A surge in digital gaming propelled Inspired Entertainment to a record-breaking third quarter, signaling a decisive shift towards a higher-margin future. The company didn’t just meet expectations – it shattered them, fueled by unprecedented growth in its Interactive segment and strategic moves designed to capitalize on the evolving landscape.
Overall revenue climbed 12% to $86.2 million, but the real story lies within the Interactive division, which exploded with a remarkable 48% increase. This wasn’t a fleeting success; adjusted EBITDA rose 11% to $32.3 million, demonstrating a sustained upward trajectory and solidifying the company’s financial health.
Despite reporting a net loss of $1.9 million, a deeper look reveals a robust $8.3 million in adjusted net income and a significant financial maneuver: a $363 million debt refinancing secured in June, providing a stable foundation through 2030. This strategic move underscores a commitment to long-term growth and financial flexibility.
CEO Brooks Pierce emphasized the driving forces behind the success: “Strategic execution, digital expansion, and product innovation.” He highlighted the company’s powerful distribution network and the enduring popularity of its game franchises, now being scaled to reach even wider audiences.
The momentum isn’t limited to existing markets. Inspired is actively gaining market share in key regions and preparing to launch groundbreaking multiplayer experiences, poised to redefine the gaming landscape. Virtual Sports, after a period of stabilization, is now positioned for substantial year-over-year growth in 2026.
Facing potential changes to UK gambling taxes, Pierce reassured investors, drawing parallels to past regulatory shifts. Inspired has a proven track record of adapting and thriving, even in the face of uncertainty. The company anticipates minimal disruption, with any potential impact offset by efficiencies and market dynamics.
A pivotal decision to sell its holiday park business will further streamline operations, reducing capital intensity and boosting the balance sheet. This move is expected to decrease headcount by nearly 40% and provide a substantial financial injection, positioning Inspired for even greater success.
Executive Chairman Lorne Weil echoed the optimism, noting that both the third quarter results and the past twelve months of adjusted EBITDA exceeded expectations. The company is undergoing a dynamic transformation, driven by strategic sales, restructuring, and the phenomenal growth of its Interactive segment.
The Interactive segment remains the cornerstone of Inspired’s growth strategy, with significant long-term potential. The company is actively preparing for the potential expansion of iGaming into new US states, viewing it as a potentially “transformational” opportunity.
Inspired is responding to customer demand by increasing production capacity and establishing a new interactive studio, promising a steady stream of innovative content. The message is clear: players want more, and Inspired is determined to deliver.
Growth is also evident in North America, fueled by the Interactive segment and a thriving Video Lottery Terminal business. Expanding customer demand in Brazil and Turkey is also beginning to translate into tangible results for the Virtual Sports division.
Remarkably, both the Interactive and Virtual Sports segments are operating at EBITDA margins exceeding 60% after corporate allocations. This profitability, combined with the sale of the holiday parks and shifts in the pubs operating model, will further strengthen cash flow and reduce capital intensity.
Looking ahead, management confidently reaffirmed its outlook for continued growth in the fourth quarter and anticipates full-year adjusted EBITDA surpassing $110 million. Detailed guidance for 2026 will be released alongside the fourth-quarter results, promising an even clearer picture of the company’s ambitious trajectory.
Through the first nine months of 2025, Inspired generated $226.9 million in revenue, a 6% increase, and $79.1 million in adjusted EBITDA, a substantial 14% jump. This performance underscores a consistent pattern of growth and a commitment to delivering value.
A $25 million share buyback program further demonstrates the company’s confidence in its future, while strategic partnerships, like the recent collaboration with Gaming Arts LLC and the launch in West Virginia, continue to expand its reach and solidify its position as a leader in the gaming industry.
