Inspired Reports Third Quarter 2026 Results
Key Highlights
- ➤Q3 revenue $61.4 million, with like-for-like revenue up approximately 4%
- ➤Adjusted EBITDA $28.2 million, up 4% sequentially; record 46% margin
- ➤FY2026 Adjusted EBITDA outlook cut to $109 million-$112 million from $112 million-$118 million
- ➤Brazil shutdown affects approximately 5% of revenue and limits near-term mitigation
- ➤Massachusetts Lottery and FanDuel Virtual Sports launches expand U.S. digital footprint
Expert Statements
Brooks Pierce, President and Chief Executive Officer of Inspired Entertainment
“Our third-quarter results highlight our progress in building a higher-margin, more digital business, with record Adjusted EBITDA margins and market share gains in Interactive.”
Brooks Pierce, President and Chief Executive Officer of Inspired Entertainment
“Retail Solutions delivered another strong performance in the UK and Greece, with further opportunities to refresh our installed base in Greece next year.”
Brooks Pierce, President and Chief Executive Officer of Inspired Entertainment
“In Interactive, revenue grew 3% year over year as UK volume growth offset the higher gaming tax and our U.S. business outpaced the U.S. iGaming market.”
Brooks Pierce, President and Chief Executive Officer of Inspired Entertainment
“The UK Budget removes a major overhang and gives us and our customers a clearer foundation for investment and planning.”
Brooks Pierce, President and Chief Executive Officer of Inspired Entertainment
“The increase in machine games duty from 20% to 25%, effective April 2027, is disappointing but manageable and we will pursue disciplined mitigation measures to limit the effect on our business.”
Brooks Pierce, President and Chief Executive Officer of Inspired Entertainment
“Brazil’s unexpected shutdown of regulated online betting and gaming affects a business representing approximately 5% of our total revenue.”
Brooks Pierce, President and Chief Executive Officer of Inspired Entertainment
“While opportunities to offset the lost contribution are limited in the near term, we continue to evaluate options as the regulatory situation evolves.”
Brooks Pierce, President and Chief Executive Officer of Inspired Entertainment
“We enter the fourth quarter encouraged by improving U.S. iGaming trends and a strong holiday content lineup.”
Brooks Pierce, President and Chief Executive Officer of Inspired Entertainment
“Our Virtual Sports launch with the Massachusetts Lottery expands our U.S. reach, as does our launch with FanDuel, while our new content studio adds capacity to deliver more compelling games.”
Brooks Pierce, President and Chief Executive Officer of Inspired Entertainment
“With clarity regarding the UK gaming taxes and a growing pipeline across customers, products and markets, we are focused on converting these opportunities into revenue growth, while continuing to generate strong free cash flow in 2027.”
Lorne Weil, Executive Chairman of Inspired Entertainment
“Inspired’s transformation has created a higher margin, less capital intensive, more diversified business with less concentration in the UK and greater flexibility to pursue growth.”
Lorne Weil, Executive Chairman of Inspired Entertainment
“That stronger foundation positions us to manage regulatory changes while continuing to invest for growth.”
Lorne Weil, Executive Chairman of Inspired Entertainment
“We have a meaningful pipeline of opportunities that we expect will more than offset current regulatory impacts.”
Lorne Weil, Executive Chairman of Inspired Entertainment
“New customers, markets, distribution channels, product formats and partnerships give us multiple avenues to grow.”
Lorne Weil, Executive Chairman of Inspired Entertainment
“As we look toward 2027, we will allocate capital with discipline, prioritizing investments with attractive returns and sustainable cash generation, alongside expected continued debt reduction and share repurchases.”
Lorne Weil, Executive Chairman of Inspired Entertainment
“We believe this approach will build long-term shareholder value and demonstrate the earnings potential not reflected in Inspired’s current valuation.”
* Third Quarter Revenue of $61.4 million; Like-for-like Revenue(1)Increased Approximately 4% Despite Higher UK Gaming Taxes, Reflecting Continued Growth and Market Share Gains * Adjusting Like-for-Like Results for Higher UK Gaming Taxes(1)(,)(2), Revenue Increased Approximately 9%, with Adjusted EBITDA Growing at Approximately Twice That Pace * Net Operating Income of $10.3 million, Net Loss of $0.1 million and Adjusted Net Income of $2.8 million * Adjusted EBITDA of $28.2 million Increased 4% Sequentially, Delivering a Record 46% Adjusted EBITDA Margin(3) * Expanding U.S. Digital Footprint with Virtual Sports Launches with the Massachusetts Lottery and FanDuel in the Fourth Quarter * UK Budget Provides Greater Regulatory Clarity, with Machine Games Duty Increasing from 20% to 25% Beginning April 2027 * Delivered 22% Free Cash Flow Conversion(4) Year-to-Date * Updated FY2026 Outlook of $109 million — $112 million(5), from $112 million — $118 million, Primarily Reflecting the Suspension of Regulated Online Gaming in Brazil NEW YORK, Nov. 05, 2026 (GLOBE NEWSWIRE) -- Inspired Entertainment, Inc. (“Inspired” or the “Company”) (NASDAQ: INSE), a leading B2B provider of gaming content, technology, hardware and services, today reported financial results for the third quarter ended September 30, 2026. Reported results reflect the November 2025 divestiture of the Company’s UK Holiday Parks business and the restructuring of its Pubs business, both of which contributed to the prior-year period. Excluding these portfolio changes(1), revenue increased 4% year-over-year despite higher UK remote gaming duty. Further adjusting for the tax increase(1,2), revenue grew at 9%, while Adjusted EBITDA grew at approximately twice that pace, demonstrating the operating leverage and margin expansion resulting from the Company’s transformation toward a higher-margin, more digital business.
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