Inspired Entertainment (INSE) AI Stock Analysis

• Market Cap: $244.23M
• Dividend Yield: N/A
• Average Volume (3M): 151.64K
• Price to Earnings (P/E): 4.6
• Beta (1Y): 1.47
• 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): -0.07
• Shares Outstanding: 26,926,868
• 10 Day Avg. Volume: 101,520
• 30 Day Avg. Volume: 151,641
• PEG Ratio: <0.01
• Price to Book (P/B): -78.22
• Price to Sales (P/S): 0.87
• P/FCF Ratio: 89.01
• Enterprise Value/Market Cap: 2.51
• Enterprise Value/Revenue: 1.99
• Enterprise Value/Gross Profit: 2.85
• Enterprise Value/Ebitda: 6.56
• 1Y Price Target: $16.33
• Price Target Upside: 80.04% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): 0.06
• Revenue Forecast (FY): $303.07M

• Rating: 69 Neutral
• Price Target: $10.00 ▲(10.25% Upside)

The overall stock score of 69 reflects a combination of strong technical indicators and valuation, bolstered by positive earnings call insights. However, financial performance concerns, particularly related to leverage and liquidity, weigh down the score.

Positive Factors

Interactive Segment Growth

Sustained growth in the Interactive segment indicates strong demand and effective market penetration, supporting long-term revenue expansion and profitability.

Strategic Divestiture

Divesting non-core assets allows Inspired to focus on high-margin digital operations, improving financial efficiency and strategic alignment.

Share Buyback Plan

The buyback plan reflects confidence in financial stability and commitment to returning value to shareholders, enhancing investor trust and stock attractiveness.

Negative Factors

High Leverage

Excessive leverage poses financial risks, potentially limiting operational flexibility and increasing vulnerability to economic downturns.

Declining Cash Flow

Reduced cash flow growth suggests liquidity challenges, which could hinder investment in growth initiatives and impact financial resilience.

Operational Inefficiencies

Decreasing margins highlight inefficiencies that could affect profitability, necessitating operational improvements to sustain competitive advantage.

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 Entertainment generates revenue through multiple streams, primarily by licensing its gaming content and technology to operators in the gaming industry. Key revenue streams include sales from online gaming platforms, virtual sports betting, and interactive casino games. The company also earns income through the provision of gaming terminals and software solutions to lottery operators. Significant partnerships with major gaming operators globally enhance its market reach and contribute to consistent revenue generation. Additionally, Inspired focuses on expanding its footprint in emerging markets, which further bolsters its earnings potential.

Inspired Entertainment Financial Statement Overview

Summary

Inspired Entertainment shows mixed financial performance. Revenue growth and cash flow generation are strengths, but the balance sheet reveals high leverage and negative equity, indicating financial instability. Operational efficiency needs improvement.

Income Statement

Inspired Entertainment shows a mixed performance in its income statement. The TTM data indicates a slight revenue growth of 1.6%, which is a positive sign, but the net profit margin has decreased compared to the previous year, indicating potential profitability issues. The gross profit margin remains strong at nearly 70%, suggesting efficient cost management. However, the EBIT and EBITDA margins are moderate, indicating room for improvement in operational efficiency.

Balance Sheet

The balance sheet reveals significant challenges, primarily due to the negative stockholders' equity, resulting in a highly negative debt-to-equity ratio. This indicates high financial leverage and potential solvency risks. The return on equity is also negative, reflecting the company's struggle to generate profits from its equity base. The equity ratio is not calculable due to negative equity, further highlighting financial instability.

Cash Flow

The cash flow statement shows a positive trajectory with a substantial increase in free cash flow growth at 52.6% TTM. The operating cash flow to net income ratio is healthy, indicating good cash generation relative to net income. However, the free cash flow to net income ratio suggests that not all net income is translating into free cash flow, which could be a concern if it persists.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	307.30M	297.10M	322.90M	284.50M	205.80M	198.30M
Gross Profit	214.80M	204.80M	194.30M	189.60M	136.20M	137.40M
EBITDA	93.40M	82.30M	86.10M	94.10M	57.10M	33.90M
Net Income	55.30M	64.80M	6.90M	21.20M	-40.60M	-56.80M
Balance Sheet
Total Assets	485.80M	438.40M	343.00M	287.20M	308.70M	324.10M
Cash, Cash Equivalents and Short-Term Investments	36.30M	29.30M	40.00M	25.00M	47.80M	47.10M
Total Debt	375.80M	350.80M	331.50M	296.00M	332.20M	311.10M
Total Liabilities	494.80M	441.70M	418.90M	372.80M	417.40M	425.80M
Stockholders Equity	-9.00M	-3.30M	-75.90M	-85.60M	-108.70M	-101.70M
Cash Flow
Free Cash Flow	25.20M	2.90M	-2.30M	-5.00M	-19.20M	23.00M
Operating Cash Flow	57.70M	31.70M	45.50M	34.80M	6.20M	52.90M
Investing Cash Flow	-52.80M	-40.10M	-48.40M	-40.40M	-37.90M	-29.90M
Financing Cash Flow	2.20M	-1.60M	16.20M	-11.10M	31.20M	-8.20M

Inspired Entertainment Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 9.07
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For INSE, the sentiment is Positive. The current price of 9.07 is above the 20-day moving average (MA) of 8.69, above the 50-day MA of 8.19, and above the 200-day MA of 8.40, indicating a bullish trend. The MACD of 0.28 indicates Negative momentum. The RSI at 59.90 is Neutral, neither overbought nor oversold. The STOCH value of 42.07 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for INSE.

Inspired Entertainment Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
INSE	69 Neutral	$244.23M	4.55	―	―	4.03%	―
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
GAMB	60 Neutral	$183.71M	86.43	1.46%	―	24.21%	-92.49%
CDRO	58 Neutral	$364.21M	68.09	23.16%	―	1.79%	―
GDEN	57 Neutral	$723.81M	148.10	1.15%	3.62%	-12.25%	-84.89%
BALY	54 Neutral	$866.73M	―	-114.88%	―	0.36%	47.55%
MSC	40 Neutral	$634.28M	-8.78	-11.41%	―	9.50%	24.64%

Inspired Entertainment Corporate Events

Inspired Entertainment Finalizes Sale of UK Holiday Parks

On November 7, 2025, Inspired Entertainment, Inc. completed the sale of its UK holiday parks business and related leisure assets to GENDA Inc. for approximately £18.6 million in cash. This transaction, initially announced on August 27, 2025, has been finalized after receiving all necessary regulatory approvals and meeting closing conditions, potentially impacting Inspired’s strategic focus and market positioning.

Inspired Entertainment Reports Strong Q3 2025 Financial Results

On November 5, 2025, Inspired Entertainment announced its third-quarter 2025 financial results, highlighting a 12% increase in revenue to $86.2 million, driven by a 48% year-over-year growth in Interactive revenue. The company reported a net operating income of $9.7 million and an adjusted EBITDA of $32.3 million, up 11% from the previous year. Inspired also revealed the sale of its UK holiday parks business to support its transition to a higher-margin digital-led business model and authorized a $25 million share buyback program. These strategic moves position Inspired for growth and margin expansion, with expectations of further gains in market share and the introduction of new multiplayer experiences.