Inspired Entertainment (INSE) Q1 2025 Earnings Call May 08, 2025 08:30 AM ET Speaker0 Good morning, everyone, and welcome to the Inspired Entertainment First Quarter twenty twenty five Conference Call. Please note, today's event is being recorded. Please refer to the company's safe harbor statement that appears in the first quarter twenty twenty five earnings press release, which is also available in the Investors section of the company's website at www.inthinc.com. This Safe Harbor statement also applies t ...

Revenue Performance - First Quarter 2025 revenue reached $60.4 million, primarily driven by record Interactive revenue, which increased by 49% year-over-year[8] - Total revenue for Q1 2025 was $60.4 million, a decrease of 3.1% from $62.3 million in Q1 2024[28] - Total revenue for the three months ended March 31, 2025, was $60.4 million, compared to $62.3 million for the same period in 2024, reflecting a decrease of approximately 3.1%[39] Segment Performance - The Gaming segment reported a revenue of $21.7 million, a decrease of 6% compared to the previous year, while the Virtual Sports segment saw a 30% decline in revenue to $8.7 million[10] - The Leisure segment's revenue decreased by 4% year-over-year to $17.9 million, attributed to seasonal factors[10] - The interactive segment's revenue was $12.1 million, contributing 20.0% to total revenue[39] - The gaming segment contributed $21.7 million to total revenue, accounting for 35.9% of total revenue for the period ended March 31, 2025[39] - The sports segment generated $8.7 million in revenue, representing 14.4% of total revenue for the same period[39] - The leisure segment reported revenue of $17.9 million, making up 29.7% of total revenue[39] Profitability Metrics - Adjusted EBITDA for the first quarter was $18.4 million, up 19% from the previous year, with Interactive Adjusted EBITDA growing 75% year-over-year[8] - Adjusted EBITDA for Q1 2025 was $18.4 million, compared to $15.5 million in Q1 2024, representing a 18.7% increase[34] - The adjusted EBITDA for the three months ended March 31, 2025, was $18.4 million, compared to $15.5 million in the same period of 2024, representing an increase of approximately 18.6%[39][40] - The Interactive segment's Adjusted EBITDA margin expanded approximately 1,000 basis points to 64%, showcasing the scalability of digital operations[3] Net Income and Loss - Adjusted net income for the first quarter was $3.8 million, compared to a loss of $2.8 million in the previous year[10] - Net loss for Q1 2025 was $0.1 million, significantly improved from a net loss of $6.4 million in Q1 2024[28] - For the three-month period ended March 31, 2025, the company reported an adjusted net income of $3.8 million, a significant improvement from a net loss of $2.8 million in the same period of 2024[37] - The adjusted net income per diluted share for the three months ended March 31, 2025, was $0.13, compared to a loss of $0.10 per diluted share in the same period of 2024[37] Cash Flow and Assets - The company reported a net cash provided by operating activities of $25.5 million in Q1 2025, compared to $6.0 million in Q1 2024, an increase of 325%[32] - Cash at the end of Q1 2025 increased to $39.0 million from $29.3 million at the end of Q4 2024, a growth of 33.8%[30] - Total assets as of March 31, 2025, were $458.9 million, up from $438.4 million at the end of 2024, reflecting a 4.0% increase[30] Liabilities and Debt - The company entered into a commitment letter for £287.8 million in private credit facilities to refinance existing debt, including a new £270 million senior secured term debt[7] - Current liabilities increased to $113.1 million in Q1 2025 from $104.0 million in Q4 2024, a rise of 8.8%[30] - The company’s total liabilities increased to $461.1 million as of March 31, 2025, compared to $441.7 million at the end of 2024, an increase of 4.4%[30] Strategic Initiatives - The company is focusing on growth initiatives in Brazil's Virtual Sports market, adapting to new regulatory changes[5] - New partnerships were established, including an extension with Rush Street Interactive to provide online content in Mexico and Delaware[12] - The company anticipates continued growth in its Interactive and Gaming segments, with strategic initiatives in Virtual Sports and Leisure for sustainable growth[9] Shareholder Information - The weighted average number of shares outstanding during Q1 2025 was 28,973,938, up from 28,603,734 in Q1 2024[28] - The weighted average number of shares outstanding (diluted) increased to 29,689,818 from 28,603,734 year-over-year[37] - The company incurred $30.3 million in selling, general and administrative expenses in Q1 2025, down from $34.2 million in Q1 2024, a decrease of 11.4%[28] - The corporate allocation for the three months ended March 31, 2025, was $(6.6) million, compared to $(7.6) million in the same period of 2024[39][40]

First Quarter Revenue of $60.4 million, driven primarily by record Interactive revenue, up 49% year-over-yearFirst Quarter Net Loss of $0.1 million and Adjusted Net Income of $3.8 millionFirst Quarter Adjusted EBITDA of $18.4 million, up 19% from last year driven by record Interactive Adjusted EBITDA, up 75% year-over-year Entered into commitment letter for new £270 million senior secured debt to refinance existing debt NEW YORK, May 08, 2025 (GLOBE NEWSWIRE) -- Inspired Entertainment, Inc. (“Inspired” or ...

The market expects Inspired Entertainment (INSE) to deliver a year-over-year decline in earnings on higher revenues when it reports results for the quarter ended March 2025. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.The earnings report, which is expected to be released on May 8, 2025, might help the stock move higher if these key number ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2024 or ☐ TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _____ to _____ COMMISSION FILE NUMBER: 001-36689 INSPIRED ENTERTAINMENT, INC. (Exact name of registrant as specified in its charter) | Delaware | 47-1025534 | | --- | -- ...

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NEW YORK, March 18, 2025 (GLOBE NEWSWIRE) -- Inspired Entertainment, Inc. ("Inspired" or the "Company") (NASDAQ:INSE), a leading provider of gaming content, systems, and solutions, is pleased to announce the extension of its partnership with Buzz Bingo, Britain's leading omni-channel bingo operator. This contract extension marks a significant milestone in the long-standing collaboration between Inspired and Buzz Bingo, ensuring the supply of 500 Category B3 and C terminals across 79 Buzz Bingo venues. This ...

INSPIRED REPORTS FOURTH QUARTER AND YEAR END 2024 RESULTS New York, New York, March 17, 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 and fiscal year ended December 31, 2024. "We ended the year with a fourth quarter that reflects the strength and resilience of our diversified business model," said Lorne Weil, Executive Chairman of Inspir ...

Financial Data and Key Metrics Changes - Adjusted EBITDA for Q4 was $30.9 million, up 22% from the previous year, with full-year adjusted EBITDA of $100.1 million compared to $99.3 million for 2023 [6][8] - The company received a letter from the SEC indicating that their inquiry is now closed, with no further action required [7] Business Line Data and Key Metrics Changes - The Interactive business saw revenue and EBITDA growth of 45% and 105% respectively in Q4, accounting for approximately 22% of overall company EBITDA [8][12] - The Digital business is expected to approach 60% of EBITDA by year-end, driven by growth in Interactive and modest acceleration in Virtual Sports [12][29] - The land-based gaming segment had EBITDA growth of 42% year-over-year in Q4, attributed to gaming hardware sales [25] Market Data and Key Metrics Changes - The company noted that in states with both iGaming and Sports Betting, iGaming outperforms Sports Betting by a ratio of 4 or 5 to 1 [9] - The company is optimistic about the potential growth in the Brazilian market, which is expected to become a significant contributor [53] Company Strategy and Development Direction - The company is focusing on enhancing product development in the Virtual Sports segment, which had previously been under-invested due to the success of Interactive [74] - The company is exploring the sale of its holiday parks segment while maintaining a strong performance in other business areas [38] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of the business structure, with over 85% of revenue being contractually recurring [13] - The company anticipates that the eventual spread of iGaming legislation across states is inevitable, providing limitless opportunities [10] Other Important Information - The company plans to file its 10-K by the end of the week following the earnings call [7] - The company is working on a new credit facility expected to be more flexible and likely at floating rates [16] Q&A Session Summary Question: Challenges in Virtual Sports segment - Management acknowledged that the struggles are primarily driven by one customer but noted stabilization and modest growth in the rest of the business [32][34] Question: Update on M&A strategy - The company is exploring the sale of holiday parks and remains open to M&A opportunities that fit their criteria [36][39] Question: U.K. white paper impact - Management expects minimal impact from new stake limits and is hopeful for liberalization of B3 cabinets, which would benefit sales [42][44] Question: Cash balance guidance - Management indicated that cash balance may be slightly lower than previously guided due to delays in receivables [45][46] Question: CapEx needs and cash flow - CapEx needs are planned and budgeted, with no unexpected expenses anticipated [60][62] Question: Opportunities in lottery business - The company is excited about the launch of a new cloud-based lottery system and sees significant growth potential in the lottery segment [64][68]

Core Viewpoint - Inspired Entertainment reported quarterly earnings of $2.33 per share, significantly exceeding the Zacks Consensus Estimate of $0.29 per share, marking an earnings surprise of 703.45% compared to break-even earnings per share a year ago [1] - The company posted revenues of $83 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 6.14% and showing an increase from year-ago revenues of $81.2 million [2] Financial Performance - Over the last four quarters, Inspired Entertainment has surpassed consensus EPS estimates only once [2] - The company has topped consensus revenue estimates two times over the last four quarters [2] - The current consensus EPS estimate for the upcoming quarter is -$0.03 on revenues of $66.2 million, and for the current fiscal year, it is $0.81 on revenues of $305 million [7] Market Performance - Inspired Entertainment shares have declined approximately 7.5% since the beginning of the year, while the S&P 500 has decreased by 4.1% [3] - The stock currently holds a Zacks Rank 2 (Buy), indicating expectations of outperforming the market in the near future [6] Industry Outlook - The Technology Services industry, to which Inspired Entertainment belongs, is currently ranked in the top 27% of over 250 Zacks industries, suggesting a favorable outlook [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]