Inspired Entertainment posts Q3 2026 revenue miss but hits record EBITDA margin
Total revenue US$61.4m; like‑for‑like sales up 4% and adjusted EBITDA margin at 46%
Key Takeaways
- Inspired Entertainment reported Q3 2026 total revenue of US$61.4 million, below analyst consensus of $64.52 million.
- Like‑for‑like revenue rose 4% after excluding the sale of the UK holiday parks business in November 2025.
- Total company adjusted EBITDA was $28.2 million with a record adjusted EBITDA margin of 46 per cent.
- Adjusted net income fell to $2.8 million, a 66 per cent decrease from $8.2 million a year earlier.
Inspired Entertainment reported Q3 2026 results for the quarter ended 30 September, posting total revenue of US$61.4 million, below analyst consensus of $64.52 million, while like‑for‑like revenue rose 4% after asset sales. The company recorded total company adjusted EBITDA of $28.2 million, producing a record adjusted EBITDA margin of 46 per cent despite headline revenue falling year‑on‑year.
Revenue and comparatives
Headline revenue for the quarter was US$61.4 million, down 29 per cent from US$86.2 million in the prior‑year period. The year‑on‑year decline reflects the sale of Inspired’s UK holiday parks business in November 2025. Excluding the holiday parks division and the restructuring of the pubs business, revenue rose 4 per cent on a like‑for‑like basis, with the company citing higher UK remote gaming duty as a headwind.
Profitability and margins
Total company adjusted EBITDA was $28.2 million, a 13 per cent decline from $32.3 million a year earlier. The company nevertheless delivered a record adjusted EBITDA margin of 46 per cent. Adjusted net income for the quarter came in at $2.8 million, down 66 per cent from $8.2 million in the prior‑year quarter.
Division performance and outlook
Brooks Pierce, President and Chief Executive Officer of Inspired Entertainment, said:
"Our third‑quarter results highlight our progress in building a higher‑margin, more digital business, with record adjusted EBITDA margins and market share gains in Interactive."
Pierce reported that retail solutions performed strongly across both the UK and Greece, and cited opportunities to refresh the installed hardware base in Greece next year. He added that Interactive revenue grew 3 per cent year‑on‑year as UK volume growth offset higher gaming taxes, and that the company’s US business continued to outpace the broader US igaming market. The mention of Interactive appears alongside broader product and channel expansion in the statement; readers can find related coverage on Inspired’s Interactive activity in our casino section.
On fiscal policy, Pierce said:
"The UK Budget removes a major overhang and gives us and our customers a clearer foundation for investment and planning. The increase in machine games duty from 20 per cent to 25 per cent, effective April 2027, is disappointing but manageable and we will pursue disciplined mitigation measures to limit the effect on our business."
The company linked the clearer budget backdrop to planning for investment and mitigation of the increased duty.
Executive Chairman Lorne Weil added: "Inspired’s transformation has created a higher margin, less capital intensive, more diversified business with less concentration in the UK and greater flexibility to pursue growth. That stronger foundation positions us to manage regulatory changes while continuing to invest for growth. We have a meaningful pipeline of opportunities that we expect will more than offset current regulatory impacts. New customers, markets, distribution channels, product formats and partnerships give us multiple avenues to grow."
Pierce and Weil framed the quarter as evidence of the company’s ongoing digital transformation and diversification, while noting specific regulatory headwinds and a multi‑channel growth pipeline. For further regulatory context see our regulation coverage.
Frequently Asked Questions
What were Inspired Entertainment's total revenue and analyst expectations for Q3 2026?
Inspired Entertainment reported total revenue of US$61.4 million for Q3 2026, which missed analyst consensus of $64.52 million. The company attributable the headline decline in part to the sale of its UK holiday parks business in November 2025.
How did adjusted EBITDA perform in Q3 2026 for Inspired Entertainment?
Adjusted EBITDA for the quarter was $28.2 million, down 13 per cent from $32.3 million in the prior year, while the company recorded a record adjusted EBITDA margin of 46 per cent.
What effect did asset sales have on year‑on‑year revenue comparisons?
The sale of the UK holiday parks business in November 2025 caused headline revenue to fall 29 per cent year‑on‑year from $86.2 million to US$61.4 million, but like‑for‑like revenue excluding that division and the pubs restructuring rose 4 per cent.
What did Inspired say about regulatory changes and machine games duty?
Brooks Pierce said the UK Budget provides a clearer foundation for planning, and noted that machine games duty will rise from 20 per cent to 25 per cent effective April 2027; the company intends to pursue disciplined mitigation measures.
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Oliver Grant
Industry Technology Correspondent
Oliver Grant covers the technology and business machinery of iGaming — platform and data deals, AI and compliance tooling, affiliate and marketing shifts, and the quarterly numbers behind them. The reports lead with the announcement, name the vendors and figures exactly as published, and separate genuine capability from press-release promise. When a supplier ships a new engine or a regulator tightens ad rules, Oliver Grant explains what actually changes for the companies involved.
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