Outlook
- Inspired Entertainment reaffirms 2026 Adjusted EBITDA target range of $112 mln to $118 mln
- Company updates 2026 Free Cash Flow conversion outlook to 20%+, from prior 20%-25%
- Inspired expects sequential Adjusted EBITDA growth through 2026, with less seasonality post-divestiture
Overview
- B2B gaming technology firm's Q2 revenue rose 6% sequentially, but fell 24% yr/yr after divestitures
- Adjusted EBITDA for Q2 climbed 14% sequentially to $27.1 mln, with a record 45% margin
- Company repaid $10 mln in debt and repurchased $2.6 mln in stock during the quarter
Result drivers
- Retail solutions growth - Co said North American retail sales and continued strength in the UK drove strong performance in Retail Solutions
- Interactive segment gains - Revenue and Adjusted EBITDA in Interactive increased 15% and 13% yr/yr, reflecting continued market share gains despite higher UK remote gaming duty
- Portfolio optimization - Divestiture of UK holiday parks and restructuring of pubs business reduced revenue but improved earnings quality and margins
Key details and analyst coverage
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