Inspired Entertainment (NASDAQ:INSE) Posts Quarterly Earnings Results, Beats Expectations By $0.02 EPS

Inspired Entertainment (NASDAQ:INSE) issued its earnings results on Wednesday. The company reported $0.05 EPS for the quarter, beating the consensus estimate of $0.03 by $0.02, FiscalAI reports. The firm had revenue of $60.80 million during the quarter, compared to analyst estimates of $64.04 million.

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 Stock Up 1.2%

Inspired Entertainment stock traded up $0.08 during trading on Wednesday, hitting $6.95. The stock had a trading volume of 132,141 shares, compared to its average volume of 118,888. The stock’s 50 day moving average is $7.47 and its two-hundred day moving average is $7.60. Inspired Entertainment has a 1 year low of $6.10 and a 1 year high of $9.95. The stock has a market cap of $185.36 million, a price-to-earnings ratio of -11.39 and a beta of 1.22.

Wall Street Analysts Forecast Growth

Several research firms recently issued reports on INSE. Zacks Research downgraded shares of Inspired Entertainment from a “strong-buy” rating to a “hold” rating in a research report on Tuesday, July 28th. Weiss Ratings reiterated a “sell (d)” rating on shares of Inspired Entertainment in a report on Monday, June 8th. Finally, BWS Financial reaffirmed a “buy” rating and set a $20.00 price objective on shares of Inspired Entertainment in a report on Monday, May 11th. One investment analyst has rated the stock with a Buy rating, two have given a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat.com, the company has an average rating of “Hold” and a consensus target price of $15.00.

Institutional Inflows and Outflows

A number of institutional investors have recently made changes to their positions in INSE. Kanen Wealth Management LLC grew its stake in shares of Inspired Entertainment by 50.9% during the 1st quarter. Kanen Wealth Management LLC now owns 2,006,017 shares of the company’s stock worth $18,929,000 after acquiring an additional 676,988 shares during the period. Fuller & Thaler Asset Management Inc. bought a new stake in Inspired Entertainment in the 4th quarter valued at about $309,000. Two Sigma Investments LP bought a new stake in Inspired Entertainment in the 3rd quarter valued at about $308,000. Rhumbline Advisers lifted its holdings in Inspired Entertainment by 11.8% during the second quarter. Rhumbline Advisers now owns 35,915 shares of the company’s stock valued at $293,000 after purchasing an additional 3,794 shares during the last quarter. Finally, Bank of America Corp DE lifted its holdings in Inspired Entertainment by 122.6% during the third quarter. Bank of America Corp DE now owns 30,121 shares of the company’s stock valued at $283,000 after purchasing an additional 16,591 shares during the last quarter. Hedge funds and other institutional investors own 77.38% of the company’s stock.

Inspired Entertainment Company Profile

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.