Inspired Entertainment has released its financial results for Q3 2026 ending September 30, reporting total revenue of US$61.4 million, which fell below market analyst consensus estimates of $64.52 million.
The total represented a 29 per cent decline from the $86.2 million recorded in the prior-year period. However, the comparison is significantly impacted by the sale of the company’s UK holiday parks business in November 2025. On a like-for-like basis excluding the holiday parks division and the restructuring of the pubs business, revenue actually increased by four per cent despite headwinds from higher UK remote gaming duty.
Total company adjusted EBITDA stood at $28.2 million, down 13 per cent from $32.3 million in the previous year. Despite the slight dip in total EBITDA, the company achieved a milestone record adjusted EBITDA margin of 46 per cent. Meanwhile, adjusted net income came in at $2.8 million, marking a 66 per cent decrease from $8.2 million in the prior-year quarter.
Building a more digital and higher-margin business
Detailing the quarter’s strategic progress, Brooks Pierce, President and Chief Executive Officer of Inspired Entertainment, stated:
“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.”
Pierce noted that retail solutions delivered another strong performance across both the UK and Greece, with promising opportunities to refresh the installed hardware base in Greece next year. Within the Interactive division, revenue grew three per cent year-over-year as UK volume growth successfully offset higher gaming taxes, while the company’s US business continued to outpace the broader US igaming market. Addressing upcoming fiscal policies, Pierce added:
“The UK Budget removes a major overhang and gives us and our customers a clearer foundation for investment and planning. The increase in machine games duty from 20 per cent to 25 per cent, effective April 2027, is disappointing but manageable and we will pursue disciplined mitigation measures to limit the effect on our business.”
Reinforcing this sentiment, Lorne Weil, Executive Chairman of Inspired Entertainment, commented:
“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. That stronger foundation positions us to manage regulatory changes while continuing to invest for growth. We have a meaningful pipeline of opportunities that we expect will more than offset current regulatory impacts. New customers, markets, distribution channels, product formats and partnerships give us multiple avenues to grow.”
