Inspired(US:INSE)2025-08-06 11:30Revenue Performance - Total revenue for Q2 2025 was $80.3 million, a 7% increase year-over-year, primarily driven by record Interactive revenue, which rose 45%[7] - Total revenue for Q2 2025 was $80.3 million, a 7.4% increase from $74.8 million in Q2 2024[31] - Service revenue increased to $73.8 million in Q2 2025, up from $64.9 million in Q2 2024, representing a 13.7% growth[31] - For the three-month period ended June 30, 2025, the company reported a total revenue of $80.3 million, an increase from $74.8 million in the same period of 2024, representing a growth of 6.6%[44][45] - For the six-month period ended June 30, 2025, total revenue reached $140.7 million, compared to $137.0 million for the same period in 2024, indicating a growth of 2.7%[46][47] Adjusted EBITDA and Profitability - Adjusted EBITDA for Q2 2025 was $28.4 million, up 15% from the previous year, with Interactive Adjusted EBITDA increasing 49%[7] - The Interactive segment's Adjusted EBITDA margin expanded to 67%, reflecting a 200 basis point increase compared to the prior year[3] - Adjusted EBITDA for the three-month period was $28.4 million, up from $24.7 million in the same period of 2024, reflecting a year-over-year increase of 14.9%[44][45] - Adjusted EBITDA for the Gaming segment for the six months ended June 30, 2025, was $22.1 million, compared to $15.9 million in the same period of 2024, marking a 39% increase[39][40] - Adjusted net loss income for the three-month period was $(5.6) million, a decrease from an adjusted net income of $5.2 million in the prior year[42] Segment Performance - Gaming segment Adjusted EBITDA increased 35% year-over-year, supported by the successful rollout of Vantage cabinets with William Hill[4] - Leisure segment revenue increased by 11% year-over-year, with year-to-date Adjusted EBITDA up 19% compared to the same period last year[6] - The sports segment generated $9.2 million in revenue for the three months ended June 30, 2025, which is a decrease from $11.7 million in the same period of 2024[44][45] - Virtual Sports revenue saw a decline of 21% year-over-year, but localized content in Brazil is showing early promise[10] Financial Position and Debt - A comprehensive debt refinancing was completed, issuing £270 million in senior secured notes and securing a new £17.8 million revolving credit facility[7] - Long-term debt rose to $349.6 million as of June 30, 2025, compared to $292.2 million at December 31, 2024[33] - The company introduced $365.7 million in new debt during the six months ended June 30, 2025, while repaying $318.3 million of long-term debt, highlighting a strategic approach to financing[35] - The company reported a total of $17.4 million in cash paid for interest during the six months ended June 30, 2025, compared to $12.8 million in the same period of 2024, indicating higher financing costs[35] Cash Flow and Liquidity - Net cash provided by operating activities significantly improved to $40.7 million compared to $3.6 million in the prior year, indicating a substantial increase in operational efficiency[35] - The cash balance at the end of the period increased to $46.3 million from $23.5 million at the end of June 30, 2024, showing improved liquidity[35] - Cash and accounts receivable totaled $46.3 million and $49.0 million, respectively, as of June 30, 2025[33] Market and Strategic Developments - The company secured a five-year partnership with Jenningsbet to supply approximately 570 Vantage terminals[7] - The company launched Canada's first branded Hybrid Dealer Roulette game with Loto-Québec, marking a significant milestone in iGaming content expansion[12] - The Interactive segment's growth was driven by approximately 50% from North America, indicating strong market demand[12] - The company operates in approximately 35 jurisdictions worldwide, supplying gaming systems for around 50,000 gaming machines[26] Losses and Adjustments - Net loss for Q2 2025 was $7.8 million, compared to a net income of $1.4 million in Q2 2024[31] - For the six months ended June 30, 2025, the net loss increased to $7.9 million from a net loss of $5.0 million in the same period of 2024, representing a 58% increase in losses[35] - The company reported an adjusted net loss income per diluted share of $(0.19) for the three months ended June 30, 2025, compared to an adjusted net income per diluted share of $0.18 in the prior year[42] Exchange Rates - The exchange rate for the dollar to pound was reported at 1.34 for the three months ended June 30, 2025, impacting the financial results in GBP terms[37] - The exchange rate for USD to GBP was 1.34 for the three months ended June 30, 2025, compared to 1.26 for the same period in 2024[42]