Inspired Entertainment, Inc. (INSE) Earnings History

Inspired Entertainment, Inc. - Q3 FY2025 Earnings

Filed at: Nov 5, 2025, 6:55 AM EST|Read from source

EXECUTIVE SUMMARY

Inspired Entertainment reported a strong third quarter with significant Interactive segment growth, driven by strategic execution and digital expansion. The company is further streamlining its business model through divestitures and operational efficiencies to focus on higher-margin digital offerings.

POSITIVE HIGHLIGHTS

  • •

    Total Revenue increased 12% to $86.2 million, driven by record Interactive revenue up 48% year-over-year.

    positive
  • •

    Adjusted EBITDA grew 11% to $32.3 million, with Interactive Adjusted EBITDA up 55% year-over-year.

    positive
  • •

    Board authorized a $25 million share buyback program, signaling confidence in future performance.

    positive
  • •

    Gaming segment revenue increased 20% to $27.1 million, and Adjusted EBITDA increased 33% to $13.1 million.

    positive

CONCERNS & RISKS

  • •

    Virtual Sports revenue decreased 17% to $9.3 million, and Adjusted EBITDA decreased 25% to $6.6 million.

    attention
  • •

    Net loss of $1.9 million compared to a net income of $2.8 million in the prior year.

    negative
  • •

    Adjusted EBITDA margin decreased slightly from 38% to 37% year-over-year.

    attention
  • •

    The sale of the UK holiday parks business will reduce Adjusted EBITDA by an unspecified amount, though the company expects margin expansion from the digital shift.

    attention

FINANCIAL METRICS

Revenue
Quarterly
$86.20M
+11.7%
Prior year: $77.20M
Net Income
Quarterly
$-1.90M
N/A
Prior year: $2.80M
Annual (YTD)
$-9.80M
N/A
Prior year: $-2.20M
EPS (Diluted)
Quarterly
$-0.07
N/A
Prior year: $0.10
Annual (YTD)
$-0.33
N/A
Prior year: $-0.08
Operating Income
Quarterly
$9.70M
-13.4%
Prior year: $11.20M
Annual (YTD)
$19.20M
N/A
Prior year: $17.80M
EPS (Basic)
Quarterly
$-0.07
N/A
Prior year: $0.10
Annual (YTD)
$-0.34
N/A
Prior year: $-0.08

MARGIN ANALYSIS

Operating Margin
Current Quarter
11.3%
Prior Year
14.5%
YoY Change
-326 bps
Net Margin
Current Quarter
-2.2%
Prior Year
3.6%
YoY Change
N/A

Margin expansion indicates improving profitability and operational efficiency. Measured in basis points (bps): 100 bps = 1.0%.

REVENUE BY SEGMENT — Q3 FY2025 2025

VISUAL OVERVIEW

|
Corporate allocation(1)
0.0%
N/A
Prior year: $2400.0B
Corporate allocation(1)
0.0%
N/A
Prior year: $1900.0B
Corporate allocation(1)
0.0%
N/A
Prior year: $7400.0B
Corporate allocation(1)
0.0%
N/A
Prior year: $7000.0B

DETAILED BREAKDOWN

|
SegmentCurrentPrior YrYoY% Total
Corporate allocation(1)
N/A$2400.0B——
Corporate allocation(1)
N/A$1900.0B——
Corporate allocation(1)
N/A$7400.0B——
Corporate allocation(1)
N/A$7000.0B——
Total Revenue$0.00M——100.0%

Segment performance shows business unit health and growth drivers.

MANAGEMENT GUIDANCE

FY 2025

Adjusted EBITDA
"Expected to exceed $110 million."

Q4 2025

Adjusted EBITDA
"Expected to increase year over year."

Forward-looking guidance is subject to change and does not constitute a guarantee. Actual results may differ materially from these estimates.

SPECIAL ITEMS & ADJUSTMENTS

Q3 2025
Impairment loss on classification as held-for-sale (UK holiday parks business)
Related to the sale of the UK holiday parks business.
+$5.9M

Special items are non-recurring events that may distort period-over-period comparisons. Analysts typically adjust for these when calculating normalized earnings.

MANAGEMENT COMMENTARY

Sustained momentum in Interactive continues to build, delivering another record quarter.

— Inspired Entertainment, Inc., Q3 FY2025 2025 Earnings Call

Gaining market share in largest markets and expect further gains with new titles and multiplayer experiences.

— Inspired Entertainment, Inc., Q3 FY2025 2025 Earnings Call

Gaming business continues to perform well and gain share; Virtual Sports has stabilized and is positioned for year-over-year growth in 2026.

— Inspired Entertainment, Inc., Q3 FY2025 2025 Earnings Call

Commentary excerpts from earnings call transcripts provide management's perspective on performance, strategy, and outlook. Always review full transcripts for complete context.

OPERATIONAL METRICS

Gaming Adjusted Ebitda Growth
33
percent
Gaming Revenue Growth
20
percent
Interactive Adjusted Ebitda Growth
55
percent
Interactive Revenue Growth
48
percent
Leisure Adjusted Ebitda Growth
-7
percent
Leisure Revenue Growth
4
percent
Virtual Sports Adjusted Ebitda Growth
-25
percent
Virtual Sports Revenue Growth
-17
percent

Operational metrics provide insight into business drivers and customer engagement beyond traditional financial measures.