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.

21 May 2026

Nexteq plc

("Nexteq" or the "Company")

Trading Update

Nexteq plc (AIM: NXQ), a leading technology solutions provider to customers in selected industrial markets, today provides the following update on trading.

As highlighted with the Group's FY25 results in March, the Group continues to navigate a challenging trading environment, with global geopolitical uncertainty impacting customer confidence.

In the Group's Quixant division, which serves the land-based gaming market, trading conditions have been impacted indirectly by US tariffs, and directly by higher costs for critical memory and storage components (DDR4 and DDR5), which have increased our customers' prices to end markets. These factors have affected demand resulting in the continued softening of order coverage, meaning the Board now believes that revenue for 2026 will fall below its previous expectations. The Board believes these factors will be temporary albeit it is difficult to accurately predict when they will abate given current macro-economic uncertainty.

The Group's Densitron division, which serves targeted verticals in the industrial market, has also experienced challenges with specific customer demand but remains on track to deliver year on year growth, with improved margins on new customer wins continuing through its strategy to offer 'more than the display'. 

As a result of the continuing uncertainty in the Quixant business, FY26 Group revenue is now expected to be approximately 15% below previous market expectations¹ with a consequential impact on adjusted profit before tax. More pleasingly, current gross margin % performance is expected to continue through FY26. The Board and Executive team remain strongly focussed on cost management to mitigate the impact on profitability as far as possible. 

The Board remains confident in the Group's ability to return to growth in 2027, with the opportunity pipeline continuing to grow across both Quixant and Densitron businesses in H1 2026, and recent wins with LaunchPad gaming software platform and in Densitron provide encouraging signs into 2027 and beyond given the typical customer integration cycle. In addition, the opportunity for Quixant in Brazil is crystallising, with significant growth potential in 2027.

Duncan Faithfull, CEO of Nexteq commented:

"The combination of significantly increased costs of critical components, and the effect of US trade tariffs has impacted the run rates of our clients in the Gaming industry. The uncertainty around the future run rates of our existing Quixant client base is driving the temporary reduction in expectation, but with 100% retention of customers, we are confident that normal volume levels will return through 2027.  Our exciting new products are driving pipeline growth and new business conversion across both brands, and will positively impact revenues and margins in 2027 and beyond."

¹FY26 consensus market expectations at the date of this announcement are $85.0m revenue, $4.8m adjusted EBITDA and $2.0m 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.