Nexteq slumps as gaming headwinds push back three‑year plan

(Sharecast News) - Technology solutions group Nexteq traded lower early on Thursday after it warned of shortterm revenue headwinds in its gaming division, pushing back delivery of its threeyear plan by 12 months.

Nexteq said trading in 2025 had remained robust, with group revenue and adjusted pre-tax profits expected to be in line with market expectations. Operating cash conversion was also described as being strong, underpinned by a solid balance sheet.

However, Nexteq cautioned that 2026 trading would be impacted by reduced volumes from two major gaming customers. The first related to the accelerated integration of its historically largest client into a new parent organisation, which has created nearterm revenue challenges despite a significant midterm opportunity, while the second reflects cyclical timing issues at another key customer, where it continues to act as sole technology supplier.

"As a result of the above factors, the board now expects revenue for FY26 to be not less than $85m with a consequential impact on profitability," said Nexteq. "The board remains confident that the group's financial expectations set out in its three-year plan will be achieved, however, given the short-term headwinds impacting FY26, delivery is now expected to be delayed by 12 months to the end of FY28."

Despite the setback, Nexteq pointed to strong progress in 2025, including pipeline growth, new intellectual property revenue and an increase in $1mplus customers. It also stated its product roadmap remained wellpositioned, with new gaming software and hardware launches, mass production of new HMI solutions, and expansion into new markets such as Brazil.

As of 0915 GMT, Nexteq shares had slumped 13.34% to 71.93p.

Reporting by Iain Gilbert at Sharecast.com