Inspired Entertainment (INSE) Q4 2025 earnings summary

Executive summary

• Achieved record fourth quarter Interactive revenue growth of 53% and Adjusted EBITDA growth of 60% year-over-year, with a record Q4 EBITDA margin of 42% after exiting the holiday parks business.

• Full-year 2025 revenue reached $304.1 million and Adjusted EBITDA was $111.4 million, up 11% year-over-year, with digital segments contributing 51–52% of Adjusted EBITDA.

• The business is transitioning to a digital-led, asset-light model, improving free cash flow and profitability.

• More than 80% of revenue is recurring, supported by strong customer relationships and contract renewals.

• $13.3 million of debt was repaid in Q1 2026, with a projected net leverage ratio of 2.5x–3.0x by year-end 2026.

Financial highlights

• Q4 2025 revenue was $77.2 million, with Adjusted EBITDA of $32.3 million and a record 42% margin.

• Full-year 2025 Adjusted EBITDA margin was 37%, with net leverage at 3.3x.

• Q4 net loss was $7.2 million, impacted by higher tax expense and loss on sale of business; full-year net loss was $17.0 million.

• Cash flow from operations for 2025 was $52.0 million, up from $31.7 million in 2024.

• Capital expenditures for 2025 were $35.7 million, with further reductions expected as the business becomes more asset-light.

Outlook and guidance

• 2026 Adjusted EBITDA guidance is $112–$118 million, representing double-digit growth over 2025, excluding divested holiday parks.

• Adjusted EBITDA margin is targeted to rise to 43% in 2026 and 45%+ in 2027.

• Digital as a percentage of Adjusted EBITDA is expected to increase to 55%+ in 2026 and 60%+ in 2027.

• Free cash flow conversion is projected at 20–25% in 2026 and 25–30% in 2027.

• Confident in sustaining momentum through 2027, driven by digital mix, new geographies, and product innovation.