Nov 5, 2026, 5:00 PM ETConsumer Cyclical

Inspired Entertainment, Inc. — Third Quarter 2026 Earnings Summary

INSEINSPIRED ENTERTAINMENT INC

Financial Performance

Third quarter revenue was $61.4 million, a 29% decrease year-over-year (YoY) from $86.2 million, driven by the November 2025 divestiture of the UK Holiday Parks business and Pubs business restructuring.
Like-for-like revenue increased 4% YoY; adjusting for higher UK remote gaming taxes, revenue grew approximately 9%.
Net operating income was $10.3 million, up 6% YoY from $9.7 million.
Net loss was $0.1 million for the quarter, compared to a net loss of $1.9 million in the prior year period.
Adjusted EBITDA was $28.2 million, a 13% decrease YoY from $32.3 million, but increased 4% sequentially.
Adjusted EBITDA margin reached a record 46% for the quarter, up from 37% in the prior year period.
Adjusted net income was $2.8 million, down 66% YoY from $8.2 million.
Year-to-date (nine months) revenue was $179.4 million, down 21% YoY from $226.9 million.
Year-to-date Adjusted EBITDA was $78.9 million, flat YoY from $79.1 million.
Year-to-date Adjusted EBITDA margin was 44%, up from 35% in the prior year period.
Free cash flow conversion was 22% year-to-date.
Cash and restricted cash totaled $36.5 million as of September 30, 2026, down from $43.3 million at the beginning of the period.
Total debt (current and long-term) was $325.4 million as of September 30, 2026, down from $345.2 million at December 31, 2025.
Deferred revenue totaled $22.0 million ($7.9 million current, $14.1 million non-current) as of September 30, 2026.

Full-year 2026 Adjusted EBITDA guidance updated to $109 million – $112 million, down from the previous range of $112 million – $118 million.
The guidance reduction primarily reflects the suspension of regulated online gaming in Brazil, which represents approximately 5% of total revenue.
Full-year 2026 Free Cash Flow conversion is now expected to be slightly below the 20% target due to the loss of Brazil's earnings contribution in the fourth quarter.
Management expects to convert opportunities into revenue growth in 2027 while generating strong free cash flow.
The UK Budget provided regulatory clarity, with Machine Games Duty increasing from 20% to 25% effective April 2027; management plans disciplined mitigation measures.
Management remains confident in the strategic direction, citing expansion of higher-margin digital businesses and increasing operating leverage.

Retail Solutions: Revenue was $37.4 million for the quarter (down 39% YoY); Adjusted EBITDA was $19.6 million (down 13% YoY).
Virtual Sports: Revenue was $8.5 million for the quarter (down 9% YoY); Adjusted EBITDA was $5.7 million (down 14% YoY).
Interactive: Revenue was $15.5 million for the quarter, up 3% YoY; Adjusted EBITDA was $10.2 million (down 5% YoY).
Interactive revenue growth was driven by UK volume growth offsetting higher gaming taxes and U.S. business outpacing the U.S. iGaming market.
Retail Solutions delivered strong performance in the UK and Greece, with opportunities to refresh the installed base in Greece next year.
New Product/Customer Launches:
- Delivered over 200 Velos Electronic Table Games (ETG) terminals to Genting Casino (310 total order, remaining terminals in Q4 2026).
- Installed 300 new lottery terminals for LEIDSA in the Dominican Republic as part of a 3,000 terminal upgrade program.
- Launched Interactive and Virtual Sports in the newly regulated Alberta market with customers including FanDuel, DraftKings, BetMGM, Rush Street Interactive, Caesars Entertainment, and bet365.
- Virtual Sports launch with the Massachusetts Lottery's iLottery platform (powered by Aristocrat Interactive) scheduled for Q4 2026.
- Expanded partnership with FanDuel to bring Virtual Sports to their online customers (Q4 2026).
- Signed contract to supply BetMGM with a bespoke Price Is Right® licensed hybrid dealer game (delivery in Q4 2026).

The U.S. business outpaced the U.S. iGaming market in the third quarter.
Interactive segment achieved market share gains.
The UK Budget removed a major overhang regarding regulatory clarity, providing a clearer foundation for customer investment and planning.
Brazil's unexpected shutdown of regulated online betting and gaming affects a business representing approximately 5% of total revenue.

Regulatory changes in the UK, specifically the increase in Machine Games Duty from 20% to 25% effective April 2027.
The suspension of regulated online gaming in Brazil, with limited near-term options to offset the lost contribution.
Currency fluctuations, with 2026 targets assuming GBP:USD exchange rates remain broadly in line with current levels.
Forward-looking statements are subject to risks including the ability to execute on strategic plans, bring products to market, and regulatory uncertainties.

Brooks Pierce, President and CEO, stated results highlight progress in building a higher-margin, more digital business with record Adjusted EBITDA margins.
Pierce noted that the UK Budget increase in machine games duty is "disappointing but manageable."
Lorne Weil, Executive Chairman, described the transformation as creating a "higher margin, less capital intensive, more diversified business."
Management emphasized a disciplined capital allocation approach for 2027, prioritizing investments with attractive returns, sustainable cash generation, debt reduction, and share repurchases.
Management expressed confidence in a meaningful pipeline of opportunities expected to offset current regulatory impacts.

The company reported a net loss per diluted share of $0.00 for the quarter, compared to $(0.07) in the prior year period.
Year-to-date Adjusted Net Income per diluted share was $0.15, compared to $0.02 in the prior year period.
The company repurchased common stock for $5.2 million during the nine months ended September 30, 2026.
Stock-based compensation expense was $1.3 million for the quarter and $4.3 million for the nine months.
Interest expense, net was $9.6 million for the quarter and $29.6 million for the nine months.
The company divested its UK Holiday Parks business in November 2025 and restructured its Pubs business, impacting prior-year comparability.