Australian gaming supplier Ainsworth reported first-half fiscal 2026 results with revenue down 23% to AU$116.5 million from AU$152.1 million a year earlier. Net profit fell 78% to AU$1.1 million from AU$5 million in 1H25.
The company recorded a pre-tax loss of AU$2.2 million against a AU$1.6 million profit in the prior period. A tax credit of AU$3.3 million brought Ainsworth back to a net profit after tax. The result included a AU$2.3 million provision for a patent lawsuit brought by Aristocrat Technologies over Hold & Spin functionality and AU$1.1 million in expenses tied to failed acquisition deals. In August the Aristocrat dispute was settled, with Ainsworth licensing the rival's patents for AU$8.5 million payable over three and a half years.
North America, the company's largest market at 44% of group revenue, drove the decline. Regional sales collapsed to AU$51.9 million from AU$83.1 million. Unit sales fell from 1,357 machines to 492, while the installed base shrank from 2,961 to 2,360 devices. Management attributed the downturn to weak product performance. CEO Ryan Comstock said in May that new sales leadership and product strategy had been appointed in the US.
The Asia-Pacific region provided partial offset, with revenue rising to AU$36.9 million from AU$34.6 million on the back of the dual-screen A-Star Raptor cabinet and a single-screen variant launched in Australia in February. Gross margin improved to 62% from 56% due to duty refunds and higher average pricing. Net debt fell to AU$8.5 million from AU$11.8 million at the end of December. Dividends remain suspended as the company directs cash to liquidity and development.
