The market will focus on the strong Adjusted EBITDA beat and raised margin guidance, which signal improving operational leverage and cash generation. However, the revenue miss and GAAP net loss may cap upside. Watch for continued Interactive segment momentum and debt reduction progress; the stock could trade up if the EBITDA trajectory is sustained, but the revenue decline from divestitures adds uncertainty.
Price Chart
Executive Summary
Inspired Entertainment reported Q1 2026 GAAP EPS of -$0.02, missing the consensus estimate of -$0.15 by a wide margin on a GAAP basis, while revenue of $57.2M fell short of the $59.1M consensus. However, the company highlighted a 29% YoY increase in Adjusted EBITDA to $23.7M, driven by strong Interactive segment growth (revenue +38%, EBITDA +53%), and reaffirmed its full-year 2026 Adjusted EBITDA target of $112M-$118M. The stock's reaction will likely hinge on the EBITDA beat and guidance reaffirmation, offsetting the headline EPS miss and revenue decline from divestitures.
Key Financial Metrics
Key Facts
- Q1 2026 GAAP EPS of -$0.02 vs consensus -$0.15 (beat on GAAP basis, but Street consensus was -$0.15; actual GAAP EPS was -$0.02, a beat of 86.7%)
- Revenue of $57.2M missed consensus of $59.1M by 3.2%
- Adjusted EBITDA of $23.7M, up 29% YoY, with margin expanding to 41% from 30%
- Interactive segment revenue up 38% YoY to $16.7M, Adjusted EBITDA up 53% to $11.8M
- Reaffirmed full-year 2026 Adjusted EBITDA target of $112M-$118M, with margin target raised to up to 45%
- Repaid $13.3M of debt and repurchased 387,230 shares for $2.6M in Q1
- Net leverage reduced to ~3.0x from 3.3x at year-end 2025
- Free cash flow of $15.8M in Q1
Financial Impact
Adjusted EBITDA beat consensus by approximately 10-15% based on implied Q1 run-rate vs annual target; revenue miss of ~$1.9M or 3.2%
Risk Factors
- Revenue decline of 5% YoY due to divestiture of UK holiday parks and pubs restructuring, which may weigh on top-line growth perception
- GAAP net loss of $0.5M and adjusted net loss of $0.7M, indicating ongoing profitability challenges on a reported basis
- UK online gaming tax increase effective April 2026 could pressure Interactive segment margins in coming quarters
- High net leverage at 3.0x, though improving, still leaves limited financial flexibility
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 1 press release from GlobeNewswire.
| Document | Accession Number |
|---|---|
| PRESS-RELEASE Data (Synthetic) | press-3289889 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
May 22, 2026 22w ago | 10-K/A | $7.32 $8.04 | ▲ +9.84% | ▲ +11.78% | $3.18 (−56.56%) |
May 7, 2026 24w ago | Press Release | $8.10 $7.43 | ▼ −8.27% | ▼ −11.41% | $3.18 (−60.74%) |
May 7, 2026 24w ago | 8-K | $8.10 $7.43 | ▼ −8.27% | ▼ −11.41% | $3.18 (−60.74%) |
May 6, 2026 24w ago | Press Release | $8.10 $7.43 | ▼ −8.27% | ▼ −11.41% | $3.18 (−60.74%) |
Apr 24, 2026 26w ago | Press Release | $7.04 | awaiting T+20 | — | $3.18 (−54.83%) |
Mar 10, 2026 33w ago | Press Release | $7.90 $7.07 | ▼ −10.51% | ▼ −10.35% | $3.18 (−59.75%) |
US Market Status
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