Inspired Entertainment has lowered its full-year profit outlook after Brazil shut down regulated online betting and gaming, a market that accounts for about 5% of the group’s revenue. The company now expects 2026 adjusted EBITDA of $109m to $112m, down from $112m to $118m.
Third-quarter results
Revenue for the quarter fell 29% to $61.4m from $86.2m. Most of the drop reflects the sale of the UK Holiday Parks business in November 2025 and the restructuring of its Pubs estate. On a like-for-like basis, revenue rose about 4%, or about 9% excluding higher UK gaming taxes.
- Adjusted EBITDA: $28.2m, down 13%, at a record 46% margin (37% a year earlier).
- Net loss: $0.1m, against $1.9m a year earlier.
- Retail Solutions: revenue of $37.4m, down 39%.
- Virtual Sports: revenue of $8.5m, down 9%.
- Interactive: revenue of $15.5m, up 3%.
Brooks Pierce, President and CEO, said:
“Our third-quarter results highlight our progress in building a higher-margin, more digital business, with record Adjusted EBITDA margins and market share gains in Interactive,”
Brazil and UK taxes
Pierce said of the guidance change:
“Brazil’s unexpected shutdown of regulated online betting and gaming affects a business representing approximately 5% of our total revenue.”
The company also expects free cash flow conversion to land slightly below its 20% target. In the UK, remote gaming duty rose from 21% to 40% in April 2026, and machine games duty is due to rise from 20% to 25% in April 2027.
Executive Chairman Lorne Weil said:
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“We have a meaningful pipeline of opportunities that we expect will more than offset current regulatory impacts.”
Operational updates
- Virtual Sports went live on the Massachusetts Lottery iLottery and expanded with FanDuel.
- The business launched in Alberta.
- More than 200 of 310 Velos terminals have been delivered to Genting Casino.
- 300 lottery terminals were installed for LEIDSA in the Dominican Republic.
For background on Brazil’s crackdown, see Gamblita’s report on the R$3.4bn freeze in illegal betting funds.
Source: Inspired Entertainment third-quarter 2026 results release.
