Inspired Reports Third Quarter 2026 Results

Brazil’s shutdown affects a business representing approximately 5% of total revenue, with limited near-term opportunities to offset the lost contribution.

Rhea-AI Summary

Inspired Entertainment (NASDAQ: INSE) reported third-quarter 2026 revenue of $61.4 million and lowered its full-year adjusted earnings outlook following Brazil’s gaming shutdown. Revenue fell 29% year over year, reflecting the UK Holiday Parks divestiture and Pubs restructuring; like-for-like revenue rose approximately 4%. Net operating income increased 6% to $10.3 million, while net loss narrowed to $0.1 million from $1.9 million.

Adjusted EBITDA, an adjusted earnings measure, fell 13% year over year to $28.2 million but rose 4% sequentially; its margin reached 46%, versus 37% a year earlier. Inspired now targets 2026 adjusted EBITDA of $109 million–$112 million, down from $112 million–$118 million, primarily because of Brazil’s shutdown. Full-year free cash flow conversion is expected slightly below its 20% target. UK machine games duty rises from 20% to 25% in April 2027.

21 points · 0 major

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It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.

Rhea-AI Sentiment measures something else, the tone of the wording.

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1 major · 20 points

Hollow bars mark forward-looking points. How the balance works

Positive

• Moderate pointQ3 like-for-like revenue increased approximately 4% year over year, excluding portfolio changes.
• Moderate pointQ3 tax-adjusted like-for-like revenue rose approximately 9%; adjusted EBITDA grew at approximately twice that pace.
• Moderate pointQ3 net operating income increased 6% year over year to $10.3 million.
• Moderate pointQ3 net loss narrowed to $0.1 million from $1.9 million a year earlier.
• Moderate pointQ3 adjusted EBITDA margin reached 46%, versus 37%; a quarterly record excluding UK VAT rebate periods.
• Moderate pointQ3 Interactive revenue increased 3% year over year to $15.5 million.
• Moderate pointNine-month Interactive adjusted EBITDA increased 17% year over year to $32.3 million.
• Moderate pointNine-month adjusted net income rose to $4.5 million from $0.6 million; diluted earnings reached $0.15 versus $0.02.

13 minor points

• Minor pointQ3 corporate adjusted EBITDA expense decreased to $7.3 million from $7.6 million a year earlier.
• Minor pointNine-month net operating income increased 53% year over year to $29.4 million.
• Minor pointNine-month net loss narrowed to $0.4 million from $9.8 million; loss per share improved to $0.01 from $0.34.
• Minor pointNine-month Interactive revenue increased 17% year over year to $47.9 million.
• Minor pointNine-month adjusted EBITDA margin increased to 44% from 35% a year earlier.
• Minor pointFree cash flow conversion reached approximately 22% year to date.
• Minor point. Forward-looking: it has not happened yet and may not happen.Genting’s 310-terminal order included over 200 delivered in Q3, with the remaining terminals delivered in Q4 2026.
• Minor point. Forward-looking: it has not happened yet and may not happen.LEIDSA terminal upgrades included 300 installations in Q3 under an approximately 3,000-terminal program continuing into first-half 2027.
• Minor pointAlberta market entry launched Interactive and Virtual Sports with customers including FanDuel, DraftKings, BetMGM, Caesars, Rush Street Interactive and bet365.
• Minor point. Forward-looking: it has not happened yet and may not happen.Massachusetts Lottery launch added Virtual Sports to its new iLottery platform in Q4 2026.
• Minor point. Forward-looking: it has not happened yet and may not happen.FanDuel partnership expansion brought Virtual Sports to its online customers in Q4 2026.
• Minor point. Forward-looking: it has not happened yet and may not happen.BetMGM contract covers a bespoke Price Is Right hybrid dealer game, expected for fourth-quarter delivery.
• Minor point. Forward-looking: it has not happened yet and may not happen.2027 capital allocation plans include investment alongside expected continued debt reduction and share repurchases.

Negative

• Major point. Forward-looking: it has not happened yet and may not happen.2026 adjusted EBITDA target cut to $109 million–$112 million from $112 million–$118 million, primarily reflecting Brazil’s shutdown.
• Moderate pointBrazil’s gaming shutdown affects approximately 5% of total revenue, with limited near-term opportunities to offset lost contribution.
• Moderate point. Forward-looking: it has not happened yet and may not happen.UK machine games duty increases from 20% to 25% beginning April 2027.
• Moderate pointUK remote gaming duty increased from 21% to 40% beginning April 2026.
• Moderate pointQ3 reported revenue fell 29% year over year to $61.4 million, reflecting divestiture and restructuring effects.
• Moderate pointQ3 adjusted EBITDA fell 13% year over year to $28.2 million, despite increasing 4% sequentially.
• Moderate pointQ3 adjusted net income fell 66% year over year to $2.8 million; diluted earnings were $0.10 versus $0.28.

13 minor points

• Minor point. Forward-looking: it has not happened yet and may not happen.Full-year free cash flow conversion is now expected slightly below the 20% target following Brazil’s lost fourth-quarter contribution.
• Minor pointQ3 Retail Solutions revenue declined 39% year over year to $37.4 million.
• Minor pointQ3 Retail Solutions adjusted EBITDA declined 13% year over year to $19.6 million.
• Minor pointQ3 Virtual Sports revenue declined 9% year over year to $8.5 million.
• Minor pointQ3 Virtual Sports adjusted EBITDA declined 14% year over year to $5.7 million.
• Minor pointQ3 Interactive adjusted EBITDA declined 5% year over year to $10.2 million.
• Minor pointNine-month revenue fell 21% year over year to $179.4 million.
• Minor pointNine-month Retail Solutions revenue declined 34% year over year to $105.4 million.
• Minor pointNine-month Retail Solutions adjusted EBITDA declined 3% year over year to $52.3 million.
• Minor pointNine-month Virtual Sports revenue declined 4% year over year to $26.1 million.
• Minor pointNine-month Virtual Sports adjusted EBITDA declined 5% year over year to $18.5 million.
• Minor pointNine-month corporate adjusted EBITDA expense increased to $24.2 million from $22.0 million.
• Minor pointNine-month adjusted EBITDA was $78.9 million versus $79.1 million a year earlier.

News Explained

Management says Brazil’s shutdown affects a business representing approximately 5% of total revenue, and near-term opportunities to offset the lost contribution are limited.

Key Figures

Reported revenue: $61.4 million Like-for-like revenue growth: 4% Tax-adjusted revenue growth: 9% +5 more

Reported revenue

$61.4 million

Third quarter 2026; down 29% year over year

Like-for-like revenue growth

4%

Third quarter 2026, excluding specified portfolio changes

Tax-adjusted revenue growth

9%

Third quarter 2026, adjusted for the UK remote gaming duty increase

Adjusted EBITDA

$28.2 million

Third quarter 2026; down 13% year over year and up 4% sequentially

Adjusted EBITDA margin

46%

Third quarter 2026; record excluding periods with UK VAT rebate

FY2026 Adjusted EBITDA guidance

$109 million–$112 million

Reduced from $112 million–$118 million, primarily reflecting Brazil

Brazil revenue exposure

Approximately 5% of total revenue

Business affected by the shutdown of regulated online betting and gaming

Free Cash Flow conversion

Approximately 22%

Year to date; full-year conversion expected below the 20% target

Previous Earnings Reports

1 past event · Latest: Aug 05

Same Type 1 event

1. Aug 05

   Q2 earnings

   24h Move

   -4.8%

   Reaffirmed $112–$118 million 2026 Adjusted EBITDA guidance, now lowered after the Brazil shutdown.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

igaming, non-gaap financial measures, convertible debt, functional currency

4 terms

igaming technical

"In Interactive, revenue grew 3% year over year"

iGaming involves playing betting or casino-style games over the internet, allowing people to wager money on digital platforms. It matters to investors because it represents a rapidly growing segment of the entertainment industry, driven by technological advances and changing consumer habits, which can lead to new revenue opportunities and market expansion.

non-gaap financial measures financial

"We use non-GAAP financial measures, including Adjusted EBITDA"

Non-GAAP financial measures are numbers companies use to show their financial performance that exclude certain expenses or income. They help investors see how the company might perform without one-time costs or other unusual items, giving a different perspective from official reports. However, since they can be adjusted, they don’t always tell the full story and should be looked at alongside standard financial figures.

convertible debt financial

"including RSUs, using the treasury stock method, and convertible debt"

A convertible debt is a loan a company takes that gives the lender the option to swap the owed money for a set number of the company’s shares instead of getting cash back. It matters to investors because it can change who owns the company and how much their shares are worth: if lenders convert, existing shareholders can be diluted, but conversion can also signal confidence and reduce a company’s cash pressure — like getting a coupon that can be redeemed for store ownership rather than a refund.

functional currency financial

"Functional Currency at Constant rate"

The functional currency is the single currency a company uses as its primary money for recording business transactions and preparing financial statements — think of it as the company's "home" currency or the money it budgets and measures performance in. It matters to investors because currency choices determine how foreign sales, costs and exchange-rate swings translate into reported revenue, profit and debt, affecting comparisons, risk assessments and valuation.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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• Third Quarter Revenue of $61.4 million; Like-for-like Revenue¹Increased Approximately 4% Despite Higher UK Gaming Taxes, Reflecting Continued Growth and Market Share Gains
• Adjusting Like-for-Like Results for Higher UK Gaming Taxes^1,2, Revenue Increased Approximately 9%, with Adjusted EBITDA Growing at Approximately Twice That Pace
• Net Operating Income of $10.3 million, Net Loss of $0.1 million and Adjusted Net Income of $2.8 million
• Adjusted EBITDA of $28.2 million Increased 4% Sequentially, Delivering a Record 46% Adjusted EBITDA Margin³
• Expanding U.S. Digital Footprint with Virtual Sports Launches with the Massachusetts Lottery and FanDuel in the Fourth Quarter
• UK Budget Provides Greater Regulatory Clarity, with Machine Games Duty Increasing from 20% to 25% Beginning April 2027
• Delivered 22% Free Cash Flow Conversion⁴ Year-to-Date
• Updated FY2026 Outlook of $109 million — $112 million⁵, from $112 million — $118 million, Primarily Reflecting the Suspension of Regulated Online Gaming in Brazil

NEW YORK, Nov. 05, 2026 (GLOBE NEWSWIRE) -- Inspired Entertainment, Inc. (“Inspired” or the “Company”) (NASDAQ: INSE), a leading B2B provider of gaming content, technology, hardware and services, today reported financial results for the third quarter ended September 30, 2026. Reported results reflect the November 2025 divestiture of the Company’s UK Holiday Parks business and the restructuring of its Pubs business, both of which contributed to the prior-year period. Excluding these portfolio changes¹, revenue increased 4% year-over-year despite higher UK remote gaming duty. Further adjusting for the tax increase^1,2, revenue grew at 9%, while Adjusted EBITDA grew at approximately twice that pace, demonstrating the operating leverage and margin expansion resulting from the Company’s transformation toward a higher-margin, more digital business.

“Our third-quarter results highlight our progress in building a higher-margin, more digital business, with record Adjusted EBITDA margins and market share gains in Interactive,” said Brooks Pierce, President and Chief Executive Officer of Inspired. “Retail Solutions delivered another strong performance in the UK and Greece, with further opportunities to refresh our installed base in Greece next year. In Interactive, revenue grew 3% year over year as UK volume growth offset the higher gaming tax and our U.S. business outpaced the U.S. iGaming market.

“The UK Budget removes a major overhang and gives us and our customers a clearer foundation for investment and planning. The increase in machine games duty from 20% to 25%, effective April 2027, is disappointing but manageable and we will pursue disciplined mitigation measures to limit the effect on our business.

^{1 This like-for-like revenue comparison excludes the revenue from the UK holiday parks business and certain associated leisure assets which were divested on November 7, 2025, and reflects adjustments to the Company’s pubs business to account for a structural change in the Company’s operating model.
2 This comparison excludes LFL adjustments as well as increase in UK remote gaming duty from 21% to 40% beginning April 2026.
3 Quarterly record Adjusted EBITDA margin excluding any periods with UK VAT rebate.
4 Free Cash Flow defined as cash flow from operating activities less cash flow from investing activities less finance lease repayments.
5 2026 targets are consistent with the assumptions discussed in the Company’s conference call and presentation and assumes that GBP:USD exchange rates will remain broadly in line with current levels.}

“Brazil’s unexpected shutdown of regulated online betting and gaming affects a business representing approximately 5% of our total revenue. While opportunities to offset the lost contribution are limited in the near term, we continue to evaluate options as the regulatory situation evolves. We are updating our 2026 Adjusted EBITDA guidance to $109 million to $112 million⁵, from $112 million to $118 million, to primarily reflect the effect of the Brazil shutdown.

“We enter the fourth quarter encouraged by improving U.S. iGaming trends and a strong holiday content lineup. Our Virtual Sports launch with the Massachusetts Lottery expands our U.S. reach, as does our launch with FanDuel, while our new content studio adds capacity to deliver more compelling games. With clarity regarding the UK gaming taxes and a growing pipeline across customers, products and markets, we are focused on converting these opportunities into revenue growth, while continuing to generate strong free cash flow in 2027.”

Summary of Third Quarter ended September 30, 2026 - Segment Financial Results  (unaudited)
					Three Months Ended September 30,								Reported Variance			Currency Movement 20262					Functional Currency Variance
(In $ millions, except per share amounts)						2026				2025			%			$					%
Total Revenue
Retail Solutions					$37.4				$61.8				(39%)			($0.1)					(39%)
Virtual Sports						8.5				9.3			(9%)				—				(8%)
Interactive						15.5				15.1			3%				—				3%
Total Revenue					$61.4				$86.2				(29%)			($0.1)					(29%)
Net operating income						10.3				9.7			6%				1.4				(8%)
Net loss						(0.1)				(1.9)			NM3				1.5				NM
Net income (loss) per basic and diluted share					$0.00				($0.07)				NM			NM					NM
Non-GAAP Financial Measures
Adjusted EBITDA1
Retail Solutions					$19.6				$    22.6				(13%)			($0.1)					(13%)
Virtual Sports						5.7				6.6			(14%)				(0.1)				(14%)
Interactive						10.2				10.7			(5%)				(0.1)				(4%)
Corporate						(7.3)				(7.6)			4%				0.3				2%
Total Company Adjusted EBITDA1					$ 28.2				$32.3				(13%)			$	—				(13%)
Adjusted EBITDA Margin1						46%				37%
Adjusted net income1					$2.8				$8.2				(66%)			$0.0					(66%)
Adjusted net income per diluted share					$0.10				$0.28				(66%)			NM					(66%)
1 Reconciliation to US GAAP shown below.
2 Currency movement calculated by translating 2026 and 2025 performances at 2025 exchange rates.
3 Percentage/dollar change is not meaningful.

“Inspired’s transformation has created a higher margin, less capital intensive, more diversified business with less concentration in the UK and greater flexibility to pursue growth,” said Lorne Weil, Executive Chairman of Inspired Entertainment. “That stronger foundation positions us to manage regulatory changes while continuing to invest for growth. We have a meaningful pipeline of opportunities that we expect will more than offset current regulatory impacts. New customers, markets, distribution channels, product formats and partnerships give us multiple avenues to grow.

“As we look toward 2027, we will allocate capital with discipline, prioritizing investments with attractive returns and sustainable cash generation, alongside expected continued debt reduction and share repurchases. We believe this approach will build long-term shareholder value and demonstrate the earnings potential not reflected in Inspired’s current valuation.”

Recent Highlights

• Delivered over 200 Velos Electronic Table Games (“ETG”) terminals to Genting Casino as part of an overall order of 310 terminals, with the remaining terminals delivered in fourth quarter 2026. (3Q 2026)
• Installed 300 new lottery terminals in venues operated by Loteria Electrônica Internacional Dominicana S.A. (“LEIDSA”) in the Dominican Republic. These are part of an approximately 3,000 terminal upgrade program, including approximately 500 terminals in new venues, with delivery expected to continue into the first half of 2027. (3Q 2026)
• Live on day one with both Interactive and Virtual Sports in the newly regulated Alberta gaming market, with customers including FanDuel, DraftKings, BetMGM, Rush Street Interactive, Caesars Entertainment, and bet365 (3Q 2026).
• Launched Virtual Sports on the Massachusetts Lottery’s new iLottery platform, powered by Aristocrat Interactive. Post Time Payout™ is the first third party game to expand the Lottery’s digital offering. (4Q 2026)
• Expanded partnership with FanDuel to bring Virtual Sports to their online customers; the largest US Tier One operator to integrate Virtual Sports into their sportsbook (4Q 2026).
• Signed contract to supply BetMGM with a bespoke Price Is Right® licensed hybrid dealer game, expected to be delivered in the fourth quarter (4Q 2026).

Outlook

• Management remains confident in the Company’s strategic direction and underlying growth opportunities. Expansion of the higher-margin digital businesses and increasing operating leverage continue to support improved earnings quality. Our priorities are to deliver profitable growth, strengthen cash generation and manage the impact of regulatory changes.
• Management is updating its full-year 2026 Adjusted EBITDA target range to $109 million — $112 million⁵, from $112 million — $118 million, primarily to reflect the unexpected prohibition of regulated online betting and gaming in Brazil, with limited near-term mitigation.
• The UK Budget confirmed an increase in machine games duty from 20% to 25% effective April 2027, removing uncertainty around the potential size of an increase. We will pursue disciplined mitigation measures to limit the effect on our business.
• The Company delivered approximately 22% Free Cash Flow conversion⁴ year to date. Reflecting the loss of Brazil’s earnings contribution in the fourth quarter, full-year 2026 Free Cash Flow conversion is now expected to be slightly below the Company’s 20% target.

Summary of Nine Months ended September 30, 2026 - Segment Financial Results (unaudited)
			Nine Months Ended September 30,								Reported Variance			Currency Movement 20262				Functional Currency Variance
(In $ millions, except per share amounts)				2026				2025			%			$				%
Total Revenue
Retail Solutions			$105.4				$158.9				(34%)			$1.8				(35%)
Virtual Sports				26.1				27.2			(4%)				0.6			(6%)
Interactive				47.9				40.8			17%				1.0			15%
Total Revenue			$179.4				$226.9				(21%)			$3.4				(22%)
Net operating income				29.4				19.2			53%				1.5			45%
Net loss				(0.4)				(9.8)			NM3				1.3			NM
Net loss per basic and diluted share			($0.01)				($0.34)				NM			NM				NM
Non-GAAP Financial Measures
Adjusted EBITDA1
Retail Solutions			$52.3				$54.1				(3%)			$0.8				(5%)
Virtual Sports				18.5				19.5			(5%)				0.6			(7%)
Interactive				32.3				27.5			17%				0.7			15%
Corporate				(24.2)				(22.0)			(10%)				(0.8)			(7%)
Total Company Adjusted EBITDA1			$ 78.9				$ 79.1				0%			$ 1.3				(2%)
Adjusted EBITDA Margin1				44%				35%
Adjusted net income1			$4.5				$0.6				NM			$0.1				NM
Adjusted net income per diluted share			$0.15				$0.02				NM			NM				NM
1 Reconciliation to US GAAP shown below.
2 Currency movement calculated by translating 2026 and 2025 performances at 2025 exchange rates.
3 Percentage/dollar change is not meaningful.

Non-GAAP Financial Measures
We use non-GAAP financial measures, including Adjusted EBITDA, to analyze our operating performance. We use these financial measures to manage our business on a day-to-day basis. We believe that these measures are also commonly used in our industry to measure performance. For these reasons, we believe that these non-GAAP financial measures provide expanded insight into our business, in addition to standard U.S. GAAP financial measures. There are no uniform rules for defining and using non-GAAP financial measures, and as a result the measures we use may not be comparable to measures used by other companies, even if they have similar labels. The presentation of non-GAAP financial information should not be considered in isolation from, as a substitute for, or superior to, financial information prepared and presented in accordance with U.S. GAAP. You should consider our non-GAAP financial measures in conjunction with our U.S. GAAP financial statements.

We define our non-GAAP financial measures as follows:

EBITDA is defined as net income (loss) excluding depreciation and amortization, interest expense, interest income and income tax expense.

Adjusted EBITDA is defined as net income (loss) excluding depreciation and amortization, interest expense, interest income and income tax expense, and other additional exclusions and adjustments (see Adjusted EBITDA reconciliation table). Such additional excluded amounts include stock-based compensation U.S. GAAP charges where the associated liability is expected to be settled in stock, and changes in the value of earnout liabilities and income and expenditure in relation to legacy portions of the business (being those portions where trading no longer occurs) including closed defined benefit pension plans. Additional adjustments are made for items considered outside the normal course of business, including (1) restructuring costs, which include charges attributable to employee severance, management changes, restructuring, dual running costs, costs related to facility closures and integration costs, (2) merger and acquisition costs, (3) gains or losses not in the ordinary course of business and (4) the costs of the restatement of previously issued financial statements.

We believe Adjusted EBITDA, when considered along with other performance measures, is a particularly useful performance measure, because it focuses on certain operating drivers of the business, including sales growth, operating costs, selling and administrative expense and other operating income and expense. We believe Adjusted EBITDA can provide a more complete understanding of our operating results and the trends to which we are subject, and an enhanced overall understanding of our financial performance and prospects for the future. Adjusted EBITDA is not intended to be a measure of liquidity or cash flows from operations or a measure comparable to net income or loss, because it does not take into account certain aspects of our operating performance (for example, it excludes non-recurring gains and losses which are not deemed to be a normal part of underlying business activities). Our use of Adjusted EBITDA may not be comparable to the use by other companies of similarly termed measures. Management compensates for these limitations by using Adjusted EBITDA as only one of several measures for evaluating our operating performance. In addition, capital expenditures, which affect depreciation and amortization, interest expense, and income tax benefit (expense), are evaluated separately by management.

Adjusted Net Income is defined as net income (loss) excluding the effects of certain exclusions and adjustments. Such excluded amounts include income and expenditure in relation to legacy portions of the business (being those portions where trading no longer occurs) including closed defined benefit pension plans. Additional adjustments are made for items considered outside the normal course of business, including (1) restructuring costs, which include charges attributable to employee severance, management changes, restructuring, dual running costs, costs related to facility closures and integration costs, (2) merger and acquisition costs and (3) gains or losses not in the ordinary course of business. These items have been adjusted to reflect the tax impact from excluding them from net income (loss).

Adjusted Net Income per diluted share is computed by dividing the Adjusted Net Income by the weighted-average number of common shares outstanding during the period, including the effects of any potentially dilutive securities, including RSUs, using the treasury stock method, and convertible debt or convertible preferred stock, using the if-converted method, unless the inclusion would be anti-dilutive.

Functional Currency at Constant rate. Currency impacts shown have been calculated as the current-period average GBP:USD rate less the equivalent average rate in the prior year period, multiplied by the current period amount in our functional currency (GBP). The remaining difference, referred to as functional currency at constant rate, is calculated as the difference in our functional currency, multiplied by the prior year period average GBP: USD rate, as a proxy for functional currency at constant rate movement.

Currency Movement represents the difference between the results in our reporting currency (USD) and the results on a functional currency at constant rate basis.

Reconciliations from net income (loss), as shown in our Consolidated Statements of Operations and Comprehensive Income (Loss), to Adjusted EBITDA are shown below.

Conference Call and Webcast
Inspired management will host a conference call and simultaneous webcast at 5:00 p.m. ET / 10:00 p.m. in the UK on Thursday, November 5, 2026 to discuss the financial results and general business trends.

Preregistration: Analysts and investors who wish to participate in the live conference call must register in advance here. Once registration is completed, participants will be provided with a dial-in number containing a personalized conference code to access the call.

Webcast: A live audio webcast of the call can be accessed by registering here or through http://investors.inseinc.com. Please follow the registration prompts.

Replay: A replay of the webcast will be available on the Company's website at http://investors.inseinc.com, along with a copy of this press release and an investor slide presentation.

About Inspired Entertainment, Inc.
With a proven track record of innovation, Inspired is a leading provider of content, technology, hardware and services for licensed gaming, betting and lottery operators around the world. Inspired’s proprietary games resonate with players and deliver consistent performance for gaming operators across interactive, virtual sports, and retail gaming environments. Inspired’s content and gaming systems are designed to work together across digital and retail channels, enabling scalable deployment and a consistent player experience. Through this integrated content-led approach, Inspired helps operators strengthen their offerings, drive engagement, and deliver compelling player experiences. Additional information can be found at https://inseinc.com/.

Forward-Looking Statements
This press release contains “forward-looking statements” within the meaning of the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995, including, but not limited to, statements regarding our ability to bring certain of our products to customers in the various markets in which we operate and execute on our strategic plan, statements regarding expectations with respect to potential new customers and statements regarding our anticipated financial performance. Forward-looking statements may be identified by the use of words such as “anticipate,” “believe,” “continue,” “expect,” “estimate,” “plan,” “will,” “would” and “project” and other similar expressions that indicate future events or trends or are not statements of historical matters. These statements are based on Inspired management’s current expectations and beliefs, as well as a number of assumptions concerning future events.

Forward-looking statements are subject to known and unknown risks, uncertainties, assumptions and other important factors, many of which are outside of Inspired’s control and all of which could cause actual results to differ materially from the results discussed in the forward-looking statements. Accordingly, forward-looking statements should not be relied upon as representing Inspired’s views as of any subsequent date. We cannot guarantee that the results anticipated by management, as set forth herein, will be realized or, even if realized, will have the expected effects on our results of operations or financial performance. Such results may be affected by, among other things, the “Risk Factors” section of Inspired’s annual report on Form 10-K for the fiscal year ended December 31, 2025, and subsequent quarterly reports on Form 10-Q, which are available, free of charge, on the U.S. Securities and Exchange Commission’s website at www.sec.gov. Inspired does not undertake any obligation to update forward-looking statements to reflect events or circumstances after the date they were made, whether as a result of new information, future events or otherwise, except as required by law.

Contact:
For Investors
IR@inseinc.com 

For Press and Sales
inspiredsales@inseinc.com

  

INSPIRED ENTERTAINMENT, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE (LOSS) INCOME (in millions, except share and per share data) (Unaudited)
		Three Months Ended September 30,								Nine Months Ended September 30,
		2026				2025				2026				2025
Revenue:
Service		$	52.2			$	79.4			$	159.8			$	210.2
Product sales			9.2				6.8				19.6				16.7
Total revenue			61.4				86.2				179.4				226.9
Cost of sales:
Cost of service (1)			(7.4	)			(22.0	)			(24.7	)			(58.2	)
Cost of product sales (1)			(4.5	)			(3.7	)			(10.6	)			(10.6	)
Selling, general and administrative expenses			(24.7	)			(31.7	)			(73.2	)			(93.9	)
Depreciation and amortization			(14.5	)			(13.2	)			(41.5	)			(39.1	)
Impairment loss on property and equipment classified as held-for-sale			—				(5.9	)			—				(5.9	)
Net operating income			10.3				9.7				29.4				19.2
Other expense
Interest expense, net			(9.6	)			(12.5	)			(29.6	)			(26.6	)
Other finance income			0.1				0.2				0.4				0.6
Total other expense, net			(9.5	)			(12.3	)			(29.2	)			(26.0	)
Net income (loss) before income taxes			0.8				(2.6	)			0.2				(6.8	)
Income tax (expense) benefit			(0.9	)			0.7				(0.6	)			(3.0	)
Net loss			(0.1	)			(1.9	)			(0.4	)			(9.8	)
Other comprehensive income/(loss):
Foreign currency translation (loss) gain			(0.5	)			0.6				—				(1.3	)
Change in fair value of hedging instrument			1.7				—				4.1				—
Reclassification of gain on hedging instrument to comprehensive income			(0.1	)			—				(0.3	)			—
Reclassification of loss on pension plan to comprehensive income			0.2				0.3				0.7				0.8
Other comprehensive income (loss)			1.3				0.9				4.5				(0.5	)
Comprehensive income (loss)		$	1.2			$	(1.0	)		$	4.1			$	(10.3	)
Net loss per common share – basic and diluted		$	0.00			$	(0.07	)		$	(0.01	)		$	(0.34	)
Weighted average number of shares outstanding during the period – basic and diluted			28,682,152				29,094,787				28,957,808				29,049,634
Supplemental disclosure of stock-based compensation expense
Stock-based compensation included in:
Selling, general and administrative expenses		$	(1.3	)		$	(1.4	)		$	(4.3	)		$	(4.6	)

(1) Excluding depreciation and amortization

INSPIRED ENTERTAINMENT, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (in millions, except share data)
		September 30, 2026				December 31, 2025
			(Unaudited)
Assets
Current assets
Cash		$	35.3			$	42.0
Restricted cash			1.2				1.3
Accounts receivable, net			41.0				43.9
Inventory			25.6				18.5
Prepaid expenses and other current assets			37.2				46.8
Corporate tax and other current taxes receivable			10.2				5.5
Total current assets			150.5				158.0
Property and equipment, net			51.6				60.5
Software development costs, net			18.8				22.7
Other acquired intangible assets subject to amortization, net			13.3				14.0
Goodwill			61.3				62.1
Finance lease right of use asset			17.1				21.7
Operating lease right of use asset			8.6				7.8
Costs of obtaining and fulfilling customer contracts, net			11.5				12.1
Deferred tax			64.1				65.3
Other assets			15.4				15.7
Total assets		$	412.2			$	439.9
Liabilities and Stockholders’ Deficit
Current liabilities
Accounts payable and accrued expenses		$	43.5			$	42.7
Corporate tax and other current taxes payable			6.0				9.1
Deferred revenue, current			7.9				7.1
Operating lease liabilities			2.4				2.9
Current portion of long-term debt			2.5				—
Current portion of finance lease liabilities			4.5				4.3
Other current liabilities			3.0				4.7
Total current liabilities			69.8				70.8
Long-term debt			322.9				345.2
Finance lease liabilities, net of current portion			10.1				13.8
Deferred revenue, net of current portion			14.1				19.1
Operating lease liabilities			7.1				6.1
Other long-term liabilities			1.2				1.1
Total liabilities			425.2				456.1
Commitments and contingencies			—				—
Stockholders’ deficit
Preferred stock; $0.0001 par value; 1,000,000 shares authorized, no shares issued and outstanding at September 30, 2026 and December 31, 2025, respectively.			—				—
Common stock; $0.0001 par value; 49,000,000 shares authorized; 26,363,672 shares and 26,873,509 shares issued and outstanding at September 30, 2026 and December 31, 2025, respectively			—				—
Additional paid in capital			399.2				394.9
Accumulated other comprehensive income			52.3				47.8
Accumulated deficit			(464.5	)			(458.9	)
Total stockholders’ deficit			(13.0	)			(16.2	)
Total liabilities and stockholders’ deficit		$	412.2			$	439.9

INSPIRED ENTERTAINMENT, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (in millions) (Unaudited)
		Nine Months Ended September 30,
		2026				2025
Cash flows from operating activities:
Net loss		$	(0.4	)		$	(9.8	)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization			37.3				32.3
Amortization of finance lease right of use asset			4.2				6.8
Amortization of operating lease right of use asset			1.5				3.2
Impairment loss on property and equipment classified as held-for-sale			—				5.9
Stock-based compensation expense			4.3				4.6
Amortization of deferred financing fees relating to senior debt			3.1				2.3
Deferred tax			0.3				(2.8	)
Changes in assets and liabilities:
Accounts receivable			2.5				24.3
Inventory			(7.4	)			(0.9	)
Prepaid expenses and other assets			13.4				(20.1	)
Corporate tax and other current taxes payable			(7.7	)			(7.6	)
Accounts payable and accrued expenses			1.2				15.9
Deferred revenue and customer prepayment			(5.1	)			2.6
Operating lease liabilities			(1.8	)			(2.9	)
Pension contributions			(0.4	)			(0.9	)
Other long-term liabilities			0.7				(2.1	)
Net cash provided by operating activities			45.7				50.8
Cash flows from investing activities:
Purchases of property and equipment			(6.2	)			(24.6	)
Purchases of capital software and internally developed costs			(9.1	)			(7.6	)
Contract cost expense			(9.7	)			(10.0	)
Net cash used in investing activities			(25.0	)			(42.2	)
Cash flows from financing activities:
Proceeds from long-term debt			5.8				365.7
Repayments of long-term and short-term debt			(24.4	)			(338.6	)
Repurchase of common stock			(5.2	)			—
Debt fees incurred			—				(18.8	)
Repayments of finance leases			(3.1	)			(4.9	)
Net cash (used in) provided by financing activities			(26.9	)			3.4
Net increase in cash classified within assets held-for-sale			—				(7.6	)
Effect of exchange rate changes on cash			(0.6	)			2.6
Net (decrease) increase in cash			(6.8	)			7.0
Cash, beginning of period			43.3				29.3
Cash, end of period		$	36.5			$	36.3
Components of cash and restricted cash
Cash			35.3				36.3
Restricted cash			1.2				—
Total cash and restricted cash, end of period		$	36.5			$	36.3
Supplemental cash flow disclosures
Cash paid during the period for interest		$	18.2			$	17.3
Cash paid during the period for income taxes		$	4.5			$	9.4
Cash paid during the period for operating leases		$	2.6			$	6.1
Supplemental disclosure of non-cash investing and financing activities
Lease liabilities arising from obtaining finance lease right of use assets		$	—			$	(1.3	)
Lease liabilities arising from obtaining operating lease right of use assets		$	(2.5	)		$	(1.1	)
Right of use property and equipment acquired through finance lease		$	0.1			$	10.4

 INSPIRED ENTERTAINMENT, INC. AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
ADJUSTED EBITDA RECONCILIATION BY SEGMENT
(in millions)
(Unaudited)

Three Months Ended September 30, 2026

		Retail Solutions				Virtual Sports				Interactive					Corporate			Total
Net income (loss)		$	9.5			$	3.5			$	7.8			$	(20.9	)		$	(0.1	)
Items Relating to Legacy Activities:
Pension charges			—				—				—				0.3				0.3
Items outside the normal course of business:
Costs of group restructure			0.1				—				—				1.7				1.8
Stock-based compensation expense			0.2				0.2				0.2				0.7				1.3
Depreciation and amortization			9.8				2.0				2.2				0.5				14.5
Interest expense, net			—				—				—				9.6				9.6
Other finance income			—				—				—				(0.1	)			(0.1	)
Income tax			—				—				—				0.9				0.9
Adjusted EBITDA		$	19.6			$	5.7			$	10.2			$	(7.3	)		$	28.2
Adjusted EBITDA		£	14.6			£	4.2			£	7.6			£	(5.4	)		£	21.0
Exchange rate - $ to £																			1.34

Three Months Ended September 30, 2025 

		Retail Solutions				Virtual Sports				Interactive			Corporate					Total
Net income (loss)		$	6.2			$	4.9			$	8.6			$	(21.6	)		$	(1.9	)
Items Relating to Legacy Activities:
Pension charges			—				—				—				0.3				0.3
Items outside the normal course of business:
Costs of group restructure			1.2				—				—				0.5				1.7
Cost of Group restatement			—				—				—				0.1				0.1
Stock-based compensation expense			0.2				0.1				0.2				0.9				1.4
Depreciation and amortization			9.1				1.6				1.9				0.6				13.2
Held for sale adjustment – Impairment			5.9				—				—				—				5.9
Interest expense, net			—				—				—				12.5				12.5
Other finance income			—				—				—				(0.2	)			(0.2	)
Income tax			—				—				—				(0.7	)			(0.7	)
Adjusted EBITDA		$	22.6			$	6.6			$	10.7			$	(7.6	)		$	32.3
Adjusted EBITDA		£	16.8			£	4.9			£	7.9			£	(5.6	)		£	24.0
Exchange rate - $ to £																			1.35

Nine Months Ended September 30, 2026

		Retail Solutions				Virtual Sports				Interactive				Corporate				Total
Net income (loss)		$	22.6			$	11.2			$	26.6			$	(60.8	)		$	(0.4	)
Items Relating to Legacy Activities:
Pension charges			—				—				—				0.7				0.7
Items outside the normal course of business:
Costs of group restructure			1.2				—				—				1.8				3.0
Stock-based compensation expense			0.6				0.5				0.5				2.7				4.3
Depreciation and amortization			27.9				6.8				5.2				1.6				41.5
Interest expense, net			—				—				—				29.6				29.6
Other finance income			—				—				—				(0.4	)			(0.4	)
Income tax			—				—				—				0.6				0.6
Adjusted EBITDA		$	52.3			$	18.5			$	32.3			$	(24.2	)		$	78.9
Adjusted EBITDA		£	39.0			£	13.7			£	24.0			£	(17.9	)		£	58.8
Exchange rate - $ to £																			1.34

Nine Months Ended September 30, 2025

		Retail Solutions				Virtual Sports				Interactive				Corporate				Total
Net income (loss)		$	17.5			$	14.4			$	22.8			$	(64.5	)		$	(9.8	)
Items Relating to Legacy Activities:
Pension charges			—				—				—				0.8				0.8
Items outside the normal course of business:
Costs of group restructure			1.8				—				—				3.6				5.4
Cost of group restatement			—				—				—				4.1				4.1
Stock-based compensation expense			1.0				0.3				0.5				2.8				4.6
Depreciation and amortization			27.9				4.8				4.2				2.2				39.1
Held for sale adjustment - Impairment			5.9				—				—				—				5.9
Other finance income			—				—				—				(0.6	)			(0.6	)
Income tax			—				—				—				3.0				3.0
Adjusted EBITDA		$	54.1			$	19.5			$	27.5			$	(22.0	)		$	79.1
Adjusted EBITDA		£	40.9			£	14.8			£	20.8			£	(16.7	)		£	59.8
Exchange rate - $ to £																			1.32

ADJUSTED NET INCOME RECONCILIATION (in millions, except share data) (Unaudited)
		For the Three-Month Period ended									For the Nine-Month Period ended
		September 30,					September 30,				September 30,				September 30,
(In millions, except per share amounts)		2026					2025				2026				2025
Net loss		$	(0.1	)			$	(1.9	)	$	(0.4	)		$	(9.8	)
Items Relating to Legacy Activities:
Pension charges			0.3					0.3			0.7				0.8
Items outside the normal course of business:
Cost of group restructure			1.8					1.7			3.0				5.4
Cost of group restatement			—					0.1			—				4.1
Effect of exchange rates on cash			0.8					0.8			0.4				(2.6	)
Mark to market movement on currency deals			—					—			—				0.2
Held for sale adjustment - Impairment			—					5.9			—				5.9
Other finance income			(0.1	)				(0.2	)		(0.4	)			(0.6	)
Tax Impact			0.1					1.5			1.2				(2.8	)
Adjusted Net income		$	2.8				$	8.2		$	4.5			$	0.6
Adjusted Net income		£	2.1				£	6.1		£	3.4			£	0.5
Exchange Rate - $ to £			1.34					1.35			1.34				1.32
Weighted average number of shares outstanding– diluted			29,079,647					29,278,253			29,448,587				29,205,035
Adjusted Net Income per diluted share		$	0.10				$	0.28		$	0.15			$	0.02

PRO-RATED SEGMENT ADJUSTED EBITDA CONTRIBUTION
(in millions)
(Unaudited)

Three Months Ended September 30, 2026

		Retail Solutions								Virtual Sports								Interactive					Corporate Functions						Total
Total Revenue		$	37.4							$			8.5					$	15.5				$		—				$	61.4
Segment % of Total Revenue			60.9			%							13.8		%				25.3	%										100.0	%
Adjusted EBITDA		$	19.6							$			5.7					$	10.2				$		(7.3		)		$	28.2
Corporate allocation(1)			(4.4		)							(1.0			)				(1.9	)					7.3					—
Segment-level Adjusted EBITDA including pro-rated corporate allocation		$	15.2							$			4.7					$	8.3				$		—				$	28.2
Segment Contribution to Adjusted EBITDA			53.9			%							16.7		%				29.4	%										100.0	%

(1) Corporate allocation pro-rated by segment % of total revenue contribution

Three Months Ended September 30, 2025

		Retail Solutions							Virtual Sports								Interactive					Corporate Functions						Total
Total Revenue		$	61.8						$			9.3					$	15.1				$		—				$	86.2
Segment % of Total Revenue			71.7			%						10.8		%				17.5	%										100.0	%
Adjusted EBITDA		$	22.6						$			6.6					$	10.7				$		(7.6		)		$	32.3
Corporate allocation(1)			(5.4		)						(0.8			)				(1.4	)					7.6					—
Segment-level Adjusted EBITDA including pro-rated corporate allocation		$	17.2						$			5.8					$	9.3				$		—				$	32.3
Segment Contribution to Adjusted EBITDA			53.2			%						18.0		%				28.8	%										100.0	%

      (1) Corporate allocation pro-rated by segment % of total revenue contribution

Nine Months Ended September 30, 2026

		Retail Solutions								Virtual Sports								Interactive					Corporate Functions						Total
Total Revenue		$	105.4							$			26.1					$	47.9				$		—				$	179.4
Segment % of Total Revenue			58.8			%							14.5		%				26.7	%										100.0	%
Adjusted EBITDA		$	52.3							$			18.5					$	32.3				$		(24.2		)		$	78.9
Corporate allocation(1)			(14.2		)							(3.5			)				(6.5	)					24.2					—
Segment-level Adjusted EBITDA including pro-rated corporate allocation		$	38.1							$			15.0					$	25.8				$		—				$	78.9
Segment Contribution to Adjusted EBITDA			48.3			%							19.0		%				32.7	%										100.0	%

(1) Corporate allocation pro-rated by segment % of total revenue contribution

Nine Months Ended September 30, 2025 

		Retail Solutions							Virtual Sports								Interactive					Corporate Functions						Total
Total Revenue		$	158.9						$			27.2					$	40.8				$		—				$	226.9
Segment % of Total Revenue			70.0			%						12.0		%				18.0	%										100.0	%
Adjusted EBITDA		$	54.1						$			19.5					$	27.5				$		(22.0		)		$	79.1
Corporate allocation(1)			(15.4		)						(2.6			)				(4.0	)					22.0					—
Segment-level Adjusted EBITDA including pro-rated corporate allocation		$	38.7						$			16.9					$	23.5				$		—				$	79.1
Segment Contribution to Adjusted EBITDA			48.9			%						21.4		%				29.7	%										100.0	%

(1) Corporate allocation pro-rated by segment % of total revenue contribution

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What were Inspired Entertainment’s third-quarter 2026 earnings results?

Inspired reported $61.4 million in revenue, $10.3 million in net operating income and a $0.1 million net loss. Revenue declined 29% year over year, while net operating income increased 6%. Adjusted EBITDA was $28.2 million, down 13% year over year but up 4% sequentially.

Why did Inspired Entertainment lower its 2026 adjusted EBITDA outlook?

Inspired lowered its adjusted EBITDA target to $109 million–$112 million from $112 million–$118 million primarily because of the shutdown of regulated online betting and gaming in Brazil. The affected business represents approximately 5% of total revenue, and opportunities to offset the lost contribution are limited in the near term.

What exchange-rate assumption underlies Inspired Entertainment’s 2026 targets?

Inspired’s 2026 targets assume GBP:USD exchange rates remain broadly in line with current levels. The targets are also consistent with the assumptions discussed in the company’s conference call and presentation.