Inspired Entertainment (NASDAQ:INSE) Issues Earnings Results, Beats Estimates By $0.08 EPS

Inspired Entertainment (NASDAQ:INSE) announced its quarterly earnings data on Thursday. The company reported $0.10 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.02 by $0.08, FiscalAI reports. Inspired Entertainment had a negative net margin of 3.34% and a negative return on equity of 30.08%. The business had revenue of $61.40 million for the quarter, compared to analysts’ expectations of $64.52 million.

Here are the key takeaways from Inspired Entertainment’s conference call:

• Adjusted for the Brazil shutdown, U.K. tax increases and portfolio changes, trailing 12-month EBITDA grew 12% over nine months, while third-quarter EBITDA margin reached 46%, up 900 basis points year over year.
• Interactive remained a growth driver: segment EBITDA rose 20% before the U.K. tax impact, U.S. iGaming GGR grew more than 30% year over year, and October was the company’s strongest month on record for the segment.
• The Brazil online gaming shutdown weighed on results and led the company to lower the low end of full-year guidance to $109 million. Management is assuming the shutdown continues, though it said a potential return could improve the outlook.
• Management said the U.K. Machine Games Duty increase, effective April 2027, is expected to cost $2 million to $3 million initially; alongside Brazil uncertainty, it has pushed the company’s growth trajectory out by about a year.
• With senior secured net leverage at about 2.8 times and improving cash flow, management said it plans to emphasize share repurchases, citing the stock’s valuation relative to gaming-industry suppliers.

Inspired Entertainment Stock Up 5.7%

NASDAQ INSE traded up $0.20 on Friday, hitting $3.70. The company’s stock had a trading volume of 2,103,186 shares, compared to its average volume of 410,487. Inspired Entertainment has a 1-year low of $3.10 and a 1-year high of $9.95. The company’s 50-day moving average is $4.17 and its 200 day moving average is $6.60. The firm has a market cap of $97.53 million, a PE ratio of -14.23 and a beta of 1.16.

Wall Street Analysts Forecast Growth

Several brokerages have commented on INSE. Zacks Research downgraded Inspired Entertainment from a “strong-buy” rating to a “hold” rating in a research note on Tuesday, July 28th. B. Riley Financial reduced their price target on shares of Inspired Entertainment from $8.75 to $6.25 and set a “buy” rating on the stock in a research note on Friday. Citigroup restated a “market outperform” rating on shares of Inspired Entertainment in a research note on Tuesday, October 13th. Weiss Ratings reaffirmed a “sell (d)” rating on shares of Inspired Entertainment in a report on Friday, September 4th. Finally, Citizens Jmp decreased their price target on shares of Inspired Entertainment from $9.00 to $7.00 and set a “market outperform” rating on the stock in a report on Friday. Four analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, Inspired Entertainment has an average rating of “Hold” and a consensus target price of $10.31.

Inspired Entertainment News Roundup

Here are the key news stories impacting Inspired Entertainment this week:

• Positive Sentiment: Q3 adjusted earnings were $0.10 per share, above the $0.02 consensus estimate. Inspired Entertainment Q3 Earnings Beat Estimates
• Negative Sentiment: Revenue of $61.4 million fell short of the $64.52 million consensus. Earnings were also down from $0.28 per share a year earlier, suggesting the quarterly beat did not represent year-over-year growth. Inspired Reports Third Quarter 2026 Results
• Negative Sentiment: B. Riley cut its price target to $6.25 from $8.75, while Citizens JMP lowered its target to $7 from $9. Both firms maintained bullish ratings—Buy and Market Outperform, respectively—but the reductions signal more cautious expectations. B. Riley recommendations Citizens JMP recommendations

About Inspired Entertainment

Inspired Entertainment, Inc is a business-to-business gaming technology company that develops and supplies content, software, hardware and related services for regulated gaming, betting and leisure markets. Its customers include bookmakers, casinos, gaming operators, lotteries and other entertainment venues.

The company’s offerings include gaming terminals and server-based gaming systems, digital casino games, virtual sports and other simulated sporting events, as well as interactive gaming solutions for online and mobile platforms.