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]

Third Quarter 2025 Earnings NOVEMBER 5, 2025 Safe Harbor / Non-GAAP Financial Disclosures Forward-Looking Statements This presentation includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, statements regarding our business strategy, plans and objectives and our expected or contemplated future operations, results, financial condition, beliefs and intentions. In addition, any statements ...

Revenue Performance - Revenue for Q3 2025 was $86.2 million, an increase of 12% year-over-year, primarily driven by record Interactive revenue, which rose 48% year-over-year[3] - Total revenue for Q3 2025 was $86.2 million, a 11.7% increase from $77.2 million in Q3 2024[34] - Service revenue increased to $79.4 million in Q3 2025, up from $72.9 million in Q3 2024, representing a growth of 17.9%[34] - Total revenue for the nine months ended September 30, 2025, was $226.9 million, a 5.1% increase from $214.1 million in the same period of 2024[50][51] Adjusted EBITDA - Adjusted EBITDA for Q3 2025 was $32.3 million, up 11% from the prior year, with Interactive Adjusted EBITDA reaching an all-time high, increasing 55% year-over-year[3] - Fourth quarter 2025 Adjusted EBITDA is expected to increase year-over-year, with full year 2025 Adjusted EBITDA projected to exceed $110 million[3] - Adjusted EBITDA for the nine months ended September 30, 2025, was $79.1 million, up from $69.1 million in the prior year, reflecting a 14.5% increase[50][51] Net Income and Loss - The company reported a net loss of $1.9 million for Q3 2025, compared to a net income of $2.8 million in Q3 2024[4] - Net loss for Q3 2025 was $1.9 million, compared to a net income of $2.8 million in Q3 2024[34] - The company reported a comprehensive loss of $1.0 million for Q3 2025, compared to a loss of $2.8 million in Q3 2024[34] - Net loss for the nine months ended September 30, 2025, was $9.8 million, compared to a net loss of $2.2 million for the same period in 2024[38] Debt and Liabilities - Long-term debt increased to $344.4 million as of September 30, 2025, compared to $292.2 million at December 31, 2024, marking an increase of 17.9%[36] - Total current liabilities rose to $109.1 million as of September 30, 2025, compared to $104.0 million at December 31, 2024, an increase of 4.9%[36] - The company incurred $365.7 million in new debt during the nine months ended September 30, 2025, to support its operations and growth initiatives[38] Operational Efficiency - The company is optimizing workforce efficiency, reducing headcount from 1,460 to 975 employees by year-end 2025[12] - Selling, general and administrative expenses were $31.7 million in Q3 2025, slightly up from $31.4 million in Q3 2024[34] Strategic Initiatives - The sale of the UK holiday parks business for £18.6 million is expected to close on November 7, 2025, supporting the transition to a higher-margin digital-led business model[3] - The divestiture of the lower-margin holiday parks business is expected to enhance capital flexibility and support future growth investments[17] - The company launched new products, including the Hybrid Dealer™, which won the Global Gaming Award for Innovative Product of the Year[2] - Inspired expanded its presence in Brazil by launching Virtual Sports with six new operators during Q3 2025[11] - A $25 million share repurchase program has been authorized by the Board, reflecting confidence in the company's growth prospects[3] Segment Performance - The Gaming segment contributed $76.0 million, accounting for 33.5% of total revenue, while the Sports segment generated $27.2 million, representing 12.0% of total revenue[50] - The Interactive segment's revenue was $40.8 million, contributing 18.0% to total revenue, and the Leisure segment accounted for $82.9 million, or 36.5% of total revenue[50] - Segment-level adjusted EBITDA for Gaming was $27.8 million, for Sports was $16.9 million, for Interactive was $23.5 million, and for Leisure was $10.9 million[50] Cash Flow - Net cash provided by operating activities was $50.8 million for the nine months ended September 30, 2025, compared to $24.8 million for the same period in 2024, indicating a 104.8% increase[38] - Cash and cash equivalents at the end of the period were $36.3 million, slightly down from $36.5 million at the end of the previous period[38] Market Outlook - The company anticipates potential new customers and expects to execute its strategic plan in various markets[30] - The company plans to continue focusing on market expansion and new product development to drive future growth[50][51] - The overall performance indicates a positive trend in revenue growth and profitability across key segments, positioning the company for future opportunities[50][51]

Core Insights - Inspired Entertainment, Inc. reported strong financial results for Q3 2025, with total revenue of $86.2 million, a 12% increase year-over-year, primarily driven by record Interactive revenue, which rose 48% [5][3] - The company is undergoing a strategic evolution towards a more digital and higher-margin business model, highlighted by the divestiture of its UK holiday parks business for £18.6 million [8][10] - The company expects continued growth in Adjusted EBITDA, projecting it to exceed $110 million for the full year 2025, supported by strong performance in the Interactive segment [5][11] Financial Performance - Total revenue for Q3 2025 was $86.2 million, up from $77.2 million in Q3 2024, with Interactive revenue reaching $15.1 million, a 48% increase [5][3] - Net operating income decreased to $9.7 million from $11.2 million year-over-year, while the company reported a net loss of $1.9 million compared to a net income of $2.8 million in the previous year [5][3] - Adjusted EBITDA for Q3 2025 was $32.3 million, an 11% increase from $29.2 million in Q3 2024, driven by a 55% increase in Interactive Adjusted EBITDA [5][6] Strategic Developments - The divestiture of the holiday parks business is part of the company's strategy to transition towards a digital-led model, which is expected to enhance margins and operational agility [8][10] - The company has formed a strategic partnership with Gaming Arts LLC to adapt its online slot titles for land-based markets, further reinforcing its digital growth strategy [10] - Inspired's Hybrid Dealer™ product won the Global Gaming Award for Innovative Product of the Year, showcasing the company's commitment to innovation [10] Market Position and Future Outlook - The company is gaining market share in its largest markets and anticipates further growth as it rolls out new titles and multiplayer experiences [2][5] - Management remains confident in its strategic direction, expecting fourth quarter 2025 Adjusted EBITDA to increase year-over-year, supported by strong momentum in the Interactive segment [11][5] - The company aims to optimize operations and reduce headcount from 1,460 to 975 employees by the end of 2025 to enhance efficiency and drive higher Adjusted EBITDA margins [15]

Core Insights - Inspired Entertainment, Inc. will report its financial results for Q3 2025 on November 5, 2025, before market opens [1] - A conference call and webcast will be held on the same day at 8:00 a.m. ET to discuss the results [1] Company Overview - Inspired Entertainment is a leading B2B provider of gaming content, technology, hardware, and services [4] - The company operates in approximately 35 jurisdictions globally, supplying gaming systems and content for around 50,000 gaming machines [4] - Inspired offers a diverse portfolio including gaming, Virtual Sports, interactive products, and leisure solutions, appealing to a wide range of players [4]

Core Insights - Inspired Entertainment, Inc. has launched its premium iGaming portfolio in West Virginia, expanding its North American presence and commitment to innovative gaming experiences [1][4] - The company offers popular iGaming slots such as Big Piggy Bank™ and Wolf It Up™, which have been well-received in other markets [2][3] - Inspired's strategy emphasizes responsible gaming and player engagement, aiming to enhance the gaming landscape in West Virginia [4] Company Overview - Inspired Entertainment provides a diverse portfolio of content, technology, hardware, and services for regulated gaming, betting, and lottery operators across various channels globally [5] - The company operates in approximately 35 jurisdictions, supplying gaming systems for around 74,000 gaming machines and virtual sports products through over 32,000 retail venues [5]

Core Insights - Gaming Arts LLC has announced a partnership with Inspired Entertainment, Inc. to adapt Inspired's successful online slot titles for land-based markets in North and South America, aiming to enhance player experience and engagement [1][3]. Company Overview - Gaming Arts is a provider of electronic gaming machines, electronic table games, bingo, keno, and emerging technologies, headquartered in Las Vegas, Nevada, and licensed in over 155 jurisdictions [5]. - Inspired Entertainment offers a diverse portfolio of gaming content, technology, and services across regulated gaming, betting, lottery, and leisure sectors, operating in approximately 35 jurisdictions worldwide [4]. Partnership Details - The collaboration will focus on adapting Inspired's online content for land-based jurisdictions where slot machines and video lottery terminals are legally permitted, excluding specific operations in Illinois, Oregon, and non-casino venues in Canada [2]. - Both companies are working to identify the first wave of titles to be introduced to the North American Class III land-based market, leveraging Inspired's portfolio of proven online performers [3]. Strategic Importance - This partnership is seen as a significant step for Gaming Arts in innovating and expanding its offerings, combining expertise in traditional gaming with Inspired's online success to create new player experiences [3]. - Inspired's strategy to extend its top-performing content across multiple channels aligns with this partnership, enhancing its reach in brick-and-mortar gaming destinations [3].

Core Insights - Inspired Entertainment, Inc. is set to showcase its latest advancements in gaming content and systems at the Global Gaming Expo (G2E) in Las Vegas from October 7-9, highlighting its diverse digital and retail portfolio [1] Product Innovations - The Hybrid Dealer line combines live dealer elements with RNG efficiency, utilizing CGI and green screens to create an engaging experience without physical studios, launched with operators like BetMGM and Caesars Entertainment [2] - The new Soccer 3.6™ release introduces Bet Builder™ mechanics for customized wagers, while the Fortune Flyer™ game offers fast-paced racing with multiple betting opportunities [3] Game Performance - The Valiant™ cabinet features games tailored for North American players, with Jaguar Gems™ being a key highlight at G2E, enhancing gameplay with pseudo-persistence [4] - The iGaming lineup includes Wolf It Up! Again™, with seasonal titles like Werewolf It Up!™ and Wolf It Up! Christmas™ emphasizing the company's focus on engaging content [6] Technological Advancements - The Gold Cash Free Spins Super Wheel™ introduces a new multiplayer persistence mechanic called Player Link™, allowing shared gameplay experiences across games [7] Company Vision - The President and CEO of Inspired emphasizes the company's commitment to delivering scalable solutions that enhance the gaming experience and drive growth and loyalty [8] Market Presence - Inspired operates in approximately 35 jurisdictions worldwide, supplying gaming systems for around 50,000 machines and virtual sports products through over 32,000 retail venues [8]

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]