Inspired Entertainment : Investor Presentation (May 2026)

Published: 2026-05-07 09:24:22 ET INSE

Published on 05/07/2026 at 09:24 am EDT

First Quarter 2026 Earnings

MAY 7, 2026

1Q 2026 Key takeaways

High-margin growth with strong cash conversion

GROWTH

MARGIN EXPANSION

Interactive Revs +38%, Adj EBITDA1 +53% YoY Revs ex holiday parks & pubs restructure2 +15% YoY

Adjusted EBITDA +29%

Adjusted EBITDA margin3 41% (+1100bp)

Structural margin uplift from portfolio optimization

CASH & BALANCE SHEET

OUTLOOK

$15.8m Free Cash Flow4 → $13.3m debt reduction &

$2.6m share repurchase

Net leverage5 reduced to 3.0x from 3.3x vs YE 2025

Reaffirmed FY26 Adj EBITDA $112m-$118m6

Margin target raised to up to 45% (from 43%)

(1) Reconciliation of non-GAAP financial measures to the most comparable GAAP financial measures shown in appendix. (2) Revenue comparison excludes revenue from the UK holiday parks business and certain associated leisure assets, and reflects adjustments to the Company's pubs business to account for a structural change in the Company's operating model. (3) Adjusted EBITDA margin defined as Adjusted EBITDA as a percent of revenue.

(4) Free cash flow defined as cash flow from operating activities less cash flow from investing activities less repayments of finance leases. (5) Net leverage equals senior debt plus finance leases less cash divided by Adjusted EBITDA. (6) 2026 targets are consistent with the assumptions discussed in the Company's conference call and presentation and assumes that GBP:USD exchange rates will remain broadly in line with current levels.

Underlying revenue +15% (ex divestiture & pubs restructuring)1

Portfolio actions mask strong underlying growth

1Q26 YoY REVENUE BRIDGE

$ in millions

+15%

$60.3

$57.2

underlying growth

portfolio

actions

1Q25 Holiday parks sale Pubs restructuring Interactive Cashbox

performance2

Other Retail Solutions 3

1Q26

(1) This revenue comparison excludes the UK holiday parks business and certain associated leisure assets and reflects adjustments to the Company's pubs business to account for a structural change in the

Company's operating model. (2) Cashbox performance includes growth from gaming machine revenue in betting shops in the UK and Greece. (3) Increase driven by recurring revenue from new customer

additions and incremental product sales. 4

Interactive revenue +38% with strong Adj EBITDA leverage

Driver of group growth and margin expansion

Revenue

$16.7

1Q25 1Q26

INTERACTIVE SEGMENT

Adjusted EBITDA1

$12.1

$11.8

$7.7

1Q25 1Q26

Adjusted EBITDA Margin2

70.6%

63.6%

1Q25 1Q26

Key drivers

Above-market growth rates

Expansion within existing

customers

New content introductions (i.e. Mummy It Up , Gold Cash Freespins Rising Wins )

New customer/market launches (i.e. Betway in South Africa, Fanatics in West Virginia, Superbet in Greece)

(1) Reconciliation of non-GAAP financial measures to the most comparable GAAP financial measures shown in appendix. (2) Adjusted EBITDA margin defined as Adjusted EBITDA as a percent of revenue.

Positive Interactive Momentum in U.S.

Share gains plus growing presence in top themes signals accelerating future performance

U.S. PERFORMANCE INDICATORS1

Momentum Driven by Reinforcing Growth Levers

3/2026

3/2025

t index ranking

f total U.S. GGR

4.2%

3.0%

current top slot

themes

5.2%

3.7%

% o

% of

Content Strength

Proven U.S.-focused content strategy

Top themes outperform category benchmarks

Engagement

Increasing premium placements

Improving account management

Execution

Accelerating release cadence

Scaling game portfolio

Player Demand

Rising engagement levels Increasing marketing

(1) Eilers US Online Game Performance Report - April 2026. Rankings are based on a sample of participating operators and suppliers from five states (Michigan, New Jersey, Pennsylvania, West Virginia, and

Delaware). 6

Stronger New Titles, Backed by Proven Scale

Newest games are outperforming; adding growth on our stable, revenue-generating base

£5,000,0

£4,000,000

£3,000,000

£2,000,000

£1,000,000

£0

MONTHLY INTERACTIVE REVENUE PROGRESSION1 - BY YEAR OF RELEASE

Jan-22 Jan-23 Jan-24 Jan-25

(1) Does not include Hybrid Dealer releases

Game release date

Gaming machines growing above market and gaining share

Strong performance across key markets

1Q26 RETAIL SOLUTIONS PERFORMANCE METRICS

Wiliam Hill betting shop

Gross win/unit/day

Greece betting shop

Gross win/unit/day

Illinois net terminal income1

1Q25 1Q26

Floor Avg INSE 1Q26

(1) Net terminal income performance for new Valiant cabinet measured against floor average. Illinois is a for-sale market and we do not receive a revenue share.

Expanding Virtual Sports Distribution

New channels position Inspired for incremental reach and additional pathways for growth1

(1) BetMGM agreement launched in 1Q26 and Playtech signed in 2Q26.

Portfolio optimization improving margin profile & scalability

Strategic divestments and digital shift deliver higher-margin, more scalable earnings

+$5.3m

Adjusted EBITDA

+29%

Adjusted EBITDA Growth

+1100bps

Margin expansion

YoY ADJUSTED EBITDA1

$ in millions

$18.4

$23.7

Key drivers of improvement

Portfolio rationalization (exit

low margin businesses)

Structural cost reset

Growth in higher margin Interactive segment

Digital mix shift

Operational leverage at

scale

41%

EBITDA

margin

30%

EBITDA

margin2

1Q25 Retail Solutions

Virtual Sports

Interactive Corporate 1Q26

(1) Reconciliation of non-GAAP financial measures to the most comparable GAAP financial measures shown in appendix. (2) Adjusted EBITDA margin defined as Adjusted EBITDA as a percent of revenue.

1Q 2026 Snapshot

THREE MONTHS ENDED MARCH 31, 2026

Revenue

Adjusted EBITDA1

Adjusted EBITDA

YoY % change

Digital mix2

41%

Adjusted EBITDA

margin3

Net leverage4

(1) Reconciliation of non-GAAP financial measures to the most comparable GAAP financial measures shown in appendix. (2) Digital mix defined as segment level Adjusted EBITDA for Virtual Sports and Interactive including pro rated corporate allocation. Corporate allocation pro-rated by segment percent of total revenue contribution. (3) Adjusted EBITDA margin defined as Adjusted EBITDA as a percent of revenue. (4) Net leverage equals senior debt plus finance leases less cash divided by Q1 2026 LTM Adjusted EBITDA pro forma for the divestiture of the UK holiday parks business and certain other leisure assets. Pro forma Adjusted

EBITDA reflects management's internal estimate of the EBITDA attributable to the divested business. 11

Adjusted EBITDA growth converting to strong Free Cash Flow

Free Cash Flow tracking inline with targets based on quarterly variability

Free cash flow conversion 66.8%

Capital distributions:

Three months ended March 31,

Adjusted EBITDA

$ 23.7

Cash flow from operating activities

26.7

Less: cash flow from investing activities

(10.1)

Free Cash Flow

16.6

Less: finance leases (principal)

(0.8)

Free cash flow less finance leases $ 15.8

2026

Commentary

Cash flow from operating activities

Favorable movements in working capital in the quarter (related to prepayments, accrued income, inventory and taxes)

Cash flow from investing activities

$3.4m Greece capex

$2.8m contract costs

$2.3m labor capitalization

$1.1m pub machine refurbishment

Quarterly variability:

Semi-annual timing of interest payments in 2Q and 4Q

Repayments of long-term debt (13.3)

Repurchase of common stock (2.6)

Retained free cash flow after capital distributions (0.1)

Targets Reaffirmed with Adj EBITDA margin increased

2025

2026

TARGETS7

Adj EBITDA1

$111m

$112m - $118m

Adj EBITDA margin2

37%

up to 45% (from 43%)

Digital as a % of Adj EBITDA3

51%

55%+

Cash Capex4

$44m

$30m - $35m

Free cash flow conversion5

N/A

20% - 25%

Net leverage ratio6

3.3x

2.5x - 3.0x

2027

TARGETS7

$125m - $135m

45%+

60%+

$30m - $35m

25% - 30%

2.0x - 2.5x

(1) Reconciliation of non-GAAP financial measures to the most comparable GAAP financial measures shown in appendix. (2) Adjusted EBITDA margin defined as Adjusted EBITDA divided by Revenue. (3) Digital mix defined as

segment level Adjusted EBITDA for Virtual Sports and Interactive including pro rated corporate allocation. Corporate allocation pro-rated by segment % of total revenue contribution. (4) Cash capital expenditures includes purchases of property and equipment, purchases of capital software and internally developed costs, and contract cost expenses and excludes customer funded purchases of property and equipment. (5) Free cash flow defined as cash flow from operating activities less cash flow from investing activities (excluding net cash on sale of business) less repayments of finance leases. Free cash flow conversion defined as free cash flow divided by Adjusted EBITDA. (6) Net leverage equals senior debt plus finance leases less cash divided by Adjusted EBITDA. FY2025 net leverage ratio is pro forma for the divestiture of the UK holiday parks business and certain other leisure assets which reflects management's internal estimate of the EBITDA attributable to the divested business. (7) 2026 and 2027 targets are consistent with the assumptions discussed in the Company's conference call and presentation and assumes that GBP:USD exchange rates will remain broadly in line with current levels.

Appendix

1Q26 Adjusted EBITDA Commentary

1Q26 YOY ADJUSTED EBITDA PERFORMANCE

$11.8

$7.7

70.6%

63.6%

$6.1

$6.3

69.7%

72.4%

$ 14.3

$ 11.0

27.8%

($ in millions)

Interactive

Virtual Sports

Retail Solutions

45.1%

Commentary

Interactive +53% YoY (+42%cc); -10% QoQ

March was a record GGR month in North America; offset by seasonally slower January

51% growth in the UK and 29% growth in the U.S.

Virtual Sports -3% YoY (-10%cc) ; -17% QoQ

Decline driven by lower revenue from key online customer

Virtual Soccer 4.0 with BetBuilder rolling out across the estate in 2Q

ahead of World Cup

Retail Solutions +30% YoY (+22%cc); -35% QoQ

Market share gains in the UK and Greece, supported by upgraded terminals driving cash box growth ahead of the market

Completed installation with new UK customer Jenningsbet; 120 machines in 1Q26 for a total of 574 terminals

Installed 1,160 of the remaining 1,900 new terminals in Greece; c. 740 on track for installation in 2Q26

Adjusted EBITDA margin increased by 1,730bps due to holiday parks sale and pubs restructuring

Corporate -29% YoY (-18%cc); +17% QoQ

Higher professional fees and transactional FX impacts

Bonus accrual in 4Q25

(1) Reconciliation of non-GAAP financial measures to the most comparable GAAP financial measures shown in appendix. (2) Adjusted EBITDA margin defined as Adjusted EBITDA divided by Revenue. 15

Financials: Adjusted Income Statement

Three months ended

31-Mar

2026

2025 Change %

Revenue

57.2

60.4

-5%

Less: cost of sales

(11.2)

(17.6)

-37%

Gross Profit

$ 46.0

$ 42.5

SGsA

(24.3)

(30.3)

20%

Depreciation s amortizaion

(12.5)

(10.6)

-18%

Net operating income

$ G.2

$ 1.6

475%

Interest expense

(10.5)

(7.0)

Other finance income

0.1

0.2

Net (loss) income before taxes

$ (1.2)

$ (5.2)

Income tax benefit (expense)

0.7

5.1

Net (loss) income

$ (0.5)

$ (0.1)

Pension charges

0.3

0.2

Costs of group restructure

0.3

0.6

Costs of group restatement - 4.0

Effect of exchange rates on cash (0.8) (1.0)

Mark to market movement on currency deals - 0.1

Other finance income (0.1) (0.2)

Tax impact of add backs 0.1 0.2

Adjusted Net (Loss) Income $ (0.7) $ 3.8

Commentary

Cost of sales decrease driven by sale of UK holiday

parks business and pubs restructuring

SG&A improvement reflects timing of costs related to restatement and restructuring costs in 1Q25

Depreciation & amortization increase driven by increased software development and intangible assets

Interest expense increase was driven by refinancing

with higher principal and interest rate

Tax benefit of $0.7m reflective of the pre-tax loss

Cost of group restructure includes redundancy costs, Payment In Lieu of Notice costs and any associated employer taxes.

Reported EPS - basic and diluted

Adjusted EPS - diluted

(0.02)

(0.02) $

0.00

0.13

Diluted shares outstanding 2G,288,GG7 2G,68G,818

Retail Solutions

Virtual

Sports Interactive Corporate Total

Net income (loss) $ 5.4 $ 3.8 $ 10.7 $ (20.4) $ (0.5)

Items Relating to Legacy Activities:

Pension charges - - - 0.3 0.3

Items outside the normal course of business:

Costs of group restructure

0.3

Stock-based compensation expense

0.2

0.1

0.9

1.4

Depreciation and amortization

8.4

2.1

1.0

12.5

Interest expense, net

10.5

Other finance income

(0.1)

Income tax

(0.7)

Adjusted EBITDA

$ 14.3

6.1

11.8

$ (8.5) $

23.7

Adjusted EBITDA

£ 10.6

£ 4.5

£ 8.8

£ (6.3) £ 17.6

Exchange rate - $ to £

1.35

Note: Exchange rate in the table is calculated by dividing the USD total revenue by the GBP total revenue, therefore this could be slightly different from the average rate during the period depending on

timing of transactions.

Retail Solutions

Virtual

Sports Interactive Corporate Total

Net income (loss) $ 2.5 $ 4.9 $ 6.9 $ (14.4) $ (0.1)

Items Relating to Legacy Activities:

Pension charges - - - 0.2 0.2

Items outside the normal course of business:

Costs of group restructure

0.3

0.6

Costs of group restatement

4.0

Stock-based compensation expense

0.3

0.1

0.9

1.4

Depreciation and amortization

7.9

1.3

0.7

10.6

Interest expense, net

7.0

Other finance income

(0.2)

Income tax

(5.1)

Adjusted EBITDA

$ 11.0

$ 6.3

$ 7.7

$ (6.6) $

18.4

Adjusted EBITDA

£ 8.8

£ 5.0

£ 6.2

£ (5.4) £ 14.6

Exchange rate - $ to £

1.26

transactions.

Total Revenue

Retail

Solutions

$ 31.8

Virtual

Sports

$ 8.7

Interactive

$ 16.7

Corporate

Functions

$ -

Total

$ 57.2

Segment % of Total Revenue

55.6%

15.2%

29.2%

100.0%

Adjusted EBITDA

$ 14.3

$ 6.1

$ 11.8

$ (8.5)

$ 23.7

Corporate allocation(1)

(4.7)

(1.3)

(2.5)

8.5

Segment-level Adjusted EBITDA including prorated corporate allocation

$ 9.6

$ 4.8

$ 9.3

$ -

$ 23.7

Segment Contribution to Adjusted EBITDA

40.5%

20.3%

39.2%

100.0%

(1) Corporate allocation pro-rated by segment % of total revenue contribution

Retail

Solutions

Virtual

Sports Interactive

Corporate

Functions Total

Total Revenue

39.6

$ 8.7

$ 12.1

$ -

$ 60.4

Segment % of Total Revenue

65.6%

14.4%

20.0%

100.0%

Adjusted EBITDA

$ 11.0

$ 6.3

$ 7.7

$ (6.6)

$ 18.4

Corporate allocation(1)

(4.4)

(0.9)

(1.3)

6.6

Segment-level Adjusted EBITDA including prorated corporate allocation

$ 6.6

$ 5.4

$ 6.4

$ -

$ 18.4

Segment Contribution to Adjusted EBITDA

35.9%

29.3%

34.8%

100.0%

(1) Corporate allocation pro-rated by segment % of total revenue contribution

Disclaimer

Inspired Entertainment Inc. published this content on May 07, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on May 07, 2026 at 13:23 UTC.