Nexteq reports 34% revenue decline in first half on gaming weakness

Nexteq, a UK-based technology solutions company, posted a 34% year-on-year drop in first-half 2026 revenue to $26.70 million, citing weak demand in the gaming sector.

The firm recorded an adjusted loss of $0.08 per share for the period, compared with a net loss per share of $0.09. Adjusted pretax losses amounted to $4 million, while total pretax losses reached $4.70 million.

Gross margin contracted to 30.30%, with elevated component costs weighing on profitability. The margin squeeze was driven by the full-year effect of the Everi consolidation and higher component prices, partially offset by Densitron’s results.

Revenue and margins suffered from lower order volumes among key gaming clients, a consequence of increased product costs and tariffs. During the first half, Nexteq enacted restructuring and cost-saving initiatives that delivered $1.3 million in annual overhead reductions.

Nexteq returned $5.7 million to shareholders through buybacks during the period.

Nexteq reaffirmed its full-year 2026 trading outlook, backed by order coverage of 83% as of the end of August. Management expects difficult conditions in the land-based gaming market to persist into 2026 and 2027.

Nexteq expects its cash balance to strengthen in the second half, helped by a Taiwan mortgage unwind and property sale.

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