A$116.5m Revenue, 62% Gross Margin: Ainsworth Game Technology Reports Its H1 2026 Half Year Results

Ainsworth Game Technology published its results for the six months to 30 June 2026 on 26 August 2026, and the top line reads as a difficult half. Revenue came in at A$116.5m, down 23% on the A$152.1m recorded a year earlier, while statutory profit after tax narrowed to A$1.1m from A$4.9m in the prior corresponding period. Taken in isolation, those two figures point to a business under real pressure in its largest markets, and the company was direct about the reasons behind them.

The detail tells a more balanced story. Beneath the revenue decline, the metrics that determine financial resilience moved in Ainsworth’s favour: gross margin widened, net debt reduced, and operating cash flow turned firmly positive. The company sold fewer machines over the period yet finished the half in a stronger financial position than it began. For a supplier working through a soft product cycle in North America, that combination is the result worth understanding, and it shapes how operators should read the half.

Ainsworth revenue fell 23% while gross margin rose to 62%

Ainsworth attributed the revenue decline to weak consumer sentiment, tough macroeconomic conditions, and a shortage of compelling new product in North America, its largest market. International revenue, which represented 70% of the total at A$81.7m, absorbed most of the fall, while domestic revenue rose to A$34.8m. Regulation added to the pressure, with Mexico’s gaming tax rising from 30% to 50% on 1 January 2026 and further Historical Horse Racing units removed in New Hampshire following an earlier rule change.

Profitability moved the other way. The headline figures were:

• Gross margin of 62%, up from 56%, helped by an IEEPA tariff refund and higher average selling prices in Asia Pacific and North America
• Reported EBITDA of A$10.2m and underlying EBITDA of A$17.1m, at a 15% underlying margin
• Underlying profit before tax of A$4.7m, in line with the guidance issued in July

From H1 2025 to H1 2026: where Ainsworth’s numbers moved

The year-ago figures show how the half has shifted. Revenue came in at A$116.5m, down from A$152.1m, and statutory profit after tax was A$1.1m against A$4.9m. Reported EBITDA was A$10.2m against A$14.6m, and underlying EBITDA fell to A$17.1m from A$26.9m, with the margin easing to 15% from 18%. Underlying profit before tax was A$4.7m against A$13.9m. Gross margin moved the other way, rising to 62% from 56%, while R&D rose to 22% of revenue from 16%. On cash and debt, the position improved within the half: operating cash flow turned to A$8.9m positive from a A$4.7m outflow, though the company sat on net debt of A$8.5m against net cash of A$1.4m a year earlier. Total assets stood at A$399.9m against A$435.1m, and net assets at A$326.2m against A$356.4m.

The regional split against the prior year:

• North America: A$51.9m, down from A$83.1m, and 44% of group revenue against 55%
• Asia Pacific: A$36.9m, up from A$34.6m
• Latin America and Europe: A$25.4m, down from A$31.6m
• Online: A$2.3m, down from A$2.8m

Recurring revenue, including HHR connection fees, was A$43.3m against A$50.7m, while HHR connected units rose to 10,737 from 10,496 and the North America average fee per day held at US$27. Lower revenue, a wider margin, and a heavier lean on recurring income. That is the shape of the change between the two halves.

Net debt cut to A$8.5m and cash flow turned positive

The balance-sheet movement is the part operators tend to underweight, and it was the clearest area of improvement in the half:

• Net debt reduced to A$8.5m from A$11.8m at the end of 2025
• Debt-to-equity eased to 23% from 28%
• Operating cash flow swung to A$8.9m positive, from a A$4.7m outflow a year earlier, on the tariff refund and improved working capital
• The US$75m Western Alliance Bank facility remained in place, with all financial covenants met

Recurring revenue, including HHR connection fees, was A$43.3m, down from A$50.7m but still a substantial base. At 30 June 2026, 10,737 units were connected to Ainsworth’s HHR system, while total machines under gaming operation stood at 5,644, down from 6,091. Dividends remain suspended to preserve liquidity, and parent company Novomatic AG retains its controlling interest.

North America revenue dropped 38% but segment margin climbed

North America was where the pressure was most visible. Revenue there fell 38% to A$51.9m, and the region’s share of group revenue slipped to 44% from 55% a year earlier. Segment profit margin nonetheless rose 11 points to 54%, lifted by the tariff refund and a heavier weighting toward recurring HHR fees, which now account for 36% of segment revenue. Falling revenue alongside a rising margin buys the company time. It does not, on its own, restore growth.

Asia Pacific grew 7% as the Raptor cabinet range gained ground

Not every region moved backwards. Asia Pacific delivered A$36.9m, up 7% on the prior year and representing 32% of group revenue, at a 25% segment margin. The growth was led by Australia, supported by the continued momentum of the dual-screen A-STAR Raptor cabinet and the release of a single-screen version during the half. Two new game families on that platform, Double Dragons and Loot Express, both launched at more than twice floor average, according to the company.

Latin America, Europe and Online

Latin America and Europe reported A$25.4m, lower than the prior year as key markets softened on geopolitical conditions. Segment margin still improved to 26% on a richer product mix. The installed base narrowed to 3,284 units following the Mexico tax increase, though average fee per day rose from US$12 to US$13. Online, run through Ainsworth Interactive, reported A$2.3m. In its investor presentation, the company outlined a direct-to-operator distribution strategy in North America, naming operators including BetMGM, DraftKings and FanDuel, alongside a social-casino arrangement with Zynga.

Ainsworth CEO Ryan Comstock points to cost discipline and R&D

“Given the challenging trading conditions, our focus has been on disciplined cost management to enhance margins, reducing debt, and improving our operating cash flow whilst also continuing our investment in R&D, and successfully launching new products in key markets,” said Ainsworth CEO Ryan Comstock. R&D investment held at 22% of revenue, up from 16% a year earlier, largely a function of the lower revenue base rather than a rise in spend.

There is also a legal item to note. Ainsworth has agreed a licence to certain Aristocrat Australian game-feature patents, together with a settlement of, and release from, potential claims relating to historic use of those patents. The company will pay A$8.5m in instalments over a three-and-a-half-year term and has recognised a A$2.3m one-off provision. Ainsworth frames this as a licence-and-settlement arrangement, not an admission of wrongdoing.

What Ainsworth’s second half needs to deliver

The coming six months amount to a product test. Ainsworth’s recovery case rests on a steadier release cadence led by the Dragon Legacy family, which ranked first and second in the June 2026 Eilers Report Top 25 New Core Video and reaches Class 2 and HHR availability in September, covering the segments that make up around 61% of regional revenue. If the pipeline lands, the improved margins and cleaner balance sheet give the company a firm base from which to grow. If it slips, the same recurring revenue that cushioned this half will need to cushion another one. That is the question the market will spend the second half answering.

Source: Ainsworth Game Technology