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

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

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 Trading Up 5.7%

INSE traded up $0.20 during midday trading on Friday, reaching $3.70. The company’s stock had a trading volume of 2,103,186 shares, compared to its average volume of 410,487. The stock has a market cap of $97.53 million, a P/E ratio of -14.23 and a beta of 1.16. The company has a fifty day simple moving average of $4.17 and a 200 day simple moving average of $6.60. Inspired Entertainment has a twelve month low of $3.10 and a twelve month high of $9.95.

Analyst Ratings Changes

Several analysts have commented on INSE shares. Citizens Jmp decreased their target price on shares of Inspired Entertainment from $9.00 to $7.00 and set a “market outperform” rating for the company in a research report on Friday. BWS Financial lowered shares of Inspired Entertainment from a “buy” rating to a “neutral” rating in a research note on Tuesday, September 29th. Citigroup restated a “market outperform” rating on shares of Inspired Entertainment in a report on Tuesday, October 13th. Zacks Research lowered shares of Inspired Entertainment from a “strong-buy” rating to a “hold” rating in a research note on Tuesday, July 28th. Finally, B. Riley Financial decreased their price objective on shares of Inspired Entertainment from $8.75 to $6.25 and set a “buy” rating for the company in a report on Friday. Four investment analysts have rated the stock with a Buy rating, two have given a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, Inspired Entertainment has an average rating of “Hold” and a consensus price target of $10.31.

Inspired Entertainment News Summary

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

Inspired Entertainment Company Profile

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.