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

Inspired Entertainment (NASDAQ:INSE) issued its quarterly earnings results on Wednesday. The company reported $0.05 EPS for the quarter, topping the consensus estimate of $0.03 by $0.02, FiscalAI reports. The company had revenue of $60.80 million for 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 Trading Down 1.4%

Inspired Entertainment stock traded down $0.10 during mid-day trading on Thursday, hitting $6.86. 78,512 shares of the company’s stock were exchanged, compared to its average volume of 114,491. The stock has a market cap of $182.82 million, a P/E ratio of -11.25 and a beta of 1.22. Inspired Entertainment has a 1-year low of $6.10 and a 1-year high of $9.95. The stock has a 50 day moving average of $7.47 and a two-hundred day moving average of $7.60.

Analysts Set New Price Targets

Several equities research analysts recently commented on INSE shares. Weiss Ratings reissued a “sell (d)” rating on shares of Inspired Entertainment in a report on Monday, June 8th. Zacks Research cut Inspired Entertainment from a “strong-buy” rating to a “hold” rating in a research note on Tuesday, July 28th. Finally, BWS Financial reissued a “buy” rating and issued a $20.00 price target on shares of Inspired Entertainment in a research report on Monday, May 11th. One research analyst has rated the stock with a Buy rating, two have issued a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, Inspired Entertainment currently has an average rating of “Hold” and a consensus target price of $15.00.

Institutional Trading of Inspired Entertainment

Large investors have recently made changes to their positions in the stock. BNP Paribas Financial Markets raised its stake in shares of Inspired Entertainment by 428.0% in the 2nd quarter. BNP Paribas Financial Markets now owns 13,437 shares of the company’s stock valued at $110,000 after acquiring an additional 10,892 shares in the last quarter. Jane Street Group LLC bought a new position in Inspired Entertainment in the 1st quarter worth $123,000. Price T Rowe Associates Inc. MD raised its holdings in Inspired Entertainment by 28.5% in the 4th quarter. Price T Rowe Associates Inc. MD now owns 16,085 shares of the company’s stock worth $151,000 after acquiring an additional 3,571 shares during the period. Man Group plc acquired a new position in Inspired Entertainment during the 2nd quarter worth $174,000. Finally, Focused Alpha LLC acquired a new position in Inspired Entertainment during the 4th quarter worth $192,000. 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.