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Dec 31, 2025
Inspired Q4 2025 Earnings Report
Inspired reported its Q4 2025 results, highlighting a transition toward a more digital, higher-margin business model following the divestiture of its holiday parks business.
Key Takeaways
Inspired Entertainment delivered a mixed Q4 with revenue of $77.2 million, down 7% year-over-year, but achieved record Interactive performance and a record Adjusted EBITDA margin of 42%. While the company reported a net loss of $7.2 million due to restructuring and the sale of its holiday parks business, the digital segments now represent over 50% of Adjusted EBITDA, signaling a successful strategic shift.
Interactive revenue grew 53% year-over-year to a record $17.8 million, driven by strong content performance and market share gains.
Adjusted EBITDA margin reached an all-time high of 42% (excluding VAT rebates) as the business shifts to higher-margin digital revenue.
The company completed the sale of its UK Holiday Parks business in November 2025 for £18.6 million to streamline operations.
Management provided strong 2026 guidance, expecting Q1 Adjusted EBITDA to grow by at least 20% year-over-year.
Revenue by Segment
Forward Guidance
Management expects significant growth in 2026 driven by digital expansion and the removal of lower-margin retail assets.
Positive Outlook
- Q1 2026 Adjusted EBITDA expected to increase by at least 20% YoY.
- Full year 2026 Adjusted EBITDA target of $112 million to $118 million.
- Expected rollout of Virtual Soccer BetBuilder ahead of the 2026 World Cup.
- Expansion into new markets including South Africa and Turkey.
- Streamlining reporting into a 'Retail Solutions' segment to improve efficiency.
Challenges Ahead
- Expected impact of UK online gaming tax changes effective April 2026.
- Potential currency volatility affecting GBP to USD conversions.
- Decline in legacy Leisure segment revenue following divestiture.
- Increased interest expense compared to the prior year.
Historical Earnings Impact
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