Nexteq PLC (LSE:NXQ) shares dropped 12% to 73p after the company said revenue for 2026 is expected to be lower due to reduced volumes from key gaming customers.
The technology solutions provider said group revenue and adjusted profit before tax for the year ending 31 December 2025 are expected to be in line with current market consensus, supported by strong operational execution and cash conversion.
However, the group expects revenue for the 2026 financial year to be not less than $85 million due to its largest historical customer being acquired, and a predicted volume drop from another major gaming client.
As a result, Nexteq has pushed back delivery of its three-year financial targets by 12 months to the end of FY28.
The company said its product pipeline remains strong, with new software and hardware launches, and expansion into new markets including Brazil.
Chief executive Duncan Faithful said: "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."