Inspired Entertainment announced its Q2 2025 financial results, showing solid performance. Total revenue reached $80.3 million, a 7% increase year-over-year, with the interactive business being a major driving force due to its strong growth momentum.
The interactive division saw a significant year-over-year revenue increase of 45%, particularly shining in the ongoing expansion in North America and the UK markets. The division's adjusted EBITDA increased by 49% year-over-year, with a profit margin of 67%, approximately 200 basis points higher than the same period last year, demonstrating excellent profitability.
The gaming terminal business also maintained resilience, benefiting from the launch of the Vantage cabinet in collaboration with William Hill, and new terminal deployments in the Greek market, with the division's EBITDA growing 35% year-over-year, contributing stable performance.
In contrast, the virtual sports business faced pressures, with revenues decreasing by 21% to $9.2 million, despite a sequential recovery. To reverse the trend, Inspired has launched localized content in the Brazilian market, such as V-Play Football Brazil in collaboration with leading operators, and upgraded its collaboration content with William Hill in the UK, enhancing the virtual sports experience in 1300 physical stores.
The company also recently announced a new five-year agreement with UK operator Jenningsbet, planning to deploy about 570 Vantage terminals across its 144 stores, with installations expected to begin in Q4 2025. This collaboration will further solidify Inspired's layout in the UK offline market.
The leisure entertainment business performed steadily, benefiting from the adjustment of UK public holidays to the second quarter, with revenue growing 5% year-to-date compared to the same period last year, and adjusted EBITDA increasing by 19%, meeting expectations.
This quarter, Inspired completed a significant capital structure optimization, successfully refinancing £288 million (approximately $360 million), including the issuance of £270 million in senior secured notes and a £17.8 million revolving credit facility, enhancing the company's financial flexibility and growth potential.
Overall, the company's adjusted EBITDA for the quarter reached $28.4 million, a 15% increase year-over-year, with an overall profit margin of 35%, showing a continuously optimized profit structure and a solid foundation for growth. Inspired stated it will continue to increase investments in the interactive and international markets to drive mid-to-long-term development.
