Inspired Entertainment, Inc. (INSE)
NASDAQ:INSE
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Inspired Entertainment
(NASDAQ:INSE)
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Rating:56Neutral
Price Target:
$7.50
▲(6.99% Upside)
Action:ReiteratedDate:04/01/26
The score is driven by solid operating/cash-flow performance but meaningfully offset by a stressed capital structure (negative equity and sizable debt) and volatile bottom-line results. The latest earnings call improves the outlook via credible EBITDA growth and margin expansion guidance with a clearer deleveraging plan, while technicals and valuation remain weak (downtrend indicators and negative P/E).
Positive Factors
Cash generation
Consistent positive operating and free cash flow (~$52M and ~$16M TTM) provides durable liquidity to fund operations, pay down debt, and invest in digital rollouts. Sustained cash generation supports the deleveraging plan and reduces reliance on external financing over the next 2–6 months.
Negative Factors
Stretched balance sheet
High gross debt (~$372M) and negative equity constrain financial flexibility, increase refinancing and interest-rate sensitivity, and limit capacity for opportunistic investments. Elevated leverage raises execution risk on the deleveraging plan and makes the business more vulnerable to shocks.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash generation
Consistent positive operating and free cash flow (~$52M and ~$16M TTM) provides durable liquidity to fund operations, pay down debt, and invest in digital rollouts. Sustained cash generation supports the deleveraging plan and reduces reliance on external financing over the next 2–6 months.
Read all positive factors
Inspired Entertainment (INSE) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$178.32M
Dividend YieldN/A
Average Volume (3M)153.06K
Price to Earnings (P/E)―
Beta (1Y)1.45
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. Volume99,639
30 Day Avg. Volume153,055
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 Cap2.90
Enterprise Value/Revenue1.70
Enterprise Value/Gross Profit3.13
Enterprise Value/Ebitda5.48
Forecast
1Y Price Target
$16.00Price Target Upside128.25% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
EPS Forecast (FY)0.4
Revenue Forecast (FY)$266.82M
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:Mar 10, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 13, 2026
Earnings Call Sentiment Positive
The call conveyed clear evidence of a successful strategic transformation toward higher-margin, recurring digital businesses: record quarterly EBITDA margin (42%), double-digit FY EBITDA growth (11%), strong Interactive segment momentum (53% revenue and 60% EBITDA growth in Q4), and concrete commercial wins (BetMGM launch, STRATA lottery deployment, contract extensions). Management also provided constructive 2026 guidance and a deleveraging path. Notable risks include U.K. tax headwinds that could pressure revenues, Virtual Sports top-line volatility (Brazil/seasonality), and elevated year-end leverage (3.3x) that management plans to reduce. Overall, positives (robust growth, margin improvement, product rollouts, and recurring revenue mix) materially outweigh the manageable near-term risks and uncertainties.Positive Updates
Strong Interactive Segment Growth
Interactive revenue and EBITDA grew 53% and 60%, respectively, in Q4; the segment delivered 10 consecutive quarters of >40% EBITDA growth and reported the single highest day, weekend, and best week ever for GGR in late February/early March.
Negative Updates
U.K. Digital Tax Increase Uncertainty
Upcoming U.K. tax increase on online gaming may reduce operator GGR and therefore Inspired's revenue; management expects some initial impact when changes take effect in April and believes mitigation is possible but uncertainty remains.
Read all updates
Q4-2025 Updates
Positive
Negative
Strong Interactive Segment Growth
Interactive revenue and EBITDA grew 53% and 60%, respectively, in Q4; the segment delivered 10 consecutive quarters of >40% EBITDA growth and reported the single highest day, weekend, and best week ever for GGR in late February/early March.
Read all positive updates
Company Guidance
Guidance: management provided 2026 EBITDA guidance of $112–$118 million (midpoint $115M), which they said represents low‑double‑digit growth over 2025 excluding the divested holiday parks (2025 EBITDA was $111M, up 11% vs. 2024), and expects company‑wide EBITDA margins to move into the mid‑40s (Q4 2025 was a record 42% and full‑year 2025 was 37%); digital already accounted for 51% of 2025 EBITDA and is expected to exceed 60% (with Interactive showing 10 consecutive quarters of >40% EBITDA growth and Q4 Interactive revenue/EBITDA up 53%/60%), leverage was 3.3x at year‑end 2025 and management is targeting 2.5–3.0x net leverage by year‑end 2026 (approaching ~2x by 2027), cash CapEx was roughly $44M in 2025 (noting GAAP CapEx ≈ $55–56M) and is expected to step down as the business becomes more asset‑light, with >80% of revenue recurring and materially improved free cash flow and interest expense expected as deleveraging proceeds.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
Neutral
7.01
Price Trends
7.60
Negative
8.24
Negative
8.48
Negative
Market Momentum
-0.22
Negative
49.25
Neutral
40.95
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 7.01 is above the 20-day moving average (MA) of 6.75, below the 50-day MA of 7.60, and below the 200-day MA of 8.48, indicating a neutral trend. The MACD of -0.22 indicates Negative momentum. The RSI at 49.25 is Neutral, neither overbought nor oversold. The STOCH value of 40.95 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 | $178.32M | -16.00 | 184.28% | ― | 4.03% | ― | |
56 Neutral | $389.50M | ― | 16.40% | ― | 1.79% | ― | |
52 Neutral | $128.46M | -5.88 | -24.91% | ― | 24.21% | -92.49% | |
49 Neutral | $743.39M | -118.26 | -1.37% | 3.71% | -12.25% | -84.89% | |
47 Neutral | $530.01M | -1.43 | -116.69% | ― | 0.36% | 47.55% | |
40 Neutral | $556.33M | -2.91 | -10.84% | ― | 9.50% | 24.64% |
* Consumer Cyclical Sector Average
INSE
Inspired Entertainment
6.88
-0.45
-6.14%
GDEN
Golden Entertainment
27.99
3.40
13.84%
MSC
Studio City International Holdings
2.79
-0.27
-8.82%
CDRO
Codere Online
8.79
1.72
24.33%
GAMB
Gambling.com
3.81
-8.10
-68.01%
BALY
Bally's Corporation
10.70
-5.56
-34.19%
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.