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Sep 30
Inspired Q3 2025 Earnings Report
Inspired reported strong third quarter 2025 results, driven by record Interactive revenue and strategic execution.
Key Takeaways
Inspired Entertainment delivered a strong third quarter in 2025, with total revenue increasing by 12% year-over-year to $86.2 million, primarily fueled by a 48% surge in Interactive revenue. The company reported a net loss of $1.9 million but achieved a significant 11% increase in Adjusted EBITDA to $32.3 million, with Interactive Adjusted EBITDA up 55%. Strategic moves, including the sale of its UK holiday parks business, are positioning Inspired for a higher-margin, digital-led business model and future growth.
Total revenue increased by 12% year-over-year to $86.2 million, driven by strong Interactive segment performance.
Interactive revenue grew by 48% year-over-year, reaching a new record for the segment.
Adjusted EBITDA rose by 11% to $32.3 million, with Interactive Adjusted EBITDA increasing by 55%.
The company is strategically divesting its UK holiday parks business to transition towards a higher-margin, digital-led business model.
Inspired
Inspired
Inspired Revenue by Segment
Revenue by Segment
Gaming Revenue
CapyFin.comVirtual Sports Revenue
CapyFin.comInteractive Revenue
CapyFin.comLeisure Revenue
CapyFin.com Forward Guidance
Inspired anticipates continued positive momentum into the fourth quarter of 2025, driven by strength in Interactive, organizational integration, and operational execution. The company expects fourth quarter 2025 Adjusted EBITDA to increase year-over-year and full-year 2025 Adjusted EBITDA to exceed $110 million. The divestiture of the holiday parks business and a more agile operating model are expected to support Adjusted EBITDA margin expansion, strengthen free cash flow, and reduce net leverage in 2026 and beyond.
Positive Outlook
- Fourth quarter 2025 Adjusted EBITDA is expected to increase year over year.
- Full year 2025 Adjusted EBITDA is expected to exceed $110 million.
- Divestiture of lower-margin holiday parks business will reduce capital intensity and exposure to seasonal volatility.
- Continued Interactive growth and a more agile, capital-light operating model are expected to support Adjusted EBITDA margin expansion.
- Strategic evolution is expected to strengthen free cash flow conversion and reduce net leverage.
Challenges Ahead
- The divestiture of the holiday parks business will result in an Adjusted EBITDA reduction, though expected to be more than offset by margin expansion.
- No specific negative guidance points were explicitly stated for the forward outlook.
- Assumes GBP:USD exchange rates will remain broadly in line with current levels, which could be a risk.
- Detailed 2026 outlook will only be provided with fourth quarter 2025 results, creating some near-term uncertainty.
- The company's forward-looking statements are subject to known and unknown risks, uncertainties, assumptions, and other important factors.