Ainsworth Game Technology (AGI) AI Stock Analysis

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Ainsworth Game Technology

(ASX:AGI)

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Rating:50Neutral

Price Target:AUD 1.50▲(38.25% Upside)

Action:reiterated

Date:08/26/26

Overall score reflects a resilient balance sheet and constructive operational/cash-flow signals from the latest call, but it is held back most by weak recent cash-flow conversion in the financial statements and a clearly negative technical trend (price below major moving averages with negative MACD). Valuation is mixed: the headline yield is high, but losses (negative P/E) and the dividend suspension noted on the call temper the support.

Positive Factors

Conservative Balance SheetLow leverage and a substantial equity base give AGI financial flexibility relative to many leisure peers. This supports continued product investment and helps the company absorb uneven earnings or fund recovery initiatives without balance-sheet stress becoming the primary constraint.

Negative Factors

North America Revenue and Unit WeaknessThe sharp North American unit decline exposes AGI to a material product-cycle and execution gap in an important market. Recovery depends on successfully launching the A865 and other releases, so near-term revenue remains vulnerable if the roadmap does not restore placements.

Ainsworth Game Technology (AGI) vs. iShares MSCI Australia ETF (EWA)

Market Cap: AUD 253.18M
Dividend Yield: ―
Average Volume (3M): 17.66K
Price to Earnings (P/E): -19.0
Beta (1Y): 0.07
Revenue Growth: -13.43%
EPS Growth: -208.54%
Country: Australia
Employees: 575
Sector: Consumer Cyclical
Sector Strength: 61
Industry: Gambling, Resorts & Casinos

Ainsworth Game Technology Business Overview & Revenue Model

Company Description

Ainsworth Game Technology Limited designs, develops, manufactures, sells, and distributes gaming content and platforms, including electronic gaming machines, and other related equipment and services. The company also offers online real-money and soci...

How the Company Makes Money

AGI primarily makes money by commercializing its electronic gaming machine (EGM) products and game content through a mix of outright sales and recurring participation-style arrangements, depending on the jurisdiction and venue preferences. Key revenu...

Ainsworth Game Technology Earnings Call Summary

Earnings Call Date:Aug 25, 2026(Q2-2026)|% Change Since:-1.81%|Next Earnings Date:Apr 18, 2023

Earnings Call SentimentNeutral

The call presented a balanced picture: material top-line and profit declines (notably a 23% revenue fall and lower underlying profit) concentrated in North America and Latin America, but offset by clear operational strengths — gross margin expansion to 62%, positive operating cash flow of $8.9m, reduced net debt to $8.5m, strong product evidence (Dragon Legacy and Raptor cabinet performance) and sustained R&D/AI investment. Management emphasized a credible recovery plan (consistent release cadence, A865/A832 rollouts, HHR scale) but execution and cadence in North America will determine whether the recovery converts into sustained revenue growth.

Positive Updates

Gross Margin Expansion

Gross margin improved to 62% (up 6 percentage points from 56%) driven by a tariff refund and higher average selling prices despite lower volumes.

Negative Updates

Material Revenue Decline

Group revenue was $116.5 million, down $35.6 million or 23% on the prior corresponding period and down $22.2 million on the prior half, driven primarily by North America and Latin America.

Company Guidance

Guidance: Management expects a product‑led recovery in H2 — Dragon Legacy reaches Class 2/HHR in September, the A865 will roll into North America and low‑denomination A832/A832L releases will broaden placement opportunity — with continued Asia Pacific momentum, subdued Latin America and a focus on Interactive development velocity; financially the company will maintain elevated R&D (22% of revenue), expand AI‑enabled development capacity, prioritise debt reduction and liquidity over dividends (dividends suspended), and convert product performance into revenue growth: key metrics heading into H2 are underlying PBT $4.7m, underlying EBITDA $17.1m (margin 14.7%), gross margin 62% (up 6 pts), positive operating cash flow $8.9m, net debt $8.5m (from $11.8m), closing cash $12.3m, recurring revenue 37% (HHR >10,000 units) and H1 revenue of $116.5m, supported by a $27m Western Alliance Bank facility.

Ainsworth Game Technology Financial Statement Overview

Summary

Mixed fundamentals: revenue rebounded strongly, and the balance sheet is conservatively financed with low leverage, but profitability has been volatile and recent cash generation is weak (negative operating and free cash flow in 2024–2025), which raises earnings-quality and near-term financial risk.

Income Statement

56Neutral

Balance Sheet

74Positive

Cash Flow

38Negative

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2025	Dec 2024	Dec 2023	Jun 2022
Income Statement
Total Revenue	290.78M	201.48M	290.78M	284.86M	248.29M	167.13M
Gross Profit	166.62M	97.67M	166.62M	175.25M	167.27M	85.00M
EBITDA	47.32M	-42.13M	47.50M	58.66M	41.04M	39.67M
Net Income	-19.25M	30.32M	-19.25M	-9.04M	11.85M	11.75M
Balance Sheet
Total Assets	436.16M	438.12M	436.16M	418.45M	425.67M	406.54M
Cash, Cash Equivalents and Short-Term Investments	11.68M	19.77M	11.68M	23.65M	37.09M	50.32M
Total Debt	38.89M	19.49M	32.46M	10.10M	14.20M	13.99M
Total Liabilities	107.49M	77.56M	107.49M	105.30M	105.43M	95.21M
Stockholders Equity	328.67M	360.56M	328.67M	313.15M	320.24M	311.33M
Cash Flow
Free Cash Flow	-16.08M	-8.17M	-16.08M	10.36M	-9.85M	49.63M
Operating Cash Flow	-12.77M	-2.95M	-12.77M	26.47M	-5.91M	51.34M
Investing Cash Flow	-5.71M	-1.55M	-5.71M	-29.74M	-3.84M	-5.45M
Financing Cash Flow	11.27M	5.99M	11.27M	-1.34M	-427.00K	-41.51M

Ainsworth Game Technology Technical Analysis

Technical Analysis SentimentNegative

Last Price1.08

Price Trends

50DMA1.16Negative

100DMA1.20Negative

200DMA1.20Negative

Market Momentum

MACD-0.01Positive

RSI40.53Neutral

STOCH8.79Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:AGI, the sentiment is Negative. The current price of 1.08 is below the 20-day moving average (MA) of 1.20, below the 50-day MA of 1.16, and below the 200-day MA of 1.20, indicating a bearish trend. The MACD of -0.01 indicates Positive momentum. The RSI at 40.53 is Neutral, neither overbought nor oversold. The STOCH value of 8.79 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:AGI.

Ainsworth Game Technology Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

AU:AGI against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AU:ALL	77Outperform	AUD 38.40B	29.35	23.15%	1.49%	-3.25%	-1.35%
Sector *	61Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
AU:BET	61Neutral	AUD 235.26M	-46.74	-5.57%	―	8.79%	82.66%
AU:TLC	61Neutral	AUD 12.17B	42.77	94.29%	3.02%	-4.64%	-22.15%
AU:TAH	56Neutral	AUD 2.02B	43.81	3.66%	3.39%	0.13%	26.25%
AU:AGI	50Neutral	AUD 368.79M	-18.97	-5.86%	―	-13.43%	-208.54%
AU:SGR	45Neutral	AUD 1.18B	-2.71	-64.40%	―	-9.32%	59.25%

* Consumer Cyclical Sector Average

Performance Comparison

AU:AGI and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
AU:AGI	Ainsworth Game Technology Limited	1.08	0.08	8.50%
AU:ALL	Aristocrat Leisure Limited	66.34	10.19	18.15%
AU:SGR	Star Entertainment Group Limited	0.17	0.08	91.86%
AU:TAH	Tabcorp Holdings Limited	0.89	-0.00	-0.23%
AU:BET	Betmakers Technology Group Ltd.	0.21	0.05	30.30%
AU:TLC	Lottery Corporation Limited	5.47	0.27	5.11%

Ainsworth Game Technology Corporate Events

Ainsworth Game Technology Releases Half-Year 2026 Investor Presentation

Aug 26, 2026

Ainsworth Game Technology has lodged an investor presentation detailing its financial results for the six months ended 30 June 2026. The document, authorised by the Board and released via the ASX Market Announcements platform, provides stakeholders w...

Ainsworth Profit Slips as Tough Markets Hit Revenue but New Games Show Promise

Aug 26, 2026

Ainsworth Game Technology reported a 23% fall in first-half 2026 revenue to $116.5 million, with statutory profit after tax sliding to $1.1 million amid weaker consumer sentiment and adverse macroeconomic conditions. Performance was further pressured...

Ainsworth Secures Aristocrat Patent Licence to Support Australian Growth

Aug 13, 2026

Ainsworth Game Technology has signed a patent licence and settlement agreement with Aristocrat Technologies, securing rights to use key Aristocrat game feature patents, including the Hold & Spin family, for Ainsworth-branded machines and online and m...

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Aug 26, 2026

Ainsworth Game Technology AI Stock Analysis