Inspired Entertainment (INSE) Q3 2025 earnings summary

Executive summary

• Q3 2025 revenue reached $86.2 million, up 12% year-over-year, led by a 48% surge in Interactive revenue and strong Gaming segment growth, while Virtual Sports declined due to regulatory changes in Brazil.

• Adjusted EBITDA grew 11% to $32.3 million, with Interactive Adjusted EBITDA up 55% year-over-year; trailing 12-month Adjusted EBITDA was $110 million.

• Net operating income was $9.7 million, but a net loss of $1.9 million was reported, mainly due to higher interest expense and a $5.9 million impairment from the UK holiday parks sale.

• Sale of the UK holiday parks business for £18.6 million supports a shift to a higher-margin, digital-led, asset-light model, with proceeds used to improve net leverage.

• Board authorized a $25 million share buyback program, reflecting strong cash generation and improved financial position.

Financial highlights

• Q3 2025 total revenue: $86.2 million (+12% YoY); Adjusted EBITDA: $32.3 million (+11% YoY); Adjusted EBITDA margin: 37%.

• Nine months ended September 30, 2025: revenue $226.9 million (+6% YoY), Adjusted EBITDA $79.1 million (+14% YoY).

• Net operating income for Q3 2025 was $9.7 million; net loss was $1.9 million; adjusted net income was $8.3 million.

• Senior secured net leverage ratio at September 30, 2025 was 2.83x, with a target to reduce below 2x by 2027.

• Cash at September 30, 2025: $36.3 million; liquidity includes $24.0 million undrawn revolver.

Outlook and guidance

• Full-year 2025 Adjusted EBITDA projected to exceed $110 million, with Q4 expected to show year-over-year growth.

• Targeting over 45% Adjusted EBITDA margin by 2027, with digital mix rising to 60%+ and cash capex decreasing to $30–35 million annually.

• Free cash flow conversion projected to reach 25–30% of EBITDA by 2027.

• Net leverage ratio targeted to fall to 2.0x or below by 2027.

• Significant upside potential from new iGaming states and international expansion, not yet factored into projections.