Inspired Entertainment, Inc. shared its financial results for the third quarter of 2025, and the big takeaway is that the company is pushing hard toward a more digital, higher-margin future. The gaming provider hit a new record for Interactive revenue, kept momentum in their gaming business, and took several strategic steps to support that shift. The company’s chief also reassured investors amid uncertainty around the United Kingdom’s gambling tax proposals.
Overall revenue for the quarter climbed 12% from last year, reaching $86.2 million. A major driver was the Interactive segment, which jumped an impressive 48%. Adjusted EBITDA also moved up 11%, coming in at $32.3 million.
The company reported $9.7 million in net operating income, a net loss of $1.9 million, and an adjusted net income of $8.3 million. In June, the company secured a private deal of $363 million in a debt refinancing plan due by 2030.
Inspired delivers strong Q3 2025 performance fueled by continued digital momentum
“Inspired delivered a strong quarter driven by strategic execution, digital expansion, and product innovation,” said Brooks Pierce, President and CEO of Inspired in a press release.
Inspired is pleased to announce its Q3 2025 results: https://t.co/DR3GIbbcS9
“Inspired delivered a strong quarter driven by strategic execution, digital expansion, and product innovation,” said Brooks Pierce, President and CEO of Inspired. From a 12% increase in overall… pic.twitter.com/POIkflLgTp
— Inspired Entertainment, Inc. (@Inspired_News) November 5, 2025
“Our sustained momentum in Interactive continues to build, delivering another record quarter. We’ve built a powerful distribution network and brand franchises that players love, and now we’re scaling that success. We’re gaining market share in our largest markets, and we expect further gains as we roll out key titles within our leading brand franchises and introduce industry first new multiplayer experiences.
“Our Gaming business continues to perform well and gain share, including installations of our terminals with new customers, while Virtual Sports has stabilized and is positioned for year-over-year growth in 2026 with several new customers and more localized content.”
Inspired CEO downplays concerns over potential UK gambling tax changes
During the earnings call, Pierce also touched on the upcoming UK budget announcement set for November 26, noting that potential tax changes affecting the gaming sector are on the company’s radar. “There’s been a lot of coverage and discussion on all sides of the issue and its impact on the industry, but frankly, this isn’t new,” he said.
He pointed out that Inspired has dealt with major regulatory shifts before, most notably the 2019 triennial review, which cut maximum stakes in betting shops from £50 to £2, and emphasized that the company is prepared to adapt again if new changes come through.
“Today, performance in that business is well above pre triennial levels. Potential shop closures have been in the headlines as well, and our experience tells us that this is also manageable. Typically, lower performing shops are most at risk and much of that play finds its way into nearby shops, effectively lowering our servicing costs.”
Pierce said that if the government does decide to raise the remote gaming duty, Inspired could handle it. He noted that the company has a solid history of adjusting to similar changes in other markets and coming through just fine. “We’re planning proactively and are confident in our ability to manage changes effectively, just as we have in the past.”
Sale of holiday park business
He said the business entered the fourth quarter with strong momentum. “We’re confident we’ll exceed Q4 2024 performance and current guidance, assuming current FX rates don’t change materially. The interactive and gaming segments were particularly strong with Interactive achieving more than 40% year over year adjusted EBITDA growth for the ninth consecutive quarter. October is now complete and is the single largest revenue month for this segment in our history. And last week was the biggest week we’ve ever had.”
He also mentioned that the company is gaining market share in both the United Kingdom and North America, and that Virtual Sports has now held steady for the second quarter in a row. “We are confident that it will grow year over year in the fourth quarter.”
Pierce pointed out that the sale of the holiday parks business, which closes on November 7, will help make the company less capital-intensive, reduce headcount by nearly 40%, and give the balance sheet a solid boost. “Taking the proceeds from the Holiday park sale to improve our net leverage puts us in a stronger financial position as we move through the fourth quarter and into 2026.”
Lorne Weil, Executive Chairman of Inspired, said in his prepared remarks that both the Q3 results and the past twelve months of Adjusted EBITDA came in stronger than expected. “There are a lot of moving parts right now. The sale of holiday parks, the restructuring of pubs, the continued phenomenal growth of Interactive as examples that paint a very exciting picture,” Weil said.
iGaming drives growth for Inspired in Q3
The Interactive segment is still one of the company’s biggest growth engines. Pierce stressed that the channel has significant long-term potential and remains a key focus for the business.
“Frankly, the significant opportunity we see ahead as additional iGaming states potentially come online. The potential, we believe, could be transformational for our business.” He also said that Inspired expects to roll out more games next year, supported by added production capacity and a new interactive studio. “Most common feedback we get from customers is they want more of our great content and we’re excited to deliver on that challenge.”
Pierce expressed confidence that more US states will authorize iGaming. “We’re very bullish on the opportunity for an increase in the number of igaming states, as it’s clear that igaming is a much larger opportunity than online sports betting. The delivery of additional states is very seamless and frankly, should produce significant operating leverage as the only real cost to add staging is advantage. We don’t have a crystal ball, of course, but we’re confident that states will see the opportunity and feel it’s a matter of when, not if.”
Inspired said it’s seeing steady growth in North America, fueled by the Interactive segment and rising momentum in its Video Lottery Terminal business. Pierce highlighted strong results from the Vantage cabinet and the William Hill estate, along with improving performance from updated terminals in Greece. In Virtual Sports, he noted that customer demand is expanding in Brazil and Turkey, and the company is now starting to see that growth show up in its numbers.
Pierce also emphasized that both the Interactive and Virtual Sports segments are running at EBITDA margins above 60% after corporate allocations. He said that margin expansion, the sale of the holiday parks business, and shifts in the pubs operating model will all help reduce capital intensity and strengthen cash flow.
During the quarter, the Board approved a $25 million share buyback program. Inspired also moved forward with key pieces of its digital growth strategy, including a new partnership with Gaming Arts LLC and its launch in West Virginia, marking its sixth regulated iGaming market in the US.
Inspired is thrilled to announce our premium iGaming content is now available with @DraftKings in the state of West Virgina!
Players now have access to some of Inspired’s player-favorite iGaming slots like our popular Big Piggy Bank game and our groundbreaking slot Wolf It… pic.twitter.com/ViefpGc9aK
— Inspired Entertainment, Inc. (@Inspired_News) October 23, 2025
Management reaffirmed its outlook that fourth-quarter 2025 Adjusted EBITDA will grow year over year and that full-year Adjusted EBITDA will surpass $110 million. More detailed 2026 guidance will be provided alongside the fourth-quarter results.
For the first nine months of 2025, the company generated $226.9 million in revenue, up 6%, and posted $79.1 million in Adjusted EBITDA, an increase of 14%. Inspired reported a net loss of $9.8 million for the period.
Featured image: Inspired Entertainment
The post Inspired Entertainment reports strong Q3 2025, downplaying UK gambling tax concerns appeared first on ReadWrite.
