Inspired Reports Second Quarter 2025 Results
Inspired Entertainment (NASDAQ: INSE) reported Q2 2025 financial results with revenue of $80.3 million, up 7% year-over-year. The company's Interactive segment led growth with a 45% revenue increase and 49% Adjusted EBITDA growth. Total Adjusted EBITDA reached $28.4 million, up 15% from last year.
Key developments include completing a £288 million refinancing, securing a five-year partnership with Jenningsbet for approximately 570 Vantage terminals, and expanding Virtual Sports presence in Brazil. However, the company reported a net loss of $7.8 million and Adjusted Net Loss of $5.6 million, despite strong segment performance in Gaming and Interactive divisions.
The company's Gaming segment showed 3% revenue growth, while Leisure revenue increased by 11%. Virtual Sports experienced a 21% revenue decline but showed sequential growth and new market expansion initiatives.
Inspired Entertainment (NASDAQ: INSE) ha riportato i risultati finanziari del secondo trimestre 2025 con un fatturato di 80,3 milioni di dollari, in crescita del 7% rispetto all'anno precedente. Il segmento Interactive ha guidato la crescita con un aumento del fatturato del 45% e una crescita del 49% dell'EBITDA rettificato. L'EBITDA rettificato totale ha raggiunto 28,4 milioni di dollari, in aumento del 15% rispetto all'anno scorso.
Gli sviluppi chiave includono il completamento di un rifinanziamento da 288 milioni di sterline, la stipula di una partnership quinquennale con Jenningsbet per circa 570 terminali Vantage e l'espansione della presenza di Virtual Sports in Brasile. Tuttavia, l'azienda ha riportato una perdita netta di 7,8 milioni di dollari e una perdita netta rettificata di 5,6 milioni di dollari, nonostante le solide performance dei segmenti Gaming e Interactive.
Il segmento Gaming ha mostrato una crescita del fatturato del 3%, mentre il segmento Leisure ha registrato un aumento dell'11%. Virtual Sports ha subito un calo del fatturato del 21%, ma ha mostrato una crescita sequenziale e iniziative di espansione in nuovi mercati.
Inspired Entertainment (NASDAQ: INSE) informó los resultados financieros del segundo trimestre de 2025 con ingresos de , un aumento del 7% interanual. El segmento Interactivo lideró el crecimiento con un aumento de ingresos del 45% y un crecimiento del 49% en EBITDA Ajustado. El EBITDA Ajustado total alcanzó 28.4 millones de dólares, un 15% más que el año anterior.
Los desarrollos clave incluyen la finalización de un refinanciamiento de £288 millones, asegurar una asociación de cinco años con Jenningsbet para aproximadamente 570 terminales Vantage, y la expansión de la presencia de Deportes Virtuales en Brasil. Sin embargo, la compañía reportó una pérdida neta de 7.8 millones de dólares y una Pérdida Neta Ajustada de 5.6 millones de dólares, a pesar del sólido desempeño de los segmentos de Juegos e Interactivo.
El segmento de Juegos mostró un crecimiento de ingresos del 3%, mientras que los ingresos de Ocio aumentaron un 11%. Deportes Virtuales experimentó una caída del 21% en ingresos, pero mostró crecimiento secuencial e iniciativas de expansión en nuevos mercados.
Inspired Entertainment (NASDAQ: INSE)� 2025� 2분기 실적� 발표하며 매출액이 8030� 달러� 전년 대� 7% 증가했다� 밝혔습니�. 인터랙티� 부문이 매출 45% 증가와 조정 EBITDA 49% 증가� 이끌었습니다. 전체 조정 EBITDA� 2840� 달러� 지난해 대� 15% 상승했습니다.
주요 발전 사항으로� 2� 8800� 파운� 재융� 완료, � 570대� Vantage 단말기를 위한 Jenningsbet과의 5� 파트너십 확보, 브라질에� 가� 스포�(Virtual Sports) 존재 확대가 포함됩니�. 그러� 게임 � 인터랙티� 부문의 강력� 성과에도 불구하고 회사� 780� 달러 순손�� 560� 달러 조정 순손�� 보고했습니다.
게임 부문은 매출� 3% 증가했고, 레저 부� 매출은 11% 증가했습니다. 가� 스포츠는 매출� 21% 감소했으� 연속적인 성장� 신규 시장 확장 이니셔티브를 보였습니�.
Inspired Entertainment (NASDAQ : INSE) a annoncé ses résultats financiers du deuxième trimestre 2025 avec un chiffre d'affaires de 80,3 millions de dollars, en hausse de 7 % par rapport à l'année précédente. Le segment Interactive a été le moteur de cette croissance avec une augmentation de 45 % du chiffre d'affaires et une croissance de 49 % de l'EBITDA ajusté. L'EBITDA ajusté total a atteint 28,4 millions de dollars, soit une hausse de 15 % par rapport à l'année dernière.
Les développements clés incluent la finalisation d'un refinancement de 288 millions de livres, la conclusion d'un partenariat de cinq ans avec Jenningsbet pour environ 570 terminaux Vantage, ainsi que l'expansion de la présence des Sports Virtuels au Brésil. Cependant, malgré de solides performances dans les divisions Gaming et Interactive, la société a enregistré une perte nette de 7,8 millions de dollars et une perte nette ajustée de 5,6 millions de dollars.
Le segment Gaming a affiché une croissance du chiffre d'affaires de 3 %, tandis que les revenus du secteur Loisirs ont augmenté de 11 %. Les Sports Virtuels ont connu une baisse de 21 % des revenus, mais ont montré une croissance séquentielle et des initiatives d'expansion sur de nouveaux marchés.
Inspired Entertainment (NASDAQ: INSE) meldete die Finanzergebnisse für das zweite Quartal 2025 mit einem Umsatz von 80,3 Millionen US-Dollar, was einem Anstieg von 7 % im Jahresvergleich entspricht. Das Interactive-Segment führte das Wachstum mit einem Umsatzanstieg von 45 % und einem Wachstum des bereinigten EBITDA von 49 % an. Das gesamte bereinigte EBITDA erreichte 28,4 Millionen US-Dollar, ein Plus von 15 % gegenüber dem Vorjahr.
Wichtige Entwicklungen umfassen die erfolgreiche Durchführung einer 288 Millionen Pfund Refinanzierung, den Abschluss einer fünfjährigen Partnerschaft mit Jenningsbet für etwa 570 Vantage-Terminals sowie die Erweiterung der Präsenz von Virtual Sports in Brasilien. Trotz starker Segmentleistungen in den Bereichen Gaming und Interactive meldete das Unternehmen jedoch einen Nettoverlust von 7,8 Millionen US-Dollar und einen bereinigten Nettoverlust von 5,6 Millionen US-Dollar.
Das Gaming-Segment verzeichnete ein Umsatzwachstum von 3 %, während die Einnahmen im Freizeitbereich um 11 % stiegen. Virtual Sports erlebte einen Umsatzrückgang von 21 %, zeigte jedoch ein sequentielles Wachstum und Initiativen zur Erschließung neuer Märkte.
- Interactive revenue grew 45% year-over-year with 67% EBITDA margin
- Total Adjusted EBITDA increased 15% to $28.4 million
- Gaming segment Adjusted EBITDA up 35% year-over-year
- Successfully completed £288 million refinancing with new credit facility
- Secured five-year partnership with Jenningsbet for 570 Vantage terminals
- Net loss of $7.8 million compared to net income of $1.4 million last year
- Virtual Sports revenue declined 21% year-over-year
- Virtual Sports Adjusted EBITDA decreased 31%
- Adjusted Net Loss of $5.6 million versus $5.2 million income prior year
Insights
Inspired's Q2 shows strong growth in Interactive (+45%) and Gaming (+35% EBITDA), offsetting Virtual Sports weakness while completing strategic debt refinancing.
Inspired Entertainment delivered $80.3 million in Q2 revenue, representing
The Gaming segment showed solid operational improvement with Adjusted EBITDA increasing
However, the Virtual Sports segment faced challenges, with revenue declining
The Leisure segment delivered
Overall company Adjusted EBITDA reached
The significant balance sheet development was the completion of a comprehensive debt refinancing, issuing £270 million in senior secured notes due 2030 and securing a £17.8 million revolving credit facility. This restructuring provides Inspired with greater financial flexibility to execute its growth strategy across segments.
New business developments include securing a five-year partnership with Jenningsbet to supply approximately 570 Vantage terminals, launching Canada's first branded Hybrid Dealer Roulette game with Loto-Québec, and expanding localized Virtual Sports content in Brazil with major operators like Betano, BetMGM and bet365.
- Revenue of
$80.3 million , up7% over prior year, driven primarily by record Interactive revenue, up45% year-over-year - Net Operating Income of
$7.9 million , Net Loss of$7.8 million and Adjusted Net Loss of$5.6 million - Adjusted EBITDA of
$28.4 million , up15% from last year driven by record Interactive Adjusted EBITDA, up49% year-over-year - Secured five-year partnership with Jenningsbet to supply approximately 570 Vantage terminals
- Successfully completed comprehensive debt refinancing, issuing
£270 million senior secured notes and securing a new£17.8 million revolving credit facility
NEW YORK, Aug. 06, 2025 (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 three-month period ended June 30, 2025.
“We are pleased to deliver another strong quarter, underscoring the continued strength across our diversified business model,� said Lorne Weil, Executive Chairman of Inspired. “Interactive remains a key growth engine, with revenue increasing
“Gaming delivered a strong performance in the quarter, with segment Adjusted EBITDA increasing
“Virtual Sports saw sequential growth in revenue and Adjusted EBITDA in the second quarter. Our focus is squarely on continuing this sequential growth through targeted initiatives as we move into the second half of the year. In Brazil, localized content is showing early promise, particularly our V-Play Football Brazil product launched with bet365, Betano and BetMGM. We’ve also expanded our partnership with William Hill to upgrade their Virtual Sports offering across 1,300 UK betting shops, integrating enhanced horse and greyhound racing content into their broadcast network and adding approximately 300 new daily events. With additional launches underway in Turkey and North America, we’re optimistic about the direction of the segment and the impact of these targeted initiatives.
“Leisure performed in line with expectations, supported by strong results from the timing of UK public holidays, which shifted into the second quarter this year. On a year-to-date basis, revenue is up
“Across the business, we continue to execute with discipline and focus,� Weil concluded. “Our Interactive segment is scaling efficiently, Gaming is delivering profitable growth, Virtual Sports is showing early signs of renewed momentum, and Leisure is performing steadily. With a more flexible capital structure in place and a clear set of strategic priorities, we believe we are well-positioned to build on this progress and drive long-term value for our shareholders.�
Recent Business Highlights
- Completed
£288 million refinancing, including£270 million in senior secured notes due 2030 and a£17.8 million revolving credit facility, replacing all existing debt. - Year-over-year revenue growth in Interactive was
45% , approximately half of which was driven by growth in North America - Launched Canada’s first branded Hybrid Dealer Roulette game with Loto-Québec, marking a milestone in the expansion of next-generation iGaming content
- Introduced localized Virtual Sports content in the fast-growing Brazilian market, including V-Play Football Brazil with Betano, BetMGM and bet365 � marking a key milestone in expansion across Latin America
- Expanded long-term partnership with William Hill to deliver a major upgrade to Virtual Sports across 1,300 UK betting shops, adding approximately 300 new daily events and enhancing the retail broadcast experience
- Secured five-year contract with Jenningsbet, the largest independent retail bookmaker in the UK, to supply approximately 570 Vantage terminals, commencing in Q4 2025
Summary of Second Quarter ended June 30, 2025 - Segment Financial Results (unaudited) | |||||||||||||||||||||||||
Three Months Ended June 30, | Reported Variance | Currency Movement 20252 | Functional Currency Variance | ||||||||||||||||||||||
(In $ millions) | 2025 | 2024 | % | $ | % | ||||||||||||||||||||
Total Revenue | |||||||||||||||||||||||||
Gaming | 3 | % | (2 | %) | |||||||||||||||||||||
Virtual Sports | 9.2 | 11.7 | (21 | %) | 0.5 | (26 | %) | ||||||||||||||||||
Interactive | 13.6 | 9.4 | 45 | % | 0.7 | 38 | % | ||||||||||||||||||
Leisure | 30.3 | 27.4 | 11 | % | 1.6 | 5 | % | ||||||||||||||||||
Total Revenue | $80.3 | $74.8 | 7 | % | $4.3 | 2 | % | ||||||||||||||||||
Net operating income | 7.9 | 8.7 | (9 | %) | (0.2 | ) | (7 | %) | |||||||||||||||||
Net (loss) income | (7.8 | ) | 1.4 | NM3 | (1.2 | ) | NM3 | ||||||||||||||||||
Net (loss) income per basic share | ($0.27 | ) | $0.05 | NM3 | NM3 | NM3 | |||||||||||||||||||
Net (loss) income per diluted share | ($0.27 | ) | $0.05 | NM3 | NM3 | NM3 | |||||||||||||||||||
Non-GAAP Financial Measures | |||||||||||||||||||||||||
Adjusted EBITDA1 | |||||||||||||||||||||||||
Gaming | 35 | % | 28 | % | |||||||||||||||||||||
Virtual Sports | 6.6 | 9.6 | (31 | %) | 0.3 | (34 | %) | ||||||||||||||||||
Interactive | 9.1 | 6.1 | 49 | % | 0.6 | 39 | % | ||||||||||||||||||
Leisure | 7.7 | 6.1 | 26 | % | 0.1 | 26 | % | ||||||||||||||||||
Corporate | (7.8 | ) | (6.6 | ) | (18 | %) | (0.1 | ) | (17 | %) | |||||||||||||||
Total Company Adjusted EBITDA1 | $28.4 | $24.7 | 15 | % | $1.6 | 9 | % | ||||||||||||||||||
Adjusted EBITDA Margin1 | 35 | % | 33 | % | |||||||||||||||||||||
Adjusted net (loss) income1 | ( | ) | NM3 | (0.3 | ) | NM3 | |||||||||||||||||||
Adjusted net (loss) income per diluted share | ($0.19 | ) | $0.18 | NM3 | NM3 | NM3 | |||||||||||||||||||
1 Reconciliation to US GAAP shown below. | |||||||||||||||||||||||||
2 Currency movement calculated by translating 2025 and 2024 performances at 2024 exchange rates. | |||||||||||||||||||||||||
3 Percentage/dollar change is not meaningful. |
Summary of Six Months ended June 30, 2025 - Segment Financial Results (unaudited) | |||||||||||||||||||||||||||
Six Months Ended June 30, | Reported Variance | Currency Movement 20252 | Functional Currency Variance | ||||||||||||||||||||||||
(In $ millions) | 2025 | 2024 | % | $ | % | ||||||||||||||||||||||
Total Revenue | |||||||||||||||||||||||||||
Gaming | (1 | %) | (4 | %) | |||||||||||||||||||||||
Virtual Sports | 17.9 | 24.1 | (26 | %) | 0.5 | (28 | %) | ||||||||||||||||||||
Interactive | 25.7 | 17.5 | 47 | % | 0.5 | 44 | % | ||||||||||||||||||||
Leisure | 48.2 | 46.0 | 5 | % | 1.5 | 2 | % | ||||||||||||||||||||
Total Revenue | $140.7 | $137.0 | 3 | % | $4.1 | 0 | % | ||||||||||||||||||||
Net operating income | 9.5 | 6.6 | 44 | % | 0.0 | 44 | % | ||||||||||||||||||||
Net loss | (7.9 | ) | (5.0 | ) | 58 | % | (0.7 | ) | 44 | % | |||||||||||||||||
Net loss per basic share | ($0.27 | ) | ($0.18 | ) | 50 | % | NM3 | 50 | % | ||||||||||||||||||
Net loss per diluted share | ($0.27 | ) | ($0.18 | ) | 50 | % | NM3 | 50 | % | ||||||||||||||||||
Non-GAAP Financial Measures | |||||||||||||||||||||||||||
Adjusted EBITDA1 | |||||||||||||||||||||||||||
Gaming | 39 | % | 34 | % | |||||||||||||||||||||||
Virtual Sports | 12.9 | 20.0 | (36 | %) | 0.2 | (37 | %) | ||||||||||||||||||||
Interactive | 16.8 | 10.5 | 60 | % | 0.5 | 55 | % | ||||||||||||||||||||
Leisure | 9.4 | 7.9 | 19 | % | 0.5 | 13 | % | ||||||||||||||||||||
Corporate | (14.4 | ) | (14.3 | ) | (1 | %) | (0.2 | ) | 1 | % | |||||||||||||||||
Total Company Adjusted EBITDA1 | $46.8 | $40.0 | 17 | % | $1.8 | 13 | % | ||||||||||||||||||||
Adjusted EBITDA Margin1 | 33 | % | 29 | % | |||||||||||||||||||||||
Adjusted net (loss) income1 | ( | ) | NM3 | NM3 | |||||||||||||||||||||||
Adjusted net (loss) income per diluted share | ($0.12 | ) | $0.15 | NM3 | NM3 | NM3 | |||||||||||||||||||||
1 Reconciliation to US GAAP shown below. | |||||||||||||||||||||||||||
2 Currency movement calculated by translating 2025 and 2024 performances at 2024 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 schemes. 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 schemes. 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 quarter, 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 quarter 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 Loss, to Adjusted EBITDA are shown below.
Conference Call and Webcast
Inspired management will host a conference call and simultaneous webcast at 8:30 a.m. ET / 1:30 p.m. in the UK on Wednesday, August 6, 2025 to discuss the financial results and general business trends.
Telephone: The dial-in number to access the call live is 1-800-715-9871 (US) or 1-646-307-1963 (International). Participants should ask to be joined into the Inspired Entertainment call.
Webcast: A live audio-only webcast of the call can be accessed through the “Events and Presentations� page of the Company’s website at under the Investors link. Please follow the registration prompts.
Replay: A replay of the webcast will be available on the Company’s website at .
AboutInspired Entertainment, Inc.
Inspired offers an expanding portfolio of content, technology, hardware and services for regulated gaming, betting, lottery, social and leisure operators across retail and mobile channelsaround the world.The Company’s gaming, virtual sports, interactive and leisure products appeal to a wide variety of players, creating new opportunities for operators to grow their revenue.The Company operatesin approximately 35 jurisdictions worldwide, supplyinggaming systems with associated terminals and content for approximately 50,000 gaming machines located in betting shops, pubs, gaming halls and other route operations; virtual sports products through more than 32,000 retail venues and various online websites; interactive games for 170+ websites; and a variety of amusement entertainment solutions with a total installed base of more than 16,000 terminals. Additional information can be found at.
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. You are advised to review carefully the “Risk Factors� section of Inspired’s annual report on Form 10-K for the fiscal year ended December 31, 2024, 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 . 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
+1 (646) 620-6737
For Press and Sales
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 June 30, | Six Months Ended June 30, | ||||||||||||||||
2025 | 2024 | 2025 | 2024 | ||||||||||||||
Revenue: | |||||||||||||||||
Service | $ | 73.8 | $ | 64.9 | $ | 130.8 | $ | 121.1 | |||||||||
Product sales | 6.5 | 9.9 | 9.9 | 15.9 | |||||||||||||
Total revenue | 80.3 | 74.8 | 140.7 | 137.0 | |||||||||||||
Cost of sales: | |||||||||||||||||
Cost of service (1) | (21.2 | ) | (19.0 | ) | (36.2 | ) | (34.9 | ) | |||||||||
Cost of product sales (1) | (4.0 | ) | (5.8 | ) | (6.9 | ) | (10.3 | ) | |||||||||
Selling, general and administrative expenses | (31.9 | ) | (30.8 | ) | (62.2 | ) | (65.0 | ) | |||||||||
Depreciation and amortization | (15.3 | ) | (10.5 | ) | (25.9 | ) | (20.2 | ) | |||||||||
Net operating income | 7.9 | 8.7 | 9.5 | 6.6 | |||||||||||||
Other expense | |||||||||||||||||
Interest expense, net | (7.1 | ) | (6.6 | ) | (14.1 | ) | (13.2 | ) | |||||||||
Other finance income | 0.2 | 0.1 | 0.4 | 0.2 | |||||||||||||
Total other expense, net | (6.9 | ) | (6.5 | ) | (13.7 | ) | (13.0 | ) | |||||||||
Net income (loss) before income taxes | 1.0 | 2.2 | (4.2 | ) | (6.4 | ) | |||||||||||
Income tax (expense) benefit | (8.8 | ) | (0.8 | ) | (3.7 | ) | 1.4 | ||||||||||
Net (loss) income | (7.8 | ) | 1.4 | (7.9 | ) | (5.0 | ) | ||||||||||
Other comprehensive (loss) income: | |||||||||||||||||
Foreign currency translation (loss) gain | (1.5 | ) | (0.2 | ) | (1.9 | ) | 0.3 | ||||||||||
Reclassification of loss on pension plan to comprehensive income | 0.3 | 0.3 | 0.5 | 0.6 | |||||||||||||
Other comprehensive (loss) income | (1.2 | ) | 0.1 | (1.4 | ) | 0.9 | |||||||||||
Comprehensive (loss) income | $ | (9.0 | ) | $ | 1.5 | $ | (9.3 | ) | $ | (4.1 | ) | ||||||
Net (loss) income per common share � basic | $ | (0.27 | ) | $ | 0.05 | $ | (0.27 | ) | $ | (0.18 | ) | ||||||
Net (loss) income per common share - diluted | $ | (0.27 | ) | $ | 0.05 | $ | (0.27 | ) | $ | (0.18 | ) | ||||||
Weighted average number of shares outstanding during the period � basic | 29,078,848 | 28,474,059 | 29,026,683 | 28,538,897 | |||||||||||||
Weighted average number of shares outstanding during the period � diluted | 29,078,848 | 29,046,281 | 29,026,683 | 28,538,897 | |||||||||||||
Supplemental disclosure of stock-based compensation expense | |||||||||||||||||
Stock-based compensation included in: | |||||||||||||||||
Selling, general and administrative expenses | $ | (1.8 | ) | $ | (1.6 | ) | $ | (3.2 | ) | $ | (3.9 | ) | |||||
(1)Excluding depreciation and amortization |
INSPIRED ENTERTAINMENT, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (in millions, except share data) | ||||||||
June 30, 2025 | December 31, 2024 | |||||||
(Unaudited) | ||||||||
Assets | ||||||||
Cash | $ | 46.3 | $ | 29.3 | ||||
Accounts receivable, net | 49.0 | 65.4 | ||||||
Inventory | 24.9 | 28.0 | ||||||
Prepaid expenses and other current assets | 42.6 | 36.0 | ||||||
Corporate tax and other current taxes receivable | 2.9 | 1.2 | ||||||
Total current assets | 165.7 | 159.9 | ||||||
Property and equipment, net | 73.2 | 56.4 | ||||||
Software development costs, net | 22.5 | 22.4 | ||||||
Other acquired intangible assets subject to amortization, net | 15.8 | 16.1 | ||||||
Goodwill | 63.2 | 57.8 | ||||||
Finance lease right of use asset | 25.1 | 18.7 | ||||||
Operating lease right of use asset | 17.0 | 16.2 | ||||||
Costs of obtaining and fulfilling customer contracts, net | 15.4 | 11.0 | ||||||
Deferred tax | 74.0 | 67.4 | ||||||
Other assets | 14.9 | 12.5 | ||||||
Total assets | $ | 486.8 | $ | 438.4 | ||||
Liabilities and Stockholders� Deficit | ||||||||
Current liabilities | ||||||||
Accounts payable and accrued expenses | $ | 70.2 | $ | 53.7 | ||||
Corporate tax and other current taxes payable | 7.7 | 12.3 | ||||||
Deferred revenue, current | 6.1 | 5.8 | ||||||
Operating lease liabilities | 5.6 | 5.1 | ||||||
Current portion of long-term debt | � | 18.8 | ||||||
Current portion of finance lease liabilities | 4.7 | 4.4 | ||||||
Other current liabilities | 4.0 | 3.9 | ||||||
Total current liabilities | 98.3 | 104.0 | ||||||
Long-term debt | 349.6 | 292.2 | ||||||
Finance lease liabilities, net of current portion | 17.5 | 18.6 | ||||||
Deferred revenue, net of current portion | 17.0 | 12.8 | ||||||
Operating lease liabilities | 11.8 | 11.7 | ||||||
Other long-term liabilities | 2.1 | 2.4 | ||||||
Total liabilities | 496.3 | 441.7 | ||||||
Commitments and contingencies | ||||||||
Stockholders� deficit | ||||||||
Preferred stock; | � | � | ||||||
Common stock; | � | � | ||||||
Additional paid in capital | 393.0 | 389.9 | ||||||
Accumulated other comprehensive income | 46.9 | 48.3 | ||||||
Accumulated deficit | (449.4 | ) | (441.5 | ) | ||||
Total stockholders� deficit | (9.5 | ) | (3.3 | ) | ||||
Total liabilities and stockholders� deficit | $ | 486.8 | $ | 438.4 |
INSPIRED ENTERTAINMENT, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (in millions) (Unaudited) | ||||||||
Six Months Ended June 30, | ||||||||
2025 | 2024 | |||||||
Cash flows from operating activities: | ||||||||
Net loss | $ | (7.9 | ) | $ | (5.0 | ) | ||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Depreciation and amortization | 20.5 | 20.2 | ||||||
Amortization of finance lease right of use asset | 5.4 | � | ||||||
Amortization of operating lease right of use asset | 1.6 | 2.0 | ||||||
Stock-based compensation expense | 3.2 | 3.9 | ||||||
Amortization of deferred financing fees relating to senior debt | 1.3 | 0.6 | ||||||
Deferred tax | (0.1 | ) | � | |||||
Changes in assets and liabilities: | ||||||||
Accounts receivable | 21.4 | (2.0 | ) | |||||
Inventory | 5.5 | 1.7 | ||||||
Prepaid expenses and other assets | (11.6 | ) | 6.9 | |||||
Corporate tax and other current taxes payable | (7.1 | ) | (6.0 | ) | ||||
Accounts payable and accrued expenses | 10.4 | (17.6 | ) | |||||
Deferred revenue and customer prepayment | 2.3 | 1.7 | ||||||
Operating lease liabilities | (1.8 | ) | (2.1 | ) | ||||
Pension contributions | (0.5 | ) | (0.7 | ) | ||||
Other long-term liabilities | (1.9 | ) | � | |||||
Net cash provided by operating activities | 40.7 | 3.6 | ||||||
Cash flows from investing activities: | ||||||||
Purchases of property and equipment | (18.8 | ) | (7.3 | ) | ||||
Purchases of capital software and internally developed costs | (4.7 | ) | (6.2 | ) | ||||
Contract cost expense | (7.7 | ) | (5.7 | ) | ||||
Net cash used in investing activities | (31.2 | ) | (19.2 | ) | ||||
Cash flows from financing activities: | ||||||||
Debt introduced | 365.7 | � | ||||||
Repayments of long-term debt | (318.3 | ) | � | |||||
Repayments of short-term debt | (20.3 | ) | � | |||||
Debt fees incurred | (18.9 | ) | � | |||||
Repayments of finance leases | (4.1 | ) | (0.5 | ) | ||||
Net cash provided by (used in) financing activities | 4.1 | (0.5 | ) | |||||
Effect of exchange rate changes on cash | 3.4 | (0.4 | ) | |||||
Net increase (decrease) in cash | 17.0 | (16.5 | ) | |||||
Cash, beginning of period | 29.3 | 40.0 | ||||||
Cash, end of period | $ | 46.3 | $ | 23.5 | ||||
Supplemental cash flow disclosures | ||||||||
Cash paid during the period for interest | $ | 17.4 | $ | 12.8 | ||||
Cash paid during the period for income taxes | $ | 6.4 | $ | 1.4 | ||||
Cash paid during the period for operating leases | $ | 4.3 | $ | 5.0 | ||||
Supplemental disclosure of non-cash investing and financing activities | ||||||||
Additional paid in capital from settlement of RSUs | $ | � | $ | (0.8 | ) | |||
Lease liabilities arising from obtaining finance lease right of use assets | $ | (1.3 | ) | $ | � | |||
Lease liabilities arising from obtaining operating lease right of use assets | $ | (0.9 | ) | $ | (3.1 | ) | ||
Right of use property and equipment acquired through finance lease | $ | 9.8 | $ | 1.3 | ||||
ARO assets arising during the period | $ | 0.1 | $ | 0.1 |
INSPIRED ENTERTAINMENT, INC. AND SUBSIDIARIES RECONCILIATION OF NON-GAAP FINANCIAL MEASURES ADJUSTED EBITDA RECONCILIATION BY SEGMENT (in millions) (Unaudited) | ||||||||||||||||||||||||
Three Months Ended June 30, 2025 | ||||||||||||||||||||||||
Gaming | Virtual Sports | Interactive | Leisure | Corporate | Total | |||||||||||||||||||
Net income (loss) | $ | 5.3 | $ | 4.6 | $ | 7.3 | $ | 3.4 | $ | (28.4 | $ | (7.8 | ) | |||||||||||
Items Relating to Legacy Activities: | ||||||||||||||||||||||||
Pension charges | � | � | � | � | 0.3 | 0.3 | ||||||||||||||||||
Items outside the normal course of business: | ||||||||||||||||||||||||
Costs of group restructure | 0.4 | � | � | � | 2.8 | 3.2 | ||||||||||||||||||
Costs of group restatement | � | � | � | � | (0.1 | ) | (0.1 | ) | ||||||||||||||||
Stock-based compensation expense | 0.3 | 0.1 | 0.2 | 0.2 | 1.0 | 1.8 | ||||||||||||||||||
Depreciation and amortization | 6.8 | 1.9 | 1.6 | 4.1 | 0.9 | 15.3 | ||||||||||||||||||
Interest expense, net | � | � | � | � | 7.1 | 7.1 | ||||||||||||||||||
Other finance income | � | � | � | � | (0.2 | ) | (0.2 | ) | ||||||||||||||||
Income tax | � | � | � | � | 8.8 | 8.8 | ||||||||||||||||||
Adjusted EBITDA | $ | 12.8 | $ | 6.6 | $ | 9.1 | $ | 7.7 | $ | (7.8 | ) | $ | 28.4 | |||||||||||
Adjusted EBITDA | £ | 9.6 | £ | 5.0 | £ | 6.8 | £ | 5.8 | £ | (5.9 | ) | £ | 21.3 | |||||||||||
Exchange rate - $ to £ | 1.34 |
Three Months Ended June 30, 2024 | ||||||||||||||||||||||||
Gaming | Virtual Sports | Interactive | Leisure | Corporate | Total | |||||||||||||||||||
Net income (loss) | $ | 5.7 | $ | 7.0 | $ | 4.8 | $ | 3.0 | $ | (19.1 | ) | $ | 1.4 | |||||||||||
Items Relating to Legacy Activities: | ||||||||||||||||||||||||
Pension charges | � | � | � | � | 0.3 | 0.3 | ||||||||||||||||||
Items outside the normal course of business: | ||||||||||||||||||||||||
Costs of group restructure | 0.3 | � | � | � | 0.5 | 0.8 | ||||||||||||||||||
Costs of group restatement | � | � | � | � | 2.8 | 2.8 | ||||||||||||||||||
Stock-based compensation expense | 0.2 | 0.1 | 0.1 | 0.1 | 1.1 | 1.6 | ||||||||||||||||||
Depreciation and amortization | 3.3 | 2.5 | 1.2 | 3.0 | 0.5 | 10.5 | ||||||||||||||||||
Interest expense, net | � | � | � | � | 6.6 | 6.6 | ||||||||||||||||||
Other finance income | � | � | � | � | (0.1 | ) | (0.1 | ) | ||||||||||||||||
Income tax | � | � | � | � | 0.8 | 0.8 | ||||||||||||||||||
Adjusted EBITDA | $ | 9.5 | $ | 9.6 | $ | 6.1 | $ | 6.1 | $ | (6.6 | ) | $ | 24.7 | |||||||||||
Adjusted EBITDA | £ | 7.5 | £ | 7.6 | £ | 4.9 | £ | 4.7 | £ | (5.1 | ) | £ | 19.6 | |||||||||||
Exchange rate - $ to £ | 1.26 |
Six Months Ended June 30, 2025 | ||||||||||||||||||||||||
Gaming | Virtual Sports | Interactive | Leisure | Corporate | Total | |||||||||||||||||||
Net income (loss) | $ | 9.5 | $ | 9.5 | $ | 14.2 | $ | 1.8 | $ | (42.9 | ) | $ | (7.9 | ) | ||||||||||
Items Relating to Legacy Activities: | ||||||||||||||||||||||||
Pension charges | � | � | � | � | 0.5 | 0.5 | ||||||||||||||||||
Items outside the normal course of business: | ||||||||||||||||||||||||
Costs of group restructure | 0.6 | � | � | � | 3.1 | 3.7 | ||||||||||||||||||
Costs of group restatement | � | � | � | � | 4.0 | 4.0 | ||||||||||||||||||
Stock-based compensation expense | 0.5 | 0.2 | 0.3 | 0.3 | 1.9 | 3.2 | ||||||||||||||||||
Depreciation and amortization | 11.5 | 3.2 | 2.3 | 7.3 | 1.6 | 25.9 | ||||||||||||||||||
Interest expense, net | � | � | � | � | 14.1 | 14.1 | ||||||||||||||||||
Other finance income | � | � | � | � | (0.4 | ) | (0.4 | ) | ||||||||||||||||
Income tax | � | � | � | � | 3.7 | 3.7 | ||||||||||||||||||
Adjusted EBITDA | $ | 22.1 | $ | 12.9 | $ | 16.8 | $ | 9.4 | $ | (14.4 | ) | $ | 46.8 | |||||||||||
Adjusted EBITDA | £ | 17.0 | £ | 9.9 | £ | 12.9 | £ | 7.1 | £ | (11.1 | ) | £ | 35.8 | |||||||||||
Exchange rate - $ to £ | 1.30 |
Six Months Ended June 30, 2024 | ||||||||||||||||||||||||
Gaming | Virtual Sports | Interactive | Leisure | Corporate | Total | |||||||||||||||||||
Net income (loss) | $ | 7.8 | $ | 16.4 | $ | 7.9 | $ | 1.7 | $ | (38.8 | ) | $ | (5.0 | ) | ||||||||||
Items Relating to Legacy Activities: | ||||||||||||||||||||||||
Pension charges | � | � | � | � | 0.6 | 0.6 | ||||||||||||||||||
Items outside the normal course of business: | ||||||||||||||||||||||||
Costs of group restructure | 0.3 | � | � | � | 0.7 | 1.0 | ||||||||||||||||||
Costs of group restatement | � | � | � | � | 7.7 | 7.7 | ||||||||||||||||||
Stock-based compensation expense | 0.4 | 0.2 | 0.2 | 0.2 | 2.9 | 3.9 | ||||||||||||||||||
Depreciation and amortization | 7.4 | 3.4 | 2.4 | 6.0 | 1.0 | 20.2 | ||||||||||||||||||
Interest expense, net | � | � | � | � | 13.2 | 13.2 | ||||||||||||||||||
Other finance income | � | � | � | � | (0.2 | ) | (0.2 | ) | ||||||||||||||||
Income tax | � | � | � | � | (1.4 | ) | (1.4 | ) | ||||||||||||||||
Adjusted EBITDA | $ | 15.9 | $ | 20.0 | $ | 10.5 | $ | 7.9 | $ | (14.3 | ) | $ | 40.0 | |||||||||||
Adjusted EBITDA | £ | 12.7 | £ | 15.7 | £ | 8.3 | £ | 6.3 | £ | (11.2 | ) | £ | 31.8 | |||||||||||
Exchange rate - $ to £ | 1.26 |
ADJUSTED NET INCOME RECONCILIATION (in millions, except share data) (Unaudited) | |||||||||||||||
For the Three-Month Period ended | For the Six-Month Period ended | ||||||||||||||
June 30, | June 30, | June 30, | June 30, | ||||||||||||
(In millions) | 2025 | 2024 | 2025 | 2024 | |||||||||||
Net (loss) income | $ | (7.8 | ) | $ | 1.4 | $ | (7.9 | ) | $ | (5.0 | ) | ||||
Items Relating to Legacy Activities: | |||||||||||||||
Pension charges | 0.3 | 0.3 | 0.5 | 0.6 | |||||||||||
Items outside the normal course of business: | |||||||||||||||
Cost of group restructure | 3.2 | 0.8 | 3.7 | 1.0 | |||||||||||
Cost of group restatement | (0.1 | ) | 2.8 | 4.0 | 7.8 | ||||||||||
Effect of exchange rates on cash | (2.4 | ) | � | (3.4 | ) | 0.4 | |||||||||
Mark to market movement on currency deals | 0.1 | � | 0.2 | (0.2 | ) | ||||||||||
Other finance income | (0.2 | ) | (0.1 | ) | (0.4 | ) | (0.2 | ) | |||||||
Tax Impact | 1.3 | � | (0.3 | ) | (0.1 | ) | |||||||||
Adjusted Net (Loss) Income | $ | (5.6 | ) | $ | 5.2 | $ | (3.6 | ) | $ | 4.3 | |||||
Adjusted Net (Loss) Income | £ | (4.2 | ) | £ | 4.1 | £ | (2.8 | ) | £ | 3.4 | |||||
Exchange Rate - $ to £ | 1.34 | 1.26 | 1.30 | 1.26 | |||||||||||
Weighted average number of shares outstanding� diluted | 29,078,848 | 29,046,281 | 29,026,683 | 29,021,756 | |||||||||||
Adjusted Net (Loss) Income per diluted share | $ | (0.19 | ) | $ | 0.18 | $ | (0.12 | ) | $ | 0.15 |
PRO-RATED SEGMENT ADJUSTED EBITDA CONTRIBUTION (in millions) (Unaudited) | |||||||||||||||||||||||||||
Three Months Ended June 30, 2025 | |||||||||||||||||||||||||||
Gaming | Virtual Sports | Interactive | Leisure | Corporate Functions | Total | ||||||||||||||||||||||
Total Revenue | $ | 27.2 | $ | 9.2 | $ | 13.6 | $ | 30.3 | $ | � | $ | 80.3 | |||||||||||||||
Segment % of Total Revenue | 33.9 | % | 11.5 | % | 16.9 | % | 37.7 | % | 100.0 | % | |||||||||||||||||
Adjusted EBITDA | $ | 12.8 | $ | 6.6 | $ | 9.1 | $ | 7.7 | $ | (7.8 | ) | $ | 28.4 | ||||||||||||||
Corporate allocation(1) | (2.7 | ) | (0.9 | ) | (1.3 | ) | (2.9 | ) | 7.8 | � | |||||||||||||||||
Segment-level Adjusted EBITDA including pro-rated corporate allocation | $ | 10.1 | $ | 5.7 | $ | 7.8 | $ | 4.8 | $ | � | $ | 28.4 | |||||||||||||||
Segment Contribution to Adjusted EBITDA | 35.5 | % | 20.1 | % | 27.5 | % | 16.9 | % | 100.0 | % | |||||||||||||||||
(1) Corporate allocation pro-rated by segment % of total revenue contribution |
Three Months Ended June 30, 2024 | |||||||||||||||||||||||||||
Gaming | Virtual Sports | Interactive | Leisure | Corporate Functions | Total | ||||||||||||||||||||||
Total Revenue | $ | 26.3 | $ | 11.7 | $ | 9.4 | $ | 27.4 | $ | � | $ | 74.8 | |||||||||||||||
Segment % of Total Revenue | 35.2 | % | 15.6 | % | 12.6 | % | 36.6 | % | 100.0 | % | |||||||||||||||||
Adjusted EBITDA | $ | 9.5 | $ | 9.6 | $ | 6.1 | $ | 6.1 | $ | (6.6 | ) | $ | 24.7 | ||||||||||||||
Corporate allocation(1) | (2.3 | ) | (1.1 | ) | (0.8 | ) | (2.4 | ) | 6.6 | � | |||||||||||||||||
Segment-level Adjusted EBITDA including pro-rated corporate allocation | $ | 7.2 | $ | 8.5 | $ | 5.3 | $ | 3.7 | $ | � | $ | 24.7 | |||||||||||||||
Segment Contribution to Adjusted EBITDA | 29.1 | % | 34.4 | % | 21.5 | % | 15.0 | % | 100.0 | % | |||||||||||||||||
(1) Corporate allocation pro-rated by segment % of total revenue contribution |
Six Months Ended June 30, 2025 | |||||||||||||||||||||||||||
Gaming | Virtual Sports | Interactive | Leisure | Corporate Functions | Total | ||||||||||||||||||||||
Total Revenue | $ | 48.9 | $ | 17.9 | $ | 25.7 | $ | 48.2 | $ | � | $ | 140.7 | |||||||||||||||
Segment % of Total Revenue | 34.7 | % | 12.7 | % | 18.3 | % | 34.3 | % | 100.0 | % | |||||||||||||||||
Adjusted EBITDA | $ | 22.1 | $ | 12.9 | $ | 16.8 | $ | 9.4 | $ | (14.4 | ) | $ | 46.8 | ||||||||||||||
Corporate allocation(1) | (5.0 | ) | (1.8 | ) | (2.6 | ) | (5.0 | ) | 14.4 | � | |||||||||||||||||
Segment-level Adjusted EBITDA including pro-rated corporate allocation | $ | 17.1 | $ | 11.1 | $ | 14.2 | $ | 4.4 | $ | � | $ | 46.8 | |||||||||||||||
Segment Contribution to Adjusted EBITDA | 36.5 | % | 23.7 | % | 30.4 | % | 9.4 | % | 100.0 | % | |||||||||||||||||
(1) Corporate allocation pro-rated by segment % of total revenue contribution |
Six Months Ended June 30, 2024 | |||||||||||||||||||||||||||
Gaming | Virtual Sports | Interactive | Leisure | Corporate Functions | Total | ||||||||||||||||||||||
Total Revenue | $ | 49.4 | $ | 24.1 | $ | 17.5 | $ | 46.0 | $ | � | $ | 137.0 | |||||||||||||||
Segment % of Total Revenue | 36.0 | % | 17.6 | % | 12.8 | % | 33.6 | % | 100.0 | % | |||||||||||||||||
Adjusted EBITDA | $ | 15.9 | $ | 20.0 | $ | 10.5 | $ | 7.9 | $ | (14.3 | ) | $ | 40.0 | ||||||||||||||
Corporate allocation(1) | (5.2 | ) | (2.5 | ) | (1.8 | ) | (4.8 | ) | 14.3 | � | |||||||||||||||||
Segment-level Adjusted EBITDA including pro-rated corporate allocation | $ | 10.7 | $ | 17.5 | $ | 8.7 | $ | 3.1 | $ | � | $ | 40.0 | |||||||||||||||
Segment Contribution to Adjusted EBITDA | 26.7 | % | 43.7 | % | 21.8 | % | 7.8 | % | 100.0 | % | |||||||||||||||||
(1) Corporate allocation pro-rated by segment % of total revenue contribution |
