Inspired Entertainment, Inc.
For the period ended Mar 31, 2026. Filed May 7, 2026.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2026 · Filed May 7, 2026
INSE$3.70+5.7%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-09-30; filed 2025-11-06.
0001493152-25-020923
Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSCurrent report: 10-Q
Period ended 2026-03-31; filed 2026-05-07.
0001493152-26-021634
Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 213 previous paragraphs and 191 current paragraphs.
86 unchanged; 53 reworded; 51 added; 71 removed; 3 previous and 1 current paragraphs rearranged.
Tables are not compared: 21 previous and 19 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (51)
Current report
Change to Reportable Segments
Current report
During the three-month period ended March 31, 2026, the CODM began reviewing the operational results of the business in a new structure. As a result, the Company now reports the following three reportable segments, Retail Solutions, Virtual Sports, and Interactive, down from the previous four reportable segments. This change in operating segments is reflected starting with the reporting period ended March 31, 2026. Additionally, the Company will recast historical results of prior comparative periods to reflect the change in reportable segments, beginning with the period ended March 31, 2026, as required by ASC 280-10-34 for both Quarterly Reports on Form 10-Q and Annual Reports on Form 10-K.
Current report
Key Events
Current report
During the three-month period ended March 31, 2026, the Retail Solutions segment completed the installation of 574 Vantage terminals for JenningsBet in the UK LBO market. Within the same segment, the Company secured an order from Genting Casino for 300 of its new Velos terminals, with delivery expected to commence in the second half of 2026. This order follows a smaller initial order of 100 terminals delivered in the fourth quarter of 2025 following a successful trial.
Current report
During the three-month period ended March 31, 2026, the Company signed a multi-year extension of its long-standing Virtual Sports agreement with bet365, one of the world’s leading online gambling operators. The extension is expected to support continued collaboration to develop Virtual Sports innovations, including the anticipated launch of an enhanced Virtual Soccer product featuring a BetBuilder functionality, timed to coincide with the start of the 2026 FIFA World Cup. Separately, in partnership with Gametech, the Company launched an expansion of its Virtual Sports Horse Racing and Greyhounds content to Turkish online operators and independent retailers, expanding distribution across Turkish online and retail channels. The Company also extended its long-standing partnership with Entain, the global sports betting and gaming group, with a multi-year agreement, introducing the upgraded Virtual Soccer product with BetBuilder.
Current report
During the three-month period ended March 31, 2026, the Interactive segment launched a new Lottery platform, STRATA™, on the Google Cloud Platform and deployed with LEIDSA (Loteria Electrônica Internacional Dominicana S.A.), a leading electronic lottery operator, and WLA member in the Dominican Republic.
Current report
Three Months Ended March 31, 2026, compared to Three Months Ended March 31, 2025
Current report
Revenue (for the Three-Months Ended March 31, 2026, compared to the Three-Months Ended March 31, 2025)
Current report
For the three-month period ended March 31, 2026, revenue on a functional currency (at constant rate) basis decreased by $6.8 million, or 11% compared to the three-month period ended March 31, 2025.
Current report
For the three-month period ended March 31, 2026, compared to the three-month period ended March 31, 2025, Retail Solutions revenue declined by $9.8 million, predominantly due to a decrease in service revenue of $10.1 million, mainly due to the sale of the UK holiday parks business and certain associated leisure assets, and pub operator model change. This was partially offset by product sales increase of $0.3 million (reflecting the variable nature of terminal sales). Virtual Sports revenue declined by $0.6 million, due to a decrease in online revenue, while Interactive revenue grew by $3.5 million due to growth in the UK, mainland Europe and North American markets.
Current report
Cost of sales, excluding depreciation and amortization, for the three-month period ended March 31, 2026, compared to the three-month period ended March 31, 2025, decreased by $7.2 million, or 40%, predominantly driven by a $6.8 million decrease in cost of service, mainly due to the sale of the UK holiday parks business and certain leisure assets and pub operator business model restructuring, and a $0.4 million decrease in cost of product, attributable to the same restructuring activity.
Current report
Staff-related selling, general and administrative expenses for the three-month period ended March 31, 2026, decreased by $3.4 million, or 22% compared to the three-month period ended March 31, 2025, predominantly related to the sale of the UK holiday parks business and certain leisure assets.
Current report
Non-Staff related selling, general and administrative expenses for the three-month period ended March 31, 2026 decreased by $0.9 million, or 7% compared with the three-month period ended March 31, 2025, mainly driven by lower fleet costs of $0.8 million, facility costs of $0.6 million (both related to the sale of the UK holiday parks business and certain leisure assets and pub operator business model restructuring activity) and storage costs of $0.3 million partially offset by higher professional fees of $0.8 million.
Current report
Depreciation and amortization for the three-month period ended March 31, 2026, increased by $1.1 million, mainly driven by increases in Virtual Sports of $0.7 million and Interactive of $0.2 million for increased software development and intangible assets.
Current report
Other selling, general and administrative expenses for the three-month period ended March 31, 2026 decreased by $4.3 million, or 90% compared with the three-month period ended March 31, 2025, primarily driven by the timing of costs relating to the restatement of previously issued financial statements and expense relating to restructuring costs during the three-month period ended March 31, 2025.
Current report
During the three-month period ended March 31, 2026, net operating income was $9.2 million, an increase of $7.2 million, compared to the three-month period ended March 31, 2025. This was predominantly due to a lower staff related selling, general and administrative expenses (due to sale of the UK holiday parks business and certain leisure assets), and timing of costs relating to the restatement of previously issued financial statements during the three-month period ended March 31, 2025.
Current report
Net Loss
Current report
For the three-month period ended March 31, 2026, net loss was $0.5 million, compared to net loss of $0.1 million in the three-month period ended March 31, 2025. The increase in net loss was primarily driven by a decrease of income tax benefit of $4.3 million (the effective tax rate in any given year is influenced by a variety of factors including the level of pre-tax income or loss, the income mix between jurisdictions, and any discrete items that may occur), and higher interest expense of $2.8 million, partially offset by the increase of net operating income of $7.2 million.
Current report
Retail Solutions
Current report
Retail Solutions, Key Performance Indicators
Current report
“Participation - Average Installed Base” is the average number of deployed Retail Solutions terminals that generated revenue on a participation basis.
Current report
Retail Solutions, Recurring Revenue
Current report
Retail Solutions, Service Revenue by Region
Current report
Retail Solutions, Results of Operations
Current report
All variances discussed in the Retail Solutions results below are on a functional currency (at a constant rate) basis, which excludes the impact of any changes in foreign currency exchange rates.
Current report
Retail Solutions Revenue
Current report
During the three-month period ended March 31, 2026, Retail Solutions revenue decreased by $9.8 million, or 25% compared to the three-month period ended March 31, 2025. This was driven by a $10.1 million decrease in Service revenue, partially offset by a $0.3 million increase in Product revenue.
Current report
The decrease in Retail Solutions Service revenue, during three-month period ended March 31, 2026, compared to the three-month period ended March 31, 2025, was driven by the sale of the UK holiday parks business and certain associated leisure assets, as well as the pub operator business model restructuring, partially offset by an increase in UK LBO service revenue.
Current report
Retail Solutions Operating / Net Income
Current report
Virtual Sports Operating Income
Current report
During the three-month period ended March 31, 2026, revenue increased by $3.5 million, or 29% compared to the three-month period ended March 31, 2025, driven by recurring revenue growth in the UK, mainland Europe and North America.
Current report
Three Months Ended March 31, 2026, compared to Three Months Ended March 31, 2025
Current report
Cash Flow Summary - A Two Year Comparative
Current report
Non-cash interest expense increased by $0.5 million, to $1.0 million, due to the refinancing of the business in June 2025.
Current report
Depreciation and amortization increased by $1.6 million, to $13.0 million, with increases of $0.6 million in both software development cost amortization and contract cost amortization and $0.5 million in non-machine depreciation. These were offset by a $0.2 million decrease in right of use asset amortization.
Current report
During the three-month period ended March 31, 2026, net cash used by financing activities was $16.7 million, $15.0 million higher than the three-month period ended March 31, 2025 due to the voluntary repayment of £10.0 million ($13.3 million) of the long-term debt facility and the repurchase of shares $2.6 million. These were partly offset by a $0.9 million reduction in finance lease expenditure.
Current report
Total cumulative share repurchases under both share repurchase programs amount to an aggregate of 1,636,952 shares of our common stock at an aggregate cost of $15.0 million.
Current report
Critical Accounting Estimates
Current report
For a discussion of other recently issued accounting standards, and assessments as to their impacts on the Company, see Note 1 “Nature of Operations, Management’s Plans and Summary of Significant Accounting Policies” in the Notes to Consolidated Financial Statements included in Part I, Item 1 of the Company’s 2025 Form 10-K.
Showing the first 40 of 51 passages. Open the source sections for the rest.
Removed paragraphs (71)
Previous report
Key Events – Current Quarter
Previous report
During the three-month period ended September 30, 2025, in the Gaming segment 202 new terminals were delivered to OPAP as part of the order of 4,000 new VLT’s placed in the Greek market in the fourth quarter of 2024 (all of which will be delivered in 2025), 1,304 machines were sold in the UK market to customers including Bod Rudd, Essex Leisure, Regal Ltd and other independent market customers.
Previous report
During the three-month period ended September 30, 2025, Inspired extended its long-term partnership with William Hill, introducing an enhanced Virtual Sports experience and upgraded retail rollout. As part of the contract extension, Inspired will deliver a comprehensive upgrade to William Hill’s Virtual Sports offering across its UK retail estate.
Previous report
During the three-month period ended September 30, 2025, the Interactive segment recorded a net increase of three operators compared with the prior quarter, driven primarily by continued momentum among mid-market operators. Inspired also expanded its Hybrid Dealer content footprint in North America through the Caesars Palace Wheel of Wins rollout to Michigan and Ontario, following its successful launch in New Jersey.
Previous report
During the three-month period ended September 30, 2025, Inspired entered into definitive agreement relating to the sale of Inspired’s UK holiday parks business and certain associated leisure assets (“Indigo NewCo Limited”). As part of the agreement, Inspired will provide gaming and content platform services, and machine spare parts on a recurring revenue basis to Indigo NewCo Limited.
Previous report
During the quarter, the pending sale of Indigo NewCo Limited was classified as held-for-sale, the Company further considered ASC 205-20 and whether or not the disposal represented a strategic shift that would have a major effect on the Company’s operations and financial results. An assessment was made from both a quantitative and qualitative perspective and the Company concluded that the disposal did not represent a strategic shift. As such, the Company did not present the pending sale as discontinued operations.
Previous report
While the Indigo NewCo Limited business represents approximately 17% of Group revenue and 8% of Group EBITDA, it generates zero free cashflow as a result of capital reinvestment. The operations of Indigo NewCo Limited are primarily associated with children’s amusement machines, which is contrary to the Company’s primary strategy of developing digital gaming for adults.
Previous report
Based on management’s conclusion that the sale of Indigo NewCo Limited represents a non-core part of the Company’s strategy, in addition to the Financial Accounting Standards Board’s use of the word “major” in ASC 205-20-45-1C suggesting a relatively high bar for a disposal to be considered a strategic shift on a quantitative basis, our analysis of both qualitative and quantitative factors determined that the sale of Indigo NewCo Limited did not meet the definition of a strategic shift that would have a major effect on the operations or financial results of the Company.
Previous report
During the quarter, Inspired also began transitioning a number of pub customers to a new operating model by refocusing on content and machine supply.
Previous report
During the third quarter of 2025, management identified the nonrenewal of two significant customer contracts within the pub sector as a potential indicator of impairment for the All Other asset group within the Leisure segment under the long-lived asset guidance in U.S. GAAP.
Previous report
The two contracts collectively represented approximately 15% and 14% of the Leisure segment’s total revenues and EBITDA, respectively, and approximately 33% and 24% of the “All Other Leisure” asset groups total revenue and EBITDA during the year ended December 31, 2024.
Previous report
As a result of the identified triggering event, management performed a recoverability test for the affected asset group as of August 1, 2025. Based on this analysis, the undiscounted estimated future cash flows exceeded the carrying amount of the asset group; therefore, no impairment charge was recorded. Management will continue to monitor the segment’s performance and customer’s relationships for potential future indicators of impairment.
Previous report
Three and nine Months ended September 30, 2025, compared to Three and nine Months ended September 30, 2024
Previous report
Revenue (for the three and nine months ended September 30, 2025, compared to the three and nine months ended September 30, 2024)
Previous report
For the three-month period ended September 30, 2025, revenue on a functional currency (at constant rate) basis increased by $6.1 million or 8% compared to the three-month period ended September 30, 2024 and for the nine months period ended September 30, 2025, revenue on a functional currency basis increased by $5.7 million or 3% compared to the nine-month period ended September 30, 2024.
Previous report
For the three-month period ended September 30, 2025, compared to the three-month period ended September 30, 2024, Gaming revenue increased by $3.8 million, Gaming product sales increased $2.7 million due to increases in the UK and North America, and service sales increased $1.1 million due to an increase in unit volumes in the UK and Greece markets. Virtual Sports revenue declined by $2.2 million due to reduced Online revenue. Interactive revenue increased by $4.5 million, driven by revenue growth in the UK and North America: and Leisure revenue increased by $0.2 million with service sales increases of $0.5 million, partially offset by product sales decreases of $0.3 million predominantly due to holiday parks in UK.
Previous report
For the nine-month period ended September 30, 2025 compared to the nine-month period ended September 30, 2024, Gaming revenue increased by $1.8 million, Gaming service revenue of $5.7 million predominantly due to the UK and mainland Europe markets partially offset by product sales decline of $3.9 million due to a decrease in the North America markets as product sales do not typically follow a linear year-over-year trend. Virtual Sports revenue decreased by $8.9 million due to a decrease in Online revenue. Interactive revenue increased by $12.0 million, driven by revenue growth in the UK, mainland Europe and Latin America; and Leisure revenue increased by $0.8 million with service sales increased by $1.1 million and partially offset by product sales decrease of $0.3 million. Increases were due to Holiday Parks revenue growth in both existing and new sites added in the prior twelve-month period as well as revenue growth in the Bingo sector.
Previous report
Cost of sales, excluding depreciation and amortization, for the three-month period ended September 30, 2025, compared to the three-month period ended September 30, 2024, increased by $1.6 million or 7%, driven by a $0.7 million increase in cost of service, and a $0.9 million increase in cost of service.
Previous report
Cost of sales, excluding depreciation and amortization, for the nine-month period ended September 30, 2025, compared to the nine-month period ended September 30, 2024, decreased $1.8 million or 3%, driven by a $2.7 million decrease in cost of product, predominantly driven by a fluctuation in product revenues, partially offset by an increase in cost of service of $0.9 million.
Previous report
Staff related selling, general and administrative expenses for the three and nine-month period ended September 30, 2025, increased by $1.7 million and $2.7 million, or 11% and 6% respectively compared to the three and nine-month period ended September 30, 2024, mainly related to performance based short term incentive expenses timings.
Previous report
Non-Staff related selling, general and administrative expenses for the three-month period ended September 30, 2025 increased by $0.5 million, or 4% compared with the three-month period ended September 30, 2024 predominantly driven by increases in professional fees due to timings of activities as are not linear year-on-year partially offset by favorable realized gain on foreign currency movements and favorable facility charges for lower insurance premiums and utility costs.
Previous report
Non-Staff related selling, general and administrative expenses for the nine-month period ended September 30, 2025 decreased by $0.9 million, or 2% compared with the nine-month period ended September 30, 2024 mainly driven by a favorable realized gain on foreign currency movement.
Previous report
Depreciation and amortization for the three-month period ended September 30, 2025, increased by $1.6 million compared to the three-month period ended September 30, 2024. This was driven by increases across Gaming of $0.6 million related to gaming machine additions, Virtuals of $0.3 million, and Interactive $0.6 million related to software development intangible additions.
Previous report
Depreciation and amortization for the nine-month period ended September 30, 2025, increased by $6.0 million compared to the nine-month period ended September 30, 2024. This was predominantly driven by increases in Gaming of $4.4 million and Leisure of $1.2 million.
Previous report
During the three and nine-month periods ended September 30, 2025, net operating income was $9.7 million and $19.2 million, respectively, representing a decrease of $1.6 million and increase of $1.2 million, respectively, compared to the three and nine-month periods ended September 30, 2024.
Previous report
The year-over-year decline in the three-month period ended September 30, 2025, was predominantly due to the Held for Sale impairment and, increased depreciation and amortization expense, partially offset by higher revenues and lower selling, general and administration expenses.
Previous report
The year-over-year increase in the nine-month period ended September 30, 2025, compared to the nine-month period ended September 30, 2024, was mainly due to lower cost of product and non-staff related selling, general and administrative expenses partially offset by the Held for Sale impairment and higher depreciation and amortization expenses.
Previous report
Net Income/Loss
Previous report
For the three and nine-months ended September 30, 2025, net loss was $1.9 million and $9.8 million, respectively, compared to a net income of $2.8 million and a net loss of $2.2 million, respectively, in the three and nine-month period ended September 30, 2024.
Previous report
For the three-month period ended September 30, 2025, the $4.4 million decrease compared to the three-month period ended September 30, 2024, was due to the decrease in net operating income and higher net interest expense driven by the refinancing activities in the second quarter of 2025 and impact of FX rates partially offset by a decrease in tax expense.
Previous report
For the nine-month period ended September 30, 2025, the $6.5 million decrease compared to the nine-month period ended September 30, 2024, was due to higher net interest expense driven by the refinancing activities in the second quarter of 2025 and impact of FX rates as well as an increase in tax expense, partially offset by an increase in the net operating income.
Previous report
Gaming
Previous report
Gaming, Key Performance Indicators
Previous report
“Participation - Average Installed Base” is the average number of deployed Gaming terminals that generated revenue on a participation basis.
Previous report
Gaming, Recurring Revenue
Previous report
Gaming, Service Revenue by Region
Previous report
Gaming, Results of Operations
Previous report
All variances discussed in the Gaming results below are on a functional currency (at constant rate) basis, which excludes the impact of any changes in foreign currency exchange rates.
Previous report
Gaming Revenue
Previous report
During the three and nine-month period ended September 30, 2025, Gaming revenue increased by $3.8 million and $1.8 million, or 17% and 3% respectively compared to the three-and nine-month period ended September 30, 2024. During the three-month period ended September 30, 2025, this was driven by an increase in Product revenue $2.7 million and Service revenue $1.1 million. During the nine-month period ended September 30, 2025, this was driven by an increase in Service revenue of $5.7m, partially offset by a decrease in Product revenue of $3.9 million.
Showing the first 40 of 71 passages. Open the source sections for the rest.
Reworded paragraphs (53)
Previous wording
For the three and nine months ended September 30, 2025, we derived approximately 73% and 71% of our revenue from the UK (including customers headquartered in the UK but whose revenue is generated globally), respectively, 6% (in both periods) from USA, 7% and 8% from Greece respectively, and the remaining 14% and 15% across the rest of the world. During the three and nine months ended September 30, 2024, we derived approximately 77% and 76% of our revenue from the UK respectively, 4% and 3% from USA respectively, 7% and 8% from Greece respectively and 12% and 13% respectively for the rest of world.
Current wording
For the three-months ended March 31, 2026, we derived approximately 60% of our revenue from the UK (including customers headquartered in the UK but whose revenue is generated globally), 11% from Greece, and the remaining 29% across the rest of the world. For the three-months ended March 31, 2025, we derived approximately 65% of our revenue from the UK (including customers headquartered in the UK but whose revenue is generated globally), 10% from Greece, and the remaining 25% across the rest of the world.
Previous wording
As of September 30, 2025, our non-current assets (excluding goodwill) were attributable as follows: 70% to the UK, 15% to Greece and 15% across the rest of the world. As of September 30, 2024, our non-current assets (excluding goodwill) were attributable as follows: 75% to the UK, 8% to Greece and 17% across the rest of the world.
Current wording
As of March 31, 2026, our non-current assets (excluding goodwill) were attributable as follows: 70% to the UK, 17% to Greece and 13% across the rest of the world. As of March 31, 2025, our non-current assets (excluding goodwill) were attributable as follows: 74% to the UK, 11% to Greece and 15% across the rest of the world.
Previous wording
Our results are affected by changes in foreign currency exchange rates as a result of the translation of foreign functional currencies into our reporting currency and the re-measurement of foreign currency transactions and balances. The impact of foreign currency exchange rate fluctuations represents the difference between current rates and prior-period rates applied to current activity. The geographic region in which the largest portion of our business is operated is the UK and the British pound (“GBP”) is our functional currency. Our reporting currency is the U.S. dollar (“USD”). Our results are translated from our functional currency of GBP into the reporting currency of USD using average rates for profit and loss transactions and applicable spot rates for period-end balances. The effect of translating our functional currency into our reporting currency, as well as translating the results of foreign subsidiaries that have a different functional currency into our functional currency, is reported separately in Accumulated Other Comprehensive Income.
Current wording
Our results are affected by changes in foreign currency exchange rates as a result of the translation of foreign functional currencies into our reporting currency and the re-measurement of foreign currency transactions and balances. The impact of foreign currency exchange rate fluctuations represents the difference between current rates and prior-period rates applied to current activity. The geographic region in which the largest portion of our business is operated is the UK and the British pound (“GBP”) is considered to be our functional currency. Our reporting currency is the U.S. dollar (“USD”). Our results are translated from our functional currency of GBP into the reporting currency of USD using average rates for profit and loss transactions and applicable spot rates for period-end balances. The effect of translating our functional currency into our reporting currency, as well as translating the results of foreign subsidiaries that have a different functional currency into our functional currency, is reported separately in Accumulated Other Comprehensive Income.
Previous wording
During the three and nine months ended September 30, 2025, we derived approximately 27% and 29% respectively of our revenue from sales to customers outside the UK (see discussion above), compared to 23% and 24% during the three and nine months ended September 30, 2024, respectively.
Current wording
During the three-months ended March 31, 2026, we derived approximately 40% of our revenue from sales to customers outside the UK, compared to 35% during the three months ended March 31, 2025.
Previous wording
In the section “Results of Operations” below, currency impacts shown have been calculated as the current-period average GBP:USD rate less the equivalent average rate in the prior year period, multiplied by the current period amount in our functional currency (GBP). The remaining difference, referred to as functional currency at constant rate, is calculated as the difference in our functional currency, multiplied by the prior-period average GBP:USD rate. This is not a U.S. GAAP measure, but one which management believes provides a useful indication of results. In the tables below, variances in particular line items from period to period exclude currency translation movements, and currency translation impacts are shown independently.
Current wording
In the section “Results of Operations” below, currency impacts shown have been calculated as the current-period average GBP:USD rate less the equivalent average rate in the prior period, multiplied by the current period amount in our functional currency (GBP). The remaining difference, referred to as functional currency at constant rate, is calculated as the difference in our functional currency, multiplied by the prior-period average GBP:USD rate. This is not a U.S. GAAP measure but is one which management believes gives a clearer indication of results. In the tables below, variances in particular line items from period to period exclude currency translation movements, and currency translation impacts are shown independently.
Previous wording
Our results of operations can fluctuate due to seasonal trends and other factors. Sales of our gaming machines can vary quarter on quarter due to both supply and demand factors. Player activity for our holiday parks has generally been higher in the second and third quarters of the year, particularly during the summer months and slower during the first and fourth quarters of the year.
Current wording
Our results of operations can fluctuate due to seasonal trends and other factors. Sales of our gaming machines can vary quarter on quarter due to both supply and demand factors.
Previous wording
Our results are affected by changes in foreign currency exchange rates, primarily between our functional currency (GBP) and our reporting currency (USD). During the three month periods ended September 30, 2025 and September 30, 2024, the average GBP:USD rates were 1.35 and 1.30, respectively, and for the nine-month periods ended September 30, 2025 and September 30, 2025 were 1.32 and 1.28, respectively.
Current wording
Our results are affected by changes in foreign currency exchange rates, primarily between our functional currency (GBP) and our reporting currency (USD). During the three-month period ended March 31, 2026 and March 31, 2025, the average GBP:USD rates were 1.35 and 1.26, respectively.
Previous wording
In the discussion and analysis below, certain data may vary from the amounts presented in our consolidated financial statements due to rounding.
Current wording
In the discussion and analysis below, certain data may vary from the amounts presented in our condensed consolidated financial statements due to rounding.
Previous wording
During the three and nine-month period ended September 30, 2025, the Company recorded stock-based compensation expenses of $1.4 million and $4.6 million, respectively, compared to stock-based compensation expenses of $1.8 million and $5.7 million for the three and nine-month period ended September 30, 2024. All expenses related to outstanding awards.
Current wording
During the three-month period ended March 31, 2026, and March 31, 2025, the Company recorded expenses of $1.4 million. All expenses related to outstanding awards.
Previous wording
Segment Results (for the three and nine months ended September 30, 2025, compared to the three and nine months ended September 30, 2024)
Current wording
Segment Results (for the Three-Months Ended March 31, 2026, compared to the Three-Months Ended March 31, 2025)
Previous wording
We generate revenue from our Gaming segment through delivery of our gaming terminals preloaded with proprietary gaming software, server-based content, as well as services such as terminal repairs, maintenance, software upgrades and upgrades on a when and if available basis and content development. We receive rental fees for machines, typically in conjunction with long-term contracts, on both a participation and fixed fee basis. Our participation contracts are typically structured to pay us a percentage of net win (defined as net revenue to our operator customers, after deducting player winnings, free bets or plays and any relevant regulatory levies) from gaming terminals placed in our customers’ facilities. Typically, we recognize revenue from these arrangements on a daily basis over the term of the contract.
Current wording
We generate revenue from our Retail Solutions segment through the delivery of our gaming terminals preloaded with proprietary gaming software, server-based content, as well as services such as terminal repairs, maintenance, software updates and upgrades on a when and if available basis and content development. We receive rental fees for machines, typically in conjunction with long-term contracts, on both a participation and fixed fee basis. Our participation contracts are typically structured to pay us a percentage of net win (defined as net revenue to our operator customers, after deducting player winnings, free bets or plays and any relevant regulatory levies) from gaming terminals placed in our customers’ facilities. Typically, we recognize revenue from these arrangements on a daily basis over the term of the contract.
Previous wording
Revenue growth for our Gaming business is principally driven by changes in (i) the number of operator customers we have, (ii) the number of Gaming machines in operation, (iii) the net win performance of the machines and (iv) the net win percentage that we receive pursuant to our contracts with our customers.
Current wording
Revenue growth for our Retail Solutions business is principally driven by changes in (i) the number of operator customers we have, (ii) the number of Retail Solutions machines in operation, (iii) the net win performance of the machines and (iv) the net win percentage that we receive pursuant to our contracts with our customers.
Previous wording
“End of Period Installed Base” is equal to the number of deployed Gaming terminals at the end of each period that have been placed on a participation or fixed rental basis. Gaming participation revenue, which comprises the majority of Gaming Service revenue, is directly related to the participation terminal installed base. This is the medium by which our customers generate revenue and distribute a revenue share to the Company. To the extent all other KPIs and certain other factors remain constant, the larger the installed base, the higher the Company’s revenue would be for a given period. Management gives careful consideration to this KPI in terms of driving growth across the segment. This does not include Service Only terminals.
Current wording
“End of Period Installed Base” represent the number of gaming machines installed (excluding Holiday Park machines) that are Category B and Category C only (UK Gambling Act 2005 places machines into categories dependent on maximum stake and prize available), This is equal to the number of deployed Retail Solutions terminals at the end of each period that have been placed on a participation or fixed rental basis. Retail Solutions participation revenue, which comprises the majority of Retail Solutions Service revenue, is directly related to the participation terminal installed base. This is the medium by which our customers generate revenue and distribute a revenue share to the Company. To the extent all other KPIs and certain other factors remain constant, the larger the installed base, the higher the Company’s revenue would be for a given period. Management gives careful consideration to this KPI in terms of driving growth across the segment. This does not include Service Only terminals.
Previous wording
“Total Gaming - Average Installed Base” is the average number of deployed Gaming terminals during the period consisting of both participation terminals and fixed rental terminals. Therefore, it is more closely aligned to revenue in the period. We believe this measure is particularly useful for assessing existing customers or markets to provide comparisons of historical size and performance. This does not include Service Only terminals.
Current wording
“Total Retail Solutions - Average Installed Base” is the average number of deployed Retail Solutions terminals during the period consisting of both participation terminals and fixed rental terminals. Therefore, it is more closely aligned to revenue in the period. We believe this measure is particularly useful for assessing existing customers or markets to provide comparisons of historical size and performance. This does not include Service Only terminals.
Previous wording
“Fixed Rental - Average Installed Base” is the average number of deployed Gaming terminals that generated revenue on a fixed rental basis.
Current wording
“Fixed Rental - Average Installed Base” is the average number of deployed Retail Solutions terminals that generated revenue on a fixed rental basis.
Previous wording
“Customer Gross Win per unit per day” is a KPI used by our management to (i) assess impact on the Company’s revenue, (ii) determine changes in the performance of the overall market and (iii) evaluate the impact of regulatory change and our new content releases on our customers. Customer Gross Win per unit per day is the average per unit cash generated across all Gaming terminals in which the Company takes a participation revenue share across all territories in the period, defined as the difference between the amounts staked less winnings to players divided by the Average Installed Base in the period, then divided by the number of days in the period.
Current wording
“Customer Gross Win per unit per day” is a KPI used by our management to (i) assess impact on the Company’s revenue, (ii) determine changes in the performance of the overall market and (iii) evaluate the impact of regulatory change and our new content releases on our customers. Customer Gross Win per unit per day is the average per unit cash generated across all Retail Solutions terminals in which the Company takes a participation revenue share across all territories in the period, defined as the difference between the amounts staked less winnings to players divided by the Average Installed Base in the period, then divided by the number of days in the period.
Previous wording
Gaming revenue accrued in the period is derived from Customer Gross Win accrued in the period after deducting gaming taxes (defined as a regulatory levy paid by the Customer to government bodies) and applying the Company’s contractual revenue share percentage.
Current wording
Retail Solutions revenue accrued in the period is derived from Customer Gross Win accrued in the period after deducting gaming taxes (defined as a regulatory levy paid by the Customer to government bodies) and applying the Company’s contractual revenue share percentage.
Previous wording
“Inspired Fixed Rental Revenue per Gaming Machine per week” is the Company’s average fixed rental amount across all fixed rental terminals where revenue is generated on a fixed fee basis, per unit per week.
Current wording
“Inspired Fixed Rental Revenue per Retail Solutions Machine per week” is the Company’s average fixed rental amount across all fixed rental terminals where revenue is generated on a fixed fee basis, per unit per week.
Previous wording
“Inspired Service Rental Revenue per Gaming Machine per week” is the Company’s average service rental amount across all service only rental terminals where revenue is generated on a service only fixed fee basis, per unit per week.
Current wording
“Inspired Service Rental Revenue per Retail Solutions Machine per week” is the Company’s average service rental amount across all service only rental terminals where revenue is generated on a service only fixed fee basis, per unit per week.
Previous wording
“Gaming Long term license amortization” is the upfront license fee per terminal which is typically spread over the life of the terminal.
Current wording
“Retail Solutions Long term license amortization” is the upfront license fee per terminal which is typically spread over the life of the terminal.
Previous wording
Our overall Gaming revenue from terminals placed on a participation basis can therefore be calculated as the product of the Participation - Average Installed Base, the Customer Net Win per unit per day, the number of days in the period, and the Inspired Blended Participation Rate, which is equal to “Participation Revenue”.
Current wording
Our overall Retail Solutions revenue from terminals placed on a participation basis can therefore be calculated as the product of the Participation - Average Installed Base, the Customer Net Win per unit per day, the number of days in the period, and the Inspired Blended Participation Rate, which is equal to “Participation Revenue”.
Previous wording
“Average selling price per terminal” is the total revenue in GBP of the Gaming terminals sold divided by the “number of Machine sales”.
Current wording
“Average selling price per terminal” is the total revenue in GBP of the Retail Solutions terminals sold divided by the “number of Machine sales”.
Previous wording
Set forth below is a breakdown of our Gaming recurring revenue. Gaming recurring revenue principally consist of Gaming participation revenue and fixed rental revenue.
Current wording
Set forth below is a breakdown of our Retail Solutions recurring revenue. Retail Solutions recurring revenue principally consists of Retail Solutions participation revenue and fixed rental revenue.
Previous wording
“Gaming Participation Revenue” includes our share of revenue generated from (i) our Gaming terminals placed in gaming and lottery venues; and (ii) licensing of our game content and intellectual property to third parties.
Current wording
“Retail Solutions Participation Revenue” includes our share of revenue generated from (i) our Retail Solutions terminals placed in gaming and lottery venues; and (ii) licensing of our game content and intellectual property to third parties.
Previous wording
“Gaming Other Fixed Fee Recurring Revenue” includes service revenue in which the Company earns a periodic fixed fee on a contracted basis.
Current wording
“Retail Solutions Other Fixed Fee Recurring Revenue” includes service revenue in which the Company earns a periodic fixed fee on a contracted basis.
Previous wording
“Gaming Project Recurring Revenue” relates specifically to a single customer for machine estate upgrades and distribution.
Current wording
“Retail Solutions Project Recurring Revenue” relates specifically to a single customer for machine estate upgrades and distribution.
Previous wording
“Gaming Long term license amortization” – see the definition provided above.
Current wording
“Retail Solutions Long term license amortization” – see the definition provided above.
Previous wording
“Total Gaming Recurring Revenue” is equal to Gaming Participation Revenue plus Gaming Other Fixed Fee Recurring Revenue.
Current wording
“Total Retail Solutions Recurring Revenue” is equal to Retail Solutions Participation Revenue plus Retail Solutions Other Fixed Fee Recurring Revenue.
Previous wording
Set forth below is a breakdown of our Gaming service revenue by geographic region. Gaming Service revenue consists principally of Gaming participation revenue, Gaming other fixed fee revenue, Gaming long-term license amortization and Gaming other non-recurring revenue. See “Gaming Segment Revenue” below for a discussion of gaming service revenue between the periods under review.
Current wording
Set forth below is a breakdown of our Retail Solutions service revenue by geographic region. Retail Solutions Service revenue consists principally of Retail Solutions participation revenue, Retail Solutions other fixed fee revenue, Retail Solutions long-term license amortization and Retail Solutions other non-recurring revenue. See “Retail Solutions Segment Revenue” below for a discussion of Retail Solutions service revenue between the periods under review.
Previous wording
For the nine-month period ended September 30, 2025, compared to the nine-month period ended September 30, 2024, the product revenue decreased by $3.9 million as the prior year period contained higher volumes of hardware sales which are less predictable in nature.
Current wording
The Product revenue increase, for the three-month period ended March 31, 2026, compared to the three-month period ended March 31, 2025 was primarily driven by higher UK Product sales, with the prior year period containing lower volumes of hardware sales which tend to be more variable in nature.
Previous wording
Net income for the nine-month period ended September 30, 2025, increased by $3.9 million, compared to the nine-month period ended September 30, 2024. The increase was primarily due to a decrease in cost of product of $2.8 million from lower volumes of hardware sales, a reduction in staff-related selling, general and administrative expenses driven by the closure of the Bridgend manufacturing facility in 2024.
Current wording
Net income for the three-month period ended March 31, 2026, increased by $2.5 million compared to the three-month period ended March 31, 2025. The increase was primarily due to a reduction in staff-related selling, general and administrative expenses of $3.4 million and non-staff related selling, general and administrative expenses of $2.2 million, partially offset by the reduction in Service sales Gross Margin, driven by the sales of the UK holiday parks business and certain associated leisure assets, and pub operator business model restructuring.
Previous wording
We generate revenue from our Virtual Sports segment through the on-premise solution and hosting of our products. We primarily receive fees on a participation basis. Our participation contracts are typically structured to pay us a percentage of net win (defined as net revenue to our operator customers, after deducting player winnings, free bets or plays and other promotional costs and any relevant regulatory levies) from Virtual Sports content placed on our customers’ websites or in our customers’ facilities. Typically, we recognize revenue from these arrangements on a daily basis over the term of the contract.
Current wording
We generate revenue from our Virtual Sports segment through our on-premise licensing solution and hosting of our products. We primarily receive fees on a participation basis. Our participation contracts are typically structured to pay us a percentage of net win (defined as net revenue to our operator customers, after deducting player winnings, free bets or plays and other promotional costs and any relevant regulatory levies) from Virtual Sports content placed on our customers’ websites or in our customers’ facilities. Typically, we recognize revenue from these arrangements on a daily basis over the term of the contract.
Previous wording
During the three and nine-month period ended September 30, 2025, revenue decreased by $2.2 million and $8.9 million, or 20% and 25%, respectively compared to the three and nine-month period ended September 30, 2024 primarily driven by a regulation in the Brazilian market and introduction of new levies.
Current wording
During the three-month period ended March 31, 2026, revenue decreased by $0.6 million, or 7% compared to the three-month period ended March 31, 2025, primarily driven by lower revenue from a key customer.
Previous wording
Net operating income for the three-month period ended September 30, 2025, decreased $7.1 million compared to the three-month period ended September 30, 2024. This was primarily due to the Held for Sale impairment adjustment of $5.7 million and an increase in other selling, general and administration costs of $0.5 million.
Current wording
During the three-month period ended March 31, 2026, net operating income decreased by $1.3 million compared to the three-month period March 31, 2025. This decline was primarily due to the decrease in gross margin of $0.5 million, and an increase in depreciation and amortization of $0.7 million for increased software development and intangible assets.
Previous wording
We generate revenue from our Interactive segment through the various games and content made available via third party aggregation platforms with Inspired’s remote gaming server or directly on the customers remote gaming server platform, and services such as customer support, platform maintenance, updates and upgrades. Typically, we receive fees on a participation basis. Our participation contracts are usually structured to pay us a percentage of net win (defined as net revenue to our operator customers, after deducting player winnings, free bets or plays and other promotional costs and any relevant regulatory levies) from Interactive content placed on our customers’ websites. Typically, we recognize revenue from these arrangements on a daily basis over the term of the contract.
Current wording
We generate revenue from our Interactive segment through various gaming content made available via third-party aggregation platforms integrated with our remote gaming server or directly on the Company’s remote gaming server platform, and services such as customer support, platform maintenance, updates and upgrades. Typically, we receive fees on a participation basis. Our participation contracts are usually structured to pay us a percentage of net win (defined as net revenue to our operator customers, after deducting player winnings, free bets or plays and other promotional costs and any relevant regulatory levies) from Interactive content placed on our customers’ websites. Typically, we recognize revenue from these arrangements on a daily basis over the term of the contract.
Previous wording
“No. of Games available at the end of the period” and “Average No. of Games available” represents the number of games that are available for operators to deploy at the end of the period (including inactive legacy games still available and inactive new games that are available but have not yet gone live with any operators) and the average number of games that are available for operators to deploy during the period, respectively. This incorporates both live games and inactive games.
Current wording
“No. of Games available at the end of the period” and “Average No. of Games available” represents the number of games that are available for operators to deploy at the end of the period (including inactive legacy games still available and new games that are available but have not yet gone live with any operators) and the average number of games that are available for operators to deploy during the period, respectively. This incorporates live games and inactive games.
Previous wording
For the three-month period ended September 30, 2025, compared to the three-month period ended September 30, 2024, this increase was driven by the increase in Gross Margin of $4.2 million, partially offset by increases in Staff-related selling, general and administrative expenses of $0.5 million and increases in Depreciation and Amortization of $0.6 million.
Current wording
Operating income for the three-month period ended March 31, 2026 increased by $3.0 million compared to the three-month period ended March 31, 2025. This increase was driven by the increase in revenue, partially offset by increases in cost of sales of $0.2 million, depreciation and amortization of $0.2 million and non-staff related selling, general and administrative expenses of $0.1 million.
Previous wording
Reconciliations from net loss, as shown in our Consolidates Statements of Operations and Comprehensive Income (Loss), to Adjusted EBITDA are shown below:
Current wording
Reconciliations from net loss, as shown in our Consolidated Statements of Operations and Comprehensive Income (Loss), to Adjusted EBITDA are shown below.
Previous wording
Reconciliation to Adjusted EBITDA by segment for the Three and Nine Months ended September 30, 2025
Current wording
Reconciliation to Adjusted EBITDA by Segment for the Three Months Ended March 31, 2026
Previous wording
Note: Certain corporate function costs have not been allocated to the Company’s reportable operating segments because to do so would not be practical; these are shown in the Corporate category.
Current wording
Note: Certain unallocated corporate function costs have not been allocated to the Company’s reportable operating segments because these costs are not allocable and to do so would not be practical; these are shown in the Corporate category.
Showing the first 40 of 53 pairs. Open the source sections for the rest.
Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
Other selling, general and administrative expenses
Rearranged previous paragraphs (3)
Previous report — wording carried elsewhere
“End of period installed base Gaming” and “Average installed base Gaming” represent the number of gaming machines installed (excluding Holiday Park machines) that are Category B and Category C only (UK Gambling Act 2005 places machines into categories dependent on maximum stake and prize available), from which there is participation or rental revenue at the end of the period or as an average over the period.
Previous report — wording carried elsewhere
Note: Exchange rate in the table is calculated by dividing the USD total revenue by the GBP total revenue, therefore this could be slightly different from the average rate during the period depending on timing of transactions.
Previous report — wording carried elsewhere
Covenant testing at September 30, 2025 showed covenant compliance with the current debt facilities in place.