Inspired Entertainment stock surges on strong Q4 revenue

Published 17/03/2025, 20:04
Inspired Entertainment stock surges on strong Q4 revenue

NEW YORK - Inspired Entertainment, Inc. (NASDAQ:INSE) reported fourth quarter earnings that beat revenue expectations but missed on EPS, sending shares up 7.5% in trading. The gaming technology provider posted Q4 revenue of $83 million, topping analyst estimates of $81.36 million, while adjusted EPS came in at $0.16, below the $0.26 consensus forecast.

The company’s Interactive segment was the standout performer, with revenue surging 45% YoY to $11.6 million. Adjusted EBITDA for the Interactive business more than doubled to $8.2 million, with margins expanding from 50% to 71% compared to the prior year period.

Overall adjusted EBITDA rose 22% YoY to $30.9 million in Q4. The Gaming segment saw adjusted EBITDA jump 42% to $19.5 million, while Leisure segment adjusted EBITDA increased 58% to $5.2 million. However, the Virtual Sports segment faced headwinds, with revenue declining 22% YoY to $10.1 million.

"We ended the year with a fourth quarter that reflects the strength and resilience of our diversified business model," said Lorne Weil, Executive Chairman of Inspired. "We are pleased to report another quarter of robust performance in our Interactive segment, with revenue growing 45% year-over-year and Adjusted EBITDA more than doubling."

For the full year 2024, Inspired reported total revenue of $297.1 million, up 2% YoY excluding low margin gaming hardware sales. Adjusted EBITDA for 2024 increased 1% to $100.1 million.

The company highlighted progress on strategic initiatives, including the rollout of its Hybrid Dealer product and expansion into new markets like Brazil. Management expressed confidence in driving sustainable growth across its digital and land-based businesses going forward.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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