Inspired Entertainment’s Profitability Rises Despite Net Loss
Inspired Entertainment reported a mixed but resilient second quarter, with strong top-line growth and improved profitability overshadowed by a net loss. The company’s revenue increased 7% year-over-year to $80.3 million, driven by a standout performance in its Interactive division and steady results from its Gaming and Leisure segments.

A Tale of Four Segments
The company recorded a net loss of $7.8 million for the quarter, a significant shift from the $1.4 million net profit reported in the same period last year. Despite this, a key profitability metric, Adjusted EBITDA, rose a healthy 15% to $28.4 million, indicating underlying operational strength.
The company’s performance varied significantly across its four business divisions, painting a picture of strategic realignment and shifting market dynamics.
- Interactive (iGaming): This was the clear growth engine for the company. The segment’s revenue skyrocketed 45% to a record $13.6 million, with Adjusted EBITDA climbing 49% to $9.1 million. The division’s profit margin expanded to an impressive 67%, reflecting the scalability of its digital operations. According to Executive Chairman Lorne Weil, this growth was “driven by sustained momentum in North America and the UK.”
- Gaming: The land-based gaming machine segment delivered a solid performance. Revenue grew 3% to $27.2 million, but profitability saw a much larger jump, with Adjusted EBITDA increasing 35% to $12.8 million. This was attributed to the successful rollout of its Vantage cabinets with operator William Hill and new terminal deployments in Greece.
- Leisure: This segment, which includes gaming services for pubs and holiday resorts, performed as expected. Revenue grew 11% to $30.3 million, supported by the timing of UK public holidays.
- Virtual Sports: This segment faced continued headwinds, with revenue declining 21% to $9.2 million. The company noted, however, that the division saw sequential growth from the first quarter and is focused on targeted initiatives, such as localized content for the Brazilian market and an expanded partnership with William Hill, to spark a turnaround.
Strategic Moves and Financial Health
Beyond the segment results, Inspired Entertainment completed several key strategic initiatives during the period. The company successfully executed a comprehensive debt refinancing of £288 million, which included issuing new secured notes and securing a new credit facility. This move provides a more flexible capital structure for the future.
On the commercial front, Inspired secured a five-year partnership with Jenningsbet, the largest independent retail bookmaker in the UK, to supply approximately 570 of its Vantage gaming terminals.
The company also highlighted its expansion in North America, launching Canada’s first branded Hybrid Dealer Roulette game with Loto-Québec. “We’re also beginning to see some early adoption among regional operators that traditionally have lacked access to live dealer solutions,” said Weil, noting the product’s long-term potential.
The Bottom Line
For the first half of 2025, the trends were similar. Total company revenue was up 3% to $140.7 million, while Adjusted EBITDA grew 17% to $46.8 million. The net loss for the six-month period stood at $7.9 million.
The Interactive segment remains the primary driver of growth, with its revenue up 47% for the first half of the year. The strength in the digital business and the improved profitability in the land-based Gaming segment are helping to offset the challenges in Virtual Sports.
“Across the business, we continue to execute with discipline and focus,” Weil stated. “With a more flexible capital structure in place and a clear set of strategic priorities, we believe we are well-positioned to build on this progress and drive long-term value for our shareholders.”
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