--- title: "Inspired ENT | 10-Q: FY2026 Q1 Revenue Misses Estimate at USD 57.2 M" type: "News" locale: "en" url: "https://longbridge.com/en/news/285553921.md" datetime: "2026-05-07T12:40:40.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/285553921.md) - [en](https://longbridge.com/en/news/285553921.md) - [zh-HK](https://longbridge.com/zh-HK/news/285553921.md) --- # Inspired ENT | 10-Q: FY2026 Q1 Revenue Misses Estimate at USD 57.2 M Revenue: As of FY2026 Q1, the actual value is USD 57.2 M, missing the estimate of USD 59.07 M. EPS: As of FY2026 Q1, the actual value is USD -0.02, beating the estimate of USD -0.0725. EBIT: As of FY2026 Q1, the actual value is USD 9.3 M. #### Overall Company Financials - **Net Loss**: \[Inspired Entertainment, Inc.\] reported a net loss of - $0.5 million for the three months ended March 31, 2026, an increase from - $0.1 million in the prior year period, primarily due to a - $4.3 million decrease in income tax benefit and higher interest expense of - $2.8 million, partially offset by a $7.2 million increase in net operating income. - **Comprehensive Income (Loss)**: Comprehensive income was $5.1 million for the three months ended March 31, 2026, a significant improvement from a comprehensive loss of - $0.3 million in the prior year period. - **Net Operating Income**: Net operating income increased by $7.2 million to $9.2 million for the three months ended March 31, 2026, compared to $1.6 million in the prior year. - **Total Revenue**: Total revenue decreased by $6.8 million, or -11%, to $57.2 million for the three months ended March 31, 2026, from $60.4 million in the prior year. - **Cost of Sales (excluding D&A)**: Decreased by $7.2 million, or -40%, primarily due to a $6.8 million decrease in cost of service. - **Staff-related SG&A Expenses**: Decreased by $3.4 million, or -22%, mainly due to the sale of the UK holiday parks business and certain leisure assets. - **Non-staff related SG&A Expenses**: Decreased by $0.9 million, or -7%, driven by lower fleet and facility costs. - **Depreciation and Amortization**: Increased by $1.1 million to $12.5 million, mainly due to increases in Virtual Sports and Interactive segments. - **Interest Expense, Net**: Increased by $2.8 million to - $10.5 million. - **Income Tax Benefit**: Decreased by $4.3 million to $0.7 million. - **Adjusted EBITDA**: Increased to $23.7 million for the three months ended March 31, 2026, from $18.4 million in the prior year period. #### Segmented Financial Metrics ##### Retail Solutions - **Total Revenue**: Decreased by $9.8 million, or -25%, to $31.8 million for the three months ended March 31, 2026, from $39.6 million in the prior year, primarily due to a $10.1 million decrease in service revenue, partially offset by a $0.3 million increase in product revenue. - **Service Revenue**: Decreased by $10.1 million, or -28%, mainly due to the sale of the UK holiday parks business and pub operator model change. - **Product Sales**: Increased by $0.3 million, or 9%, due to higher UK product sales. - **Cost of Sales (excluding D&A)**: Decreased by $7.3 million, or -43%, to - $9.9 million. - **Segment Operating Income**: Increased by $2.5 million, or 100%, to $5.4 million. - **Total Capital and Other Long-lived Asset Expenditures**: $6.6 million for the three months ended March 31, 2026, down from $8.5 million in the prior year. - **Key Performance Indicators (YoY Functional Currency Basis)**: - **End of Period Installed Base (# of terminals)**: Decreased by -7.2% to 39,056. - **Total Retail Solutions - Average Installed Base (# of terminals)**: Decreased by -6.9% to 39,142. - **Participation - Average Installed Base (# of terminals)**: Increased by 2.2% to 31,526. - **Fixed Rental - Average Installed Base (# of terminals)**: Decreased by -11.5% to 12,596. - **Service Only - Average Installed Base (# of terminals)**: Decreased by -12.8% to 8,666. - **Customer Gross Win per unit per day**: Increased by 2.8% to £101.8. - **Customer Net Win per unit per day**: Increased by 2.5% to £74.9. - **Inspired Blended Participation Rate**: Decreased by -7.7% to 6.0%. - **Inspired Fixed Rental Revenue per Retail Solutions Machine per week**: Decreased by -27.8% to £35.9. - **Inspired Service Rental Revenue per Retail Solutions Machine per week**: Decreased by -5.7% to £8.2. - **Retail Solutions Long term license amortization**: Increased by 108.4% to £968.1 million. - **Number of Machine sales**: Increased by 65.8% to 519. - **Average selling price per terminal**: Decreased by -17.2% to £5,124. - **Total Holiday Parks Revenue**: Decreased by -100% to £0. ##### Virtual Sports - **Service Revenue**: Decreased by $0.6 million, or -7%, to $8.7 million, primarily due to lower revenue from a key customer. - **Cost of Service**: Decreased by $0.1 million, or -20%, to - $0.5 million. - **Segment Operating Income**: Decreased by $1.3 million, or -27%, to $3.8 million. - **Total Capital and Other Long-lived Asset Expenditures**: $0.8 million for the three months ended March 31, 2026, up from $0.5 million in the prior year. - **Key Performance Indicators (YoY Functional Currency Basis)**: - **No. of Live Customers at the end of the period**: Increased by 5.3% to 60. - **Average No. of Live Customers**: Increased by 5.3% to 60. - **Total Revenue (£’m)**: Decreased by -7.2% to £6.4 million. - **Total Revenue (£’m) - Retail**: Decreased by -4.5% to £2.1 million. - **Total Revenue (£’m) - Online Virtuals**: Decreased by -6.4% to £4.4 million. ##### Interactive - **Service Revenue**: Increased by $3.5 million, or 29%, to $16.7 million, driven by recurring revenue growth in the UK, mainland Europe, and North America. - **Cost of Service**: Increased by $0.2 million, or 33%, to - $0.8 million. - **Segment Operating Income**: Increased by $3.0 million, or 43%, to $10.7 million. - **Total Capital and Other Long-lived Asset Expenditures**: $1.4 million for the three months ended March 31, 2026, up from $0.5 million in the prior year. - **Key Performance Indicators (YoY Functional Currency Basis)**: - **No. of Live Customers at the end of the period**: Increased by 14.2% to 217. - **Average No. of Live Customers**: Increased by 17.5% to 215. - **No. of Games available at the end of the period**: Increased by 7.4% to 347. - **Average No. of Games available**: Increased by 6.5% to 344. - **No. of Live Games at the end of the period**: Increased by 8.4% to 324. - **Average No. of Live Games**: Increased by 7.4% to 321. - **Total Revenue (£’m)**: Increased by 29.2% to £12.4 million. ##### Corporate Functions - **Segment Operating Loss**: - $10.7 million for the three months ended March 31, 2026, an improvement from - $12.7 million in the prior year period. - **Total Capital and Other Long-lived Asset Expenditures**: $0.3 million for the three months ended March 31, 2026, down from $1.0 million in the prior year. #### Cash Flow Summary - **Net Cash Provided by Operating Activities**: Increased by $1.2 million to $26.7 million for the three months ended March 31, 2026, from $25.5 million in the prior year. - **Net Cash Used in Investing Activities**: Decreased by $5.0 million to - $10.1 million for the three months ended March 31, 2026, from - $15.1 million in the prior year. - **Net Cash Used by Financing Activities**: Increased by $15.0 million to - $16.7 million for the three months ended March 31, 2026, from - $1.7 million in the prior year, primarily due to long-term debt repayments and share repurchases. - **Cash and Restricted Cash, End of Period**: $42.3 million as of March 31, 2026, compared to $39.0 million as of March 31, 2025. #### Liquidity and Debt - **Cash on Hand**: As of March 31, 2026, \[Inspired Entertainment, Inc.\] had $41.1 million in cash, excluding restricted cash, and $33.4 million in working capital. - **Long-term Debt**: £260.0 million ($342.9 million) of Senior Notes mature on June 9, 2030, with $16.6 million in capitalized debt fees. - **Debt Covenants**: The company maintained compliance with a maximum consolidated senior secured net leverage ratio of 5.0x as of March 31, 2026, with a reported net leverage of 2.88x. - **Share Repurchase Program**: The Board authorized a program for up to $25.0 million in repurchases by November 30, 2028, with approximately $2.6 million used to repurchase 387,230 shares as of March 31, 2026. #### Outlook and Strategy Management anticipates that current cash balances, expected cash flows from operations, and the ability to manage capital projects and external borrowings will be sufficient to meet net cash requirements through May 2027. The company is focusing on strategic initiatives across segments, including new gaming terminal installations, multi-year extensions for Virtual Sports content, and new lottery platform launches. Remediation efforts for identified material weaknesses in internal controls are ongoing, with full remediation expected by December 31, 2026. ### Related Stocks - [INSE.US](https://longbridge.com/en/quote/INSE.US.md) ## Related News & Research - [The Home Depot Announces First Quarter Fiscal 2026 Results; Reaffirms Fiscal 2026 Guidance | HD Stock News](https://longbridge.com/en/news/286890512.md) - [ONWARD Medical to Announce First Quarter 2026 Results on May 26, 2026 | ONWRY Stock News](https://longbridge.com/en/news/286858298.md) - [Correction: NextNRG to Host First Quarter 2026 Financial Results Conference Call on May 18, 2026 at 9:00 a.m. ET | NXXT Stock News](https://longbridge.com/en/news/286673001.md) - [Hafnia’s Q1 2026 Financial Results Presentation to Be Held on 27 May 2026 | HAFN Stock News](https://longbridge.com/en/news/287014236.md) - [Keysight Technologies Reports Second Quarter 2026 Results | KEYS Stock News](https://longbridge.com/en/news/286959830.md)