Q4 Revenue $77.2M, Interactive Sales Up 53% Drives Record 42% EBITDA Margin
Inspired Entertainment’s fourth-quarter revenue reached $77.2 million, driven by a 53 percent surge in Interactive sales, while Adjusted EBITDA climbed 5 percent to $32.3 million, delivering a record 42 percent margin. The company sold its UK holiday parks for £18.6 million, repaid $13.3 million debt and projected 2026 Adjusted EBITDA of $112 million to $118 million, implying double-digit growth.
1. Fourth Quarter Financial Performance
Inspired reported Q4 revenue of $77.2 million, down 7 percent year-over-year, with Interactive revenue surging 53 percent to $17.8 million. Net operating income was $11.2 million, while GAAP net loss was $7.2 million; Adjusted EBITDA reached $32.3 million, up 5 percent, achieving a 42 percent margin driven by record Interactive profitability.
2. Strategic Capital and Portfolio Moves
In November, the company divested its UK holiday parks business for £18.6 million and has since repaid $13.3 million of debt, bolstering its balance sheet and enabling opportunistic share repurchases. These actions support the shift toward a digital-first, higher-margin model focused on scalable gaming and virtual sports offerings.
3. Outlook and 2026 Guidance
Management expects first-quarter Adjusted EBITDA to increase at least 20 percent year-over-year, with full-year 2026 Adjusted EBITDA projected between $112 million and $118 million. At the midpoint, this implies double-digit growth excluding the divested holiday parks, reflecting confidence in expanding digital content, geographic reach and free cash flow conversion.