Inspired Entertainment Q1 revenue falls on business divestitures

Inspired Entertainment

07/05/2026 12:43

Overview

US B2B gaming technology firm's Q1 revenue fell 5% yr/yr after business divestitures

Adjusted EBITDA rose 29% yr/yr, driven by higher-margin Interactive segment growth

Company repaid $13.3 mln in debt and repurchased $2.6 mln in shares during Q1

Outlook

Inspired Entertainment reaffirms 2026 Adjusted EBITDA target range of $112 mln to $118 mln

Company raises 2026 Adjusted EBITDA margin target to up to 45%

Company expects Adjusted EBITDA to grow sequentially throughout 2026

Result Drivers

INTERACTIVE SEGMENT GROWTH - Interactive revenue and Adjusted EBITDA rose 38% and 53% yr/yr, driven by new game releases, premium placements, and expanded distribution, per management

PORTFOLIO OPTIMIZATION - Adjusted EBITDA margin improved to 41%, reflecting a shift toward higher-margin digital segments and portfolio optimization, according to executives

RETAIL SOLUTIONS PERFORMANCE - Retail Solutions business delivered higher margins and gained market share in the UK and Greece, supported by upgraded terminals and new contracts, management said

Company press release: ID:nGNX6y1Krt

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
$57.20 mln
Q1 Net Income
-$500,000
Q1 Adjusted EBITDA
$23.70 mln
Q1 Adjusted EBITDA Margin
41.00%
Q1 Operating Income
$9.20 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

Wall Street's median 12-month price target for Inspired Entertainment Inc is $13.00, about 80.6% above its May 6 closing price of $7.20

The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 12 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)