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Inspired Entertainment
(NASDAQ:INSE)
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Rating:55Neutral
Price Target:
$7.00
▲(5.42% Upside)
Action:Reiterated
Date:08/06/26
INSE scores in the mid-range primarily due to balance-sheet risk (high debt and negative equity) and uneven profitability (net losses and declining TTM revenue), despite solid recent cash generation. The latest earnings call is a notable positive, with reaffirmed guidance, strong margin expansion, and active deleveraging, but technicals remain weak with the stock below key moving averages and a negative MACD. Valuation is also constrained by the negative P/E and no indicated dividend yield.
Positive Factors
Cash generation & FCF
Sustained positive operating cash flow (~$67.5M TTM) and a marked recovery to ~$30.6M free cash flow signal improving internal funding capacity. Durable FCF helps fund content investment, debt paydown and M&A optionality, reducing reliance on external financing over the medium term.
Negative Factors
High leverage & negative equity
Substantial debt (~$343M) alongside persistent negative equity is a structural financing risk. It limits strategic flexibility, raises refinancing and covenant vulnerability, and keeps interest and principal outflows a focus of near‑term capital allocation despite improving FCF and ongoing deleveraging efforts.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash generation & FCF
Sustained positive operating cash flow (~$67.5M TTM) and a marked recovery to ~$30.6M free cash flow signal improving internal funding capacity. Durable FCF helps fund content investment, debt paydown and M&A optionality, reducing reliance on external financing over the medium term.
Read all positive factors
Inspired Entertainment (INSE) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$163.95M
Dividend YieldN/A
Average Volume (3M)137.78K
Price to Earnings (P/E)―
Beta (1Y)1.51
Revenue Growth-6.73%
EPS Growth-114.46%
CountryUS
Employees970
SectorConsumer Cyclical
Sector Strength84
IndustryGambling, Resorts & Casinos
Share Statistics
EPS (TTM)-0.32
Shares Outstanding26,358,372
10 Day Avg. Volume109,173
30 Day Avg. Volume137,785
Financial Highlights & Ratios
PEG Ratio0.13
Price to Book (P/B)-16.79
Price to Sales (P/S)0.89
P/FCF Ratio42.50
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$12.00Price Target Upside80.72% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)0.4
Revenue Forecast (FY)$259.73M
Inspired Entertainment Business Overview & Revenue Model
Company Description
Inspired Entertainment, Inc. operates as a business-to-business provider of gaming technology, delivering comprehensive content, platform solutions, and various services to regulated lottery, betting, and gaming operators across the globe. The ent...
How the Company Makes Money
Inspired Entertainment generates revenue primarily by supplying gaming products and related services to operators and venues under commercial agreements. Key revenue streams include: (1) Virtual Sports: licensing and distribution of virtual sports...
Inspired Entertainment Earnings Call Summary
Earnings Call Date:Aug 05, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 05, 2026
Earnings Call Sentiment Positive
The call conveyed strong operational progress: margin expansion, sequential revenue and EBITDA growth, content and product momentum across Interactive, Retail and Virtual Sports, and active deleveraging and share repurchases. Near-term results were materially impacted by an outsized U.K. tax increase and a one-time $7M working capital outflow tied to pubs restructuring, and there is regulatory uncertainty in the U.K. going forward. Management maintained full-year guidance, expects stronger seasonal second-half performance, and articulated clear medium-term targets (higher EBITDA, improved margins, lower leverage and better free cash flow conversion). Overall the positives around margin improvement, deleveraging, product traction and guidance stability outweigh the near-term tax and one-time cash headwinds.Positive Updates
Quarterly Revenue and EBITDA
Reported Q2 2026 revenue of $61 million and EBITDA of $27 million; Q2 results were about as expected and EBITDA was slightly ahead of consensus.
Negative Updates
UK Remote Gaming Duty Shock
The U.K. remote gaming duty roughly doubled (from ~21% to ~40% effective April 1), materially increasing tax expense (tax impact rose ~2.5x YoY on the company’s U.K. GGR) and compressing Interactive margins in Q2 despite strong GGR growth.
Read all updates
Q2-2026 Updates
Positive
Negative
Quarterly Revenue and EBITDA
Reported Q2 2026 revenue of $61 million and EBITDA of $27 million; Q2 results were about as expected and EBITDA was slightly ahead of consensus.
Read all positive updates
Company Guidance
Management reaffirmed 2026 guidance of adjusted EBITDA $112–118M and FCF conversion of 20%+ of EBITDA (noting pro forma conversion >25% with pro forma FCF ~$30M vs reported $23M) and reiterated 2027 aspirations of ~ $130M EBITDA at a ~47% margin, net leverage <2.5x and FCF conversion 25–30%. Q2 results were revenue $61M and EBITDA $27M (EBITDA margin 45%, +1,000 bps YoY); year‑to‑date the company retired $23M of debt, repurchased >700k shares and reduced net leverage to ~3x. Management expects Interactive to re‑accelerate in H2 after Q2’s 15% revenue and 13% EBITDA growth (U.K. GGR +40% YoY despite UK remote gaming duty rising to ~40%), Retail Solutions delivered >50% adj. EBITDA margin, Hybrid Dealer posted turnover +13% and GGR +25% Q1→Q2, Virtual Sports revenue rose 3% sequentially with BetMGM turnover +50% and LatAm turnover/GGR +55%/+61% Q1→Q2; they also expect seasonal Q4 upside (last year Q4 +17% revenue and +23% adj. EBITDA vs Q3) and plan cash CapEx of roughly $30–35M (ex customer‑funded).Inspired Entertainment Financial Statement Overview
Summary
Income Statement
54
Neutral
Balance Sheet
18
Very Negative
Cash Flow
67
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Mar 2024 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 281.40M | 304.10M | 297.10M | 322.90M | 284.50M | 205.80M |
| Gross Profit | 214.60M | 217.60M | 204.80M | 194.30M | 189.60M | 136.20M |
| EBITDA | 100.60M | 92.10M | 82.30M | 86.10M | 94.10M | 57.10M |
| Net Income | -9.40M | -17.00M | 64.80M | 6.90M | 21.20M | -40.60M |
Balance Sheet | ||||||
| Total Assets | 392.90M | 439.90M | 438.40M | 343.00M | 287.20M | 308.70M |
| Cash, Cash Equivalents and Short-Term Investments | 22.00M | 42.00M | 29.30M | 40.00M | 25.00M | 47.80M |
| Total Debt | 343.20M | 363.30M | 350.80M | 331.50M | 296.00M | 332.20M |
| Total Liabilities | 408.50M | 456.10M | 441.70M | 418.90M | 372.80M | 417.40M |
| Stockholders Equity | -15.60M | -16.20M | -3.30M | -75.90M | -85.60M | -108.70M |
Cash Flow | ||||||
| Free Cash Flow | 4.70M | 6.40M | 2.90M | 8.00M | -1.40M | -17.60M |
| Operating Cash Flow | 40.80M | 52.00M | 31.70M | 54.70M | 29.60M | 2.40M |
| Investing Cash Flow | -28.00M | -40.50M | -40.10M | -57.60M | -37.50M | -32.40M |
| Financing Cash Flow | -34.60M | 0.00 | -1.60M | 16.20M | -11.00M | 31.20M |
Inspired Entertainment Technical Analysis
Negative
6.64
Price Trends
7.26
Negative
7.22
Negative
7.81
Negative
Market Momentum
-0.27
Positive
35.65
Neutral
24.07
Neutral
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 6.64 is above the 20-day moving average (MA) of 6.63, below the 50-day MA of 7.26, and below the 200-day MA of 7.81, indicating a bearish trend. The MACD of -0.27 indicates Positive momentum. The RSI at 35.65 is Neutral, neither overbought nor oversold. The STOCH value of 24.07 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for INSE.
Inspired Entertainment Risk Analysis
Inspired Entertainment disclosed 50 risk factors in its most recent earnings report. Inspired Entertainment reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Inspired Entertainment Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
67 Neutral | $416.96M | 249.25 | 5.25% | ― | 6.33% | -150.96% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
55 Neutral | $163.95M | -19.64 | 70.68% | ― | -6.73% | -114.46% | |
49 Neutral | $379.29M | -2.13 | -7.59% | ― | 0.71% | 24.32% | |
42 Neutral | $684.79M | -1.15 | -103.53% | ― | 16.60% | -75.69% |
* Consumer Cyclical Sector Average
INSE
Inspired Entertainment
6.22
-2.21
-26.22%
MSC
Studio City International Holdings
1.80
-2.71
-60.09%
CDRO
Codere Online
9.17
1.05
12.93%
BALY
Bally's Corporation
13.99
4.37
45.43%
Inspired Entertainment Corporate Events
Executive/Board ChangesShareholder Meetings
Inspired Entertainment Shareholders Back Board, Pay and Auditor
Positive
Jun 2, 2026
On May 27, 2026, Inspired Entertainment, Inc. held its 2026 Annual Meeting of Stockholders, at which shareholders elected seven directors, including A. Lorne Weil and Desirée G. Rogers, to serve until the 2027 annual meeting or until successo...
Executive/Board Changes
Inspired Entertainment appoints new Chief Financial Officer
Neutral
May 18, 2026
Inspired Entertainment announced on May 18, 2026, that Executive Vice President and Chief Financial Officer James Richardson had stepped down, with his resignation dated May 14, 2026, and no disagreements cited with the company or its board over o...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.