Strong EBITDA Growth and …

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This article first appeared on GuruFocus.

  • Adjusted EBITDA (Q3 2025): $32.3 million.

  • Trailing 12-Month Adjusted EBITDA: $110 million.

  • Interactive Segment EBITDA Growth: Over 40% year-over-year for the ninth consecutive quarter.

  • Adjusted EBITDA Margin: 35%.

  • Net Leverage Ratio: 3.2x.

  • Share Buyback Plan: $25 million reauthorized.

  • Headcount Reduction: Close to 40% lower following the sale of the holiday parks business.

  • Projected Adjusted EBITDA Margin (2027): 45%.

  • Free Cash Flow Conversion (2027): Expected to reach 30% of EBITDA.

Release Date: November 05, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

  • Inspired Entertainment Inc (NASDAQ:INSE) reported third quarter and trailing 12-month adjusted EBITDA of $32.3 million and $110 million, respectively, both exceeding consensus and previous year figures.

  • The Interactive segment achieved more than 40% year-over-year adjusted EBITDA growth for the ninth consecutive quarter, with October being the largest revenue month in its history.

  • The sale of the holiday parks business is expected to improve net leverage and contribute to higher adjusted EBITDA margins and lower CapEx.

  • The company announced a $25 million share buyback plan, indicating confidence in its financial position and future prospects.

  • The Gaming segment is performing well across key markets, with significant growth in North America and Greece, and gaining market share in the UK.

  • Potential tax changes in the UK gaming industry could impact future performance, although the company is confident in its ability to manage these changes.

  • The Virtual Sports segment continues to be impacted by taxation in Brazil, although improvements are expected in the fourth quarter.

  • The divestiture of the holiday parks business will result in a decrease in revenue, although it is expected to improve margins.

  • The company faces challenges in expanding its Virtual Sports segment in North America, with slower-than-expected adoption by operators.

  • The Interactive segment’s growth may face challenges in sustaining its high growth rate due to increasing competition and the need for more content.

Q: Can you explain the revenue implications of your projected EBITDA growth and margin expansion over the next few years? A: Brooks Pierce, President and CEO, explained that the primary reason for the revenue outlook is the divestiture of the holiday parks business. Despite this, they are confident that other business segments, particularly Interactive, will continue to grow.

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