Inspired Entertainment posted full-year 2025 adjusted EBITDA of $111.4 million, up 11% year-on-year, as a 49% jump in Interactive revenue drove the company’s strongest EBITDA margin in years — even as a missed EPS consensus sent the stock down roughly 8% in pre-market trading.
Full Year 2025 Results
Total revenue reached $304.1 million for the twelve months ended 31 December 2025, up 2% from $297.1 million in 2024. The headline growth masked sharply diverging segment performances. Interactive was the standout: revenue of $58.6 million, up 49% year-on-year from $39.3 million, with segment adjusted EBITDA rising 59% to $40.6 million.
Gaming, the largest segment by revenue, grew modestly to $112.3 million, up 2%, with adjusted EBITDA of $55.0 million — a 21% improvement year-on-year as operational efficiencies improved margins. Virtual Sports declined across the full year, with revenue falling 19% to $36.6 million and adjusted EBITDA down 26% to $26.8 million, reflecting a prolonged impact from challenges with a key customer that weighed on the prior-year comparative. Leisure revenue was $96.6 million, down 5%, in part reflecting the November divestiture of the UK holiday parks business for £18.6 million.
The full-year net loss was $17.0 million, against net income of $64.8 million in 2024. The comparison is distorted: 2024 net income included a $63.0 million deferred tax benefit that does not recur. Adjusted EBITDA margin improved to 37% from 34%. Operating cash flow rose to $52.0 million from $31.7 million the year before.
Fourth Quarter 2025
Fourth quarter revenue came in at $77.2 million, down 7% year-on-year from $83.0 million, or down 11% on a constant-currency basis. Interactive was the sole growth segment in Q4, with revenue of $17.8 million — up 53% year-on-year — and adjusted EBITDA of $13.1 million, up 60%. Interactive’s share of total Q4 adjusted EBITDA reached 33.1%, up from 22.3% in Q4 2024.
Total Q4 adjusted EBITDA was $32.3 million, up 5% from $30.9 million, generating a record 42% adjusted EBITDA margin. Q4 net loss was $7.2 million, against reported net income of $67.0 million in Q4 2024 — again, the prior-year figure was driven by a large deferred tax benefit.
On EPS, Inspired missed analyst consensus by a wide margin. Adjusted EPS came in at negative $0.18, against analyst expectations of positive $0.24. Revenue at $77.2 million exceeded the $75.59 million consensus estimate by 2.1%.
“Our fourth quarter results reflect the strength of our underlying business and the progress we are making in advancing our strategic priorities,” said Brooks Pierce, President and CEO of Inspired. “We delivered record Interactive revenue (+53% YoY) and Adjusted EBITDA (+60% YoY), underscoring the scalability and operating leverage of our digital core growth engine.”
Operational Highlights
In Interactive, Inspired grew its US iGaming GGR market share by 50 basis points quarter-on-quarter in Q4 2025, driven by content performance. Five games appeared in the Eilers & Fantini Top 50 in December, including Bigger Piggy Christmas Bank™ at number six among new online slots. The company also expanded into South Africa during Q4.
In Gaming, Inspired launched with new customer Jenningsbet, deploying 470 terminals in Q4 and a further 120 in Q1 2026. The company also activated its first cloud-native lottery platform for LEIDSA in the Dominican Republic, covering 2,500 terminals and integrated digital channels.
Virtual Sports secured multi-year extensions with Entain and bet365 in Q1 2026, and expanded its partnership with BetMGM and Borgata to bring Virtual Sports to their New Jersey sportsbook — described as the first US Tier O operator to integrate Virtual Sports into a sportsbook tab. A new Virtual Soccer BetBuilder product launched in Greece with OPAP is showing early results, with management citing increased bet volume and gross win. A broader rollout is planned ahead of the 2026 FIFA World Cup.
Guidance and Digital Transition
Executive Chairman Lorne Weil set out the company’s 2026 targets directly.
“We expect 2026 Adjusted EBITDA to be in the range of $112 million to $118 million. At the midpoint, this represents double-digit growth versus 2025 excluding the divested holiday parks business. We expect earnings to build progressively through the year, with our focus on converting earnings into stronger free cash flow generation and further enhancing long-term shareholder value.”
Management expects Q1 2026 adjusted EBITDA to grow at least 20% year-on-year. Full-year guidance of $112 million to $118 million incorporates the expected impact of UK online gaming tax changes set out in the November 2025 Budget and effective from April 2026.
Longer-term targets include growing the digital business contribution to more than 60% of total adjusted EBITDA and expanding the adjusted EBITDA margin to above 45%. From Q1 2026, Inspired will consolidate Gaming and Leisure into a single “Retail Solutions” reporting segment; Virtual Sports and Interactive will continue to be reported separately.
The net leverage ratio stood at 3.3x at year-end. For context, Evolution reported flat revenue and a 9% EBITDA decline for FY2025 as European regulatory pressure weighed on the live casino market — a different trajectory to the Interactive-led growth Inspired is now banking on.
Source: Inspired Entertainment, Inc.
