Stock Markets May 7, 2026 02:38 AM

Nexi posts modest Q1 revenue gain as segments diverge

Payments group edges past revenue and EBITDA estimates while merchant business softens and net debt holds steady

By Priya Menon

Nexi S.p.A. reported 1% revenue growth in the first quarter of 2026 to €821 million, slightly above company-compiled consensus. Issuing Solutions outperformed while Merchant Solutions declined; EBITDA beat estimates and net debt remained unchanged from December. Management reaffirmed full-year guidance and scheduled a conference call for 8am Central European Summer Time.

Nexi posts modest Q1 revenue gain as segments diverge

Key Points

  • Nexi reported Q1 2026 revenue of €821 million, up 1% and slightly above the company-compiled consensus of €815 million.
  • Issuing Solutions grew 5% to €278 million and outperformed expectations; Merchant Solutions fell 1.4% to €460 million, though underlying growth excluding bank contracts was 3%.
  • EBITDA rose 3% to €397 million with a 48.3% margin; operating expenses were flat and net debt remained at €4.9 billion (2.5 times LTM EBITDA).

Nexi S.p.A. said on Thursday that it delivered a 1% increase in revenue for the first quarter of 2026, bringing top-line sales to €821 million. That result was marginally higher than the company-compiled consensus of €815 million.


Segment performance

The company reported mixed outcomes across its business lines. The Issuing Solutions division grew 5% year-over-year to €278 million, a result the company attributed to robust volume growth and favorable timing of projects. This print was above analysts' expectations of €271 million for the segment.

By contrast, Merchant Solutions revenue edged down 1.4% to €460 million. The company noted that underlying activity - when excluding bank contracts - showed 3% growth. Consensus for Merchant Solutions had been €456 million.

Digital Banking Solutions registered 3% growth, maintaining the pace seen in the previous quarter.


Profitability and costs

EBITDA increased 3% to €397 million, yielding a margin of 48.3%. Both the absolute EBITDA and margin exceeded the company-compiled consensus of €380 million and a 46.6% margin. Operating expenses were flat on a year-over-year basis.


Balance sheet and guidance

Net debt was reported at €4.9 billion at the end of March, unchanged from the December level, and equivalent to 2.5 times the last twelve months of EBITDA. The company reiterated its full-year guidance. Management scheduled a conference call for 8am Central European Summer Time to discuss the quarter.


Implications

The quarter showed a modest top-line improvement accompanied by an EBITDA beat and steady operating costs. Results were uneven across segments - with issuing-related activities lifting growth while merchant-facing revenue softened on a headline basis - and leverage remained stable at 2.5 times LTM EBITDA.

Risks

  • Segment divergence - Continued weakness in Merchant Solutions could weigh on overall revenue growth for payments and retail-facing sectors.
  • Leverage sensitivity - Net debt at €4.9 billion, equal to 2.5 times LTM EBITDA, could constrain financial flexibility if profitability deteriorates.
  • Guidance reliance - The company confirmed full-year guidance; any future downgrade or slower-than-expected execution would affect investor expectations across financial and fintech markets.

More from Stock Markets

HgCapital Trust posts 5.4% NAV dip in first quarter, cites rating-driven decline May 7, 2026 Klépierre posts 2.6% like-for-like rental growth in Q1, reaffirms 2026 cash-flow target May 7, 2026 InterContinental Hotels Posts Better-Than-Expected Q1 RevPAR; Signals Mixed Near-Term Trends May 7, 2026 Nikkei 225 Climbs to Record Close as Real Estate, Banking and Textiles Lead Gains May 7, 2026 M&G Posts Q1 Net Inflows as Asset Management Stabilizes May 7, 2026