INSE · Inspired Entertainment, Inc.

Inspired Entertainment's Q1 2026 results demonstrate the success of its portfolio optimization strategy, with reported revenue declining 5% year-over-year to $57.2 million due to the November 2025 divestiture of the UK holiday parks business and pubs restructuring, but core revenue excluding these items rose 15%. Adjusted EBITDA surged 29% to $23.7 million, achieving a 41% margin, propelled by robust growth in the higher-margin Interactive segment, where revenue increased 38% to $16.7 million and Adjusted EBITDA rose 53% to $11.8 million. Retail Solutions revenue fell 20% to $31.8 million amid the shift to a capital-light model but delivered 30% Adjusted EBITDA growth to $14.3 million. Virtual Sports remained stable at $8.7 million revenue with a slight 3% EBITDA dip. Management, led by President and CEO Brooks Pierce, highlighted content differentiation driving market share gains across segments, including rising to #4 in US online slot rankings and new deals like Alberta iGaming license and Paddy Power extension. Executive Chairman Lorne Weil emphasized the digital, higher-margin model, supported by $15.8 million Free Cash Flow enabling $13.3 million debt repayment and $2.6 million share repurchases, lowering net leverage to 3.0x. The company reiterates FY2026 Adjusted EBITDA guidance of $112-118 million, now targeting up to 45% margins despite UK tax changes, with sequential EBITDA growth expected post-divestiture and a strong pipeline of content and expansions positioning it for sustained profitability and shareholder value.