Inspired Entertainment, Inc. (INSE)
NASDAQ:INSE
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Inspired Entertainment
(NASDAQ:INSE)
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Rating:58Neutral
Price Target:
$7.50
▲(1.35% Upside)
Action:Reiterated
Date:05/09/26
The score reflects improving operational/cash-flow momentum and constructive earnings-call guidance (margin target raised, strong Q1 growth, free cash flow generation, and deleveraging actions), partially offset by elevated balance-sheet risk (high debt with negative equity) and weaker valuation signals (negative P/E) despite moderately positive near-term technical momentum.
Positive Factors
Consistent positive operating and free cash flow
Sustained positive operating cash flow and a meaningfully positive TTM free cash flow provide durable internal funding to support capex, debt reduction and buybacks. This cash generation reduces refinancing reliance and improves resilience through cyclical revenue swings.
Negative Factors
High leverage and persistent negative equity
Large gross debt and negative equity materially constrain financial flexibility. Even with improving cash flow, the thin capital cushion increases refinancing and covenant risk, making the business sensitive to earnings volatility and adverse market conditions over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Consistent positive operating and free cash flow
Sustained positive operating cash flow and a meaningfully positive TTM free cash flow provide durable internal funding to support capex, debt reduction and buybacks. This cash generation reduces refinancing reliance and improves resilience through cyclical revenue swings.
Read all positive factors
Inspired Entertainment (INSE) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$203.27M
Dividend YieldN/A
Average Volume (3M)94.50K
Price to Earnings (P/E)―
Beta (1Y)1.59
Revenue Growth1.31%
EPS Growth-123.26%
CountryUS
Employees1,420
SectorConsumer Cyclical
Sector Strength84
IndustryGambling, Resorts & Casinos
Share Statistics
EPS (TTM)-0.60
Shares Outstanding26,675,356
10 Day Avg. Volume80,229
30 Day Avg. Volume94,497
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 Cap2.52
Enterprise Value/Revenue1.70
Enterprise Value/Gross Profit2.21
Enterprise Value/Ebitda5.56
Forecast
1Y Price Target
$16.00Price Target Upside116.22% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
EPS Forecast (FY)0.36
Revenue Forecast (FY)$259.73M
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:May 07, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 06, 2026
Earnings Call Sentiment Positive
The call presented multiple strong operational and financial positives — double-digit continuing revenue growth, 38% Interactive growth, 29% EBITDA growth, 1,100 bps margin expansion, debt reduction, share repurchases, and improved cash generation — driven by content strength, market-share gains, and portfolio optimization. Challenges include underperformance and market headwinds in Virtual Sports (notably Brazil), a substantial U.K. tax increase (19 percentage points) that remains a structural headwind, some timing delays on partner rollouts, and quarter-to-quarter cash variability. Overall, the positives (robust growth, margin expansion, deleveraging and clear strategic progress) materially outweigh the highlighted challenges.Positive Updates
Continuing Revenue and Interactive Growth
Continuing revenue grew 15% year-over-year; Interactive revenue was a primary driver with 38% year-over-year growth.
Negative Updates
Virtual Sports Growth Below Prior Expectations
Virtual Sports has stabilized but underperformed earlier expectations; management now estimates long-term penetration likely in the mid- to high-single digits of OSB handle versus prior mid-teens target.
Read all updates
Q1-2026 Updates
Positive
Negative
Continuing Revenue and Interactive Growth
Continuing revenue grew 15% year-over-year; Interactive revenue was a primary driver with 38% year-over-year growth.
Read all positive updates
Company Guidance
Management reiterated its adjusted EBITDA guidance but raised its EBITDA margin target and said it expects steady sequential EBITDA growth from Q1 onward (seasonality largely removed), stronger cash‑flow conversion and declining leverage driven by continued debt repayment and share repurchases. To support that guidance they pointed to Q1 continuing revenue up ~15% YoY to just over $57M, Interactive revenue +38%, Q1 reported EBITDA +29% with margin expansion of ~1,100 basis points, digital representing ~60% of EBITDA, generated roughly $16M of free cash flow in the quarter, paid down ~$13M of debt and repurchased close to 400,000 shares, leverage down to ~3.0x, headcount reduced from >1,500 to ~950, annualized capex cut from mid‑$40M to low‑$30M, UK GGR in April +40% YoY (UK revenue >+10% in April despite the tax increase), and management expects leverage‑free‑cash‑flow conversion as a percent of EBITDA to be comfortably in the 20s (with annual cash interest in the mid‑$30M).Inspired Entertainment Financial Statement Overview
Summary
Income Statement
46
Neutral
Balance Sheet
22
Negative
Cash Flow
63
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Mar 2024 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 300.90M | 304.10M | 297.10M | 322.90M | 284.50M | 205.80M |
| Gross Profit | 231.70M | 217.60M | 204.80M | 194.30M | 189.60M | 136.20M |
| EBITDA | 92.20M | 82.00M | 82.30M | 86.10M | 94.10M | 57.10M |
| Net Income | -17.40M | -17.00M | 64.80M | 6.90M | 21.20M | -40.60M |
Balance Sheet | ||||||
| Total Assets | 421.20M | 439.90M | 438.40M | 343.00M | 287.20M | 308.70M |
| Cash, Cash Equivalents and Short-Term Investments | 42.30M | 42.00M | 29.30M | 40.00M | 25.00M | 47.80M |
| Total Debt | 351.60M | 363.30M | 350.80M | 331.50M | 296.00M | 332.20M |
| Total Liabilities | 433.60M | 456.10M | 441.70M | 418.90M | 372.80M | 417.40M |
| Stockholders Equity | -12.40M | -16.20M | -3.30M | -75.90M | -85.60M | -108.70M |
Cash Flow | ||||||
| Free Cash Flow | 13.10M | 6.40M | 2.90M | -2.30M | -5.00M | -19.20M |
| Operating Cash Flow | 53.20M | 52.00M | 31.70M | 45.50M | 34.80M | 6.20M |
| Investing Cash Flow | -35.50M | -40.50M | -40.10M | -48.40M | -40.40M | -37.90M |
| Financing Cash Flow | -15.00M | 0.00 | -1.60M | 16.20M | -11.10M | 31.20M |
Inspired Entertainment Technical Analysis
Positive
7.40
Price Trends
7.08
Positive
7.79
Negative
8.23
Negative
Market Momentum
0.09
Negative
57.89
Neutral
85.72
Negative
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 7.4 is below the 20-day moving average (MA) of 7.41, above the 50-day MA of 7.08, and below the 200-day MA of 8.23, indicating a neutral trend. The MACD of 0.09 indicates Negative momentum. The RSI at 57.89 is Neutral, neither overbought nor oversold. The STOCH value of 85.72 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 |
|---|---|---|---|---|---|---|---|
70 Outperform | $426.22M | 221.19 | 7.85% | ― | 6.33% | -150.96% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
58 Neutral | $203.27M | -12.96 | 147.77% | ― | 1.31% | -123.26% | |
53 Neutral | $493.01M | -2.85 | -10.84% | ― | 9.05% | 59.31% | |
46 Neutral | $85.99M | -1.85 | -37.13% | ― | 19.23% | -232.12% | |
42 Neutral | $684.79M | -1.01 | -115.26% | ― | 16.60% | -75.69% |
* Consumer Cyclical Sector Average
INSE
Inspired Entertainment
7.70
-0.12
-1.53%
MSC
Studio City International Holdings
2.39
-0.47
-16.47%
CDRO
Codere Online
9.38
2.14
29.56%
GAMB
Gambling.com
2.38
-9.41
-79.81%
BALY
Bally's Corporation
14.18
4.15
41.38%
Inspired Entertainment Corporate Events
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.