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

Inspired Entertainment (NASDAQ:INSE) announced its earnings results on Wednesday. The company reported $0.05 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.03 by $0.02, FiscalAI reports. The company had revenue of $60.80 million during the quarter, compared to the consensus estimate 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 Stock Up 1.2%

Shares of Inspired Entertainment stock traded up $0.08 during trading on Wednesday, hitting $6.95. The stock had a trading volume of 132,141 shares, compared to its average volume of 118,888. The stock has a 50 day simple moving average of $7.47 and a 200 day simple moving average of $7.60. The company has a market capitalization of $185.36 million, a PE ratio of -11.39 and a beta of 1.22. Inspired Entertainment has a 1 year low of $6.10 and a 1 year high of $9.95.

Hedge Funds Weigh In On Inspired Entertainment

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in INSE. BNP Paribas Financial Markets grew its holdings in shares of Inspired Entertainment by 428.0% during the second quarter. BNP Paribas Financial Markets now owns 13,437 shares of the company’s stock valued at $110,000 after buying an additional 10,892 shares in the last quarter. Jane Street Group LLC acquired a new position in Inspired Entertainment in the 1st quarter valued at approximately $123,000. Price T Rowe Associates Inc. MD lifted its position 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 buying an additional 3,571 shares in the last quarter. Focused Alpha LLC acquired a new stake in shares of Inspired Entertainment during the 4th quarter valued at $192,000. Finally, Man Group plc purchased a new position in shares of Inspired Entertainment during the 2nd quarter valued at $174,000. Institutional investors and hedge funds own 77.38% of the company’s stock.

Analyst Ratings Changes

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

About Inspired Entertainment

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.