Company Reports

Nexi grew net revenue 1% to EUR 915 million in the second quarter of 2026. On an underlying basis, that is excluding revenue lost due to known bank consolidation in Italy and contract renegotiations, growth was 4%.

Nexi offers merchant acquiring, card issuing, and digital banking services to its clients. Through the combination and shedding of various payment assets, Nexi has created a compelling suite of offerings across Europe. However, growing complexity in the payments space demands investments, and an inorganic growth strategy that has been at the core of Nexi no longer appears to guarantee success. Nexi is faced with increasing competition around its core acquiring and issuing capabilities, which is compressing margins and forcing Nexi to increasingly pass on a larger share of its scale advantages to customers.

Nexi reported first-quarter revenue growth of 1%. Excluding revenue lost from banking consolidation and contract renegotiations, underlying revenue growth was 5%.

Nexi reported 2025 results largely in line with our expectations, which have been materially affected by contract losses due to bank consolidation in Italy. Nexi's refreshed outlook calls for good underlying growth but a prolonged impact of the contract losses and higher investments in 2026.

Nexi offers merchant acquiring, card issuing, and digital banking services to its clients. Through the combination and shedding of various payment assets, Nexi has created a compelling suite of offerings across Europe. However, growing complexity in the payments space demands investments, and an inorganic growth strategy that has been at the core of Nexi no longer appears to guarantee success. Nexi is faced with increasing competition around its core acquiring and issuing capabilities, which is compressing margins and forcing Nexi to increasingly pass on a larger share of its scale advantages to customers.

Nexi reported third-quarter revenue growth of 1.8%. Revenue in merchant solutions was 0.6%, hindered by unfavorable volume mix. Additionally, the loss of bank customers in Italy due to mergers and contract renegotiations weighs on Nexi's largest segment.

Nexi reported second-quarter revenue of EUR 905 million, up 3%. This is in line with full-year guidance and consensus estimates. Growth in merchant solutions (up 3.4%) and issuing solutions (2.6%) was within expectations.

Nexi offers merchant acquiring, card issuing, and digital banking services to its clients. Through the combination and shedding of various payment assets, Nexi has created a compelling suite of offerings that are supported by durable and structural growth drivers. With its latest two large acquisitions, Nets and SIA, Nexi has also gained a wider footprint in Europe as well as stronger processing capabilities. As such, Nexi has moved from an Italian pure-play to a fully vertically integrated European payment services provider at the top of European rank tables.

The European Investigative Collaborations group has alleged that Worldline and its joint venture Payone knowingly processed payments for fraudulent websites in the past and that some of these relationships continue to date.

Nexi reported first-quarter 2025 revenue growth of 3.7%, in line with company-compiled consensus estimates. The Italian payment services provider showed good cost control, with total costs climbing 0.8% versus 2.3% consensus estimates. Efficiency measures taken last year reduced personnel expenses by 5.4%, while operating costs grew 6.8% due to higher volumes and business growth. EBITDA of EUR 386.9 million, up 7.1%, benefited from this positive operating leverage effect. The EBITDA margin expanded to 48% from 46% previously. We maintain our EUR 10.40 fair value estimate and narrow moat rating.

We maintain our EUR 10.40 per-share fair value estimate and narrow moat for Nexi after the Italian payments provider released 2024 results in line with our expectations. Net revenue grew 5.1% to EUR 3.5 billion, driven by 6.3% growth in merchant solutions. The segment continues to benefit from higher growth from international payment schemes (volumes were up 9.4% versus a total that was up 3.2%), which came at a higher margin to Nexi. Issuing solutions showed a similar dynamic with international schemes weighing in Nexi’s favor, lifting revenue in the segment by 4.2% in 2024. Revenue growth outpaced costs (up 2.9%), which saw efficiency measures not completely offset volume and inflationary pressure, resulting in underlying EBITDA growing 7.1%. For 2025, Nexi has proposed a EUR 0.25 per-share dividend, which corresponds to a EUR 300 million distribution. The payment provider also plans a share buyback program worth around EUR 300 million this year. Given Nexi’s depressed valuation, this is good use of excess capital in our view.

Nexi reported third-quarter EBITDA of EUR 522.9 million, up 6% versus the same period a year ago. We maintain our EUR 10.40 per share fair value estimate and narrow economic moat rating after this set of results.

We reduce our fair value estimate for narrow-moat Nexi to EUR 10.40 per share from EUR 15.80. The European payments provider's guidance for 2024 of mid-single-digit growth was below the mid- to high-single-digit growth we had foreseen for Nexi. Although medium-term guidance points toward acceleration beyond 2024, we have adjusted our growth forecasts downward accordingly. Moreover, we have shortened our stage 2 growth assumptions and increased our weighted average cost of capital, which we believe better reflects the new outlook for Nexi both organically and inorganically within the European payments space. We reiterate our narrow moat rating despite shortening our assumptions on how long Nexi will be able to hold competitors at bay. Nexi's scale as one of the largest payment providers in Europe and, in particular, its strong positioning in the Italian market justifies a narrow moat, in our view. Our Uncertainty Rating is High.

Nexi offers merchant acquiring, card issuing, and digital banking services to its clients. Through the combination and shedding of various payment assets, Nexi has created a compelling suite of offerings that are supported by durable and structural growth drivers. With its latest two large acquisitions, Nets and SIA, Nexi has also gained a wider footprint in Europe as well as stronger processing capabilities. As such, Nexi has moved from an Italian pure-play to a fully vertically integrated European payment services provider at the top of European rank tables.

Narrow-moat Nexi reported a decent third quarter. After a surprising third-quarter update by Worldline, which flagged a sudden shift in shopper behavior in Germany, Nexi’s results look less affected by what its peer had lamented just two weeks ago. Additionally, Nexi highlighted that it underwent an audit by German financial regulator BaFin in 2021, which highlighted minor remediation actions. Nexi stated that it closed the business in question and any impact had already been absorbed in 2022. We maintain our EUR 15.80 per-share fair value estimate.

We are placing Worldline under review after the payment provider lowered revenue guidance for 2023 and announced the termination of merchant contracts in Germany. Worldline posted 4.8% organic revenue growth in the third quarter, a material slowdown from the 9.3% growth posted over the first half of 2023. The culprits were weak financial services performance (down 2.9%) as well as a relatively poor showing from merchant services (up 7.6%). Merchant services is Worldline’s largest segment and has been its core growth driver (up 13.1% in the first half of 2023). The financial technology firm cited a sudden change in consumer behavior in Germany as the core driver behind its disappointing merchant services segment performance. The dramatic share price reaction is partially explained by this unexpected and sharp trend change revealed on Oct. 25. However, we believe that the termination of some online merchants that Worldline undertook since the second quarter of 2023, but only made public on Oct. 25, is of greater concern to investors. We plan to update our model and fair value estimate shortly. We see heightened risk around the merchant relationship terminations and also believe management lost credibility on Oct. 25 by not giving any form of reliable guidance and outlook. None of this bodes well for a quick reversal of the poor Worldline share price performance recently.

Nexi reported second-quarter EBITDA of EUR 436.1 million, up 10.1% from the same period a year ago, on a good performance in merchant solutions and issuing solutions. Costs saw a normalisation in the second quarter, growing 4.4% overall, which, paired with a 7.3% revenue growth, culminated in an EBITDA margin expansion of 132 basis points to 52.2%. We maintain our EUR 15.8 per share fair value estimate and narrow moat rating.

Narrow-moat Nexi reported a decent third quarter. The payment services provider showed a good 7.1% revenue growth to EUR 858.9 million paired with a good cost control, which increased 1.9% despite the inflationary environment. The resulting EUR 463.1 million in EBITDA beat consensus expectations of EUR 453 million. Guidance for the full year was unchanged, and we maintain our EUR 15.80 per share fair value estimate.

Narrow-moat Nexi reported a decent third quarter. The payment services provider showed a good 7.1% revenue growth to EUR 858.9 million paired with a good cost control, which increased 1.9% despite the inflationary environment. The resulting EUR 463.1 million in EBITDA beat consensus expectations of EUR 453 million. Guidance for the full year was unchanged, and we maintain our EUR 15.80 per share fair value estimate.

Narrow-moat Nexi reported second-quarter EBITDA of EUR 395 million, slightly ahead of the EUR 383 million anticipated by the consensus of analysts polled by the payments group. Displaying Nexi’s operating leverage, EBITDA grew 20.5%, widening the EBTIDA margin to 49% from 45% a year ago. We maintain our fair value estimate of EUR 15.80 per share and believe Nexi’s shares are attractive at current levels.