What factors drove the changes in Inspired's revenue and profit?

Did Inspired beat or miss consensus estimates last quarter?

What does Inspired do and what are its main business segments?

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What were the key takeaways from Inspired’s earnings call?

What is the revenue and EPS growth rate for Inspired year over year?

What is Inspired's latest dividend and current dividend yield?

What guidance did Inspired's management provide for the next earnings period?

- **Interactive Growth Accelerates**: 40%+ EBITDA growth streak continues, October sets all-time revenue records with seasonal games.
- **Margin Expansion Roadmap**: 1,000 basis points to 45% EBITDA margin by 2027 via digital shift, holiday parks sale, and cost restructuring.
- **North America VLT Leadership**: 98% server-based gaming adoption in Illinois, GGR at record levels.
- **Resilience to U.K. Tax Risk**: Proven ability to navigate tax changes through innovation, 2019 triennial success case study.
- **$25M Share Buyback**: Signals confidence in undervalued stock, balanced with debt reduction priorities.

**【Management Opening Remarks】**
- Reported Q3 2025 trailing 12-month adjusted EBITDA of $110 million, up 35% year-over-year, driven by strong Interactive and Virtual Sports performance.
- Announced sale of holiday parks business on November 7, reducing headcount by ~40% and freeing up capital for higher-margin digital initiatives.
- Reauthorized $25 million share buyback program to capitalize on undervalued stock.

**【CEO Summary Section】**
- **Interactive Segment**: 40%+ EBITDA growth for 9 consecutive quarters, October set new revenue records with seasonal games like Halloween-themed slots.
- **Virtual Sports**: Stabilized after Brazil tax impact, Q4 2025 EBITDA expected to exceed Q4 2024 levels due to new customer wins in Brazil and Turkey.
- **North America**: VLT business gaining share with 98% customer adoption of server-based gaming, Illinois GGR at highest levels since launch.
- **U.K. Tax Risk**: Confident in ability to manage potential remote gaming duty increases through product innovation and cost control, similar to successful 2019 triennial navigation.

**【CFO Financial Commentary】**
- Projected 1,000 basis point EBITDA margin expansion (35% → 45%) by 2027, driven by:
  - 60% digital revenue mix by 2027 (vs. 50% currently)
  - $32 million annual savings from holiday parks sale
  - $15 million annual savings from pubs restructuring
- Target net leverage ratio of 2.0x by 2027, up from 3.2x at Q3 2025.
- Free cash flow conversion rate of 30% of EBITDA by 2027.

**【Q&A Key Highlights】**
- **M&A Strategy**: Focused on tuck-in acquisitions (e.g., interactive studios) with immediate synergies, no interest in large transformative deals.
- **New Interactive Studio**: Organic build starting Q1 2026 to accelerate game development pipeline, targeting 50+ new titles/year.
- **Virtual Sports in North America**: BetMGM expected to launch in Q4 2025, with NFL/NBA/NHL content poised to replicate international success.
- **Share Buyback**: Opportunistic, prioritizing debt reduction but open to larger transactions if stock remains undervalued.


Inspired Entertainment, Inc. (INSE) Q3 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

INSE

INSE fundamentals

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