Watch for continued Interactive segment momentum and margin expansion toward 45% target. Revenue decline from portfolio reshaping is expected to moderate; next quarter's organic growth rate is the key metric. The strong cash generation and debt reduction support balance sheet improvement.
Price Chart
Executive Summary
Inspired Entertainment reported Q1 2026 revenue of $57.2M (down 5% YoY due to divestitures) but GAAP EPS of -$0.02 beat consensus of -$0.15 by 87%. Adjusted EBITDA surged 29% to $23.7M (41% margin vs 30% a year ago). Management reaffirmed FY2026 Adjusted EBITDA guidance of $112M-$118M and raised margin target to up to 45%.
Key Financial Metrics
Key Facts
- Q1 2026 revenue $57.2M, down 5% YoY ($60.4M) due to divestiture of UK holiday parks and pubs restructuring.
- GAAP net loss $(0.5M) vs $(0.1M) prior year; EPS $(0.02) vs $0.00.
- Adjusted EBITDA $23.7M, up 29% YoY; margin 41% vs 30%.
- Interactive segment revenue +38% YoY, Adjusted EBITDA +53% YoY.
- Reaffirmed FY2026 Adjusted EBITDA target $112M-$118M; raised margin target to up to 45% from ~43%.
- Generated $15.8M free cash flow; repaid $13.3M debt; repurchased 387,230 shares for $2.6M.
- Net leverage reduced to ~3.0x from 3.3x at year-end 2025.
Financial Impact
Revenue decline offset by strong profitability beat and raised margin outlook; EPS beat of ~87% vs consensus.
Risk Factors
- UK online gaming tax increase effective April 2026 could pressure Interactive profitability.
- Currency headwinds from GBP/USD translation uncertainty.
- Slower-than-expected rollout of Virtual Sports products ahead of 2026 World Cup.
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001493152-26-021611 |
| Document: form8-k.htm | 0001493152-26-021611 |
| Document: 0001493152-26-021611-index-headers.html | 0001493152-26-021611 |
| Document: 0001493152-26-021611-index.html | 0001493152-26-021611 |
| Document: 0001493152-26-021611.txt | 0001493152-26-021611 |
| 8-K Data (Synthetic) | 0001493152-26-021611 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
May 22, 2026 22w ago | 10-K/A | $7.32 $8.04 | ▲ +9.84% | ▲ +11.78% | $3.33 (−54.51%) |
May 7, 2026 24w ago | Press Release | $8.10 $7.43 | ▼ −8.27% | ▼ −11.41% | $3.33 (−58.89%) |
May 7, 2026 24w ago | 8-K | $8.10 $7.43 | ▼ −8.27% | ▼ −11.41% | $3.33 (−58.89%) |
May 6, 2026 24w ago | Press Release | $8.10 $7.43 | ▼ −8.27% | ▼ −11.41% | $3.33 (−58.89%) |
Apr 24, 2026 26w ago | Press Release | $7.04 | awaiting T+20 | — | $3.33 (−52.70%) |
Mar 10, 2026 33w ago | Press Release | $7.90 $7.07 | ▼ −10.51% | ▼ −10.35% | $3.33 (−57.85%) |
US Market Status
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