Inspired Entertainment, Inc. Q2 FY26 Results

Our second quarter results provide clear evidence that our transformation is translating into expanding margins and continued earnings growth, while building a stronger, more cash-generative business with lower leverage. We delivered sequential quarterly growth in both Revenue (+6%) and Adjusted EBITDA (+14%) and achieved a Company-record 45% Adjusted EBITDA margin. Portfolio optimization initiatives, including the divestiture of our UK holiday parks business and the restructuring of our pubs business, reduced Revenue by approximately 30% year-over-year. Excluding the impact of these initiatives, we delivered like-for-like year-over-year revenue growth, and more importantly, the quality of our earnings strengthened and contributed to our record margin performance. We continue to see strong performance across the business. We have demonstrated resilience in the face of the UK remote gaming duty increase that took effect on April 1, with continued market share gains and strong operating outperformance in line with what we had originally anticipated. Our Retail Solutions business continues to perform well, with strong terminal performance in the UK and Greece and further opportunities to refresh our installed base in Greece next year. Virtual Sports has stabilized, and we launched the first of many customers from our SaaS agreement with Playtech, enabling Inspired’s Virtuals to be delivered across Playtech’s established global operator network. With a growing pipeline of new customers and geographies, a strong product roadmap and a new content studio coming online in the fourth quarter, we expect momentum to build through the second half of the year and into 2027. Alongside higher margins and sequential Adjusted EBITDA growth, we remain focused on driving cash generation and reducing leverage. Year to date, we have repaid over $23 million of debt, including $10 million in the second quarter, and repurchased more than 700,000 shares. We have strong visibility into the remainder of the year, with multiple drivers supporting continued momentum. The combination of resilient underlying demand, strong execution, expanding margins, disciplined capital allocation and a steadily improving balance sheet gives us confidence in delivering our 2026 targets and positioning the Company for continued growth and value creation in 2027.

Our long-term thesis remains intact and we continue to see the benefits of the strategic actions we have taken to build a higher-margin, more cash-generative business. We are gaining share, expanding profitability and reducing leverage, while maintaining the financial flexibility to deploy capital toward the highest-return opportunities, including debt reduction and share repurchases. We remain well positioned for the remainder of 2026 and maintain our full-year Adjusted EBITDA target, while updating our Free Cash Flow conversion outlook to 20% or above, reflecting increased visibility into our full-year performance. As we look toward 2027, we see a business with multiple avenues for sustainable growth, significant opportunities to improve operating performance and a clear path to further deleveraging. We believe the Company’s continued execution will create meaningful long-term value for shareholders.