Ainsworth Game Technology reported a 10% revenue increase to AUD 290.8 million for 2025 but posted a net loss of AUD 19.2 million, driven by a significant goodwill impairment and foreign currency headwinds. The company’s strategic investments and market challenges set the stage for a pivotal year ahead.
- 10% revenue growth to AUD 290.8 million
- Net loss after tax of AUD 19.2 million due to AUD 43.1 million goodwill impairment
- Foreign currency losses of AUD 12 million impact results
- Strong recurring revenue from Historical Horse Racing products
- Secured loan facility with US$15.7 million drawn, cash at AUD 11.7 million
Revenue Growth Amidst Financial Strain
Ainsworth Game Technology Ltd delivered a 10% increase in revenue to AUD 290.8 million for the twelve months ended 31 December 2025, buoyed by strong sales in the Asia Pacific region and steady contributions from its Historical Horse Racing (HHR) products. However, this topline growth was overshadowed by a statutory net loss after tax of AUD 19.2 million, a stark reversal from the AUD 30.3 million profit recorded in 2024.
The loss was primarily driven by a substantial AUD 43.1 million goodwill impairment related to the North America cash generating unit (CGU), reflecting revised growth assumptions amid underperformance in that key market. Additionally, the company faced AUD 12 million in foreign currency losses, largely due to the weakening of the US dollar against the Australian dollar, compounding the financial pressures.
Segment Performance and Market Dynamics
North America remains Ainsworth’s largest market, contributing 52% of total revenue at AUD 151.3 million, though this was down from 56% in the prior year. The segment experienced margin compression due to tariffs introduced in the US and a decline in average selling prices. The HHR system, however, continued to expand with over 11,000 units connected, generating recurring revenue streams that partially offset challenges in other product lines.
Latin America and Europe faced headwinds from regulatory changes and increased gaming taxes, particularly in Mexico, which dampened sales despite improved conditions in Argentina. Conversely, the Asia Pacific region saw a 52% revenue increase to AUD 65 million, driven by strong product performance and the successful launch of the Raptor A-Star dual screen cabinet.
Strategic Investments and Financial Position
Ainsworth continued to invest heavily in research and development, maintaining R&D expenses at nearly AUD 50 million, underscoring its commitment to innovation and competitive product offerings. The company also expanded its internal game development studios and strengthened partnerships, particularly in online gaming markets, aiming to capture growth in social and real money gaming segments.
Despite the net loss, Ainsworth maintained a robust balance sheet with cash and cash equivalents of AUD 11.7 million and a secured loan facility with Western Alliance Bancorporation, from which US$15.7 million was drawn as of year-end. The facility, secured against the Las Vegas building, provides financial flexibility with US$59.3 million still available to support ongoing operations and growth initiatives.
Governance, Risk, and Outlook
The company’s governance framework remains focused on regulatory compliance, risk management, and talent retention amid a competitive and evolving industry landscape. Key risks include foreign currency volatility, supply chain disruptions, and regulatory changes across jurisdictions. The board’s remuneration report highlights a cautious approach with no short-term incentives awarded in 2025 due to unmet financial targets, while long-term incentives remain tied to multi-year performance hurdles.
Looking ahead, Ainsworth plans to leverage its product innovation pipeline and expand its footprint in online gaming, particularly in North America, where it recently launched a remote gaming server. The company’s ability to navigate geopolitical uncertainties, tariff impacts, and currency fluctuations will be critical to restoring profitability and delivering shareholder value.
Bottom Line?
Ainsworth’s 2025 results underscore the challenges of balancing growth with market headwinds and impairments, setting a cautious tone for the year ahead.
Questions in the middle?
- How will Ainsworth address the North America CGU’s underperformance and rebuild goodwill value?
- What strategies will the company deploy to mitigate ongoing foreign currency and tariff risks?
- Can the expansion in online gaming and Asia Pacific markets offset pressures in traditional segments?