Inspired Entertainment (NASDAQ:INSE) Issues Quarterly Earnings Results, Beats Expectations By $0.08 EPS

Inspired Entertainment (NASDAQ:INSE) issued its quarterly earnings results on Thursday. The company reported $0.10 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.02 by $0.08, FiscalAI reports. The company had revenue of $61.40 million during the quarter, compared to the consensus estimate of $64.52 million. Inspired Entertainment had a negative net margin of 3.34% and a negative return on equity of 30.08%.

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

• Adjusted for the Brazil shutdown, U.K. tax increases and portfolio changes, trailing 12-month EBITDA grew 12% over nine months, while third-quarter EBITDA margin reached 46%, up 900 basis points year over year.
• Interactive remained a growth driver: segment EBITDA rose 20% before the U.K. tax impact, U.S. iGaming GGR grew more than 30% year over year, and October was the company’s strongest month on record for the segment.
• The Brazil online gaming shutdown weighed on results and led the company to lower the low end of full-year guidance to $109 million. Management is assuming the shutdown continues, though it said a potential return could improve the outlook.
• Management said the U.K. Machine Games Duty increase, effective April 2027, is expected to cost $2 million to $3 million initially; alongside Brazil uncertainty, it has pushed the company’s growth trajectory out by about a year.
• With senior secured net leverage at about 2.8 times and improving cash flow, management said it plans to emphasize share repurchases, citing the stock’s valuation relative to gaming-industry suppliers.

Inspired Entertainment Stock Performance

INSE stock traded up $0.20 on Friday, reaching $3.70. The company had a trading volume of 2,103,186 shares, compared to its average volume of 410,487. Inspired Entertainment has a 1 year low of $3.10 and a 1 year high of $9.95. The company’s fifty day moving average is $4.17 and its 200 day moving average is $6.60. The company has a market cap of $97.53 million, a P/E ratio of 29.15 and a beta of 1.16.

Inspired Entertainment News Roundup

Here are the key news stories impacting Inspired Entertainment this week:

• Positive Sentiment: Q3 adjusted earnings were $0.10 per share, above the $0.02 consensus estimate. Inspired Entertainment Q3 Earnings Beat Estimates
• Negative Sentiment: Revenue of $61.4 million fell short of the $64.52 million consensus. Earnings were also down from $0.28 per share a year earlier, suggesting the quarterly beat did not represent year-over-year growth. Inspired Reports Third Quarter 2026 Results
• Negative Sentiment: B. Riley cut its price target to $6.25 from $8.75, while Citizens JMP lowered its target to $7 from $9. Both firms maintained bullish ratings—Buy and Market Outperform, respectively—but the reductions signal more cautious expectations. B. Riley recommendations Citizens JMP recommendations

Analyst Upgrades and Downgrades

A number of equities research analysts recently weighed in on INSE shares. BWS Financial cut shares of Inspired Entertainment from a “buy” rating to a “neutral” rating in a research report on Tuesday, September 29th. Citigroup reaffirmed a “market outperform” rating on shares of Inspired Entertainment in a report on Tuesday, October 13th. Citizens Jmp reduced their target price on Inspired Entertainment from $9.00 to $7.00 and set a “market outperform” rating for the company in a report on Friday. B. Riley Financial reduced their target price on Inspired Entertainment from $8.75 to $6.25 and set a “buy” rating for the company in a report on Friday. Finally, Zacks Research cut Inspired Entertainment from a “strong-buy” rating to a “hold” rating in a research report on Tuesday, July 28th. Four analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat, Inspired Entertainment currently has a consensus rating of “Hold” and an average price target of $10.31.

Inspired Entertainment Company Profile

Inspired Entertainment, Inc is a business-to-business gaming technology company that develops and supplies content, software, hardware and related services for regulated gaming, betting and leisure markets. Its customers include bookmakers, casinos, gaming operators, lotteries and other entertainment venues.

The company’s offerings include gaming terminals and server-based gaming systems, digital casino games, virtual sports and other simulated sporting events, as well as interactive gaming solutions for online and mobile platforms.