Inspired Entertainment (INSE) Q2 2026 earnings summary

Executive summary

• Q2 2026 revenue was $60.8–$61 million, up 6% sequentially but down 24–25% year-over-year due to divestitures and pub restructuring.

• Adjusted EBITDA reached $27–$27.1 million, up 14% quarter-over-quarter, with a record 45% margin.

• Net income improved to $0.2 million in Q2 2026, compared to a net loss in the prior year.

• Portfolio optimization, including the divestiture of UK holiday parks and pub restructuring, drove higher margins and a more scalable business model.

• Net leverage reduced to 2.91–3.0x, with a path to below 2.5x by 2027.

Financial highlights

• Adjusted EBITDA margin expanded by 1,000 basis points year-over-year to 45%.

• Interactive revenue grew 15% year-over-year in Q2, with adjusted EBITDA up 13%.

• Retail Solutions revenue fell 37% year-over-year in Q2 due to divestitures, but EBITDA margins exceeded 50% before corporate allocation.

• Virtual Sports revenue declined 3–4% year-over-year in Q2, but adjusted EBITDA rose 2–11% quarter-over-quarter.

• Year-to-date, $23.3 million in debt repaid and $5.2 million in share repurchases.

Outlook and guidance

• FY2026 adjusted EBITDA target range reaffirmed at $112–$118 million.

• Free cash flow conversion expected to exceed 20% for FY26, rising to 25%+ by 2027.

• Net leverage projected to fall below 2.5x by 2027.

• Management expects sequential adjusted EBITDA growth through the year and less seasonality post-divestiture.

• By 2027, EBITDA projected to reach $130 million with margins at 47%.