Highlights

  • Ainsworth Game Technology expects H1CY26 profit before tax to decline significantly compared to the prior corresponding period.
  • Revenue for the six months ending 30 June 2026 is forecast to fall around 24% year-on-year to approximately AUD 116 million.
  • North American operations were the primary contributor to weaker performance amid competitive and economic pressures.
  • APAC revenue is expected to improve modestly, supported by continued installations of the Raptor cabinet in Australia.
  • Underlying EBITDA is projected at approximately AUD 13 million, down from AUD 26.9 million in the prior corresponding period.

Ainsworth Game Technology Limited (ASX:AGI) has released a trading update for the six months ending 30 June 2026 (H1CY26), outlining lower expected Earnings and revenue as softer North American trading conditions continue to weigh on performance.

The company said it expects profit before tax, excluding currency impacts and one-off items, to come in at approximately AUD 1.0 million for H1CY26, compared with AUD 13.9 million reported during the previous corresponding period on a similar basis. During the afternoon session on 22 May 2026, AGI shares traded 3.45% higher at AUD 1.35, while the stock remains approximately 48.35% higher over the past year.

The latest update reflects a notable decline in revenue and earnings across parts of the Business, particularly within the North American market, where Ainsworth cited reduced outright sales, lower gaming operations unit numbers, competitive pressures and broader economic challenges.

Company Overview

Ainsworth Game Technology Limited develops and supplies gaming machines, gaming systems and related technology products across international gaming markets.

The company operates across several regions including North America, APAC, Latin America and Europe.

Its product portfolio includes gaming cabinets, slot machine technology and gaming content designed for regulated gaming environments.

Ainsworth continues focusing on product innovation and market expansion while operating within competitive global gaming markets.

Revenue Expected to Decline Across H1CY26

Ainsworth said total revenue for H1CY26 is expected to reach approximately AUD 116 million.

This compares with AUD 152.1 million recorded during the prior corresponding period and AUD 138.7 million generated during the six months ended 31 December 2025 (H2CY25).

According to the company, North America was the primary source of the decline, with weaker outright sales and fewer units under gaming operations contributing to softer trading conditions.

Management also pointed to increased competition and adverse economic conditions within the region, which created revenue shortfalls while the business continues progressing product development initiatives aimed at improving competitiveness.

Despite the weaker top-line outcome, Ainsworth indicated that segment margins are expected to remain broadly consistent with previous periods, supported in part by improved Operating Leverage within Australia.

APAC Region Continues Showing Relative Improvement

While North America experienced softer conditions, the APAC region delivered comparatively more favourable performance during the half.

Ainsworth stated that revenue within the APAC segment is expected to rise approximately 4% compared with the prior corresponding period.

The company attributed this improvement primarily to contributions from the Australian market following the release and continued installations of its Raptor cabinet platform, along with additional cabinet variations launched in early 2026.

The APAC segment is expected to contribute approximately 31% of total revenue during H1CY26, compared with 23% in the prior corresponding period.

Segment results within the region are also forecast to improve to approximately 25%, up from 23% previously.

The company suggested that ongoing product rollout activity within Australia has helped partially offset more challenging conditions in international markets.

Latin America and Europe Deliver Stable Margins

Within the Latin America and Europe segment, Ainsworth said operating conditions remained comparatively stable.

Revenue in the region is expected to be approximately 13% lower than the prior corresponding period, although this decline is expected to be offset by improved segment margins.

As a result, overall segment results for Latin America and Europe are forecast to remain broadly consistent with prior-year levels despite softer revenue.

The update indicates that Margin management and operational efficiencies continue playing an important role in supporting profitability across multiple business segments.

Lower Revenue Impacts EBITDA Outlook

Underlying EBITDA, excluding currency impacts, is expected to be approximately AUD 13 million for H1CY26.

That compares with AUD 26.9 million reported in the prior corresponding period, representing a notable decline in earnings performance.

The company nevertheless expects to generate positive operational Cash Flow of approximately AUD 2 million during the half.

However, higher outflows linked to investing and financing activities are expected to increase net Debt to around AUD 14 million, compared with AUD 11.8 million at 31 December 2025.

Ainsworth added that it continues to maintain available undrawn debt facilities to support ongoing operations and strategic initiatives.

Research and Development Spending Remains a Priority

Despite weaker earnings expectations, the company confirmed that Investment in research and development remains a central focus.

Research and development expenditure increased approximately 7% compared with the prior corresponding period and is expected to represent around 22% of total revenue during H1CY26.

This compares with approximately 18.5% of revenue in H2CY25.

Management indicated that ongoing investment in product development is intended to support future competitiveness and product performance across international markets.

The company has continued allocating resources toward cabinet development, gaming content and broader product strategy initiatives.

Management Outlines Strategic Response

AGI Chief Executive Officer Ryan Comstock said the expected financial outcome was partly influenced by organisational changes implemented during the latter part of FY25.

According to management, new sales and product strategy Leadership have now been appointed within North America to establish a more targeted approach aimed at improving financial outcomes.

The company stated that initiatives implemented within Australia have contributed to improved regional revenue performance, helping partially offset ongoing competitive and economic pressures internationally.

Management also confirmed that Ainsworth continues reviewing various parts of the business with the objective of reducing costs, improving product performance and achieving Market Share gains across geographical regions.

The company indicated these measures are intended to support improved financial performance during the remainder of FY26.

Investors Monitoring Recovery Initiatives and Product Rollouts

The latest trading update highlights ongoing pressure within Ainsworth’s North American business, which remains a major contributor to overall group performance.

At the same time, investors may continue monitoring whether recent leadership changes, product initiatives and cost management measures can support operational improvement during the second half of FY26.

The company’s continued investment in research and development, combined with improving contributions from Australia and the broader APAC region, may also remain areas of focus for shareholders assessing the business’ longer-term positioning.