Inspired Entertainment (INSE) AI Stock Analysis

• Market Cap: $218.33M
• Dividend Yield: N/A
• Average Volume (3M): 101.73K
• Price to Earnings (P/E): 4.1
• Beta (1Y): 1.33
• 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: 26,920,506
• 10 Day Avg. Volume: 103,455
• 30 Day Avg. Volume: 101,732
• 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: 2.81
• Enterprise Value/Revenue: 2.05
• Enterprise Value/Gross Profit: 2.93
• Enterprise Value/Ebitda: 6.95
• 1Y Price Target: $14.67
• Price Target Upside: 80.44% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 64 Neutral
• Price Target: $8.00 ▼(-1.60% Downside)

Inspired Entertainment's overall stock score reflects a blend of strong earnings call guidance and undervaluation, offset by financial instability and bearish technical indicators. The company's strategic initiatives and growth in key segments are promising, but high leverage and negative equity pose significant risks.

Positive Factors

Interactive Segment Growth

Sustained growth in the Interactive segment highlights strong market demand and effective strategic execution, indicating robust future potential.

Strategic Divestiture

Divesting non-core assets allows the company to focus on high-margin segments, improving financial efficiency and strategic focus.

Digital Expansion

Expanding into new markets like West Virginia enhances growth opportunities and strengthens the company's digital footprint.

Negative Factors

High Leverage

High leverage and negative equity pose solvency risks, potentially limiting financial flexibility and increasing vulnerability to economic shifts.

Potential UK Tax Changes

Potential tax changes in the UK gaming industry could impact profitability, requiring strategic adjustments to maintain financial performance.

Brazilian Market Challenges

Taxation in Brazil affects revenue from Virtual Sports, highlighting regulatory risks in international markets that could hinder growth.

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 key streams. Primarily, the company earns money by licensing its gaming content and technology to operators, including lottery organizations and online gaming platforms. This licensing model allows Inspired to receive ongoing royalties and fees based on the performance of its games. Additionally, the company sells its proprietary gaming machines and systems, which are installed in various venues, contributing to hardware sales revenue. Significant partnerships with major gaming operators and regulatory bodies help expand its market reach and enhance its product offerings, further driving revenue growth. Inspired also explores opportunities in emerging markets, leveraging its expertise in virtual sports to tap into new customer bases and increase its overall earnings.

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	299.10M	297.10M	322.90M	284.50M	205.80M	198.30M
Gross Profit	208.90M	204.80M	194.30M	189.60M	136.20M	137.40M
EBITDA	88.10M	82.30M	86.10M	94.10M	57.10M	33.90M
Net Income	60.60M	64.80M	6.90M	21.20M	-40.60M	-56.80M
Balance Sheet
Total Assets	486.80M	438.40M	343.00M	287.20M	308.70M	324.10M
Cash, Cash Equivalents and Short-Term Investments	46.30M	29.30M	40.00M	25.00M	47.80M	47.10M
Total Debt	389.20M	350.80M	331.50M	296.00M	332.20M	311.10M
Total Liabilities	496.30M	441.70M	418.90M	372.80M	417.40M	425.80M
Stockholders Equity	-9.50M	-3.30M	-75.90M	-85.60M	-108.70M	-101.70M
Cash Flow
Free Cash Flow	49.60M	2.90M	-2.30M	-5.00M	-19.20M	23.00M
Operating Cash Flow	74.50M	31.70M	45.50M	34.80M	6.20M	52.90M
Investing Cash Flow	-57.80M	-40.10M	-48.40M	-40.40M	-37.90M	-29.90M
Financing Cash Flow	3.00M	-1.60M	16.20M	-11.10M	31.20M	-8.20M

Inspired Entertainment Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 8.13
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 Neutral. The current price of 8.13 is above the 20-day moving average (MA) of 7.91, below the 50-day MA of 8.72, and below the 200-day MA of 8.69, indicating a neutral trend. The MACD of -0.20 indicates Negative momentum. The RSI at 48.93 is Neutral, neither overbought nor oversold. The STOCH value of 60.91 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for INSE.

Inspired Entertainment Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GAMB	69 Neutral	$236.76M	16.33	10.86%	―	27.57%	-40.98%
INSE	64 Neutral	$218.33M	4.08	―	―	4.03%	―
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
BALY	54 Neutral	$840.98M	―	-113.09%	―	-1.10%	-1.69%
GDEN	52 Neutral	$765.07M	156.56	1.15%	3.42%	-12.25%	-84.89%
CDRO	52 Neutral	$259.70M	413.14	2.77%	―	―	―
MSC	40 Underperform	$777.54M	―	-11.41%	―	9.50%	24.64%

Inspired Entertainment Corporate Events

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.

The most recent analyst rating on (INSE) stock is a Buy with a $11.00 price target. To see the full list of analyst forecasts on Inspired Entertainment stock, see the INSE Stock Forecast page.

Inspired Entertainment Sells UK Holiday Parks Business

On August 27, 2025, Inspired Entertainment announced a definitive agreement to sell its UK holiday parks business and certain leisure assets to GENDA Inc. for approximately £18.6 million in cash. This transaction, expected to close in the fourth quarter of 2025, is part of Inspired’s strategy to shift towards a more digital and scalable model, enhancing its long-term growth potential and improving its EBITDA margin. The sale will streamline operations and allow Inspired to focus on higher-margin digital services, with net proceeds primarily used to pay down debt.

The most recent analyst rating on (INSE) stock is a Hold with a $9.50 price target. To see the full list of analyst forecasts on Inspired Entertainment stock, see the INSE Stock Forecast page.

Inspired Entertainment’s Earnings Call Highlights Growth

Inspired Entertainment, Inc. recently held its earnings call, revealing a generally positive sentiment driven by strong performance in key areas. The Interactive and Gaming segments showed significant growth, particularly in EBITDA, and strategic partnerships were highlighted. Despite some challenges in the Virtual Sports segment and a slow start in the Brazilian market, the overall outlook remains optimistic.

Inspired Entertainment Reports Strong Q2 2025 Results

Inspired Entertainment, Inc. is a leading B2B provider of gaming content, technology, hardware, and services, operating across various sectors including gaming, virtual sports, interactive, and leisure. The company is known for its diverse portfolio and operates in approximately 35 jurisdictions worldwide.