Inspired Entertainment Defies UK Tax Hike with Record Margins — Inspired Entertainment, Inc.

Event summary

Q2 2026 revenue of $60.8M, up 6% sequentially despite UK remote gaming duty increase.
Adjusted EBITDA margin hits record 45%, with Adjusted EBITDA up 14% from prior quarter.
Repaid $10M in debt and repurchased $2.6M of common stock in Q2.
Interactive segment revenue grew 15% year-over-year, reflecting market share gains.
Reaffirmed FY2026 Adjusted EBITDA target range of $112M to $118M.

The big picture

Inspired Entertainment's Q2 results demonstrate resilience in the face of regulatory headwinds, with strong performance driven by its Interactive segment. The company's focus on higher-margin digital businesses and disciplined capital allocation positions it well for continued growth. However, the ability to maintain momentum in a challenging regulatory environment remains critical.

What we're watching

Regulatory Impact: Whether Inspired can sustain its market share gains despite the higher UK remote gaming duty.
Execution Risk: The pace at which Inspired can deliver on its pipeline of product launches and geographic expansion.
Financial Flexibility: How the company's debt reduction and share repurchases will affect its financial flexibility and leverage.