Inspired Reports Third Quarter 2025 Results

Core Insights - Inspired Entertainment, Inc. reported strong financial results for Q3 2025, with total revenue of $86.2 million, a 12% increase year-over-year, primarily driven by record Interactive revenue, which rose 48% [5][3] - The company is undergoing a strategic evolution towards a more digital and higher-margin business model, highlighted by the divestiture of its UK holiday parks business for £18.6 million [8][10] - The company expects continued growth in Adjusted EBITDA, projecting it to exceed $110 million for the full year 2025, supported by strong performance in the Interactive segment [5][11] Financial Performance - Total revenue for Q3 2025 was $86.2 million, up from $77.2 million in Q3 2024, with Interactive revenue reaching $15.1 million, a 48% increase [5][3] - Net operating income decreased to $9.7 million from $11.2 million year-over-year, while the company reported a net loss of $1.9 million compared to a net income of $2.8 million in the previous year [5][3] - Adjusted EBITDA for Q3 2025 was $32.3 million, an 11% increase from $29.2 million in Q3 2024, driven by a 55% increase in Interactive Adjusted EBITDA [5][6] Strategic Developments - The divestiture of the holiday parks business is part of the company's strategy to transition towards a digital-led model, which is expected to enhance margins and operational agility [8][10] - The company has formed a strategic partnership with Gaming Arts LLC to adapt its online slot titles for land-based markets, further reinforcing its digital growth strategy [10] - Inspired's Hybrid Dealer™ product won the Global Gaming Award for Innovative Product of the Year, showcasing the company's commitment to innovation [10] Market Position and Future Outlook - The company is gaining market share in its largest markets and anticipates further growth as it rolls out new titles and multiplayer experiences [2][5] - Management remains confident in its strategic direction, expecting fourth quarter 2025 Adjusted EBITDA to increase year-over-year, supported by strong momentum in the Interactive segment [11][5] - The company aims to optimize operations and reduce headcount from 1,460 to 975 employees by the end of 2025 to enhance efficiency and drive higher Adjusted EBITDA margins [15]