Inspired(US:INSE)2025-11-05 12:55Revenue Performance - Revenue for Q3 2025 was $86.2 million, an increase of 12% year-over-year, primarily driven by record Interactive revenue, which rose 48% year-over-year[3] - Total revenue for Q3 2025 was $86.2 million, a 11.7% increase from $77.2 million in Q3 2024[34] - Service revenue increased to $79.4 million in Q3 2025, up from $72.9 million in Q3 2024, representing a growth of 17.9%[34] - Total revenue for the nine months ended September 30, 2025, was $226.9 million, a 5.1% increase from $214.1 million in the same period of 2024[50][51] Adjusted EBITDA - Adjusted EBITDA for Q3 2025 was $32.3 million, up 11% from the prior year, with Interactive Adjusted EBITDA reaching an all-time high, increasing 55% year-over-year[3] - Fourth quarter 2025 Adjusted EBITDA is expected to increase year-over-year, with full year 2025 Adjusted EBITDA projected to exceed $110 million[3] - Adjusted EBITDA for the nine months ended September 30, 2025, was $79.1 million, up from $69.1 million in the prior year, reflecting a 14.5% increase[50][51] Net Income and Loss - The company reported a net loss of $1.9 million for Q3 2025, compared to a net income of $2.8 million in Q3 2024[4] - Net loss for Q3 2025 was $1.9 million, compared to a net income of $2.8 million in Q3 2024[34] - The company reported a comprehensive loss of $1.0 million for Q3 2025, compared to a loss of $2.8 million in Q3 2024[34] - Net loss for the nine months ended September 30, 2025, was $9.8 million, compared to a net loss of $2.2 million for the same period in 2024[38] Debt and Liabilities - Long-term debt increased to $344.4 million as of September 30, 2025, compared to $292.2 million at December 31, 2024, marking an increase of 17.9%[36] - Total current liabilities rose to $109.1 million as of September 30, 2025, compared to $104.0 million at December 31, 2024, an increase of 4.9%[36] - The company incurred $365.7 million in new debt during the nine months ended September 30, 2025, to support its operations and growth initiatives[38] Operational Efficiency - The company is optimizing workforce efficiency, reducing headcount from 1,460 to 975 employees by year-end 2025[12] - Selling, general and administrative expenses were $31.7 million in Q3 2025, slightly up from $31.4 million in Q3 2024[34] Strategic Initiatives - The sale of the UK holiday parks business for £18.6 million is expected to close on November 7, 2025, supporting the transition to a higher-margin digital-led business model[3] - The divestiture of the lower-margin holiday parks business is expected to enhance capital flexibility and support future growth investments[17] - The company launched new products, including the Hybrid Dealer™, which won the Global Gaming Award for Innovative Product of the Year[2] - Inspired expanded its presence in Brazil by launching Virtual Sports with six new operators during Q3 2025[11] - A $25 million share repurchase program has been authorized by the Board, reflecting confidence in the company's growth prospects[3] Segment Performance - The Gaming segment contributed $76.0 million, accounting for 33.5% of total revenue, while the Sports segment generated $27.2 million, representing 12.0% of total revenue[50] - The Interactive segment's revenue was $40.8 million, contributing 18.0% to total revenue, and the Leisure segment accounted for $82.9 million, or 36.5% of total revenue[50] - Segment-level adjusted EBITDA for Gaming was $27.8 million, for Sports was $16.9 million, for Interactive was $23.5 million, and for Leisure was $10.9 million[50] Cash Flow - Net cash provided by operating activities was $50.8 million for the nine months ended September 30, 2025, compared to $24.8 million for the same period in 2024, indicating a 104.8% increase[38] - Cash and cash equivalents at the end of the period were $36.3 million, slightly down from $36.5 million at the end of the previous period[38] Market Outlook - The company anticipates potential new customers and expects to execute its strategic plan in various markets[30] - The company plans to continue focusing on market expansion and new product development to drive future growth[50][51] - The overall performance indicates a positive trend in revenue growth and profitability across key segments, positioning the company for future opportunities[50][51]