Inspired Entertainment (INSE) AI Stock Analysis

• Market Cap: $165.33M
• Dividend Yield: N/A
• Average Volume (3M): 115.81K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.61
• Revenue Growth: 4.03%
• EPS Growth: N/A
• Country: US
• Employees: 1,420
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Gambling, Resorts & Casinos
• EPS (TTM): -0.25
• Shares Outstanding: 27,059,572
• 10 Day Avg. Volume: 225,686
• 30 Day Avg. Volume: 115,808
• PEG Ratio: 0.13
• Price to Book (P/B): -16.79
• Price to Sales (P/S): 0.89
• P/FCF Ratio: 16.69
• Enterprise Value/Market Cap: 3.00
• Enterprise Value/Revenue: 1.63
• Enterprise Value/Gross Profit: 3.00
• Enterprise Value/Ebitda: 5.26
• 1Y Price Target: $16.00
• Price Target Upside: 161.87% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): 0.45
• Revenue Forecast (FY): $269.35M

• Rating: 53 Neutral
• Price Target: $6.00 ▼(-1.80% Downside)
• Action: Reiterated Date: 03/12/26
• Date: Action: Reiterated 03/12/26

The score is held back primarily by balance-sheet risk (negative equity and sizable debt) and weak technical trend signals, despite solid underlying operating margins and positive cash flow. The latest earnings call was a meaningful positive, emphasizing growth, margin expansion, and deleveraging targets, but valuation remains challenged due to negative earnings.

Positive Factors

Operating cash generation

Sustained positive operating cash flow (~$52M TTM) and free cash flow (~$16M TTM) provide durable internal funding for investment, debt reduction, and capital returns. This cash generation cushions the business against cyclical revenue swings and supports multi-year deleveraging and reinvestment plans.

High margins and strong interactive growth

A ~30% EBITDA margin and repeatable >40% YoY adjusted EBITDA growth in Interactive show a scalable, high-margin digital franchise. Consistent segment outperformance supports structural margin expansion as digital mix rises, improving long-term cash conversion and resilience versus lower-margin legacy businesses.

Strategic portfolio shift & capital actions

Divesting non-core assets to focus on digital/interactive reduces capital intensity and operating complexity, accelerating margin improvement. Management's buyback and explicit leverage target indicate a multi-year plan to strengthen the capital structure and return cash to shareholders, improving structural financial flexibility.

Negative Factors

High leverage and negative equity

Material debt (~$372M) combined with negative equity signals accumulated losses and a stretched capital structure. This constrains strategic optionality, raises refinancing and interest-rate sensitivity over the medium term, and limits the company's ability to fund growth without further deleveraging or costly financing actions.

Volatile bottom-line profitability

Operating EBITDA has been strong, but net results swung to a TTM loss due to non-operating items. Persistent volatility in reported earnings undermines predictability for long-term return metrics and investor confidence, complicating planning for sustained reinvestment, dividend policy, or reliable credit metrics.

Regulatory and tax exposure in key markets

Exposure to regulatory and tax shifts in the UK and Brazil creates structural downside to revenue and margin in important markets. Policy changes and new taxes can persist multi-year, reducing demand or altering economics of virtual sports and gaming partnerships, and complicating long-term forecasting and market-entry plans.

Inspired Entertainment Business Overview & Revenue Model

Company Description

Inspired Entertainment, Inc., a business-to-business gaming technology company, supplies content, platform, and other products and services to regulated lottery, betting, and gaming operators worldwide. The company operates through four segments: Gaming, Virtual Sports, Interactive, and Leisure. The Gaming segment supplies gaming terminals and software to betting offices, casinos, gaming halls, and high street adult gaming centers; a portfolio of games through its digital terminals under the Centurion and Super Hot Fruits names; and traditional casino games, such as roulette, blackjack, and number games. The Virtual Sports segment designs, develops, markets, and distributes ultra-high-definition sports games that include greyhounds, tennis, motor racing, cycling, cricket, speedway, golf, and dart, and other horse racing games under the V-Play Soccer, V-Play Football, V-Play Basketball, Virtual Grand National, and V-Play NFLA names. The Interactive segment provides a range of premium random number generated casino content from feature-rich bonus games to European-style casino free spins and table games. The Leisure segment supplies gaming terminals and amusement machines in pubs, bingo halls, and adult gaming centers, as well as family entertainment centers, bowling centers, and other entertainment venues. Inspired Entertainment, Inc. is headquartered in New York, New York.

How the Company Makes Money

Inspired primarily earns revenue by supplying gaming content and technology to operators under recurring commercial arrangements rather than directly operating consumer-facing casinos. Key revenue streams typically include: (1) Virtual Sports: licensing its virtual sports products to sportsbook and betting operators and earning fees tied to distribution and/or play (commonly structured as fixed license fees, per-terminal/venue fees, or revenue-share participation depending on the contract and jurisdiction). (2) Interactive (iGaming) content: distributing digital slot and casino-style games to online casino operators and aggregators, generally monetized via revenue share based on player wagering (gross gaming revenue share) and/or game/content licensing fees; performance depends on the number of operator integrations, game portfolio uptake, and regulated market access. (3) Gaming systems and land-based content: providing server-based gaming systems, terminals, and game content to land-based gaming venues; monetization can include system/terminal sales (where applicable), ongoing maintenance and support fees, software licensing, and participation-style arrangements where Inspired shares in gaming revenue generated on its installed base. The company’s earnings are influenced by the scale of its installed/connected customer base, the volume of wagering on its content, renewals of long-term customer agreements, expansion into new regulated jurisdictions, and distribution relationships with gaming operators and platform/aggregator partners. null

Inspired Entertainment Financial Statement Overview

Summary

Operations and cash generation are supportive (EBITDA margin ~30% TTM; operating cash flow ~$52M; positive FCF ~$16M), but the balance sheet is a major constraint with high debt and negative equity, and profitability is inconsistent (2024 profit shifting to a TTM net loss).

Income Statement

TTM (Trailing-Twelve-Months) revenue is essentially flat to slightly down (about -1%), following a modest decline in 2024 after stronger growth in 2022–2023. Profitability at the operating level remains solid with an EBITDA margin around 30% TTM, but bottom-line results are volatile: the company moved from strong profitability in 2024 to a net loss TTM, indicating meaningful non-operating headwinds (e.g., interest, taxes, or one-time items). Gross margin is high and steady, but the earnings swing lowers confidence in consistency.

Balance Sheet

Leverage is high, with total debt around $372M TTM against negative equity, which is a major balance-sheet risk and limits financial flexibility. Total assets are roughly stable (~$440M), but the persistent equity deficit suggests accumulated losses or heavy capital structure pressure. While the negative equity makes traditional leverage and return-on-equity signals hard to interpret cleanly, the overall message is clear: the capital structure is stretched and refinancing/interest-rate sensitivity is a key risk.

Cash Flow

Cash generation is a relative bright spot: operating cash flow improved to ~$52M TTM (up from ~$32M in 2024), and free cash flow is positive at ~$16M TTM. That said, free cash flow fell sharply versus 2024, showing less conversion after capital spending and/or working-capital movement. Cash flow quality is mixed given the TTM net loss alongside positive operating and free cash flow, which helps liquidity, but also highlights that reported earnings are not consistently translating into stable, repeatable profitability.

Breakdown	Dec 2025	Dec 2024	Mar 2024	Dec 2022	Dec 2021
Income Statement
Total Revenue	304.10M	297.10M	322.90M	284.50M	205.80M
Gross Profit	287.80M	204.80M	194.30M	189.60M	136.20M
EBITDA	94.20M	82.30M	86.10M	94.10M	57.10M
Net Income	-17.00M	64.80M	6.90M	21.20M	-40.60M
Balance Sheet
Total Assets	439.90M	438.40M	343.00M	287.20M	308.70M
Cash, Cash Equivalents and Short-Term Investments	42.00M	29.30M	40.00M	25.00M	47.80M
Total Debt	372.30M	350.80M	331.50M	296.00M	332.20M
Total Liabilities	456.10M	441.70M	418.90M	372.80M	417.40M
Stockholders Equity	-16.20M	-3.30M	-75.90M	-85.60M	-108.70M
Cash Flow
Free Cash Flow	16.30M	2.90M	-2.30M	-5.00M	-19.20M
Operating Cash Flow	52.00M	31.70M	45.50M	34.80M	6.20M
Investing Cash Flow	-40.50M	-40.10M	-48.40M	-40.40M	-37.90M
Financing Cash Flow	0.00	-1.60M	16.20M	-11.10M	31.20M

Inspired Entertainment Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 6.11
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For INSE, the sentiment is Negative. The current price of 6.11 is below the 20-day moving average (MA) of 7.59, below the 50-day MA of 8.38, and below the 200-day MA of 8.56, indicating a bearish trend. The MACD of -0.55 indicates Positive momentum. The RSI at 25.65 is Positive, neither overbought nor oversold. The STOCH value of 4.68 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for INSE.

Inspired Entertainment Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
GDEN	56 Neutral	$691.65M	-118.26	-1.37%	3.71%	-12.25%	-84.89%
CDRO	56 Neutral	$372.19M	―	23.16%	―	1.79%	―
INSE	53 Neutral	$165.33M	―	184.28%	―	4.03%	―
GAMB	52 Neutral	$138.85M	-5.88	-24.91%	―	24.21%	-92.49%
BALY	43 Neutral	$591.91M	1.74	118.32%	―	0.36%	47.55%
MSC	40 Neutral	$484.65M	-2.91	-10.84%	―	9.50%	24.64%