Core Insights - Inspired Entertainment, Inc. has entered into a definitive agreement to sell its UK holiday parks business and associated leisure assets to GENDA Inc. for approximately £18.6 million ($25.1 million) in cash, subject to customary adjustments and closing conditions [1][2] - The transaction aligns with Inspired's strategy to transition towards a more digital and scalable model, enhancing long-term growth potential and improving EBITDA margins [2] - The sale is expected to close in the fourth quarter of 2025, pending regulatory approvals and customary closing conditions, with net proceeds primarily allocated to debt repayment [3] Company Overview - Inspired Entertainment is a leading B2B provider of gaming content, technology, hardware, and services, operating in approximately 35 jurisdictions worldwide [5] - The company manages over 50,000 gaming machines and offers a diverse portfolio of gaming, virtual sports, and leisure products [5] - The UK holiday parks business involved operating and managing more than 11,000 amusement and gaming machines across about 170 family entertainment centers and adult gaming centers [2] GENDA Overview - GENDA Inc. is a global entertainment company operating a wide range of businesses, including amusement, karaoke, and food & beverage, with approximately 1,000 amusement arcades and 14,000 mini-locations [7][8] - The company aims to build a global entertainment network and increase the "total amount of fun" distributed worldwide [7]

Core Insights - Inspired Entertainment, Inc. has launched three new Virtual Sports titles: V-Play NHL, NBA Re-Play, and Re-Play eSports, available through bet365, enhancing their B2B gaming content offerings [1][5][6] Product Details - V-Play NHL is an officially licensed product that simulates professional hockey with real NHL teams and logos, featuring broadcast-quality graphics and dynamic gameplay [2][5] - NBA Re-Play utilizes iconic archive footage and advanced rendering technology to recreate memorable basketball moments, offering innovative betting formats and cinematic presentation [3][5] - Re-Play eSports provides fast-paced virtual gameplay for Counter-Strike: Global Offensive (CS:GO), using official tournament archive footage and data from the Champion of Champions Tour [4][5] Strategic Partnership - The launch of these products signifies an expansion of the partnership between Inspired and bet365, emphasizing their commitment to innovation and player-first entertainment [6][5] Market Position - Inspired operates in approximately 35 jurisdictions worldwide, supplying gaming systems and content for around 50,000 gaming machines and virtual sports products through over 32,000 retail venues [8]

Core Insights - Inspired Entertainment, Inc. has launched V-Play Football Brazil in partnership with EstrelaBet, enhancing its presence in the Brazilian gaming market [1][2][3] - The product is designed to resonate with Brazilian football culture, offering high-frequency, ultra-realistic match simulations for a dynamic betting experience [2][4] - The integration is facilitated by Altenar, a sportsbook platform provider, showcasing a collaboration that combines technology and local market insights [3][5] Company Overview - Inspired Entertainment is a leading B2B provider of gaming content, technology, hardware, and services, operating in approximately 35 jurisdictions worldwide [5] - The company supplies gaming systems for around 50,000 gaming machines and offers virtual sports products through over 32,000 retail venues [5] - Inspired's portfolio includes digital games for more than 170 websites and various amusement entertainment solutions [5] EstrelaBet Overview - EstrelaBet is recognized as a leading Brazilian gamingtech company, operating under a definitive license in the national iGaming market [7][8] - The company has received multiple awards, including "Best Sports Betting Operator in Brazil" and "Best Responsible Gambling Initiative" [7][10] - EstrelaBet emphasizes innovation, responsible gaming, and community engagement, partnering with FUMEC University to develop initiatives for problem gambling prevention [8][9]

[PART I. FINANCIAL INFORMATION](index=4&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) This section presents the unaudited condensed consolidated financial statements and management's analysis of the company's financial condition and results of operations [Financial Statements (Unaudited)](index=4&type=section&id=ITEM%201.%20FINANCIAL%20STATEMENTS%20(Unaudited)) The unaudited condensed consolidated financial statements for the six months ended June 30, 2025, show a total revenue of $140.7 million and a net loss of $7.9 million, with total assets increasing to $486.8 million and operating cash flow at $40.7 million [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of June 30, 2025, total assets were $486.8 million, an increase from $438.4 million at December 31, 2024, driven by a rise in cash and long-term debt, resulting in a total stockholders' deficit of $9.5 million Condensed Consolidated Balance Sheet Highlights (in millions) | Balance Sheet Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Assets** | | | | Cash | $46.3 | $29.3 | | Total current assets | $165.7 | $159.9 | | Total assets | $486.8 | $438.4 | | **Liabilities & Stockholders' Deficit** | | | | Total current liabilities | $98.3 | $104.0 | | Long-term debt | $349.6 | $292.2 | | Total liabilities | $496.3 | $441.7 | | Total stockholders' deficit | $(9.5) | $(3.3) | [Condensed Consolidated Statements of Operations and Comprehensive (Loss) Income](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20(Loss)%20Income) For Q2 2025, total revenue was $80.3 million with a net loss of $7.8 million, while for H1 2025, revenue increased to $140.7 million, and net loss widened to $7.9 million Statement of Operations Summary (in millions, except per share data) | Metric | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :--- | :--- | :--- | :--- | :--- | | Total Revenue | $80.3 | $74.8 | $140.7 | $137.0 | | Net Operating Income | $7.9 | $8.7 | $9.5 | $6.6 | | Net (Loss) Income | $(7.8) | $1.4 | $(7.9) | $(5.0) | | Net (Loss) Income per Share - Diluted | $(0.27) | $0.05 | $(0.27) | $(0.18) | [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash provided by operating activities significantly increased to $40.7 million for H1 2025, with a net increase in cash of $17.0 million, ending the period with $46.3 million Cash Flow Summary for Six Months Ended June 30 (in millions) | Cash Flow Activity | 2025 | 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $40.7 | $3.6 | | Net cash used in investing activities | $(31.2) | $(19.2) | | Net cash provided by (used in) financing activities | $4.1 | $(0.5) | | **Net increase (decrease) in cash** | **$17.0** | **$(16.5)** | | **Cash, end of period** | **$46.3** | **$23.5** | [Notes to Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Key notes detail a major debt refinancing in June 2025, segment revenue growth in Interactive, declines in Virtual Sports, and a correction of immaterial errors in 2024 interim financials - On June 9, 2025, the company issued **£270.0 million ($370.0 million)** in new Series B Senior Notes due 2030, bearing a variable interest rate of SONIA plus a margin of **5.50% to 6.00%**[43](index=43&type=chunk)[47](index=47&type=chunk) - The proceeds from the new Senior Notes were used to refinance existing **£235.0 million** notes and **£15.0 million** in revolving credit loans[45](index=45&type=chunk) Revenue by Segment - Six Months Ended June 30 (in millions) | Segment | 2025 | 2024 | | :--- | :--- | :--- | | Gaming | $48.9 | $49.4 | | Virtual Sports | $17.9 | $24.1 | | Interactive | $25.7 | $17.5 | | Leisure | $48.2 | $46.0 | | **Total** | **$140.7** | **$137.0** | - The company identified and corrected immaterial errors in its 2024 interim financial statements related to the classification of leases between operating and sales type, which resulted in a revision of previously reported revenue and net income[105](index=105&type=chunk)[106](index=106&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=24&type=section&id=ITEM%202.%20MANAGEMENT'S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS) Management's discussion highlights a 7% increase in reported revenue for Q2 2025, driven by strong performance in Interactive and Leisure segments, offset by declines in Gaming and Virtual Sports, alongside a significant debt refinancing and improved liquidity [Overall Company Results](index=26&type=section&id=Overall%20Company%20Results) Q2 2025 saw a 7% revenue increase to $80.3 million but a 9% decrease in net operating income, while H1 2025 revenue grew 3% to $140.7 million with a 44% increase in net operating income Overall Company Performance - Q2 2025 vs Q2 2024 (in millions) | Metric | Q2 2025 | Q2 2024 | Reported Variance % | Functional Currency Variance % | | :--- | :--- | :--- | :--- | :--- | | Total Revenue | $80.3 | $74.8 | 7% | 2% | | Net Operating Income | $7.9 | $8.7 | (9)% | (7)% | | Net (Loss) Income | $(7.8) | $1.4 | (657)% | (571)% | - The decline in net operating income for Q2 2025 was predominantly due to increased depreciation and amortization expense, which rose by **$3.4 million** on a constant currency basis[146](index=146&type=chunk)[149](index=149&type=chunk) - For the six-month period, the growth in net operating income was mainly due to lower cost of product and non-staff related SG&A expenses, partially offset by higher depreciation[150](index=150&type=chunk) [Segment Results](index=30&type=section&id=Segment%20Results) Q2 2025 saw strong constant currency revenue growth in Interactive (38%) and Leisure (5%), offset by declines in Gaming (2%) and Virtual Sports (26%) due to regulatory changes - **Gaming:** Q2 revenue decreased **2%** (constant currency) due to a **$3.7 million** decline in product sales, partially offset by a **$3.1 million** increase in service revenue. The average installed base of terminals decreased by **2.7%** YoY[138](index=138&type=chunk)[156](index=156&type=chunk)[184](index=184&type=chunk) - **Virtual Sports:** Q2 revenue fell **26%** (constant currency) primarily due to new regulations and levies in the Brazilian market, leading to a **39%** drop in segment operating income[200](index=200&type=chunk)[201](index=201&type=chunk) - **Interactive:** Q2 revenue surged **38%** (constant currency) driven by growth in the UK and North America from new content and promotional activities. The number of live customers increased by **20.5%** YoY[204](index=204&type=chunk)[211](index=211&type=chunk) - **Leisure:** Q2 revenue increased **5%** (constant currency), attributed to the timing of a key public holiday in the UK. Operating income grew **7%** despite higher depreciation costs[223](index=223&type=chunk)[225](index=225&type=chunk) [Non-GAAP Financial Measures](index=41&type=section&id=Non-GAAP%20Financial%20Measures) Adjusted EBITDA increased to $28.4 million for Q2 2025 and $46.8 million for H1 2025, primarily driven by the Interactive segment's performance Adjusted EBITDA by Segment (in millions) | Segment | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :--- | :--- | :--- | :--- | :--- | | Gaming | $12.8 | $9.5 | $22.1 | $15.9 | | Virtual Sports | $6.6 | $9.6 | $12.9 | $20.0 | | Interactive | $9.1 | $6.1 | $16.8 | $10.5 | | Leisure | $7.7 | $6.1 | $9.4 | $7.9 | | Corporate | $(7.8) | $(6.6) | $(14.4) | $(14.3) | | **Total Adjusted EBITDA** | **$28.4** | **$24.7** | **$46.8** | **$40.0** | [Liquidity and Capital Resources](index=44&type=section&id=Liquidity%20and%20Capital%20Resources) Liquidity improved with cash rising to $46.3 million, following a major debt refinancing in June 2025 that established new Senior Notes and a revolving credit facility with financial covenants - Cash provided by operating activities for H1 2025 was **$40.7 million**, a substantial increase from **$3.6 million** in H1 2024, driven by strong collections on prior-year sales and favorable timing of supplier payments[238](index=238&type=chunk)[239](index=239&type=chunk) - In June 2025, the company refinanced its debt, issuing **£270.0 million** in Senior Notes and securing a new **£17.8 million ($24.4 million)** revolving credit facility, which was undrawn as of June 30, 2025[129](index=129&type=chunk)[249](index=249&type=chunk)[57](index=57&type=chunk) - New debt covenants require maintaining a maximum consolidated senior secured net leverage ratio of **5.0x** for the Senior Notes and **5.50x** for the RCF, tested quarterly starting Q3 2025[250](index=250&type=chunk)[251](index=251&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=47&type=section&id=ITEM%203.%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) The company faces interest rate risk from its new variable-rate debt and foreign currency exchange rate risk due to its GBP functional currency and USD reporting currency - The company's new **£270.0 million** debt is subject to a variable interest rate based on SONIA, exposing it to interest rate risk. A **1%** increase in floating rates would have resulted in an additional **$0.2 million** in interest expense for H1 2025[262](index=262&type=chunk)[263](index=263&type=chunk) - The company is exposed to foreign currency risk as its functional currency is GBP, but its reporting currency is USD. A **10%** weakening of GBP against the USD would favorably impact trading results by approximately **$0.9 million** but result in unfavorable translation adjustments of approximately **$4.9 million** in other comprehensive loss[268](index=268&type=chunk) [Controls and Procedures](index=47&type=section&id=ITEM%204.%20CONTROLS%20AND%20PROCEDURES) Management concluded that disclosure controls and procedures were ineffective as of June 30, 2025, due to previously identified material weaknesses, yet the financial statements are fairly presented - The company's Certifying Officers concluded that disclosure controls and procedures were not effective as of June 30, 2025, due to previously disclosed material weaknesses[271](index=271&type=chunk) - Notwithstanding the ineffective controls, management asserts that the financial statements in this report are fairly presented in all material respects[272](index=272&type=chunk) [PART II. OTHER INFORMATION](index=48&type=section&id=PART%20II.%20OTHER%20INFORMATION) This section provides information on legal proceedings, risk factors, and exhibits filed with the report [Legal Proceedings](index=48&type=section&id=ITEM%201.%20LEGAL%20PROCEEDINGS) The company is involved in routine legal matters, but management believes no current proceedings are material or will adversely affect financial condition or operations - The company states that it is not currently involved in any legal matters that it believes to be material[275](index=275&type=chunk) [Risk Factors](index=48&type=section&id=ITEM%201A.%20RISK%20FACTORS) The company refers investors to the comprehensive risk factors detailed in its Annual Report on Form 10-K for the year ended December 31, 2024 - There are no new risk factors disclosed in this report; the company refers to the risk factors detailed in its 2024 Form 10-K[276](index=276&type=chunk) [Exhibits](index=49&type=section&id=ITEM%206.%20EXHIBITS) This section lists exhibits filed with the Form 10-Q, including key agreements related to the June 2025 debt financing and officer certifications - Key exhibits filed include the Senior Notes Purchase Agreement and the Senior Facilities Agreement related to the June 2025 debt refinancing[282](index=282&type=chunk)

Group 1 - Inspired Entertainment reported a quarterly loss of $0.19 per share, significantly worse than the Zacks Consensus Estimate of a loss of $0.02, marking an earnings surprise of -850.00% [1] - The company posted revenues of $80.3 million for the quarter ended June 2025, exceeding the Zacks Consensus Estimate by 6.88% and showing an increase from $75.6 million year-over-year [2] - The stock has underperformed the market, losing about 2.5% since the beginning of the year compared to the S&P 500's gain of 7.1% [3] Group 2 - The current consensus EPS estimate for the upcoming quarter is $0.32 on revenues of $84.52 million, and for the current fiscal year, it is $0.65 on revenues of $300.62 million [7] - The Zacks Industry Rank places Technology Services in the top 41% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8]

Financial Data and Key Metrics Changes - EBITDA for Q2 2025 was $28.4 million, up 15% compared to Q2 2024, with EBITDA margins improving from 33% to 35% [5][19] - The Interactive business was the primary growth driver, with EBITDA growth of nearly 50% year over year [5][12] Business Line Data and Key Metrics Changes - The Interactive segment achieved its eighth consecutive quarter of over 40% year-over-year adjusted EBITDA growth, with an adjusted EBITDA margin expansion of 200 basis points to 67% [12][19] - Gaming EBITDA increased by 35% year over year, significantly driven by the performance of William Hill [17][19] - Virtual Sports EBITDA showed a sequential improvement, with expectations for continued growth in Q3 and Q4 [15][26] Market Data and Key Metrics Changes - Less than 10% of the U.S. population is in jurisdictions offering iGaming, compared to 70% for sports betting, indicating significant growth potential [6] - The company is seeing growth in Brazil, with a focus on launching additional operators and bespoke content [12][36] Company Strategy and Development Direction - The company is focusing on digital segments, aiming to improve cash conversion and EBITDA margins, with a target of approaching 40% [10][19] - The sale of the Holiday Park business is expected to enhance liquidity and shift the business mix further towards digital [10][19] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the Interactive business, noting that it is still in its infancy and has considerable room for growth [6][12] - The company is cautiously optimistic about the Virtual Sports segment, expecting to see year-over-year growth by the end of the year [7][15] Other Important Information - The company successfully refinanced its credit facility and is in the process of converting floating rate debt to fixed rate [8][9] - A new contract was awarded to supply gaming machines for JenningsBet, the largest independent bookmaker in the UK [8][18] Q&A Session Summary Question: Can you elaborate on the momentum in hybrid dealer? - Management noted a good mix of customers, including tier one and tier two operators, with positive traction and increasing player volume [22][24] Question: Will Virtual Sports see a year-over-year increase in EBITDA? - Management indicated that while Q3 might not see significant growth, Q4 is expected to show improvements due to new product launches [26] Question: What drives the next leg of growth in the Gaming segment? - Management highlighted opportunities in Canadian provinces and Illinois, where the market is expanding and content refreshment is key [41][43] Question: What are the promising international markets for hybrid dealer? - Management stated that every market appears promising, with ongoing rollouts in North America, UK, Greece, and Brazil [45][46] Question: What are the capital deployment priorities? - The first priority is funding business growth, followed by debt reduction, with share repurchases considered afterward [52]

Exhibit 99.1 INSPIRED REPORTS SECOND QUARTER 2025 RESULTS New York, New York, August 6, 2025 - Inspired Entertainment, Inc. ("Inspired" or the "Company") (NASDAQ: INSE), a leading B2B provider of gaming content, technology, hardware and services, today reported financial results for the three-month period ended June 30, 2025. "We are pleased to deliver another strong quarter, underscoring the continued strength across our diversified business model," said Lorne Weil, Executive Chairman of Inspired. "Interac ...

Core Insights - Inspired Entertainment, Inc. reported strong financial results for the quarter ended June 30, 2025, with total revenue of $80.3 million, representing a 7% increase year-over-year, primarily driven by record Interactive revenue growth of 45% [8][10][9] Financial Performance - Total revenue for the quarter was $80.3 million, up from $74.8 million in the prior year, with Interactive revenue increasing to $13.6 million from $9.4 million [10][8] - Adjusted EBITDA reached $28.4 million, a 15% increase from $24.7 million in the previous year, with Interactive Adjusted EBITDA growing by 49% year-over-year [8][10] - The company reported a net loss of $7.8 million, compared to a net income of $1.4 million in the same quarter last year [10][8] Segment Performance - The Interactive segment was a key growth driver, with revenue increasing by 45% year-over-year, supported by strong performance in North America and the UK [2][9] - Gaming segment Adjusted EBITDA increased by 35% year-over-year, driven by the successful rollout of Vantage cabinets with William Hill [3][10] - Virtual Sports segment saw sequential growth in revenue and Adjusted EBITDA, with localized content in Brazil showing early promise [4][10] Strategic Developments - The company secured a five-year partnership with Jenningsbet to supply approximately 570 Vantage terminals, enhancing its market presence [8][13] - A comprehensive debt refinancing was completed, issuing £270 million in senior secured notes and securing a new £17.8 million revolving credit facility [8][9] Operational Highlights - The Interactive segment's Adjusted EBITDA margin expanded to 67%, reflecting the scalability of digital operations [2][10] - The Leisure segment performed steadily, with year-to-date revenue up 5% and Adjusted EBITDA up 19% compared to the same period last year [5][10]

Core Insights - Inspired Entertainment, Inc. has appointed Aimee Remey as Vice President of Investor Relations to enhance engagement with the investment community and support business growth [1][2][3] Group 1: Company Overview - Inspired Entertainment is a leading B2B provider of gaming content, technology, hardware, and services, operating in approximately 35 jurisdictions worldwide [4] - The company supplies gaming systems and associated terminals for around 50,000 gaming machines and offers virtual sports products through over 32,000 retail venues [4] - Inspired's portfolio includes digital games for more than 170 websites and amusement entertainment solutions with over 16,000 installed terminals [4] Group 2: Leadership and Strategy - Aimee Remey brings over two decades of experience in the gaming industry and previously served as Vice President of US Investor Relations at Entain Group [2][3] - Remey's appointment is part of Inspired's strategy to scale its business and deepen relationships with the financial community [3] - The leadership team, including President and CEO Brooks Pierce, expresses confidence in Remey's qualifications and her understanding of the company's strategy [3]

NEW YORK, Aug. 05, 2025 (GLOBE NEWSWIRE) -- Inspired Entertainment, Inc. ("Inspired" or the "Company") (NASDAQ: INSE), a leading B2B provider of gaming content, technology, hardware, and services, is pleased to announce a significant new partnership with Jenningsbet the largest independent retail bookmaker in the UK with nearly 200 licensed betting shops. A family-owned business originally established in 1961, Jenningsbet has built a reputation for integrity and excellence in the industry. Inspired has secu ...