Inspired Entertainment's Q2 2025: Key Contradictions on Virtual Sports Growth, EBITDA Targets, and Capital Strategy

Virtual Sports growth trajectory, holiday park business sale and EBITDA margin target, Hybrid Dealer launch timeline, capital deployment strategy, and impact of competitive privatizations are the key contradictions discussed in Inspired Entertainment's latest 2025Q2 earnings call.



Strong Financial Performance:
- Inspired Entertainment reported an EBITDA of $28.4 million for Q2 2025, up 15% over Q2 2024, and EBITDA margins improved from 33% to 35%.
- This growth was driven by the strong performance of the interactive business, which grew EBITDA by nearly 50% year-over-year, with North America contributing significantly despite representing only a third of the segment's EBITDA a year ago.

Interactive Business Momentum:
- The interactive segment experienced its eighth consecutive quarter of over 40% year-over-year adjusted EBITDA growth and an expansion of adjusted EBITDA margin by 200 basis points to 67%.
- The growth was attributed to investments in studio expansions, deepening the base of account management talent, and a significant increase in wallet share in key markets, which is still in the single digits.

Virtual Sports Stabilization and Innovation:
- Virtual Sports EBITDA increased from Q1 to Q2 2025, with both revenue and EBITDA showing improvements.
- The segment's stabilization is due to innovations in product development and market expansion, with a focus on Brazil, Greece, and the U.K., where new offerings and market penetration are expected to drive further growth by year's end.

Gaming Segment Expansion:
- Gaming EBITDA increased by 35% year-over-year, driven by the improvement in William Hill's performance and the award of a new contract with Jenningsbet, the largest independent bookmaker in the U.K.
- The growth was supported by strong customer feedback on the Vantage cabinet and a strategic focus on markets with frequent venue visits, such as North America and Greece.