Ainsworth Game Technology reported weaker first-half earnings as lower machine sales in North America outweighed growth in Asia-Pacific. According to Ainsworth’s H1 2026 interim report, revenue for the six months ended 30 June 2026 fell 23% year on year to AU$116.5 million, while statutory profit after tax dropped 78% to AU$1.1 million. Improved margins, positive operating cash flow and lower net debt nevertheless provided some support.
Group revenue declined 23% to AU$116.5 million, with lower land-based sales across North America and Latin America and Europe driving the contraction.
Statutory profit after tax fell 78% to AU$1.1 million, while underlying EBITDA decreased 36% to AU$17.1 million.
North American revenue dropped 38% to AU$51.9 million as unit sales and the installed gaming-operations base contracted.
Gross margin improved from 56% to 62%, supported by a tariff refund, higher average selling prices and a greater contribution from recurring revenue.
Asia-Pacific revenue rose 7% to AU$36.9 million, helped by the continued momentum of Ainsworth’s A-STAR Raptor cabinet range.
Operating cash flow turned positive at AU$8.9 million, while net debt decreased to AU$8.5 million from AU$11.8 million at the end of 2025.
North America remained Ainsworth’s largest market, contributing 44% of group revenue, but its performance was the primary drag on the half-year result. Regional revenue fell from AU$83.1 million to AU$51.9 million, while unit sales dropped to 492 from 1,357.
Participation and lease revenue also declined as the installed base contracted. Regulatory changes led to the removal of Historical Horse Racing machines connected to Ainsworth’s system in New Hampshire. Management also said its North American single-screen roadmap had gone too long without a compelling new release, weakening operator confidence and unit sales.
Ainsworth’s results primarily concern land-based gaming machines rather than online casino activity. However, Ace Alliance’s H1 2026 analysis found that US iGaming demand fell 9% year on year, indicating that softer momentum was also visible in the digital market.
The weakness was not uniform across the supplier sector. Bragg Gaming recently reported 44% growth in North American proprietary-content revenue, showing that individual suppliers could still generate growth through stronger-performing content.
Although revenue and earnings declined, Ainsworth’s gross margin increased six percentage points to 62%. The improvement reflected an IEEPA tariff refund, stronger average selling prices in North America and Asia-Pacific, and a higher proportion of high-margin recurring revenue as lower-margin machine sales decreased.
Operating cash flow improved by AU$13.6 million to AU$8.9 million, reversing the AU$4.7 million outflow recorded a year earlier. Net debt also fell by AU$3.3 million during the half. These indicators suggest that cost discipline and working-capital management partially protected the balance sheet despite weaker trading.
Asia-Pacific was Ainsworth’s only growing region. Revenue increased to AU$36.9 million, while segment profit rose to AU$9.3 million. The performance was driven by higher Australian unit sales, stronger pricing and demand for the dual-screen and single-screen A-STAR Raptor cabinets.
Latin America and Europe revenue declined 20% to AU$25.4 million amid difficult conditions in Argentina and Mexico. The pressure coincided with Mexico’s proposed gambling tax increase, illustrating how regulatory and fiscal uncertainty can affect supplier planning and customer investment.
Ainsworth maintained research and development spending at AU$25.8 million, equivalent to 22% of revenue. For B2B partners, the question is whether this investment can produce a faster, more competitive release cadence in North America while sustaining Asia-Pacific momentum. The improved margin and cash generation offer breathing room, but durable recovery will depend on product execution.
