Inspired Entertainment Reports $23.7M EBITDA and 41% Margins as Interactive Growth Continues Under Brooks Pierce
Inspired Entertainment started 2026 with a quarter that showed how quickly its business is shifting toward higher-margin digital gaming operations.
The company reported Q1 2026 revenue of $57.2m, down 5% year-on-year on a reported basis. However, the decline was largely tied to restructuring activity and the removal of non-core operations, including the former UK holiday parks business and the restructured pubs division.
When those segments are excluded, underlying revenue increased 15%, pointing to continued growth across Inspired’s core business.
While revenue remained relatively stable, profitability moved significantly higher.
Adjusted EBITDA rose 29% to $23.7m during the quarter, while EBITDA margin expanded to 41%, compared to 30% in Q1 2025. The increase reflects the company’s growing exposure to online gaming and digital content distribution, which continue delivering stronger margins than traditional retail operations.
The results also highlight a broader shift taking place across the supplier market, where recurring digital revenue is becoming increasingly important for long-term earnings growth.
Interactive Division Continues Delivering Strong Growth
Inspired’s Interactive division remained the company’s strongest-performing segment during the quarter.
Interactive revenue increased 38% year-on-year to $16.7m, while Interactive EBITDA climbed 53% to $11.8m. The growth was supported by expanded operator integrations, stronger game placements, and continued demand for online casino content in regulated markets.
The company has been steadily increasing its digital footprint under CEO Brooks Pierce, whose long-term expansion strategy was previously explored in “Brooks Pierce Powers Inspired’s Global iGaming Rise.”
Industry-wide, suppliers with scalable distribution models and proprietary gaming content are increasingly gaining an advantage as operators focus more heavily on performance-driven partnerships.
Pierce said Inspired continues building momentum across both online and retail channels through broader content distribution and premium product deployment.
The latest quarter suggests that strategy is continuing to produce results, particularly as more operators prioritize suppliers capable of delivering content across multiple regulated jurisdictions.
Expansion Efforts Continue Across North America and Europe
Inspired also used the quarter to strengthen several areas of its long-term growth strategy.
The company secured an Alberta iGaming supplier licence ahead of a planned Q3 2026 launch in the Canadian province, giving Inspired another entry point into North America’s expanding regulated gaming market.
At the same time, Inspired expanded its Virtual Sports distribution through a new SaaS agreement with Playtech, increasing the reach of its content portfolio.
The supplier has also continued growing its US online gaming presence through major operator partnerships, including the recent “Inspired Entertainment Launches V-Play with BetMGM” integration aimed at strengthening its interactive offering in regulated markets.
Inspired further extended integrations with BetMGM and Borgata in New Jersey, one of the most competitive online casino markets in the United States.
On the retail side, the company signed a long-term extension with Paddy Power and continued expanding terminal deployments across the UK market.
Together, those agreements show how Inspired is balancing stable retail revenue with faster-growing digital operations.
Cash Flow Remains Healthy
The company also reported solid cash generation during the quarter.
Inspired generated $15.8m in free cash flow, repaid $13.3m in debt principal, and repurchased approximately $2.6m worth of shares.
Net leverage improved to around 3.0x, compared to 3.3x at the end of 2025, giving the company additional financial flexibility moving forward.
Management reaffirmed its FY2026 EBITDA guidance range of $112m to $118m and increased its full-year EBITDA margin target to as high as 45%.
That guidance suggests management expects the Interactive segment to remain the primary growth driver throughout the rest of the year.
Digital Ecosystems Are Becoming a Competitive Advantage
Inspired’s Q1 performance reflects a wider trend currently shaping the supplier sector.
As compliance requirements become more expensive and operators focus more heavily on scalable integrations, suppliers with strong digital ecosystems are improving profitability faster than businesses still heavily dependent on retail infrastructure.
Recurring online revenue, premium content libraries, and broad distribution networks are becoming increasingly important factors in determining long-term competitiveness.
For Inspired Entertainment, the latest quarter showed that its digital transition is no longer just a strategic direction, it is now having a measurable impact on margins, cash flow, and overall earnings quality.
Source: Inspired Entertainment
