Inspired Entertainment (NASDAQ:INSE) Announces Earnings Results, Beats Estimates By $0.08 EPS

Key Points

• Inspired Entertainment reported quarterly EPS of $0.10, beating the $0.02 consensus by $0.08, while revenue of $61.4 million missed estimates of $64.52 million.
• Adjusted for market and portfolio changes, trailing 12-month EBITDA grew 12%; third-quarter EBITDA margin reached 46%, and Interactive segment EBITDA rose 20% before the U.K. tax impact.
• The Brazil online gaming shutdown prompted management to lower the low end of full-year guidance to $109 million and assume the shutdown continues, while U.K. tax changes and Brazil uncertainty have delayed the company’s expected growth trajectory by about a year.

Inspired Entertainment (NASDAQ:INSE - Get Free Report) announced its quarterly earnings data on Thursday. The company reported $0.10 EPS for the quarter, beating the consensus estimate of $0.02 by $0.08, FiscalAI reports. The company had revenue of $61.40 million for the quarter, compared to the consensus estimate of $64.52 million. Inspired Entertainment had a negative return on equity of 30.08% and a negative net margin of 3.34%.

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 Trading Up 5.7%

INSE traded up $0.20 during midday trading on Friday, hitting $3.70. 2,103,186 shares of the company traded hands, compared to its average volume of 410,487. The business has a 50 day simple moving average of $4.17 and a two-hundred day simple moving average of $6.60. Inspired Entertainment has a 52-week low of $3.10 and a 52-week high of $9.95. The company has a market capitalization of $97.53 million, a price-to-earnings ratio of 29.15 and a beta of 1.16.

More Inspired Entertainment News

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 Ratings Changes

INSE has been the subject of a number of recent research reports. B. Riley Financial reduced their target price on shares of Inspired Entertainment from $8.75 to $6.25 and set a "buy" rating for the company in a report on Friday. Zacks Research cut shares of Inspired Entertainment from a "strong-buy" rating to a "hold" rating in a report on Tuesday, July 28th. Citigroup reaffirmed a "market outperform" rating on shares of Inspired Entertainment in a research report on Tuesday, October 13th. Weiss Ratings reiterated a "sell (d)" rating on shares of Inspired Entertainment in a research note on Friday, September 4th. Finally, BWS Financial lowered shares of Inspired Entertainment from a "buy" rating to a "neutral" rating in a research note on Tuesday, September 29th. Four equities research analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, the company presently has a consensus rating of "Hold" and a consensus target price 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.

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