Ainsworth Game Technology (AGI) H2 2025 earnings summary

Executive summary

• Underlying profit before tax (excluding currency and one-off items) was $21.1m, down 9% year-over-year.

• Revenue rose 10% to $290.8m, but gross margin declined due to product mix and new tariffs in North America.

• Underlying EBITDA was stable at $48.0m, with margin compression to 16.5% from 18.3%.

• Net debt position of $11.8m at year-end, compared to net cash of $9.7m prior year; dividends remain suspended.

• Strong recurring revenue of $97.7m, including HHR connection fees.

Financial highlights

• Reported EBITDA was $(17.5)m, impacted by $45.2m CGU impairment, $8.3m transaction costs, and $12.0m FX losses.

• Gross margin fell to 57% from 61% year-over-year.

• EPS (diluted) improved to 9.0 cents from (14.7) cents.

• Income tax benefit of $25.2m, driven by deferred tax asset recognition.

• Net assets decreased due to goodwill impairment and lower cash, receivables, and PP&E.

Outlook and guidance

• Focus remains on disciplined cost management and cash flow preservation.

• Increased credit facility to US$75m to support future strategic initiatives.

• Continued investment in product development, especially the A-Star Raptor™ line.