Inspired Entertainment (NASDAQ:INSE) reported a transformative fourth quarter for 2025, underscored by a decisive shift toward its high-growth digital segments.
The company posted quarterly revenue of $77.2 million, fueled by an all-time high in its Interactive division, which saw revenue climb 53% year-over-year.
Q4 adjusted EBITDA reached $32.3 million, representing a robust 42% margin.
The Interactive segment alone saw its adjusted EBITDA rise 60% compared to the prior year, highlighting the superior scalability of virtual sports and online gaming compared to traditional land-based hardware.
To further streamline its balance sheet, Inspired completed the sale of its UK holiday parks business for £18.6 million in November.
The company immediately deployed a portion of these proceeds to repay approximately $13.3 million of debt, reducing its interest burden and enhancing its capital flexibility.
For the full year 2025, adjusted EBITDA totaled $111.4 million.
Looking ahead, Inspired issued a confident outlook for 2026, setting adjusted EBITDA guidance in the range of $112 million to $118 million.
The company expects an immediate impact in the new year, forecasting that Q1 2026 adjusted EBITDA will grow by at least 20% year-over-year.