Inspired Entertainment (INSE) Q2 2025 earnings summary

Executive summary

• Q2 2025 revenue increased 7% year-over-year to $80.3 million, led by a 45% surge in Interactive revenue and strong performance in North America and the UK.

• Adjusted EBITDA rose 15% to $28.4 million, with margins improving from 33% to 35%.

• Net loss for Q2 2025 was $7.8 million, mainly due to higher depreciation and tax expense.

• Major refinancing completed in June 2025, issuing £270 million ($370 million) in senior secured notes due 2030 and establishing a new £17.8 million revolving credit facility.

• Secured a five-year contract with Jenningsbet and expanded partnerships with William Hill and in Brazil.

Financial highlights

• Q2 2025 revenue: $80.3 million (up 7% YoY); H1 2025 revenue: $140.7 million (up 3% YoY).

• Adjusted EBITDA for Q2 2025: $28.4 million (up 15% YoY); H1 2025: $46.8 million (up 17% YoY).

• Adjusted EBITDA margin improved to 35% in Q2 2025.

• Cash and equivalents at June 30, 2025: $46.3 million; undrawn revolver: $24.4 million.

• Net cash from operations H1 2025: $40.7 million; net cash used in investing: $31.2 million.

Outlook and guidance

• Management expects continued growth in Interactive and Gaming, with Virtual Sports showing renewed momentum and Leisure performing steadily.

• Expecting continued sequential upswing in Virtual Sports, with year-over-year growth likely in Q4.

• Anticipate overall company EBITDA margin to approach 40% post-holiday park sale.

• Strategic priorities and a more flexible capital structure position the company for long-term value creation.

• Management expects cash balances, operating cash flow, and available borrowings to fund requirements through August 2026.