Inspired Cuts 2026 EBITDA Target After Brazil Gaming Halt

The Tip Desk · November 5, 2026 · 3 min read

Third-quarter revenue was $61.4 million and the Adjusted EBITDA margin reached a quarterly record of 46% excluding periods with a UK VAT rebate as the company lowered its full-year Adjusted EBITDA range to $109 million–$112 million.

Inspired Entertainment, Inc. (INSE) reported third-quarter revenue of $61.4 million and cut its full-year 2026 Adjusted EBITDA target to $109 million to $112 million from $112 million to $118 million, primarily to reflect the suspension of regulated online gaming in Brazil, a business representing about 5% of total revenue.

The B2B gaming content, technology and hardware provider said like-for-like revenue increased approximately 4% versus a year earlier despite higher UK gaming taxes. Adjusting for the UK remote gaming duty increase, revenue increased approximately 9%, with Adjusted EBITDA growing at about twice that pace.

Adjusted EBITDA was $28.2 million, up 4% sequentially from $27.1 million in the second quarter, after second-quarter Adjusted EBITDA had risen 14% from the prior quarter. The margin reached a quarterly record 46% excluding periods with a UK VAT rebate, up from a quarterly-record 45% on the same basis in the second quarter. Net operating income was $10.3 million. The company reported a net loss of $0.1 million, or $0.00 a share, and adjusted net income of $2.8 million, or $0.10 a share.

Reported results reflect the November 2025 divestiture of the UK Holiday Parks business and the restructuring of the Pubs business, both of which contributed to the prior-year period. Excluding those portfolio changes, revenue increased 4% year over year.

Retail Solutions, the largest segment, generated $37.4 million of revenue. Virtual Sports contributed $8.5 million. Interactive revenue was $15.5 million, up 3% year over year, as UK volume growth offset the higher gaming tax and the U.S. business outpaced the U.S. iGaming market, the company said. Segment Adjusted EBITDA was $19.6 million in Retail Solutions, $5.7 million in Virtual Sports and $10.2 million in Interactive. Corporate Adjusted EBITDA was a $7.3 million loss.

President and Chief Executive Officer Brooks Pierce said the UK Budget removes a major overhang and gives the company and its customers a clearer foundation for investment and planning. The Budget increased machine games duty from 20% to 25% beginning April 2027. Pierce said the increase is disappointing but manageable and that the company will pursue disciplined mitigation measures.

Pierce said Brazil’s unexpected shutdown of regulated online betting and gaming affects a business representing approximately 5% of total revenue. While opportunities to offset the lost contribution are limited in the near term, the company continues to evaluate options as the regulatory situation evolves. Management is updating its full-year 2026 Adjusted EBITDA target range to $109 million to $112 million, from $112 million to $118 million, primarily to reflect the Brazil shutdown.

The company delivered approximately 22% free cash flow conversion year to date. Reflecting the loss of Brazil’s earnings contribution in the fourth quarter, full-year 2026 free cash flow conversion is now expected to be slightly below the company’s 20% target.

Inspired launched Virtual Sports on the Massachusetts Lottery’s iLottery platform and expanded a partnership with FanDuel to bring Virtual Sports to online customers, both in the fourth quarter. It went live on day one with Interactive and Virtual Sports in the newly regulated Alberta gaming market. The company also delivered more than 200 Velos electronic table games terminals to Genting Casino as part of a 310-terminal order, with remaining terminals due in the fourth quarter, and installed 300 new lottery terminals in the Dominican Republic as part of an approximately 3,000-terminal upgrade program.

Pierce said the company enters the fourth quarter encouraged by improving U.S. iGaming trends and a strong holiday content lineup. Executive Chairman Lorne Weil said a pipeline of new customers, markets, distribution channels, product formats and partnerships gives multiple avenues to grow, and that the company will allocate capital with discipline in 2027, prioritizing investments with attractive returns and sustainable cash generation, alongside expected continued debt reduction and share repurchases.