Financial Performance - Total revenue for the twelve-month period ended December 31, 2023, was $323.0 million, an increase of 15% compared to $281.6 million for the same period in 2022[27] - Net income for the twelve-month period ended December 31, 2023, was $7.6 million, a decrease of 64% from $20.6 million in 2022[27] - The Company reported a decrease in revenue of $0.5 million or 0.8% for the twelve-month period ended December 31, 2023[79] - Adjusted Revenue, excluding low margin gaming sales, was $292.4 million for 2023, compared to $281.6 million in 2022, indicating a growth of 3.0%[95] - Adjusted EBITDA for the twelve months ended December 31, 2023, was $99.0 million, compared to $43.7 million in 2022, reflecting a significant increase of 126.5%[95] Revenue Breakdown - Service revenue increased by 5% to $261.2 million, while product revenue surged by 86% to $61.8 million[27] - Total Gaming Revenue for the year ended December 31, 2023, was £114.1 million, an increase of £23.7 million or 26.2% compared to £90.4 million in 2022[67] - Gaming Participation Revenue increased to £44.3 million, up £0.8 million or 1.8% from £43.5 million in 2022[67] - Total Gaming Recurring Revenue was £61.6 million, reflecting a growth of £0.8 million or 1.3% from £60.8 million in the previous year[67] Expenses and Costs - Cost of sales, excluding depreciation and amortization, rose by $32.1 million, or 34%, driven by a $29.7 million increase in cost of product[31] - Selling, general and administrative expenses increased by $12.5 million, or 13.7%, compared to the previous year[32] - Stock-based compensation expense increased by 66.7% to $1.0 million compared to $0.6 million in the previous year[78] - Net Operating Income for the year ended December 31, 2023, was $6.8 million, a decrease of $3.4 million or 34.3% from $9.9 million in 2022[78] Cash Flow and Investments - Cash flow from operating activities showed a working capital outflow of $9.0 million for 2023, an improvement from a $44.5 million outflow in 2022[110] - Net cash utilized in investing activities increased by $15.8 million to $48.4 million in 2023, driven by higher spending on plant and equipment, including the installation of 2,500 terminals in Greece[108] - The company had a working capital of $51.8 million, which includes a non-cash settled item of $5.6 million of deferred income[884] Assets and Liabilities - Non-current assets as of December 31, 2023, were 71% attributable to the UK, 12% to Greece, and 17% to the rest of the world[19] - The Company’s current liabilities total $100.7 million, compared to $74.9 million in the previous period[874] - The total contractual obligations as of December 31, 2023, amounted to $408.8 million, with $61.9 million due within one year[116] Goodwill and Impairment - Total goodwill as of December 31, 2023, is allocated as follows: Virtual Sports $44.8 million, Interactive $1.8 million, Gaming $9.3 million, and $2.9 million for another Gaming unit, with no goodwill remaining in the Leisure unit[120] - The annual goodwill impairment test concluded that the fair values of all reporting units substantially exceeded their carrying values, indicating no need for further assessment[121] - The company has determined there were no indicators of impairment for goodwill as of December 31, 2023, 2022, and 2021[906] Foreign Exchange and Financial Instruments - Interest expense increased by $2.0 million primarily due to foreign exchange movements and the termination of swaps[33] - A hypothetical 10% adverse change in the value of the Euro and USD relative to GBP would result in translation adjustments of approximately $1.1 million favorable and $2.2 million unfavorable, respectively, recorded in trading operations[128] - The Company’s Euro functional currency net assets total approximately $18.3 million, while USD functional currency net liabilities total approximately $7.4 million[861] Research and Development - Total research and development costs for the year ended December 31, 2023, amounted to $20.3 million, an increase of 11% from $18.3 million in 2022[896] - Software development costs capitalized during the year ended December 31, 2023, were $7.5 million, up from $6.9 million in 2022, reflecting a 9% increase[896] Revenue Recognition - Revenue recognition is based on the satisfaction of performance obligations, with transaction prices allocated to each obligation based on standalone selling prices[917] - The company recognizes revenue over time for performance obligations that enhance an asset controlled by the customer[923] - The company provides a hosted solution for Virtual Sports, which includes proprietary online and mobile turnkey solutions[928]

NEW YORK, April 09, 2024 (GLOBE NEWSWIRE) -- Inspired Entertainment, Inc. ("Inspired") (NASDAQ: INSE), a leading B2B provider of gaming content, technology, hardware and services, announced that it will report financial results for the fourth quarter and fiscal year ended December 31, 2023 on Monday, April 15, 2024, before the market opens. Inspired management will host a conference call and simultaneous webcast at 9:00 a.m. ET / 2:00 p.m. in the UK the same day to discuss the Company's results and general ...

NEW YORK, April 09, 2024 (GLOBE NEWSWIRE) -- Inspired Entertainment, Inc. ("Inspired") (NASDAQ: INSE), a leading B2B provider of gaming content, technology, hardware and services, announced that it will report financial results for the fourth quarter and fiscal year ended December 31, 2023 on Monday, April 15, 2024, before the market opens. Inspired management will host a conference call and simultaneous webcast at 9:00 a.m. ET / 2:00 p.m. in the UK the same day to discuss the Company's results and general ...

[Q3 2023 Financial Performance Overview](index=1&type=section&id=Q3%202023%20Financial%20Performance%20Overview) [Management Commentary and Strategic Highlights](index=1&type=section&id=Management%20Commentary%20and%20Strategic%20Highlights) Management completed its financial restatement, shifted focus to the higher-margin digital business, and repurchased company stock - The financial restatement process is complete, with a minimal net impact on Adjusted EBITDA: a **$0.6 million decrease for full-year 2022** and effectively zero for the first half of 2023[3](index=3&type=chunk) - The company's strategic focus is shifting towards its higher-margin digital businesses, which generated **58% of year-to-date Adjusted EBITDA contribution**[3](index=3&type=chunk) - The Interactive segment demonstrated strong growth, with revenue and Adjusted EBITDA increasing by **28% and 55% year-over-year** on a constant currency basis, respectively[3](index=3&type=chunk) - The land-based business is showing a reacceleration, with new 'Vantage' cabinet deployments leading to approximately **11% YoY revenue per machine increases** in betting shops and 20% in pubs[5](index=5&type=chunk) - The company repurchased **121,847 shares for $1.5 million** during the third quarter, bringing the total to approximately 1.2 million shares since the program's inception[4](index=4&type=chunk)[5](index=5&type=chunk) [Summary of Third Quarter 2023 Segment Financial Results](index=3&type=section&id=Summary%20of%20Third%20Quarter%202023%20Segment%20Financial%20Results) Q3 total revenue grew 31% driven by hardware sales, but net income declined 63% and the Adjusted EBITDA margin contracted to 27% Q3 2023 Key Financial Metrics (vs. Q3 2022) | Metric | Q3 2023 | Q3 2022 | % Change | Functional Currency % Change | | :--- | :--- | :--- | :--- | :--- | | **Total Revenue** | $97.5M | $74.2M | +31% | +22% | | **Net Income** | $3.4M | $9.2M | -63% | -65% | | **Net Income per Diluted Share** | $0.12 | $0.32 | -63% | -67% | | **Total Company Adjusted EBITDA** | $26.7M | $27.3M | -2% | -8% | Q3 2023 Adjusted EBITDA by Segment (vs. Q3 2022) | Segment | Q3 2023 Adj. EBITDA | Q3 2022 Adj. EBITDA | % Change | | :--- | :--- | :--- | :--- | | Gaming | $8.3M | $9.0M | -7% | | Virtual Sports | $11.7M | $12.2M | -5% | | Interactive | $4.7M | $2.8M | +66% | | Leisure | $8.7M | $9.6M | -9% | [Recent Business Developments](index=2&type=section&id=Recent%20Business%20Developments) The company launched new products like 'Hybrid Dealer' and expanded strategic partnerships with the NBA, FanDuel, and Kambi Group - Launched 'Hybrid Dealer', a new iGaming product blending physical and digital elements, in partnership with BetMGM[6](index=6&type=chunk) - Strengthened its Virtual Sports offering by signing an agreement with the NBA and launching an NFL-themed product with bet365[6](index=6&type=chunk) - Expanded its North American footprint through a partnership with FanDuel across multiple states and integrated its Virtual Sports products into the Kambi sportsbook platform[6](index=6&type=chunk) [Financial Statements](index=7&type=section&id=Financial%20Statements) [Condensed Consolidated Statements of Operations](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Q3 revenue grew to $97.5 million, but higher costs led to a decline in net operating income and a fall in net income to $3.4 million Statement of Operations Summary (in millions) | Line Item | Three Months Ended Sep 30, 2023 | Three Months Ended Sep 30, 2022 | Nine Months Ended Sep 30, 2023 | Nine Months Ended Sep 30, 2022 | | :--- | :--- | :--- | :--- | :--- | | **Total Revenue** | $97.5 | $74.2 | $241.8 | $205.0 | | **Net Operating Income** | $12.2 | $15.3 | $30.6 | $34.4 | | **Net Income** | $3.4 | $9.2 | $7.6 | $17.1 | | **Net Income per Diluted Share** | $0.12 | $0.32 | $0.26 | $0.58 | [Condensed Consolidated Balance Sheets](index=8&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets increased to $304.7 million as of September 30, 2023, while the total stockholders' deficit improved to ($72.5) million Balance Sheet Summary (in millions) | Account | Sep 30, 2023 | Dec 31, 2022 | | :--- | :--- | :--- | | Total Current Assets | $133.3 | $126.9 | | **Total Assets** | **$304.7** | **$287.2** | | Total Current Liabilities | $77.8 | $74.9 | | Long-term Debt | $282.7 | $277.6 | | **Total Liabilities** | **$377.2** | **$372.8** | | **Total Stockholders' Deficit** | **($72.5)** | **($85.6)** | [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For the first nine months of 2023, net cash from operations was $35.3 million, with the period ending with a cash balance of $26.4 million Cash Flow Summary - Nine Months Ended Sep 30 (in millions) | Cash Flow Activity | 2023 | 2022 | | :--- | :--- | :--- | | Net Cash Provided by Operating Activities | $35.3 | $31.8 | | Net Cash Used in Investing Activities | ($31.7) | ($25.5) | | Net Cash Used in Financing Activities | ($2.6) | ($10.5) | | **Net Increase (Decrease) in Cash** | **$1.4** | **($10.4)** | | **Cash, End of Period** | **$26.4** | **$37.4** | [Non-GAAP Financial Measures and Reconciliations](index=4&type=section&id=Non-GAAP%20Financial%20Measures%20and%20Reconciliations) [Explanation of Non-GAAP Measures](index=4&type=section&id=Explanation%20of%20Non-GAAP%20Measures) The company uses non-GAAP measures like Adjusted EBITDA and Adjusted Revenue to provide additional insight into its operating performance - **Adjusted EBITDA** is defined as net income excluding depreciation, amortization, interest, taxes, stock-based compensation, and other adjustments for items considered outside the normal course of business[12](index=12&type=chunk) - **Adjusted Revenue** (Revenue Excluding Low Margin Gaming Hardware Sales) is defined as revenue excluding hardware sales sold at a low margin to secure longer-term recurring revenue[14](index=14&type=chunk) - **Adjusted Net Income** excludes non-recurring items such as restructuring costs, M&A expenses, and gains or losses not in the ordinary course of business, adjusted for tax impacts[15](index=15&type=chunk) [Reconciliation of Adjusted EBITDA by Segment](index=10&type=section&id=Reconciliation%20of%20Adjusted%20EBITDA%20by%20Segment) Q3 2023 Adjusted EBITDA was $26.7 million, reconciled from a net income of $3.4 million with Virtual Sports as the largest contributor Q3 2023 Reconciliation of Net Income to Adjusted EBITDA (in millions) | Description | Amount | | :--- | :--- | | Net Income | $3.4 | | Depreciation and amortization | $10.3 | | Interest expense, net | $6.9 | | Stock-based compensation expense | $3.3 | | Income tax | $2.0 | | Other adjustments | $0.8 | | **Adjusted EBITDA** | **$26.7** | [Reconciliation of Adjusted Net Income](index=12&type=section&id=Reconciliation%20of%20Adjusted%20Net%20Income) Q3 2023 Adjusted Net Income was $4.9 million, or $0.17 per diluted share, a significant decrease from the prior-year period Adjusted Net Income Reconciliation (in millions, except per share data) | Metric | Q3 2023 | Q3 2022 | | :--- | :--- | :--- | | Net Income | $3.4 | $9.2 | | Adjustments | $1.5 | $2.7 | | **Adjusted Net Income** | **$4.9** | **$11.9** | | **Adjusted Net Income per Diluted Share** | **$0.17** | **$0.41** | [Reconciliation of Adjusted Revenue](index=12&type=section&id=Reconciliation%20of%20Adjusted%20Revenue) Adjusted Revenue for Q3 2023 was $74.8 million, nearly flat year-over-year after excluding $22.7 million in low-margin hardware sales Adjusted Revenue Reconciliation (in millions) | Line Item | Q3 2023 | Q3 2022 | | :--- | :--- | :--- | | Net Revenues | $97.5 | $74.2 | | Less: Low Margin Gaming Hardware Sales | ($22.7) | — | | **Adjusted Revenue** | **$74.8** | **$74.2** | [Pro-rated Segment Adjusted EBITDA Contribution](index=13&type=section&id=Pro-rated%20Segment%20Adjusted%20EBITDA%20Contribution) After allocating corporate costs, the Virtual Sports segment was the largest contributor to Q3 Adjusted EBITDA at 39.3% Q3 2023 Segment Contribution to Adjusted EBITDA (in millions) | Segment | Adjusted EBITDA | Corporate Allocation | Segment-level Adj. EBITDA | % Contribution | | :--- | :--- | :--- | :--- | :--- | | Gaming | $8.3 | ($2.0) | $6.3 | 23.6% | | Virtual Sports | $11.7 | ($1.2) | $10.5 | 39.3% | | Interactive | $4.7 | ($0.6) | $4.1 | 15.1% | | Leisure | $8.7 | ($2.9) | $5.8 | 22.0% | | **Total** | **$33.4** | **($6.7)** | **$26.7** | **100.0%** | [Other Disclosures](index=4&type=section&id=Other%20Disclosures) [Revision of Prior Period Results](index=4&type=section&id=Revision%20of%20Prior%20Period%20Results) The company restated prior financial statements for FY2022 and Q1/Q2 2023 to correct accounting errors in software cost capitalization - The company completed a restatement of prior financial statements (Form 10-K/A for FY2022, Forms 10-Q/A for Q1 and Q2 2023) due to accounting errors[9](index=9&type=chunk) - The errors were primarily related to the company's accounting policies for capitalizing software development costs under U.S. GAAP[9](index=9&type=chunk) [Forward-Looking Statements](index=6&type=section&id=Forward-Looking%20Statements) The release contains forward-looking statements subject to risks and uncertainties, and the company does not commit to updating them - The report includes forward-looking statements regarding business plans, new customers, and financial performance, which are not guarantees of future results[23](index=23&type=chunk) - These statements are subject to known and unknown risks and uncertainties, and the company undertakes no obligation to update them[24](index=24&type=chunk)

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period _______________ Commission File Number: 001-36689 INSPIRED ENTERTAINMENT, INC. (Exact name of registrant as specified in its charter) | Delaware | 47-1025534 | | --- | -- ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period _______________ Commission File Number: 001-36689 INSPIRED ENTERTAINMENT, INC. (Exact name of registrant as specified in its charter) Delaware 47-1025534 (State or other juris ...

Inspired Entertainment, Inc. (NASDAQ:INSE) Q1 2023 Earnings Conference Call May 10, 2023 9:00 AM ET Company Participants Lorne Weil - Executive Chairman Brooks Pierce - President and Chief Executive Officer Stewart Baker - Executive Vice President and Chief Financial Officer Eric Carrera - Vice President, Corporate Development Conference Call Participants Barry Jonas - Truist Securities David Bain - B. Riley Chad Beynon - Macquarie Jordan Bender - JMP Edward Engel - ROTH Ryan Sigdahl - Craig-Hallum Operator ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period _______________ Commission File Number: 001-36689 INSPIRED ENTERTAINMENT, INC. (Exact name of registrant as specified in its charter) | Delaware | 47-1025534 | | --- | --- | ...

▪ 12 Investment Highlights ▪ A leading presence in the UK, Greece and Italy with significant momentum in North America ▪ High-growth, capital efficient Virtual Sports and Interactive segments contributed 53% of Adjusted EBITDA in Q4 2022 versus 46% in Q4 2021(2) Note: Balance sheet figures are as of December 31, 2022. Equity market capitalization as of market close on March 10, 2023. (1) Principal balance. (2) Consists of finance lease liabilities of $2.2 million and pension liability of $2.1 million. (3) A ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2022 or ☐ TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _____ to _____ COMMISSION FILE NUMBER: 001-36689 INSPIRED ENTERTAINMENT, INC. (Exact name of registrant as specified in its charter) | Delaware | 47-1025534 | | --- | -- ...