Nexteq reported first-half 2026 revenue of $26.7 million, down 34% from $40.7 million, as difficult conditions in land-based gaming weighed heavily on its Quixant business.
Quixant revenue declined 53% to $12.8 million, while Densitron revenue increased 1% to $13.9 million. Group gross margin declined to 30.3% from 33.1%, adjusted EBITDA swung to a $2.8 million loss from $1.9 million of positive adjusted EBITDA, and adjusted loss before tax was $4 million.
The Quixant performance reflected volume reductions among major gaming customers, including the loss of Everi following its acquisition by Apollo Funds. Excluding Everi, Nexteq said customer retention remained at 100%. Densitron, meanwhile, delivered record margin performance.
Additional restructuring and cost measures implemented during the first half are expected to generate approximately $1.3 million in annual overhead savings. Nexteq also returned $8.5 million to shareholders through dividends and share repurchases.
The company continues shifting toward more diversified, intellectual property-led revenue, with commercial wins across Launchpad, IDS and Broadcast. Its second-half and fiscal 2027 product roadmap includes new product development and customer onboarding initiatives expected to support longer-term growth.
Nexteq reiterated its fiscal 2026 expectations, supported by 83% order coverage as of the end of August. Management said two significant orders are still required in the gaming business to secure the year-end position. Current consensus expectations are $73 million of revenue and $2.8 million of adjusted EBITDA for 2026.
The company also decided not to proceed with a planned Taiwan office relocation and instead expects to sell the property in October. Nexteq expects its cash balance to improve during the second half as revenue becomes seasonally stronger and strategic inventory and a roughly $12 million Taiwan mortgage position unwind.
KEY QUOTE:
“H1 2026 was a challenging period for Nexteq, with the headwinds facing our end markets intensifying during the period. However, we continued to make progress against the areas that will build a stronger, more diversified business. As we enter our seasonally stronger second half, and with encouraging commercial progress against our strategy, our focus is on executing well: supporting our customers, converting our pipeline, developing the right products and ensuring we have the right operating model to deliver efficiently.”
Duncan Faithfull, Chief Executive Officer of Nexteq
