Nexteq (NXQ): Gaming customer consolidation volume loss
This situation live
NXQ Nexteq
18 Dec 2025 · FY26 volume reduction guided · +1% until the next step
There is a significant mid-term new business opportunity for Nexteq with the acquirer, which is developing quickly, while also presenting a short-term revenue challenge, as the technology integration
19 Jan 2026 · Largest customer trading lower; new largest customer won · +3% until the next step
despite its historically largest customer by value trading at a significantly lower level in 2025 due to the customer's ongoing corporate activity, as previously flagged.
18 Mar 2026 · Volume decline steeper than expected; diversifying · −31% until the next step
We achieved our financial commitments in 2025, despite the decline in volume from our historically biggest gaming customer being steeper than previously anticipated, following its acquisition.
21 May 2026 · Second FY26 revenue cut; Quixant orders softening · −9% until the next step
the continued softening of order coverage, meaning the Board now believes that revenue for 2026 will fall below its previous expectations
24 Jul 2026 · H1 Quixant revenue halved; FY26 guidance held · +0% until the next step
Quixant's performance was also impacted by lower customer volume requirements from other customers rather than customer losses, therefore, the Board believes that volumes can recover through 2027 as m
9 Sep 2026 · Costs still hitting demand and cash · −15% since
Challenging market conditions in land-based Gaming are expected to persist through 2026 and 2027 as the impact of tariffs and continually increasing component costs hit customer confidence.
Gaming customer consolidation volume loss
Costs still hitting demand and cash
Next: Cash to improve in H2 as inventory and Taiwan mortgage unwind
Every step · 6
- 18 Dec 2025 FY26 volume reduction guided – There is a significant mid-term new business opportunity for Nexteq with the acquirer, which is developing quickly, while also presenting a short-term... ↗
- 19 Jan 2026 Largest customer trading lower; new largest customer won – despite its historically largest customer by value trading at a significantly lower level in 2025 due to the customer's ongoing corporate activity, as... ↗
- 18 Mar 2026 Volume decline steeper than expected; diversifying – We achieved our financial commitments in 2025, despite the decline in volume from our historically biggest gaming customer being steeper than previously... ↗
- 21 May 2026 Second FY26 revenue cut; Quixant orders softening – the continued softening of order coverage, meaning the Board now believes that revenue for 2026 will fall below its previous expectations ↗
- 24 Jul 2026 H1 Quixant revenue halved; FY26 guidance held – Quixant's performance was also impacted by lower customer volume requirements from other customers rather than customer losses, therefore, the Board... ↗
- 9 Sep 2026 Costs still hitting demand and cash – Challenging market conditions in land-based Gaming are expected to persist through 2026 and 2027 as the impact of tariffs and continually increasing... ↗
What is happening
Nexteq: Gaming customer consolidation volume loss – Costs still hitting demand and cash. ['Costs still hitting demand and cash']
- In short
- DDR4/DDR5 supply and cost were flagged in January 2026 and moved from margin to demand by May. The 9 Sep 2026 interims say component pricing and tariffs raised customers' product costs by about 30%, cutting volumes, and some customers now buy memory directly. Net cash is -$1.4m after strategic stock purchases, $8.5m of shareholder returns and a c.$12m Taiwan mortgage position. The board expects cash to improve in H2 as these unwind.
- Announced
- 18 Dec 2025 · FY26 volume reduction guided
- Latest
- 9 Sep 2026 · H1 loss reported; FY26 guidance reiterated
- Duration
- Board believes the factors are temporary but cannot predict when they will abate
- Margin outlook
- Current gross margin % performance expected to continue through FY26
- Gross margin
- 30.3% in H1 2026, down 280bps
- Cash 30 June 2026
- $10.7m (30 June 2025: $28.5m)
- Cash drivers
- Strategic component stock, $8.5m returns to shareholders, c.$12m Taiwan mortgage position
- Cash outlook
- Expected to improve in H2; $15m increase in net cash from unwind
- Customer cost rise
- c.30% increase in cost of customers' own products
- Net cash
- $(1.4)m at 30 June 2026
What comes next
Cash to improve in H2 as inventory and Taiwan mortgage unwind.
Briefing
Nexteq in 5 minutes
Nexteq, listed on AIM, makes the computer platforms inside casino gaming machines (Quixant) and the display and control systems used in broadcast and industrial equipment (Densitron). Revenue was $114m in 2023, and...
- Act 1Record cash, then customers stopped ordering
- Act 2New leadership and a three-year plan
- Act 3Everi's sale and the memory squeeze
From the company's own announcements. Not investment advice.
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