UK's Nexteq H1 revenue falls 34% on weak gaming demand
UK's Nexteq H1 revenue falls 34% on weak gaming demand
Overview
UK technology solutions provider's H1 revenue fell 34% yr/yr amid weak gaming demand
Co swung to adjusted loss as gross margin narrowed on higher component costs
Company returned $5.7 mln to shareholders via buybacks
Outlook
Nexteq reiterates FY2026 trading guidance, supported by 83% order coverage at end August
Company expects challenging market conditions in land-based Gaming to persist through 2026 and 2027
Nexteq expects cash balance to improve in H2, aided by Taiwan mortgage unwind and property sale
Result Drivers
GAMING WEAKNESS - Revenue and margin were hit by reduced volumes from major gaming customers, driven by higher product costs and tariffs
GROSS MARGIN PRESSURE - Gross margin was impacted by annualisation of Everi's consolidation and significant increases in component pricing, partially offset by Densitron's performance
COST SAVINGS - Additional restructuring and cost saving measures in H1 2026 led to $1.3 mln in annual overhead savings
Company press release: ID:nRSI9334Ta
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
H1 Revenue |
| $26.70 mln |
|
H1 Adjusted Loss Per Share |
| $0.08 |
|
H1 Loss Per Share |
| $0.09 |
|
H1 Gross Margin |
| 30.30% |
|
H1 Adjusted Pretax Loss |
| $4 mln |
|
H1 Pretax Loss |
| $4.70 mln |
|
Analyst Coverage
Wall Street's median 12-month price target for Nexteq PLC is GBp180.00, about 260% above its September 8 closing price of GBp50.00
The stock recently traded at 33 times the next 12-month earnings vs. a P/E of 67 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.)