Stand 2Z70, Hall 2NEW YORK, Jan. 14, 2026 (GLOBE NEWSWIRE) -- Inspired Entertainment, Inc. (“Inspired” or the “Company”) (NASDAQ: INSE), a leading provider of B2B gaming content, systems and solutions, is set to showcase its latest innovations at ICE 2026 in Barcelona from January 19-21. Attendees can experience Inspired’s comprehensive portfolio of digital and retail gaming products at Stand 2Z70 in Hall 2. Inspired arrives at ICE with strong momentum across its iGaming portfolio. The Cash Bank™ mechanic f ...

Group 1 - The article discusses the ongoing development of "Operation Cash Cow" at Inspired Entertainment, Inc. (INSE), indicating a strategic initiative aimed at enhancing financial performance [1] - The author maintains a 'Hold' rating on the stock, suggesting a cautious approach despite the positive developments within the company [1] - The author has extensive experience in equity analysis, particularly in the restaurant industry, and applies advanced financial modeling and sector-specific KPIs to identify investment opportunities [1] Group 2 - The research firm, Goulart's Restaurant Stocks, focuses on various segments of the restaurant industry, including quick-service, fast casual, and fine dining, as well as consumer discretionary and gaming sectors [1] - The author emphasizes a focus on micro and small-cap stocks that are often overlooked by mainstream analysts, indicating a niche investment strategy [1] - The author's background includes an MBA in Controllership and Accounting Forensics, along with specialized training in valuation and financial modeling, enhancing the credibility of the analysis [1]

Group 1 - The core viewpoint is that despite the development of 'Operation Cash Cow' among Inspired Entertainment's New York executives, the stock has been maintained as a 'Hold' in recent analyses [1] - The analyst has a focus on the U.S. restaurant industry, covering various segments including quick-service, fast casual, fine dining, and niche concepts, with an emphasis on uncovering hidden value in micro and small-cap stocks [2] - The research firm led by the analyst has been featured on multiple financial platforms, indicating a broad recognition of its insights and analyses [2] Group 2 - The analyst has no current stock or derivative positions in any mentioned companies and does not plan to initiate any within the next 72 hours, ensuring an unbiased perspective [3] - Seeking Alpha emphasizes that past performance does not guarantee future results and that the views expressed may not reflect the platform's overall stance [4]

Group 1 - The article does not provide any relevant content regarding company or industry insights [1]

Core Points - Inspired Entertainment, Inc. has completed the sale of its UK holiday parks business and associated leisure assets to GENDA Inc. for approximately £18.6 million in cash [1][2] - The transaction received all necessary regulatory approvals and met all closing conditions [2] Company Overview: Inspired Entertainment, Inc. - Inspired is a leading B2B provider of gaming content, technology, hardware, and services, operating in approximately 35 jurisdictions worldwide [3] - The company supplies gaming systems and associated terminals for around 75,000 gaming machines and offers virtual sports products through approximately 25,000 retail venues [3] Company Overview: GENDA Inc. - GENDA is a global entertainment company that operates a diverse range of businesses, including amusement, karaoke, lifestyle, tourism, food & beverage, and character merchandising [5][6] - The company operates around 1,100 locations and approximately 14,000 mini-locations across various countries, including Japan, the United States, and the United Kingdom [6]

Group 1: Market Sentiment - Wall Street exhibits a bullish outlook on the stocks discussed, with price targets indicating significant upside potential [1] - Analysts tend to avoid issuing sell ratings due to potential conflicts of interest with their firms seeking business from the companies they cover [1] Group 2: Salesforce (CRM) - Salesforce has a consensus price target of $331.81, suggesting a 38.5% implied return [3] - Currently trading at $239.60 per share, Salesforce has a forward price-to-sales ratio of 5.4x [5] Group 3: Inspired (INSE) - Inspired has a consensus price target of $13.50, indicating a 66.5% implied return [6] - The stock is trading at $8.11 per share, with a forward P/E ratio of 30.2x [8] Group 4: Live Nation (LYV) - Live Nation's consensus price target is $171.55, reflecting a 25% implied return [9] - Demand for Live Nation's offerings has been low, with a weak average annual ARR growth of 9% over the last year [10][11] - Projected sales decline of 10.9% over the next 12 months indicates ongoing deterioration in demand [12]

Financial Performance - Total revenue for Q3 2025 was $86.2 million, an increase of 11.7% compared to $77.2 million in Q3 2024[17]. - Service revenue reached $79.4 million, up 8.9% from $72.9 million in the same quarter last year[17]. - Net loss for Q3 2025 was $1.9 million, compared to a net income of $2.8 million in Q3 2024[17]. - The company reported a comprehensive loss of $1.0 million for Q3 2025, compared to a loss of $2.8 million in Q3 2024[17]. - For the nine months ended September 30, 2025, total revenue reached $226.9 million, an increase from $214.1 million in the same period of 2024, reflecting a year-over-year growth of approximately 5.1%[109]. - The segment operating income for Q3 2025 was $9.7 million, with Gaming contributing $6.4 million and Interactive contributing $8.6 million[107]. - Net income (loss) for the three-month period was $(1.9) million, a decrease of 157% compared to a profit of $2.8 million in the same period in 2024[150]. - Net loss for the three and nine-month periods ended September 30, 2025, was $1.9 million and $9.8 million, compared to net income of $2.8 million and a net loss of $2.2 million in the same periods in 2024[167]. Assets and Liabilities - Total assets increased to $485.8 million as of September 30, 2025, up from $438.4 million at the end of 2024[15]. - Current liabilities rose to $109.1 million, compared to $104.0 million at the end of 2024[15]. - Long-term debt increased to $344.4 million, up from $292.2 million at the end of 2024[15]. - The accumulated deficit increased to $451.3 million as of September 30, 2025, from $441.5 million at the end of 2024[15]. - Total liabilities classified as held-for-sale amount to $10.9 million, with a write-down loss of $5.9 million recognized in net operating income[40]. Cash Flow and Capital Expenditures - Cash flows from operating activities for the nine months ended September 30, 2025, amounted to $50.8 million, an increase from $24.8 million in the prior year[30]. - The company had cash on hand of $36.3 million as of September 30, 2025, with additional working capital of $23.0 million[29]. - Total capital and other long-lived asset expenditures for Q3 2025 were $8.0 million[107]. - Total capital and other long-lived asset expenditures for the nine months ended September 30, 2025, amounted to $27.6 million, reflecting ongoing investments in growth[109]. Debt and Financing - The company issued £270.0 million ($363.5 million) in Series B Notes on June 9, 2025, to refinance existing debt and for general corporate purposes[50]. - The Senior Notes bear interest at a rate of SONIA plus a margin of 5.50% to 6.00% and mature on June 9, 2030[54]. - The outstanding principal amount of senior debt is $363.5 million, with total long-term debt outstanding at $384.6 million as of September 30, 2025[76]. - The Company maintains a maximum consolidated senior secured net leverage ratio of 5.0x, with a reported net leverage of 2.83x as of September 30, 2025[59]. - A secured revolving credit facility of £17.8 million ($24.0 million) was established, set to terminate on December 9, 2029, for general corporate and working capital purposes[64]. Taxation - The effective income tax rate for Q3 2025 was 25.5%, compared to 27.3% in Q3 2024, resulting in a $0.7 million tax benefit for 2025 and a $1.0 million expense for 2024[13]. - For the nine months ended September 30, 2025, the effective tax rate was (44.5)%, leading to a $3.0 million tax expense, while in 2024, it was 14.5% with a $0.4 million benefit[13]. - The One Big Beautiful Bill Act ("OBBBA") signed on July 4, 2025, allows for a higher interest deduction, potentially lowering the Company's income tax expense[88]. Revenue Sources and Growth - Geographic revenue for the UK in the three months ended September 30, 2025, was $63.1 million, up from $59.7 million in the same period of 2024, showing a growth of approximately 5.7%[111]. - The company reported no customers representing at least 10% of total revenue during the three months ended September 30, 2025, indicating a diversified customer base[114]. - Gaming revenue for the three-month period increased by $3.8 million, with product sales up $2.7 million and service sales up $1.1 million[153]. - Interactive revenue for the three-month period increased by $4.5 million, driven by growth in the UK and North America[153]. - Total Gaming Revenue for the three-month period ended September 30, 2025, was £20.1 million, representing a 16% increase from £17.3 million in 2024[193]. Operational Metrics - The number of installed gaming terminals at the end of the period decreased by 1,022 (2.9%) to 33,853 for the three-month period ended September 30, 2025, compared to 34,875 in 2024[173]. - The average selling price per terminal decreased by £4,914 (66.2%) to £2,506 for the three-month period ended September 30, 2025, compared to £7,420 in 2024[173]. - Customer Gross Win per unit per day increased by £2.5 (2.6%) to £97.7 for the three-month period ended September 30, 2025, compared to £95.2 in 2024[173]. - Total Service Revenue for the nine-month period ended September 30, 2025, was $61.0 million, reflecting a 14% increase from $53.6 million in 2024[197]. Miscellaneous - The defined benefit pension scheme has a funding shortfall, with a recovery plan in place expected to eliminate the shortfall by October 31, 2026[100]. - The company identified immaterial errors in previously reported financial statements for the periods ended March 31, June 30, and September 30, 2024, leading to revisions in the financial statements[116].

Group 1 - The article does not provide any relevant content regarding company or industry insights [1]

Core Insights - Inspired Entertainment reported quarterly earnings of $0.28 per share, missing the Zacks Consensus Estimate of $0.30 per share, but showing an increase from $0.12 per share a year ago, resulting in an earnings surprise of -6.67% [1] - The company posted revenues of $86.2 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 2.21% and increasing from $78 million year-over-year [2] - The stock has underperformed, losing about 16.1% since the beginning of the year compared to the S&P 500's gain of 15.1% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.39 on revenues of $84.17 million, and for the current fiscal year, it is $0.64 on revenues of $309.21 million [7] - The estimate revisions trend for Inspired Entertainment was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6] Industry Context - The Technology Services industry, to which Inspired Entertainment belongs, is currently in the top 39% of over 250 Zacks industries, suggesting that stocks in the top 50% outperform those in the bottom 50% by more than 2 to 1 [8] - Another company in the same industry, Airship AI Holdings, Inc., is expected to report quarterly earnings of $0.02 per share, reflecting a year-over-year change of +133.3%, with revenues projected to be $8.3 million, up 189.2% from the previous year [9]

Financial Data and Key Metrics Changes - The company reported Q3 adjusted EBITDA of $32.3 million and trailing 12-month adjusted EBITDA of $110 million, both exceeding consensus expectations [3][10] - The trailing 12-month revenue reached $310 million, with an adjusted EBITDA margin of 35% [16][19] Business Line Data and Key Metrics Changes - The interactive segment achieved over 40% year-over-year adjusted EBITDA growth for the ninth consecutive quarter, with October being the largest revenue month in the segment's history [7][10] - The virtual sports segment showed stabilization for the second consecutive quarter, with expectations for year-over-year growth in Q4 [7][10] Market Data and Key Metrics Changes - The company is gaining market share in the U.K. and North America, with strong performance noted in both regions [7][13] - In North America, performance in Illinois and key Canadian provinces reached the highest levels since product introduction [15] Company Strategy and Development Direction - The sale of the holiday parks business is a strategic move to enhance adjusted EBITDA margins, reduce capital expenditures, and lower headcount by nearly 40% [8][19] - The company plans to increase game deliveries through a new interactive studio to meet customer demand for more content [11][49] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating potential tax changes in the U.K. gaming industry, citing past experiences with similar challenges [5][6] - The company anticipates significant operating leverage from the expansion of iGaming states, viewing it as a transformational opportunity [11][19] Other Important Information - A $25 million share buyback plan has been reauthorized as part of the company's future plans [8][19] - The company is focusing on organic growth without immediate expectations of M&A impacts, although it continues to evaluate potential tuck-in acquisitions [20][27] Q&A Session Summary Question: Can you walk through the revenue growth and margin expectations? - Management indicated that the holiday parks business's divestiture is the main driver for projected revenue changes, while other segments are expected to grow [22][23] Question: What gives confidence in the virtual sports segment's growth? - Adjustments with major customers and new customer additions in Brazil and Turkey are expected to drive growth in the virtual sports segment [24][25] Question: Can you elaborate on M&A strategy? - The company is focused on tuck-in acquisitions that enhance existing operations, avoiding large diversification deals [26][27] Question: What is the status of the interactive studio? - The new interactive studio will be developed organically, with plans to enhance content offerings [34][35] Question: How does the company view share buybacks? - The share buyback will be opportunistic, balancing leverage reduction and potential M&A opportunities [37][39] Question: What is the outlook for the interactive business growth? - The company expects continued strong growth in the interactive segment, driven by increased game delivery and customer demand [48][49]