Inspired(INSE) - 2025 Q1 - Quarterly Results

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]