Trading Update

The information contained within this announcement is deemed by the Company to constitute inside information pursuant to Article 7 of EU Regulation 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 as amended.

18 December 2025

Nexteq plc

("Nexteq" or the "Company")

Trading Update

Nexteq PLC, a leading technology solutions provider to customers in selected industrial markets, today provides an update on trading for the year ending 31 December 2025 ("FY25") and outlook.

FY25 Trading

The Board is pleased to confirm that trading has remained robust across both divisions and is expected to report Group revenue and adjusted PBT in line with 2025 market expectations¹.

The Group's organisational focus to deliver its three-year plan, as detailed in the Group's 2025 Capital Markets Day ("2025 CMD"), has yielded strong results to date, as evidenced by the 'signposts to success'. As a result, the Group expects to show significant improvements in pipeline growth; revenue from new IP and an increase in $1m+ customers. A focus on technology development and innovation is driving delivery of the product roadmap and therefore building pipeline opportunities for longer term, sustainable growth. 

Operating cash conversion remains strong, underpinning the Group's robust balance sheet.

Outlook

As highlighted throughout 2025, the Gaming division has been operating in a period of uncertainty following the acquisition of the Group's historically largest customer and its ongoing integrations into the acquirer's enlarged organisation. 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 of the two businesses has been accelerated compared to original expectations.

The timing of the mid-term opportunity with the enlarged organisation is expected to be later than the accelerated reduction in volume, and despite strong progress in the current year with new customer wins and growth from existing customers, we do not expect to offset fully the expected reduction in volume in FY26 highlighted above.  

Gaming is a cyclical industry, and 2026 will also be impacted by a predicted reduction in volume from another significant gaming customer.  This is relating to the timing of market opportunities for them, and Nexteq maintains its sole supplier of technology status with them.

As a result of the above factors, the Board now expects revenue for FY26 to be not less than $85m with a consequential impact on profitability.

The Board remains confident that the Group's financial expectations set out in its three-year plan will be achieved, however, given the short-term headwinds impacting FY26, delivery is now expected to be delayed by 12 months to the end of FY28. Confidence in the future is underpinned by the proactive steps taken to reposition the Group through a broader range of products and solutions that target new growth opportunities. The product roadmap and opportunity pipeline for 2026 are strong, encompassing the launch of new gaming software and hardware, the continued integration of new business wins and transition into mass production of new HMI solutions, and further expansion into new verticals and markets, including Brazil.

Duncan Faithful, CEO of Nexteq, commented: "We are pleased to confirm a positive result as we close 2025, delivering what we set out to do at the start of the year. Despite volatile market conditions, a material reduction in volume from our largest customer and the significant reorganisation of our business around the three-year growth strategy, we delivered on key financial performance metrics and critical product development targets.

As we look to 2026, the short-term impact of customer consolidation is disappointing, however the early success of our diversification and growth strategy, launched in 2025, means we have been able to partially mitigate its impact and significantly broaden our future growth opportunities. With the conclusion of year one of our three-year plan, we remain focused on driving pipeline growth, on-boarding new customers already won, delivering the innovation roadmaps across the Group, and the ongoing evaluation of targeted, and value-accretive M&A activity." 

¹ The current consensus forecasts for the year ended 31 December 2025 are $86.5m revenue, $6.0m adjusted EBITDA and $3.6m adjusted profit before tax.

About Nexteq

Nexteq (AIM: NXQ) is a strategic technology solutions provider to customers in selected industrial markets. Through innovative technology solutions, it enables manufacturers of global electronic equipment to outsource the design, development, and supply of non-core aspects of their product offering. By outsourcing elements of their technology stack to Nexteq, customers can focus their product development effort on the most critical drivers of their business' success.

The Group operates in six countries and services over 500 customers worldwide, and its solutions are delivered through a global sales team and leverage the Group's electronic hardware, software, display and mechanical engineering expertise. Our Taiwan operation is at the heart of Asian supply networks and facilitates cost effective manufacturing and strategic supply chain management.

Nexteq operates two distinct brands: Quixant, a specialised computer platforms provider, and Densitron, leaders in human machine interface. Founded in 2005 and later floating on the London Stock Exchange's AIM stock market as Quixant plc, the Group rebranded to Nexteq in 2023.

Further information on Nexteq and its divisions can be found at www.nexteqplc.com.