Inspired Entertainment Reports Q2 2025 Revenue Growth but Net Loss

Inspired Entertainment, Inc. reported its financial results for the second quarter of 2025, revealing a total revenue of $80.3 million, a 7% increase from $74.8 million in the same period last year. The company's service revenue rose to $73.8 million, up from $64.9 million, while product sales decreased to $6.5 million from $9.9 million. For the first half of 2025, total revenue reached $140.7 million, slightly up from $137.0 million in the prior year. However, the company recorded a net loss of $7.8 million for the quarter, compared to a net income of $1.4 million in Q2 2024, and a net loss of $7.9 million for the six months ended June 30, 2025, compared to a loss of $5.0 million in the same period last year.

The financial performance reflects significant changes in the company's operational landscape. The decline in product sales was attributed to lower unit volumes in the UK and North America, while the increase in service revenue was driven by growth in the UK market, particularly from the deployment of new gaming terminals. The company also noted a rise in depreciation and amortization expenses, which increased by $3.4 million in Q2 2025 compared to the previous year, impacting overall profitability.

Strategically, Inspired Entertainment has made notable advancements, including the launch of new partnerships and the introduction of new gaming terminals. The company delivered 798 new terminals to OPAP in Greece and expanded its customer base in the Interactive segment by going live with nine new operators. Additionally, Inspired completed a private placement of £270 million in senior secured notes, which will be used to refinance existing debt and support general corporate purposes.

Operationally, the company reported a total of 33,879 gaming terminals installed as of June 30, 2025, a decrease from 34,906 the previous year. The average number of live customers in the Interactive segment increased by 19.5%, reflecting a growing demand for its gaming content. The company also experienced a favorable cash flow from operations, generating $40.7 million in the first half of 2025, compared to $3.6 million in the same period last year, indicating improved operational efficiency.

Looking ahead, Inspired Entertainment's management believes that its current cash reserves of $46.3 million, combined with expected operational cash flows and available credit facilities, will be sufficient to meet its financial obligations through August 2026. However, the company remains cautious about market conditions and the impact of regulatory changes on its operations, particularly in the Virtual Sports segment, which has faced challenges due to new levies in the Brazilian market.