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, 2022 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 | | --- | -- ...

Inspired Entertainment, Inc. (NASDAQ:INSE) Q4 2022 Earnings Conference Call March 13, 2023 9:00 AM ET Company Participants Lorne Weil - Executive Chairman Brooks Pierce - President and Chief Executive Officer Stewart Baker - Chief Financial Officer Eric Carrera - Vice President of Corporate Development Conference Call Participants Barry Jonas - Truist Securities David Bain - B. Riley Ryan Sigdahl - Craig Hallum Capital Group Jordan Bender - JMP Securities Chad Beynon - Macquarie Operator Good morning, every ...

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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, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period _______________ (Former name or former address, if changed since last report) Indicate by check mark whether the registrant (1) has filed all reports required to be filed ...

Financial Data and Key Metrics Changes - Revenue grew 72% year-over-year to just over $71 million, with a functional currency increase of 91% [25] - Adjusted EBITDA increased by 262% on a functional currency basis, translating to 227% in reported numbers compared to the prior year [28] - Net income for the quarter was $7.5 million, equating to $0.28 earnings per share, compared to a loss of $1.94 in the prior year [30] Business Line Data and Key Metrics Changes - Virtual Sports revenue grew 90% year-over-year in functional currency, driven by strong performance in both online and retail segments [14][26] - Interactive revenue increased by 12% over the prior year on a constant currency basis, with growth expected from new customer integrations [17] - Leisure segment revenue grew 157% in functional currency, benefiting from fully opened operations compared to the previous year [25] Market Data and Key Metrics Changes - North America is now the second largest market for the company’s iGaming business, showing significant growth potential [18] - The company launched its first iLottery title with Loto Quebec, which has become a top performer in their portfolio [19] Company Strategy and Development Direction - The company is focusing on expanding its digital businesses, particularly in Virtual Sports and iLottery, to drive higher margin contributions [13][19] - Management is optimistic about the potential for growth in existing businesses while remaining cautious about capital allocation for M&A opportunities [42][46] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate potential economic downturns, citing strong operating margins and a solid contract portfolio [11] - The outlook for the company remains positive, with expectations of continued growth driven by product enhancements and market expansions [85] Other Important Information - The company repurchased approximately 734,000 shares at an average price of $9.73 under its $25 million repurchase program [6][31] - The company has launched new products and secured contracts with key customers, indicating strong demand and market positioning [20][21] Q&A Session Summary Question: Potential upside from new contracts in the UK for gaming and leisure - Management indicated that the most significant upside is from Greene King, with a 6% increase in footprint expected [36][37] Question: Impact of player protection initiatives on interactive business - Management noted that while some operators are preemptively adjusting to new regulations, the company has seen growth, suggesting it is gaining market share [39][40] Question: Capital allocation priorities and M&A opportunities - Management is open to M&A if it aligns strategically, but emphasizes the importance of driving growth in existing businesses first [42][46] Question: Details on the William Hill agreement and Vantage cabinets - Management confirmed a trial of 400 terminals with William Hill, with positive performance expected to lead to further agreements [50][51] Question: iLottery opportunities and future product releases - Currently, only one iLottery title is live with Loto Quebec, with plans for additional titles in the near future [73][74] Question: Growth in virtual sports and sustainability of performance - Management attributed growth to a combination of new products, geographic expansion, and increased marketing efforts [60][61] Question: Leisure segment performance amid travel rebound - Management noted that while travel is increasing, domestic leisure activities are also benefiting the business, particularly in the pub segment [63][66] Question: Supply chain issues and inventory levels - Management acknowledged elevated inventory levels but expects to normalize by year-end, with no significant impact on sales anticipated [78][79]

[PART I. FINANCIAL INFORMATION](index=6&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) This section presents the company's financial performance, condition, and cash flows, along with management's analysis, market risk disclosures, and internal control assessments [FINANCIAL STATEMENTS](index=6&type=section&id=ITEM%201.%20FINANCIAL%20STATEMENTS) The company's financial statements for the period ended June 30, 2022, show a significant year-over-year improvement, with revenue increasing substantially and a shift from net loss to net income [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) This section presents the company's financial position, detailing assets, liabilities, and stockholders' deficit as of June 30, 2022, and December 31, 2021 Condensed Consolidated Balance Sheet Highlights (in millions) | Account | June 30, 2022 | December 31, 2021 | | :--- | :--- | :--- | | **Assets** | | | | Cash | $31.8 | $47.8 | | Total current assets | $112.2 | $126.4 | | Total assets | $300.3 | $331.7 | | **Liabilities and Stockholders' Deficit** | | | | Total current liabilities | $63.4 | $81.5 | | Long-term debt | $279.2 | $309.0 | | Total liabilities | $357.4 | $409.7 | | Total stockholders' deficit | $(57.1) | $(78.0) | [Condensed Consolidated Statements of Operations and Comprehensive (Loss) Income](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20(Loss)%20Income) This section outlines the company's revenue, operating income, net income, and earnings per share for the three and six months ended June 30, 2022 and 2021 Statement of Operations Highlights (in millions, except per share data) | Metric | Three Months Ended June 30, 2022 | Three Months Ended June 30, 2021 | Six Months Ended June 30, 2022 | Six Months Ended June 30, 2021 | | :--- | :--- | :--- | :--- | :--- | | Total revenue | $71.3 | $41.5 | $131.9 | $64.3 | | Net operating income (loss) | $13.4 | $(9.7) | $20.3 | $(21.9) | | Net income (loss) | $7.5 | $(43.8) | $9.0 | $(60.5) | | Net income (loss) per share - diluted | $0.26 | $(1.94) | $0.31 | $(2.68) | [Condensed Consolidated Statements of Cash Flows](index=11&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) This section details the company's cash flows from operating, investing, and financing activities for the six months ended June 30, 2022 and 2021 Cash Flow Summary for Six Months Ended June 30 (in millions) | Cash Flow Activity | 2022 | 2021 | | :--- | :--- | :--- | | Net cash provided by (used in) operating activities | $15.9 | $(12.8) | | Net cash used in investing activities | $(22.0) | $(12.2) | | Net cash (used in) provided by financing activities | $(5.4) | $1.0 | | Net decrease in cash | $(16.0) | $(22.6) | [Notes to Condensed Consolidated Financial Statements](index=13&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed explanations and additional information supporting the condensed consolidated financial statements, including business description, significant transactions, and customer concentration - The company is a global gaming technology company supplying B2B content and products to regulated lottery, betting, and gaming operators[27](index=27&type=chunk) - In January 2022, the Company sold its Italian VLT business for **€1.1 million**, recognizing a profit on disposal of **€0.8 million**[33](index=33&type=chunk) - On May 10, 2022, the Board authorized a Share Repurchase Program of up to **$25.0 million**; during Q2 2022, the company repurchased **485,848 shares** for approximately **$5.1 million**[54](index=54&type=chunk)[55](index=55&type=chunk) - For the six months ended June 30, 2022, one customer, served by the Virtual Sports and Interactive segments, represented **13% of the Company's revenues**[84](index=84&type=chunk) [MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS](index=27&type=section&id=ITEM%202.%20MANAGEMENT%27S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS) The company experienced significant revenue growth and a return to profitability in the first half of 2022, largely due to the recovery of its land-based operations from COVID-19 restrictions and continued strength in its online businesses [Overall Company Results](index=29&type=section&id=Overall%20Company%20Results) This section provides an overview of the company's financial performance, highlighting significant improvements in revenue and profitability for the period Overall Company Performance vs. Prior Year (in millions) | Metric | Q2 2022 | Q2 2021 | H1 2022 | H1 2021 | | :--- | :--- | :--- | :--- | :--- | | Total Revenue | $71.3 | $41.5 | $131.9 | $64.3 | | Net Operating Income (Loss) | $13.4 | $(9.7) | $20.3 | $(21.9) | | Net Income (Loss) | $7.5 | $(43.8) | $9.0 | $(60.5) | - The significant increase in net income for Q2 2022 was driven by a **$24.6 million increase in net operating income**, a **$15.4 million decrease in interest expense**, and a **$10.4 million reduction** from the change in fair value of warrant liability which no longer exists[125](index=125&type=chunk) [Segment Results](index=33&type=section&id=Segment%20Results) This section details the financial performance of each operating segment, including Gaming, Virtual Sports, Interactive, and Leisure, highlighting revenue growth drivers - Gaming revenue increased **75% in Q2** (functional currency basis), driven by post-COVID recovery and a new lottery business[162](index=162&type=chunk)[165](index=165&type=chunk) - Virtual Sports revenue grew **90% in Q2** (functional currency basis), with strong performance in both online (**+99%**) and retail (**+62%**) channels[175](index=175&type=chunk)[185](index=185&type=chunk) - Interactive revenue grew **11.7% in Q2** (functional currency basis), supported by expansion into North American markets including Pennsylvania[194](index=194&type=chunk)[195](index=195&type=chunk) - Leisure revenue surged **157% in Q2** (functional currency basis) as holiday parks and pubs reopened without restrictions[213](index=213&type=chunk)[216](index=216&type=chunk) [Non-GAAP Financial Measures](index=48&type=section&id=Non-GAAP%20Financial%20Measures) This section presents non-GAAP financial measures, specifically Adjusted EBITDA, providing a segment-level view of operational profitability Adjusted EBITDA by Segment - Q2 2022 vs Q2 2021 (in millions) | Segment | Q2 2022 Adj. EBITDA | Q2 2021 Adj. EBITDA | | :--- | :--- | :--- | | Gaming | $9.5 | $3.5 | | Virtual Sports | $12.0 | $6.4 | | Interactive | $3.1 | $3.6 | | Leisure | $7.7 | $(0.2) | | Corporate | $(6.2) | $(5.3) | | **Total** | **$26.1** | **$8.0** | [Liquidity and Capital Resources](index=51&type=section&id=Liquidity%20and%20Capital%20Resources) This section discusses the company's financial liquidity, capital resources, and contractual obligations, including cash position and credit facility availability - As of June 30, 2022, the company had liquidity of **$31.8 million in cash** and **$24.3 million available** under its undrawn revolver facility[240](index=240&type=chunk) - The company was in compliance with its RCF Financial Covenant, which requires maintaining a maximum consolidated senior secured net leverage ratio[244](index=244&type=chunk) Contractual Obligations as of June 30, 2022 (in millions) | Obligation | Total | Less than 1 yr | 1-3 years | 3-5 years | More than 5 yrs | | :--- | :--- | :--- | :--- | :--- | :--- | | Interest on long term debt | $89.8 | $22.4 | $44.9 | $22.5 | $ - | | Senior bank debt - principal | $285.4 | $ - | $ - | $285.4 | $ - | | Finance lease payments | $2.5 | $1.0 | $1.1 | $0.4 | $ - | | Operating lease payments | $8.8 | $2.7 | $3.2 | $1.3 | $1.6 | | **Total** | **$387.7** | **$26.4** | **$49.9** | **$309.8** | **$1.6** | [QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK](index=56&type=section&id=ITEM%203.%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) The company's main market risks are foreign currency exchange rate fluctuations (primarily GBP:USD) and interest rate risk, with external debt at a fixed rate mitigating current interest rate exposure - The company's external borrowings of **£235.0 million** are at a fixed rate, mitigating interest rate risk[253](index=253&type=chunk) - The company's functional currency is GBP, but its reporting currency is USD; a hypothetical **10% weakening of GBP against the USD** would result in an unfavorable impact to trading operational results of approximately **$0.7 million**[256](index=256&type=chunk) [CONTROLS AND PROCEDURES](index=57&type=section&id=ITEM%204.%20CONTROLS%20AND%20PROCEDURES) Management concluded that the company's disclosure controls and procedures were not effective as of June 30, 2022, due to an un-remediated material weakness, though financial statements are believed to be fairly presented - Certifying Officers concluded that disclosure controls and procedures were not effective as of June 30, 2022, due to a material weakness identified in the Annual Report on Form 10-K filed on March 31, 2022[259](index=259&type=chunk) - Management believes the interim consolidated financial statements included in this report fairly present the company's financial condition and results of operations, notwithstanding the identified material weakness[260](index=260&type=chunk) [PART II. OTHER INFORMATION](index=57&type=section&id=PART%20II.%20OTHER%20INFORMATION) This section details legal matters, updated risk factors, equity sales, and required regulatory exhibits [LEGAL PROCEEDINGS](index=57&type=section&id=ITEM%201.%20LEGAL%20PROCEEDINGS) The company states that it is not currently involved in any material legal proceedings or lawsuits that have arisen outside the ordinary course of its business - As of the report date, the Company has no material legal matters arising in the ordinary course of business[263](index=263&type=chunk) [RISK FACTORS](index=57&type=section&id=ITEM%201A.%20RISK%20FACTORS) This section provides an update to existing risk factors, highlighting the potential adverse effects of the uncertain global economic climate on the company's business, including slower consumer spending and supply chain volatility - The company identifies several risks related to global economic conditions, including slower consumer spending, reduced demand, and potential impacts on capital and credit markets from the conflict between Russia and Ukraine[265](index=265&type=chunk) - Other specified risks include volatility in foreign currency exchange rates, commodity prices, and potential financial difficulties for operators, distributors, or manufacturers in the supply chain[266](index=266&type=chunk) [UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS](index=59&type=section&id=ITEM%202.%20UNREGISTERED%20SALES%20OF%20EQUITY%20SECURITIES%20AND%20USE%20OF%20PROCEEDS) The company details its share repurchase activities for the second quarter of 2022 under a program authorized on May 10, 2022, repurchasing 485,848 shares for approximately $5.1 million Share Repurchase Activity - Q2 2022 | Period | Number of shares purchased | Average price paid per share | Maximum dollar value remaining under program | | :--- | :--- | :--- | :--- | | May 1-31, 2022 | 136,376 | $10.30 | $23,598,399 | | June 1-30, 2022 | 349,472 | $10.67 | $19,875,729 | | **Total** | **485,848** | **$10.57** | **$19,875,729** | [EXHIBITS](index=60&type=section&id=ITEM%206.%20EXHIBITS) This section lists the exhibits filed as part of the Quarterly Report on Form 10-Q, including certifications from the Principal Executive and Financial Officers and Inline XBRL documents - The report includes required certifications from the Principal Executive Officer (**31.1, 32.1**) and Principal Financial Officer (**31.2, 32.2**)[272](index=272&type=chunk)

Company Overview - Inspired Entertainment is a leading B2B provider of gaming content, systems, and solutions across online/mobile and retail channels [4] - The company generates recurring revenues through long-term contracts [4, 21] Growth Drivers - The company launched iGaming and Online Virtuals in Ontario in Q2 2022 [8] - The company continues to grow capital efficient Interactive and Virtual Sports businesses [8] - The company was awarded a 720-unit Valor™ terminal award in Saskatchewan [8] - The company announced Loto-Quebec as its first iLottery customer [8] Financial Performance (Q1 2022) - Virtual Sports Adjusted EBITDA increased 90% year-over-year to $9.4 million from $4.9 million in Q1 2021 [23] - Q1 2022 Adjusted EBITDA was $20.1 million, a 166% increase over Q1 2021's $3.9 million [24] - Q1 2022 Adjusted EBITDA margin was 33%, a significant improvement over 17% in Q1 2021 [24] Market Capitalization (as of May 9, 2022) - Equity Market Capitalization was $246.3 million [28] - Net Debt was $279.3 million [28] - Implied Enterprise Value was $525.6 million [28]

Inspired Entertainment (NASDAQ:INSE) Q1 2022 Earnings Conference Call May 11, 2022 8:00 AM ET Company Participants Stewart Frank – Chief Financial Officer Brooks Pierce – Chief Operating Officer Lorne Weil – Executive Chairman Conference Call Participants Barry Jonas – Truist Securities Ryan Sigdahl – Craig Hallum Capital Group Chad Beynon – Macquarie Edward Engel – ROTH Capital Operator Good morning, everyone and welcome to the Inspired Entertainment's First Quarter 2022 Conference Call. All participants w ...

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 March 31, 2022 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) | Delaware | 47-1025534 | | --- | --- | ...

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, 2021 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 | | --- | -- ...