Inspired Entertainment, Inc. (NASDAQ: INSE)

Inspired Entertainment, Inc. is a global gaming technology company that supplies content, platform and other products and services to licensed online and land based lottery betting and gaming operators worldwide through a broad range of distribution channels on a business to business basis. The company provides end to end digital gaming solutions on its own proprietary secure network and through third party networks, serving venues such as licensed betting offices, casinos, gaming halls, adult gaming centers, pubs, bingo halls and motorway service areas. It holds licences from regulators in the United Kingdom, Italy, Greece, Malta, Gibraltar, Alderney, Belgium, Romania, Sweden, Peru and numerous US states and Canadian provinces, allowing it to operate in multiple jurisdictions.

Inspired Entertainment, Inc. generates revenue primarily through the sale and licensing of gaming terminals, software and game content as well as through participation based arrangements where it receives a share of the gross revenue generated by its machines. The company also earns income from upfront software licensing fees, integration fees, hosting fees and fixed daily fees for certain installed units. A significant portion of its revenue is recurring, derived from long term participation based contracts that typically run for three to five years, providing visibility and stability to cash flows. Revenue is derived across its four business segments Gaming, Virtual Sports, Interactive and Leisure.

The company operates through the following segments: Gaming, Virtual Sports, Interactive and Leisure.

• Gaming: The segment supplies gaming terminals, gaming software and/or game content for terminals located in licensed betting offices, casinos, gaming halls and adult gaming centers, utilizing server based gaming technology to deliver content to approximately 38,000 terminals and also deploying games on terminals purchased from the company or licensed for third party platforms, with a portfolio that includes slots, roulette, blackjack and numbers games distributed via proprietary game management systems such as CORE and CORE CONNECT, and as of December 31 2025 maintained an installed base of approximately 35,000 terminals under participation based or fixed rental contracts, generating revenue of $112.3 million and adjusted EBITDA of $55.0 million for the fiscal year. The segment also generates income from the sale of terminal units, with approximately 5,500 units sold in 2025, the majority of which were destined for the United Kingdom market.

• Virtual Sports: The segment designs develops markets and distributes ultra high computer rendered simulations of sporting events such as soccer, football, basketball and horse racing, providing fixed odds wagering through a software and networking package that is offered to operators via participation based revenue sharing plus upfront software licensing integration and hosting fees, with content available in approximately 25,000 retail venues and multiple online platforms, and for the fiscal year 2025 generated revenue of $36.6 million and adjusted EBITDA of $26.8 million. The segment benefits from partnerships with major sports leagues and distributors, which enhance its content offering and market reach.

• Interactive: The segment develops and distributes interactive only content hosted on remote gaming servers, enabling online gaming operators to offer a portfolio of random number generated casino games including feature rich bonus games European style table games free spins and branded titles such as Cops nRobbers Gold Cash and the Cash bank games Wolf it Up and Big Piggy Bank through the Virgo Remote Gaming System, with notable partnerships with operators like Flutter Entain bet365 Evoke Gamesys Kaizen Betfred in Europe and BetMGM DraftKings Group Caesars FanDuel Rush Street Interactive and Loto Québec in North America, and for the fiscal year 2025 generated revenue of $58.6 million and adjusted EBITDA of $40.6 million. The segment continues to expand its library with new titles released each month, which can be quickly deployed across operator networks via its remote gaming system.

• Leisure: The segment supplies and operates gaming terminals and amusement machines in pubs, bingo halls and adult gaming centers, maintaining an installed base of approximately 5,800 terminals with about 2,800 under maintenance only contracts, generating revenue through participation based arrangements where it receives a share of gross revenue from each machine as well as from the sale of units and fixed daily fees, and for the fiscal year 2025 generated revenue of $96.6 million and adjusted EBITDA of $21.2 million. The segment focuses on delivering a lower capital intensity model by shifting from service and collection activities to primarily supplying content and machines.

Inspired Entertainment, Inc. holds a strong position in the global gaming technology market due to its established presence across multiple product verticals including gaming terminals, virtual sports, interactive content and leisure amusement machines. The company benefits from a diversified revenue base that spans geography and business lines, reducing reliance on any single market. Its competitive advantages include a substantial installed base of gaming terminals, long term participation based contracts that generate predictable recurring revenue, and a proprietary technology stack supported by approximately 25 patents and 390 trademarks worldwide. While it faces competition from larger firms with greater financial resources and some operators that have combined manufacturing and retail operations, its focus on innovation, content development and flexible distribution channels helps it maintain relevance and win contracts with major lottery betting and gaming operators. The company’s strategy emphasizes expanding into regulated North American markets and pursuing selective acquisitions to broaden its product portfolio and geographic footprint.

Inspired Entertainment, Inc. serves a diverse customer base that includes licensed lotteries, sports bookmakers, operators of gaming and bingo halls, casinos, pubs, adult gaming centers and online operators. Specific customers mentioned in the filing comprise William Hill, SNAI, Sisal, Betfred, Paddy Power, Betfair, Jenningsbet, Corbett Bookmakers, Genting, bet365, Sky Bet, OPAP, Entain, DraftKings, FanDuel, the Pennsylvania Lottery, the Alberta Gaming Liquor and Cannabis agency, the Western Canada Lottery Corporation, Moto, Welcome Break, Buzz Bingo, Mecca Bingo, JD Wetherspoon, Merkur Slots and Luxury Leisure. In addition to the listed names, the company supplies content to operators such as Flutter, Evoke, Gamesys, Kaizen and various regional lottery corporations.