Company Delivers Record 45% Adjusted EBITDA Margin, Sequentially Higher Revenue, and Stronger Earnings Quality Amid Portfolio Optimization
Inspired Entertainment, Inc. (“Inspired” or the “Company”) (NASDAQ: INSE), a leading B2B provider of gaming content, technology, hardware, and services, has reported its financial results for Q2 ended June 30, 2026. Reported results reflect the divestiture of the UK holiday parks business and the restructuring of the pubs business, both of which contributed to the prior-year period.
Executive Commentary on Strategic Transformation
Brooks Pierce, President and CEO of Inspired Entertainment, stated:
“Our second quarter results provide clear evidence that our transformation is translating into expanding margins and continued earnings growth, while building a stronger, more cash-generative business with lower leverage. We delivered sequential quarterly growth in both Revenue (+6%) and Adjusted EBITDA (+14%) and achieved a Company-record 45% Adjusted EBITDA margin. Portfolio optimization initiatives, including the divestiture of our UK holiday parks business and the restructuring of our pubs business, reduced Revenue by approximately 30% year-over-year. Excluding the impact of these initiatives, we delivered like-for-like year-over-year revenue growth, and more importantly, the quality of our earnings strengthened and contributed to our record margin performance.”
Lorne Weil, Executive Chairman of Inspired Entertainment, added:
“Our long-term thesis remains intact and we continue to see the benefits of the strategic actions we have taken to build a higher-margin, more cash-generative business. We are gaining share, expanding profitability and reducing leverage, while maintaining the financial flexibility to deploy capital toward the highest-return opportunities, including debt reduction and share repurchases.”
Recent Operational Milestones and Strategic Growth
Inspired has continued to expand its market footprint across key global jurisdictions through strategic launches and contract extensions:
- Alberta Market Launch: Went live on day one with both Interactive and Virtual Sports in the newly regulated Alberta gaming market, partnering with operators including FanDuel, DraftKings, BetMGM, Rush Street Interactive, Caesars Entertainment, and bet365.
- Paddy Power Extension: Secured a four-year contract extension with Paddy Power, maintaining Inspired as the exclusive provider of gaming terminals and content.
- Mecca Bingo Partnership: Extended service, maintenance, and logistics agreements with Mecca Bingo for a further three years across gaming machines installed in Mecca bingo halls and AGCs in the UK.
- Playtech SaaS Integration: Launched Malta Lottery with several Virtual Sports channels via the Streamed to Venue solution across more than 160 venues in Malta and Gozo, marking the first customer live from Inspired’s SaaS agreement with Playtech.
Full-Year 2026 Outlook
Management remains confident in its strategic direction and ability to deliver profitable growth. Inspired is reiterating its full-year 2026 Adjusted EBITDA target range of $112 million to $118 million, which fully incorporates the expected impact of the UK remote gaming duty adjustments effective April 1, 2026. Additionally, the company is updating its Free Cash Flow conversion outlook to 20%+, reflecting increased visibility into full-year cash generation.
With a growing pipeline of new customers, upcoming geographic expansions, and a new content studio coming online in the fourth quarter, momentum is expected to accelerate through the second half of 2026 and into 2027.
