Interactive Revenue up 53% Fuels Record 42% Q4 EBITDA Margin for Inspired
Inspired Entertainment's interactive business grew revenue 53% and EBITDA 60% in Q4 2025, driving a record quarterly EBITDA margin of 42% and full-year margin of 37%. Management guides 2026 EBITDA to $112–118 million (midpoint $115 M), targets net leverage of 2.5–3×, and expects margins above 45%.
1. Q4 2025 Financial Highlights
Inspired Entertainment's interactive segment delivered a 53% year-over-year revenue increase and a 60% jump in EBITDA in the fourth quarter, pushing the quarterly EBITDA margin to a record 42% and lifting the full-year margin to 37%. Recurring revenue exceeded 80% of total sales while the digital business contributed 51% of full-year EBITDA.
2. 2026 Guidance and Leverage Targets
The company forecasts 2026 EBITDA of $112 million to $118 million, with a midpoint of $115 million. Management aims to lower net leverage from 3.3× at year-end 2025 to between 2.5× and 3× by the end of 2026 and projects EBITDA margins will expand above 45%.
3. Segment Growth and Partnerships
Inspired launched its Virtuals business with BetMGM and renewed key contracts with customers including bet365 and Entain. The iGaming segment has recorded double-digit EBITDA growth for ten consecutive quarters and is preparing to expand into South Africa.
4. Risks and Operational Transition
Upcoming UK tax increases on customer gaming revenue, uncertain timing of U.S. state iGaming legalizations, and seasonal softness in Brazil present headwinds. The company is also shifting toward an asset-light model, which entails significant changes in headcount and capital expenditure.