Nayax Ltd. (NYAX) Balance Sheet

The balance sheet has expanded rapidly, driven by acquisitions and organic growth, but the simultaneous rise in total liabilities from $226.3M to $638.6M suggests increasing reliance on external financing. Equity has grown from $97.6M to $236.2M, reflecting retained earnings improvements, yet the pace of asset growth outpaces equity accumulation, implying leverage is a deliberate growth strategy. Investors should monitor whether this debt-funded expansion translates into sustained cash generation, as the 2026Q1 FCF margin dip to 0.9% warrants caution.

The D/E ratio has more than quadrupled from 0.33 in 2024Q4 to 1.42 in 2026Q1, driven by a $280.5M increase in total debt over the period. This leverage appears intentional, likely to fund M&A and EV charging expansion, but it raises refinancing risk if cash flows falter. The company's cash position of $404.2M provides a buffer, yet the rapid debt accumulation without proportional equity growth suggests a shift from conservative to aggressive capital structure. Based on reported figures, the interest coverage ratio is not disclosed, but the 2026Q1 net income decline of 84.8% YoY highlights vulnerability to higher rates.

The dramatic increase in goodwill, from $12.9M to $194.3M, underscores a serial acquisition strategy, with the 2025Q4 spike to $64.4M and subsequent jump to $194.3M in 2026Q1 suggesting major deals. This concentration in intangible assets raises the risk of future impairment charges if acquired businesses underperform. PPE remains modest at $29.8M, confirming an asset-light model, but the rising goodwill may distort asset quality. Investors should scrutinize the earn-out and integration performance of recent acquisitions, as goodwill impairment could erode equity.

The steady improvement in retained earnings, from -$65.0M to -$16.0M, indicates that cumulative losses are being offset by recent profitability, with 2025Q4 net income of $13.4M being a key inflection. Equity has grown 142% over the period, but the negative retained earnings balance suggests that the company has yet to fully recoup past losses. The lack of dividends or buybacks, as noted in cash flow analysis, implies that all earnings are being reinvested, which is typical for a growth company. However, the high stock-based compensation may dilute existing shareholders, and the 2026Q1 EPS drop of 84.8% YoY warrants monitoring.

The current ratio has more than doubled from 1.00 to 2.15, indicating a strong liquidity position, largely due to a $365.8M increase in cash over the period. This cash hoard, which now covers 1.2x total debt, suggests ample runway for operations and M&A. However, the 2026Q1 FCF margin collapse to 0.9% and capex spike to 9.0% of revenue indicate that cash generation may be temporarily strained. The liquidity position appears adequate to weather short-term shocks, but the reliance on debt for growth means that a prolonged cash flow downturn could pressure the balance sheet.