Ainsworth Game Technology reported a 23% year-over-year decline in revenue for the first half of 2026, citing weak consumer sentiment and challenging macroeconomic conditions across its markets. The Australian gaming equipment manufacturer posted AUD 116.5 million in sales for the six months ended June 30, down from AUD 152.1 million in the prior corresponding period. Underlying earnings before interest, taxes, depreciation and amortization (EBITDA) fell 36% to AUD 17.1 million, while reported EBITDA declined 30% to AUD 10.2 million.
The company’s gross profit totaled AUD 72.7 million, up from AUD 84.8 million a year earlier, with gross margins expanding to 62% from 56%. Despite the revenue decline, operating cash flow improved to a positive AUD 8.9 million, compared with an outflow of AUD 4.7 million in the same period last year. Net debt decreased to AUD 8.5 million as of June 30, 2026, from AUD 11.8 million at year-end 2025.
North America accounted for 44% of group revenue at AUD 51.9 million, a drop of AUD 31.2 million year-over-year. The segment’s unit volume fell to 492 from 1,357, though profit margins improved to 54% from 43%. Historical horse racing (HHR) connections contributed 36% of segment revenue, with over 10,000 units connected. Participation revenue declined to AUD 15.4 million from AUD 20.9 million.
Latin America and Europe generated AUD 25.4 million in revenue, down 20% year-over-year, as Mexico’s gaming tax increase to 50% from 30% took effect on January 1. The region’s segment profit margin rose to 26% from 23%, supported by higher-margin lower-priced cabinets.
Asia Pacific was the sole growth segment, with revenue up 7% to AUD 36.9 million and segment profit increasing 8% to AUD 9.3 million. The company’s interactive segment, representing 2% of revenue, reported AUD 2.3 million in sales, down from AUD 2.8 million a year earlier.
Chief Executive Officer Ryan Comstock attributed the decline to weak consumer sentiment and a transitional period for the company. He noted that the revenue shortfall was concentrated in North American unit sales and Latin America. The company’s Dragon Legacy family of products ranked highly in the Eilers report, with strong performance in South America, Mexico, and Australia, though Comstock emphasized the need for consistency and conversion.
Chief Financial Officer Lynn Mah highlighted margin compression due to negative operating leverage rather than cost indiscipline. The board suspended dividends to preserve liquidity and fund product development, a capital allocation decision rather than a liquidity constraint.
