue to scale our recurring revenue model drives profitable growth and progress toward our target of a $1 billion revenue company. On M&A, we completed a strategic acquisition of Lynkwell, Tigapo, UpPay, Nayax Capital and Inepro. Each acquisition expand our platform, strengthen our vertical capabilities and enhance our geographic reach. More importantly, these acquisitions accelerate the growth engines we've built over many years. Reaching to our TAM, the market opportunity remains significant. Cashless penetration in automated self-service environment is still relatively low worldwide. Every touch point is a connected commerce opportunity for us, whether it is vending, EV charging, fuel, laundromat, amusement and other verticals. The global shift towards digital payments, IoT connectivity and retail automation continue to accelerate. But the question for Nayax is not just about the size of the…

Thank you, Yair, and hello, everyone. I'm excited to update you on our acquisition strategy, as well as provide more color on 2 new strategic platforms that we believe can meaningfully impact our growth trajectory in the years ahead. With respect to our M&A strategy, 2025 was a productive year. In total, we deployed about $52 million of capital, completing 5 acquisitions: Lynkwell, UpPay, Inepro and the remaining stake in Nayax Capital and Tigapo. Each of these fit our M&A strategy, expanding our geographic reach, adding to our technological capabilities, consolidating our target verticals and strengthening the long-term infrastructure of our payment solution ecosystem. Collectively, these acquisitions contributed to the expansion and monetization of our customer base, combining payments, software and financial services. I'll now provide an update on each acquisition and successful integration to date. Starting with Brazil, UpPay has now been fully integrated into VMtecnologia. The two entities are now legally and operationally merged with unified systems and one consolidated team structure. We are already seeing the benefits of operating as one platform with improved coordination, streamlined development and stronger go-to-market execution. Brazil remains a high-growth market for automated self-service, and we are excited about our potential there in 2026 and beyond. Turning to Europe. Inepro has been fully integrated and now operates as Nayax BV, our direct sales office in the Benelux region. Transitioning from a distributor model to a direct office has already generated synergies and strengthened our local presence. This transaction reinforces one of our core M&A approaches, which is selectively acquiring distributors in strategic markets to open direct channels, increase margin and improve customer relationships. It has been a very successful model, and we will continue evaluating similar opportunities where they present a unique value proposition. In November, we completed the purchase of the…

Thank you, Aaron, and good morning, good evening, everyone. We appreciate having our shareholders, analysts and the entire Nayax team with us today as we review our results. 2025 was the year where the scale of our platform translated into meaningful profitability and marks a historic inflection point. Over the past several years, we have focused on extending our installed base, growing transaction activity and deepening our recurring revenue mix. And this year, that strategy showed up clearly in our margins. Both gross margin and adjusted EBITDA margin expanded, driven by improved processing economics and operating leverage as the platform scales. Importantly, this was structural margin expansion, not a result of one-time cost actions, reflecting the inherent economics of our transaction-based recurring revenue model. Additionally, 2025 marked another historic inflection point, our first ever net income coming in at $35.5 million compared to a loss just 1 year ago, a milestone that reflects the true earnings power of our business model. Recurring revenue now represents approximately 72% of total revenue, providing improved visibility going forward. The strength of this model is reflected in our platform activity. Our installed base reached 1.46 million managed and connected devices, serving approximately 115,000 customers globally. Total dollar transaction value grew 32% to approximately $6.4 billion, a direct result of our expanding device and customer base, which is a direct driver of recurring revenue growth. We also saw a favorable mix shift towards higher-value verticals. Average transaction value, or ATV, increased to $2.25 from $2.05, reflecting continued expansion into EV charging, amusement and car washes, while our take rate remained strong at 2.7%. Combined, these indicators show that growth is coming from deeper engagement and higher value usage across the platform. In 2025, total revenue reached $400 million, representing 28% year-over-year growth, including approximately 24%…

[Operator Instructions] The first question is from the line of Josh Nichols with B. Riley Securities.

Great to see the real strong acceleration in the enterprise hardware deployments for 4Q. If we could get a little bit more detail on that, could you kind of quantify that this is -- given these hardware deployments are future recurring revenue growth? Like is a lot of that coming from EV charging, as you talked about before or other specific end markets? And how do you think that's going to play out to support the growth for 2026, given the outlook?

I can start, and Yair will continue. Thank you, Josh. Good to have you here. Yes, the strong hardware sales in Q4 were as expected. We've -- we've been talking about it for the entire year about how the second half of 2025 will be stronger than the first half and how it's going to be driven by strong organic growth, which we've shown in Q4, around 30% organic growth, driven mainly by hardware. So it all came together to meet the expected organic growth for the year. And yes, all of those hardware revenue and hardware sales are also the enabler for the recurring revenue that comes with it, whether it's in the EV segment or other verticals that we're in. It's always the beginning of the sale, and then we add to that services as well as the processing afterwards. Yair, anything to add?

Maybe just to add one view from my point of view is that we're looking at the pain of customers and we're looking about regarding the cost of acquisition, and we're looking regarding the go-to-market. And it could be that between quarters, it will be deferred between unattended EV or unattended vending machines or retrofit or fuel. But the main point that I think need to be recognized is that Nayax is a machine that's building customer base based on a disciplined acquisition cost. and discipline on the gross margin. And I think this is what drives the business in terms of globally in more than 120 countries. And we become to be almost agnostic to the vertical. And that's the beauty about the one-stop solution that we built.

And then pretty impressive gross margin expansion like north of 48% gross margin for the year. I know your long-term outlook is to get to 50%. Clearly, you're getting close to that level already. Thoughts on what the gross margin could look like for this upcoming year for '26, given the guidance and the opportunity longer term to kind of expand above that 50% rate given the current trajectory that you guys appear to be on?

You see it right. We're expecting in 2026 and of course, in the years to come to stay in that high level margins that we've been able to achieve that obviously comes from all aspects, whether it's the processing that grew to 38% from 34% last year to the [ hardware ] margins that grew significantly to 35.5% this year and obviously keeping the margins of the services stable at around 76%. So yes, overall, we are expecting margins to stay at this high level and accelerate as we continue to grow our device sales and device base. And of course, the recurring revenue will continue to increase.

Last question for me. Good to see the company laying out some pretty healthy organic growth guidance for 2026. But given you have plenty of firepower on the balance sheet is based on what you're seeing in the end markets today. Are you still expecting kind of targeting 2 to 3 acquisitions per year, and we should assume that while this isn't in the guidance for '26 that you're likely to close on a few deals this year as well, too.

Yes. This is Aaron. So I'll start, and maybe Sagit will come after that. So with regards to the acquisitions, yes, we still have the same targets in mind, doing a few acquisitions a year, 2, 3 acquisitions a year. And we still see a very good pipeline of potential acquisition targets. Nothing's really changed from what we gave in Q3 with that regard, including trying to do a little bit larger transaction this year. And obviously, we have the balance sheet, as you mentioned, with a little more than $300 million of cash on the balance sheet to be able to use for deployment for M&A, as we mentioned. With regards to the guidance, for this year, we guided based on the organic growth as well as the Lynkwell acquisition that was closed in December. We did not include any additional M&A in the guidance. So that was a change from last year. And as we go forward, we will only guide on acquisitions that have actually been completed.

Our next question is from the line of Cris Kennedy with William Blair.

Thanks for all the information, and hope the team is safe in Israel. You guys operate in over 40 different verticals. Is there any way to think about the revenue mix or the growth drivers between kind of traditional vending verticals and the higher-value verticals, such as EV, car wash, amusement, what have you?

Cris, yes, this is Aaron again. So with regards to the mix, obviously, as we've said before, we don't split each of the verticals directly. What I will say though is that, obviously, some of the higher growth verticals, EV charging, parking, amusement, car washes, and some of these other higher-growth verticals, they are growing a lot more than the traditional vending space, which is -- which inherently means that the mix is spreading and diversifying across each of these verticals. Obviously, historically, over the last 20 years, it started with vending within Nayax and has been expanding into the other verticals. And we'll continue to see vending become a lower part of the mix as some of these other growth segments continue to bring more volume.

Okay. And then, Yair, you mentioned some investments in Asia Pacific. Can you just talk about the opportunity that you see in those markets?

The main opportunity -- thank you, Cris. The main opportunity that we see now for the short term is mostly in Japan. Of course, Australia and New Zealand is a part of what we call ongoing. But I think that the changes that we're doing and preparing ourselves to be more ready for the Japanese market is enormous. . We invested a lot of what we call building the platform and the foundation to be ready for the Japanese market in the unattended business. And I think we have a very good team on the ground, and we have a new product, the VPOS Media that has been certified now in Japan. And I believe that Japan will carry some kind of signs of acceleration in the next year.

The next question is from the line of Sanjay Sakhrani with KBW.

It's very clear, you guys are looking to get more ARPU expansion from the installed base. I'm just curious if you could kind of dimensionalize how much can come from like existing products and services within the current installed base? And then obviously, embedded finance is another area. Maybe you could just talk about like what the TAM is and sort of how you see that playing out maybe over the next couple of years?

Sanjay, this is Aaron. With regards to the ARPU, we've seen in the last couple of years, the growth rate of ARPU being in the low double digits, predominantly from the processing growth. We're -- we haven't seen any changes to that with regards to processing growth and seeing the ARPU expand because of that. We haven't used software as a lever to try to increase the ARPU. As we continue to look into the outer years, the ARPU growth besides the processing, which will continue to grow the ARPU, should come from some of these additional value-added services that we're trying to bring to the table. Embedded financial services, as I mentioned, things like lending and issuing, which we hope to bring in over the next year or 2 here. And with regards to other services, royalty and other parts that we can bring as value-added services to our existing customers, we should be able to continue to do that. The other thing that I'll mention as well, is we are expanding a lot on the rental and installment payments with the Nayax Capital acquisition that we did last year, bringing that fully in-house middle of last year. So that is really that Nayax Capital business is the foundation for being able to bring in these additional value-added services. So it will start with this year with launching the Yellow Accounts, which is the deposit accounts in partnership with Adyen. And then as people start to come on to the platform, we'll be able to add additional value-added services and promote these additional services to them.

Got it. And I guess I have a question about the outlook. When we think about the breakdown between like recurring revenue growth and point-of-sale revenue growth, what's sort of baked in?

Thank you, Sanjay. So we are in this business for 20 years, right? The last day, if you look just on the last 5 years, we either -- we tripled the number of the managed and connected devices. We did 4x the number of customers. We did 5x the number of the transaction value that is going through our devices. So the same expected growth that we've seen in the past is expected -- or the same growth is expected in the next coming years. Recurring revenue will continue to be around 70% from total revenue, which that's, again, an ongoing basis to our very strong business model, especially with the recurring insight. We've deployed around 200,000 devices in 2025. We're expecting to grow to between 200,000 to 250,000 devices in 2026. So the flywheel is there, the machine is working. Most of our revenue comes from -- the growth comes from existing customers as well as new. But again, most of it is coming from customers. The TAM is still the same. So I don't think '26 different than the previous many years that we've continued to show how the flywheel works.

Could I just ask one follow-up, just on the take rates? Like those have been sort of coming down consistently over the 5 to 6 quarters. I know there's mix impacts and such. But do you expect those to sort of inflect as we move over the course of this year?

So I remind you that take rate is impacted by two -- basically two drivers. One is the geography where the transaction is going through. The more transactions we have in the U.S., the higher the take rate would be and vice versa, right, versus Europe and whatnot. If you look just on the take rate, yes, there is some volatility to it, while -- and Q4 was relatively lower than anything we've seen, I don't know, in the last probably 18 months. However, margin still continued to grow and still continue to be very strong at around 38%. So -- and the growth is around 30%, if you look just on the margins. So the point is that the fluctuation of the take rate can be driven by one, geography and two, by the verticals by which the transaction went through. What you can see is the strong margin, that's one. Two, average transaction values continue to grow. It's now 225 versus the 205 that we had last year. So the healthy KPIs are there on the output that is growing and the ATV that is growing and the margins that are growing. And take rate becomes more of a commodity in a sense and not necessarily a growth projection.

The next question is from the line of Chris Zhang with UBS.

So I have a kind of follow-up question on the recurring revenue, the retention. Just wondering what's your assumption on the net revenue retention for 2026 in your guide? And also just looking at the total revenue. How are you thinking about the revenue from existing customers versus new customers?

Chris, thank you. So a couple of things. Regarding the NRR, the net retention rate, we're expecting that to continue to stay in the same range of 2025, which was 120%, something that we are very proud of, including continue to maintain our low churn rate. So those two go together. With respect to existing customers versus new, it's around 75% to 80% of our growth that is coming from existing customers. And you can see that consistently over the last probably 3 years, and I'm expecting for that to continue to be the same. That's really the building blocks. That's really the way the business model is working by selling our customers a few -- most of our customers are obviously coming from the small businesses. However, we are very proud of our large customers as well. But the point is that they start with a few and then they buy more over time. As well as with the cash-to-cashless conversion, more transactions going through even the same devices that are out there, helping and increasing the existing customer revenue growth.

Thank you. At this time, I'll turn the floor back to Yair Nechmad for closing comments.

Thank you for joining us today and for your interest in Nayax. 2025 was a strong year. We grew our business, went deeper into new verticals and added important capabilities through both our acquisitions and our own product innovation. I want to thank our employees for their dedication. On our customers, partners -- and our customer partners and shareholders for your continued trust. Thank you very much.

Ladies and gentlemen, thank you for your participation. This does conclude today's teleconference. You may now disconnect your lines at this time, and have a wonderful day.