Inspired Entertainment Reports Lower Revenue and Narrows Annual Forecast

Inspired Entertainment reported that its revenue fell 29% to $61.4 million in the three-month period ended September 30. Adjusted EBITDA over the same period decreased 13% to $28.2 million. The company said its EBITDA margin rose from 37% to 46%, and that excluding UK VAT refund periods this was a record for a quarter.

The suspension of regulated online betting and gaming activities in Brazil was the main factor behind the change to the company's full-year expectations. The company said Brazil accounted for about 5% of its total revenue. Its full-year adjusted EBITDA forecast was lowered from $112 million to $118 million down to $109 million to $112 million. The company also noted it has limited opportunities in the near term to replace the lost contribution. It expects full-year free cash flow conversion to fall slightly below its 20% target.

The UK Remote Gaming Duty rose from 21% to 40% in April 2026. The Gaming Machine Duty is planned to increase from 20% to 25% in April 2027. The company said it plans measures to limit the impact of this change.

Interactive revenue rose 3% to $15.5 million, while Retail Solutions revenue declined from $61.8 million to $37.4 million. Virtual Sports revenue fell from $9.3 million to $8.5 million. In the fourth quarter, the company highlighted Virtual Sports launches with Massachusetts Lottery and FanDuel, and announced it had signed a dedicated hybrid live dealer gaming agreement with BetMGM.