Inspired Entertainment (NASDAQ:INSE) Announces Earnings Results

Inspired Entertainment (NASDAQ:INSE) announced its quarterly earnings results on Wednesday. The company reported $0.05 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.03 by $0.02, FiscalAI reports. The company had revenue of $60.80 million during the quarter, compared to the consensus estimate of $64.04 million. Inspired Entertainment had a negative return on equity of 31.92% and a negative net margin of 3.34%.

Here are the key takeaways from Inspired Entertainment’s conference call:

• Q2 results and outlook were on track: Revenue was $61 million and adjusted EBITDA was $27 million, with EBITDA margin expanding to 45%. Management reaffirmed its 2026 EBITDA target of $112 million–$118 million and expects pro forma free-cash-flow conversion above 25%.
• The U.K. Remote Gaming Duty increase from 21% to 40% significantly pressured interactive margins; despite 40% growth in U.K. gross gaming revenue, the higher tax caused interactive EBITDA growth to slow to approximately 13% year over year.
• Retail Solutions continued to improve: Cash-box growth, William Hill terminal redeployments, strong Vantage cabinet performance in Greece, and new Alberta placements drove retail EBITDA margins above 50%. Allwyn also ordered more than 2,000 replacement machines, with deliveries expected to begin in the fourth quarter.
• Management expects stronger second-half momentum across interactive and virtual sports, supported by seasonal game releases, custom development payments, market-share gains, Alberta launches, and broader BetMGM distribution. The company also plans to expand content production and enter iLottery next year.
• Capital allocation remains focused on both deleveraging and share repurchases: Inspired retired $23 million of debt and repurchased more than 700,000 shares year to date, while targeting leverage below 2.5 times by the end of 2027.

Inspired Entertainment Trading Up 0.5%

Shares of Inspired Entertainment stock traded up $0.03 on Friday, hitting $6.65. The stock had a trading volume of 113,334 shares, compared to its average volume of 114,753. Inspired Entertainment has a 52-week low of $6.10 and a 52-week high of $9.95. The stock has a market cap of $177.36 million, a price-to-earnings ratio of -20.15 and a beta of 1.22. The company’s 50 day moving average price is $7.45 and its 200 day moving average price is $7.58.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in the company. Fuller & Thaler Asset Management Inc. acquired a new position in Inspired Entertainment during the fourth quarter worth approximately $309,000. Millennium Management LLC purchased a new stake in Inspired Entertainment in the 4th quarter valued at $703,000. AQR Capital Management LLC boosted its stake in Inspired Entertainment by 57.9% during the 4th quarter. AQR Capital Management LLC now owns 24,541 shares of the company’s stock worth $230,000 after purchasing an additional 8,995 shares during the period. Price T Rowe Associates Inc. MD boosted its stake in Inspired Entertainment by 28.5% during the 4th quarter. Price T Rowe Associates Inc. MD now owns 16,085 shares of the company’s stock worth $151,000 after purchasing an additional 3,571 shares during the period. Finally, Russell Investments Group Ltd. boosted its stake in Inspired Entertainment by 30.9% during the 4th quarter. Russell Investments Group Ltd. now owns 277,316 shares of the company’s stock worth $2,596,000 after purchasing an additional 65,411 shares during the period. Hedge funds and other institutional investors own 77.38% of the company’s stock.

Analysts Set New Price Targets

INSE has been the topic of several recent analyst reports. Weiss Ratings reiterated a “sell (d)” rating on shares of Inspired Entertainment in a research note on Monday, June 8th. BWS Financial restated a “buy” rating and set a $20.00 price objective on shares of Inspired Entertainment in a research report on Monday, May 11th. Finally, Zacks Research cut shares of Inspired Entertainment from a “strong-buy” rating to a “hold” rating in a report on Tuesday, July 28th. One analyst has rated the stock with a Buy rating, one has assigned a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, the stock currently has an average rating of “Hold” and an average price target of $20.00.

About Inspired Entertainment

Inspired Entertainment, Inc (NASDAQ: INSE) is a business-to-business provider of digital gaming content and technology solutions for the global gaming industry. The company’s offerings include server-based gaming modules, virtual sports simulations, digital interactive content and mobile sports betting platforms. Inspired designs proprietary games and software that integrate with lotteries, casino operators, retail betting shops and online platforms, emphasizing reliable performance, rapid deployment and engaging player experiences.

At the core of Inspired’s product suite is its Virtual Sports catalog, which simulates sporting events using advanced algorithms and randomized outcomes.