Inspired Entertainment, Inc. (INSE)
NASDAQ:INSE
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Inspired Entertainment
(NASDAQ:INSE)
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Rating:53Neutral
Price Target:
$6.00
▼(-7.69% Downside)
Action:ReiteratedDate: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.
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.
Read all positive and negative factors
Positive Factors
Negative 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.
Read all positive factors
Inspired Entertainment (INSE) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$174.53M
Dividend YieldN/A
Average Volume (3M)115.81K
Price to Earnings (P/E)―
Beta (1Y)1.61
Revenue Growth4.03%
EPS GrowthN/A
CountryUS
Employees1,420
SectorConsumer Cyclical
Sector Strength84
IndustryGambling, Resorts & Casinos
Share Statistics
EPS (TTM)-0.25
Shares Outstanding27,059,572
10 Day Avg. Volume225,686
30 Day Avg. Volume115,808
Financial Highlights & Ratios
PEG Ratio0.13
Price to Book (P/B)-16.79
Price to Sales (P/S)0.89
P/FCF Ratio16.69
Enterprise Value/Market Cap2.89
Enterprise Value/Revenue1.66
Enterprise Value/Gross Profit3.06
Enterprise Value/Ebitda5.36
Forecast
1Y Price Target
$16.00Price Target Upside146.15% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
EPS Forecast (FY)0.45
Revenue Forecast (FY)$269.35M
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: ...
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: lic...
Inspired Entertainment Earnings Call Summary
Earnings Call Date:Nov 05, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:May 13, 2026
Earnings Call Sentiment Positive
The earnings call highlighted strong performance and growth in key segments such as Interactive and Gaming, successful divestiture of non-core businesses, and strategic financial maneuvers like share buybacks. While there are potential challenges related to UK tax changes and the Brazilian market, the company expressed confidence in navigating these effectively.Positive Updates
Record-Breaking Interactive Segment Performance
The Interactive segment achieved more than 40% year-over-year adjusted EBITDA growth for the ninth consecutive quarter. October was the largest revenue month and last week was the biggest week in the segment's history.
Negative Updates
Potential UK Gaming Tax Changes
Upcoming UK budget discussions on potential tax changes in the gaming industry could impact the business, though the company is confident in managing these changes.
Read all updates
Q3-2025 Updates
Positive
Negative
Record-Breaking Interactive Segment Performance
The Interactive segment achieved more than 40% year-over-year adjusted EBITDA growth for the ninth consecutive quarter. October was the largest revenue month and last week was the biggest week in the segment's history.
Read all positive updates
Company Guidance
During the Inspired Entertainment Third Quarter 2025 Conference Call, the company provided robust guidance, highlighting a strong financial performance and strategic initiatives. Adjusted EBITDA for the third quarter and trailing 12 months were reported at $32.3 million and $110 million, respectively, both surpassing consensus and previous year figures. The Interactive segment achieved over 40% year-over-year adjusted EBITDA growth for the ninth consecutive quarter, marking October as the highest revenue month in its history. The company discussed the strategic shift following the sale of its holiday parks business, which is expected to enhance EBITDA margins and reduce capital expenditure and headcount by nearly 40%. Looking forward, Inspired Entertainment anticipates high single-digit adjusted EBITDA growth, with projections of 60% digital mix, 45% EBITDA margin, and a reduction in net leverage to 2 by 2027. Additionally, a $25 million share buyback plan was reauthorized, and the expansion into new iGaming states and continued market share gains in North America and the U.K. were emphasized as key growth drivers.Inspired Entertainment Financial Statement Overview
Summary
Income Statement
56
Neutral
Balance Sheet
28
Negative
Cash Flow
62
Positive
| 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
Negative
6.50
Price Trends
8.32
Negative
8.41
Negative
8.56
Negative
Market Momentum
-0.55
Positive
33.92
Neutral
8.56
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 6.5 is below the 20-day moving average (MA) of 7.52, below the 50-day MA of 8.32, and below the 200-day MA of 8.56, indicating a bearish trend. The MACD of -0.55 indicates Positive momentum. The RSI at 33.92 is Neutral, neither overbought nor oversold. The STOCH value of 8.56 is Positive, 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 |
|---|---|---|---|---|---|---|---|
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
56 Neutral | $702.74M | ― | -1.37% | 3.71% | -12.25% | -84.89% | |
56 Neutral | $372.64M | ― | 23.16% | ― | 1.79% | ― | |
53 Neutral | $174.53M | -16.00 | 184.28% | ― | 4.03% | ― | |
52 Neutral | $139.92M | -5.88 | -24.91% | ― | 24.21% | -92.49% | |
47 Neutral | $587.76M | 1.74 | 78.33% | ― | 0.36% | 47.55% | |
40 Neutral | $503.74M | -2.91 | -10.84% | ― | 9.50% | 24.64% |
* Consumer Cyclical Sector Average
INSE
Inspired Entertainment
6.45
-2.57
-28.49%
GDEN
Golden Entertainment
26.62
-0.13
-0.50%
MSC
Studio City International Holdings
2.50
-1.06
-29.86%
CDRO
Codere Online
8.18
0.76
10.24%
GAMB
Gambling.com
3.93
-9.82
-71.42%
BALY
Bally's Corporation
11.60
-4.56
-28.22%
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.