UK's Nexteq full-year revenue rises on gaming segment, margin narrows on higher costs

Nexteq

18/03/2026 07:09

Overview

UK technology solutions provider reported full-year revenue up 4% yr/yr, driven by gaming segment

Adjusted EPS fell 29% yr/yr as gross margin declined amid higher component prices

Company completed share buyback and acquired new Taipei office, funded partly by mortgage

Outlook

Nexteq expects reduced Quixant revenue in 2026 after the acquisition of its largest customer

Company says component shortages, tariffs and geopolitical risks are creating customer uncertainty in 2026

Nexteq now targets $108 mln revenue, 35-38% gross margin and 10-15% EBITDA margin by end-2028

Result Drivers

GAMING SEGMENT GROWTH - Quixant gaming hardware platform sales rose, with new customer wins and expanded product offerings offsetting reduced volumes from the historically largest customer

COMPONENT COST PRESSURE - Gross margin declined due to higher memory component prices and changes in customer and product mix, particularly as AI-driven demand tightened DDR4 and DDR5 supply

CUSTOMER MIX SHIFT - Revenue concentration risk materialized as the largest customer was acquired, leading to a 70% drop in its volume and requiring Nexteq to diversify and replace lost sales at lower margins

Company press release: ID:nRSR0450Xa

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
FY Revenue
$90.20 mln
FY Adjusted EPS
$0.04
FY EPS
$0.03
FY Gross Margin
32.80%
FY Adjusted Pretax Profit
$3.60 mln
FY Pretax Profit
$3.20 mln


Analyst Coverage

The one available analyst rating on the shares is "buy"

The average consensus recommendation for the financial technology (fintech) peer group is "buy"

Wall Street's median 12-month price target for Nexteq PLC is GBp180.00, about 138.4% above its March 17 closing price of GBp75.50

The stock recently traded at 34 times the next 12-month earnings vs. a P/E of 20 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)