Core Viewpoint - Momentum investing focuses on "buying high and selling higher," contrasting with traditional strategies of "buying low and selling high" [1] Group 1: Momentum Investing Characteristics - Momentum investing can be risky as stocks may lose momentum when their valuations exceed future growth potential, leading to potential losses for investors [2] - A safer approach involves investing in bargain stocks that exhibit recent price momentum, utilizing tools like the Zacks Momentum Style Score to identify such opportunities [3] Group 2: Case Study - Inspired Entertainment (INSE) - Inspired Entertainment (INSE) has shown a four-week price change of 9%, indicating strong investor interest and recent price momentum [4] - INSE has gained 2.9% over the past 12 weeks, with a beta of 1.4, suggesting it moves 40% more than the market in either direction, indicating fast-paced momentum [5] - INSE holds a Momentum Score of A, suggesting it is an opportune time to invest in the stock for potential gains [6] Group 3: Earnings Estimates and Valuation - INSE has a Zacks Rank 2 (Buy) due to upward revisions in earnings estimates, which typically attract more investor interest and drive stock prices higher [7] - The stock is currently trading at a Price-to-Sales ratio of 0.83, indicating it is undervalued, as investors pay only 83 cents for each dollar of sales [7] Group 4: Additional Opportunities - Besides INSE, there are other stocks that meet the criteria of the 'Fast-Paced Momentum at a Bargain' screen, suggesting further investment opportunities [8] - The Zacks Premium Screens offer over 45 different strategies to help identify winning stock picks based on various investing styles [9]

Core Viewpoint - Inspired Entertainment, Inc. is under investigation for potential violations of federal securities laws and unlawful business practices following the discovery of accounting errors in its financial statements dating back to January 1, 2021 [1][2]. Financial Reporting Issues - On November 8, 2023, Inspired Entertainment announced accounting errors related to the capitalization of software development costs under U.S. GAAP standards, necessitating a restatement of financial results [2]. - The company delayed the release of its third-quarter 2023 financial results to address these issues, and the Audit Committee determined that financial statements from January 1, 2021, onwards should no longer be relied upon [2]. Market Reaction - Following the announcement of the accounting errors, Inspired Entertainment's share price fell by $3.07, or approximately 29.52%, from $10.40 per share on November 8, 2023, to close at $7.33 on November 9, 2023 [3].

Core Viewpoint - Inspired Entertainment, Inc. has partnered with bet365 to launch the Hybrid Dealer Roulette game in the UK, marking a significant innovation in online gaming [1][4]. Group 1: Product Overview - Hybrid Dealer Roulette is a new online gaming product that combines casino and gameshow elements, designed to provide a live casino experience without the challenges of traditional live-dealer games [2]. - The game features high-quality Virtual CGI and pre-recorded real-life hosts, with a countdown timer for placing bets, ensuring all players see the same results simultaneously [2][3]. - This game is the second in the Hybrid Dealer series, showcasing advanced technology that allows for a realistic gaming experience without the need for dedicated studios and staffing [4]. Group 2: Market Position and Strategy - 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 [5]. - The partnership with bet365 is aimed at enhancing the online casino experience, reflecting the company's commitment to innovation and player engagement [4][7]. - bet365 employs over 9,000 staff globally and offers a diverse range of gaming options, indicating a strong market presence and a focus on player satisfaction [7].

NEW YORK, Dec. 17, 2024 (GLOBE NEWSWIRE) -- Inspired Entertainment, Inc. ("Inspired" or the "Company") (NASDAQ:INSE), a leading provider of B2B gaming content and systems, is pleased to announce the extension of its partnership with global aggregation leader Aristocrat Interactive to provide the Virginia Lottery with a comprehensive suite of Inspired V-Lottery scheduled Virtual Sports games, set to transform the iLottery gaming landscape. The supply shall be made via NeoPollard Interactive LLC, jointly owne ...

Inspired Entertainment, Inc. (NASDAQ:INSE) Q3 2024 Earnings Conference Call November 8, 2024 8:00 AM ET Company Participants Lorne Weil - Executive Chairman Brooks Pierce - President & Chief Executive Officer Conference Call Participants David Bain - B. Riley Securities Barry Jonas - Truist Securities Chad Beynon - Macquarie Jordan Bender - Citizens JMP Ryan Sigdahl - Craig-Hallum Capital Group Operator Good morning, everyone, and welcome to the Inspired Entertainment Third Quarter 2024 Conference Call. All ...

Revenue Performance - Third Quarter Revenue reached $78.0 million, a 4% increase from $74.8 million in the same period last year[1] - Total revenue for Q3 2024 was $78.0 million, a decrease of 20% compared to $97.5 million in Q3 2023[23] - Service revenue increased to $73.8 million in Q3 2024, up from $70.7 million in Q3 2023, representing a growth of 4%[23] - Product sales significantly dropped to $4.2 million in Q3 2024 from $26.8 million in Q3 2023, a decline of 84%[23] - The company reported total revenue of $78.0 million for the three months ended September 30, 2024, with Gaming contributing $23.3 million, Virtual Sports $11.2 million, Interactive $10.2 million, and Leisure $33.3 million[31] - For the nine months ended September 30, 2024, total revenue reached $216.7 million, with Gaming at $74.4 million (34.3% of total revenue) and Leisure at $79.3 million (36.6% of total revenue)[33] Segment Performance - Interactive revenue grew by 40% year-over-year, contributing $10.2 million to total revenue[8] - The EBITDA margin for the Interactive segment expanded to 67.6%, driven by strong growth in key markets[2] - The Gaming segment's EBITDA increased by 29% year-over-year, reaching $10.7 million despite modest revenue growth[8] - Virtual Sports revenue experienced a decline of 16%, totaling $11.2 million, while maintaining industry-leading margins of nearly 79%[4] - Leisure segment revenue grew by 5%, with an EBITDA margin improvement to 30.6%[5] - Adjusted EBITDA for the Gaming segment was $10.7 million, while the total adjusted EBITDA for the company was $30.1 million for the three months ended September 30, 2024[26] - The adjusted EBITDA margin for the Gaming segment was 29.2%, while Virtual Sports and Leisure segments contributed 26.3% and 19.9%, respectively, highlighting the varying profitability across segments[31] - Adjusted EBITDA for the nine months ended September 30, 2024, was $71.8 million, with Gaming contributing $28.3 million and Virtual Sports contributing $28.8 million[33] Financial Metrics - Adjusted EBITDA for the third quarter was $30.1 million, reflecting a 13% increase from $26.7 million in 2023[8] - Net income for Q3 2024 was $3.4 million, unchanged from Q3 2023, while the year-to-date net income was a loss of $0.3 million compared to a profit of $7.6 million in the same period last year[23] - Total assets increased to $388.6 million as of September 30, 2024, compared to $340.9 million at the end of 2023, reflecting a growth of 14%[24] - Current liabilities rose to $109.3 million in Q3 2024 from $100.7 million at the end of 2023, an increase of 6%[24] - Long-term debt increased to $312.4 million as of September 30, 2024, up from $295.6 million at the end of 2023, a rise of 6%[24] - Cash provided by operating activities decreased to $24.8 million in Q3 2024 from $43.0 million in Q3 2023, representing a decline of approximately 42.5%[25] - Total cash and restricted cash at the end of the period was $36.5 million, up from $26.4 million at the end of the previous year[25] - The company incurred stock-based compensation expense of $5.7 million in Q3 2024, down from $9.3 million in Q3 2023[25] - Net cash used in investing activities was $(29.5) million for the three months ended September 30, 2024, compared to $(39.4) million in the same period of 2023[25] - The company reported a decrease in accounts receivable by $(4.4) million in Q3 2024, compared to an increase of $11.7 million in Q3 2023[25] - Cash paid for interest during the period was $12.8 million, slightly up from $12.1 million in the previous year[25] - The company reported a total of $1.6 million in cash paid for income taxes during Q3 2024, down from $4.8 million in Q3 2023[25] Strategic Initiatives - The company announced a licensing agreement with the NHL to develop interactive Virtual Sports games, enhancing its sports partnerships[7] - A strategic partnership with FanDuel was established to integrate Inspired's Hybrid Dealer suite and develop proprietary content[7] - The company is focused on expanding digital businesses and optimizing land-based operations to drive sustainable growth[7] - The company anticipates potential new customers and expects to execute its strategic plan effectively in the upcoming quarters[20] - The company continues to focus on market expansion and new product development to drive future growth[32] Cost Management - Costs related to group restructuring amounted to $2.8 million for the nine months ended September 30, 2024, compared to $3.7 million in the same period of 2023, showing a reduction in restructuring expenses[30] - Stock-based compensation expense for the nine months ended September 30, 2024, totaled $5.7 million, compared to $9.3 million in the prior year, reflecting a decrease of approximately 39%[28] - Interest expense for the nine months ended September 30, 2024, was $20.9 million, consistent with the previous year, indicating stable financing costs[28] - The company incurred costs of group restatement totaling $10.7 million for the nine months ended September 30, 2024, which were not present in the prior year[30] Exchange Rates - The exchange rate for USD to GBP was reported at 1.30 for the three months ended September 30, 2024[26] - The exchange rate for $ to £ was 1.28 for the nine months ended September 30, 2024, compared to 1.24 for the same period in 2023, indicating a strengthening of the dollar against the pound[29]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period _______________ Commission File Number: 001-36689 INSPIRED ENTERTAINMENT, INC. (Exact name of registrant as specified in its charter) Registrant's telephone number, inclu ...

Core Insights - Inspired Entertainment, Inc. reported a third quarter revenue of $78.0 million, a 4% increase year-over-year, primarily driven by record Interactive revenue, which grew 40% [1][9] - The company achieved a net income of $3.4 million and an adjusted EBITDA of $30.1 million, reflecting a 13% increase from the previous year [1][9] - James Richardson has been appointed as the new Chief Financial Officer, effective January 1, 2025 [1][6] Financial Performance - Total revenue for the Gaming segment (excluding low margin hardware sales) was $23.3 million, up 4% from $22.4 million in 2023 [9] - Virtual Sports revenue decreased by 16% to $11.2 million, while Interactive revenue surged to $10.2 million, marking a 40% increase [9] - Leisure segment revenue grew by 5% to $33.3 million, with an EBITDA margin improvement to 30.6% [5][9] Segment Highlights - The Interactive segment's EBITDA increased by 47% year-over-year, with an EBITDA margin of 67.6%, showcasing strong growth in key markets such as the UK, North America, and mainland Europe [2][9] - The Gaming segment saw a 29% increase in EBITDA, attributed to an improved revenue mix, despite modest revenue growth [3][9] - Virtual Sports maintained high margins of nearly 79%, with ongoing investments in strategic growth initiatives, particularly in Brazil [4][9] Strategic Developments - The company successfully launched the MGM Bonus City game with BetMGM in Michigan and is advancing its Hybrid Dealer Roulette game in Canada with Loto-Québec [2][8] - A strategic partnership with FanDuel was announced to integrate Inspired's Hybrid Dealer suite and develop proprietary content [2][8] - A licensing agreement with the National Hockey League was established to develop interactive Virtual Sports games featuring NHL branding [7][8] Future Outlook - The company remains focused on expanding its digital businesses, optimizing land-based operations, and investing in new market opportunities [7] - The strong performance in the Interactive segment and improving profitability in Gaming provide confidence in sustainable growth and shareholder value creation [7]

Core Insights - Inspired Entertainment, Inc. has announced a long-term extension of its Virtual Sports partnership with OPAP, Greece's leading gaming company, which has been in place since 2017 [1][3] - The partnership allows Inspired to continue providing a diverse portfolio of Virtual Sports products across OPAP's network of over 3,000 retail venues in Greece [1][2] Company Overview - Inspired offers a wide range of gaming content, systems, and solutions for regulated gaming, betting, lottery, social, and leisure operators globally [6] - The company operates in approximately 35 jurisdictions and supplies gaming systems for around 50,000 gaming machines, as well as virtual sports products through more than 32,000 retail venues [6] Product Offerings - Inspired currently provides five Virtual Sports V-Play products for OPAP, including Soccer 3, Matchday, NBA Re-Play, Greyhounds, and Marbles [2] - The Virtual Sports offerings have been successful in enhancing the retail gaming experience in Greece [3] Future Outlook - Both Inspired and OPAP are optimistic about the future of Virtual Sports and the potential for continued success through innovation and collaboration [5]

NEW YORK, Oct. 02, 2024 (GLOBE NEWSWIRE) -- Inspired Entertainment, Inc. ("Inspired" or the "Company") (NASDAQ: INSE), a leading provider of B2B gaming content, systems, and solutions, announced Loto-Québec will be the first customer in Canada to offer the Hybrid Dealer Roulette game in the fourth quarter of 2024. Hybrid Dealer is a new, US patented, game-changing online product category that offers players casino and gameshow content without the challenges associated with live-dealer products. Hybrid Deale ...