Inspired Entertainment, Inc. (INSE) AI Stock Analysis

NASDAQ: INSEAI research summary: business, growth, valuation, analysts, bull and bear case.

INSE AI stock analysis summary

AI Research

Inspired Entertainment, Inc. (INSE) provides business-to-business gaming technology solutions, virtual sports, and digital gaming content across regulated global markets. The company generated $281.4M in trailing twelve-month revenue, but faces significant leverage with $343.2M in total debt and negative equity of -$15.6M. Its stock has experienced pressure, declining 65.1% year-to-date to trade at $3.27.

Market cap
$87.2M
Revenue (TTM)
$281.4M
P/E
—
fwd 5.9x
1Y return
-58.5%
S&P 500 16.8%
Avg. target
$11.00
236.4% vs last close

Bull case

  • Gross margins expanded steadily to reach 71.6% in FY2025 alongside an operating margin of 17.9% over the trailing twelve months.
  • The stock trades at a forward P/E of 5.9x and an EV/EBITDA of 4.4x, well below peer medians of 14.1x and 11.1x.
  • Analysts maintain an average price target of $11.00, reflecting 236.4% upside above the closing price of $3.27.

Bear case

  • The company holds $343.2M in total debt against just $22.0M in cash, resulting in negative shareholders' equity of -$15.6M.
  • Quarterly revenue dropped 24.3% year-over-year in the period ended June 30, 2026, leading to a trailing twelve-month net margin of -3.3%.
  • Share performance has been weak, dropping 65.1% year-to-date and 75.1% over the past five years.

What Inspired Entertainment does

Inspired Entertainment, Inc. is a provider of business-to-business gaming technology solutions for regulated lottery, betting, and gaming operators worldwide. The company operates across four distinct segments. Its Gaming segment supplies gaming terminals and digital titles like Centurion and Super Hot Fruits to betting offices, casinos, gaming halls, and adult gaming centers. The Virtual Sports segment designs ultra-high-definition simulated sports games under brands such as V-Play Soccer, V-Play Football, and V-Play Basketball. Its Interactive segment delivers premium random number generated casino content, featuring bonus games, European-style free spins, and classic table games to online gaming platforms.

Growth and profitability

Between FY2020 and FY2025, revenue grew at an 8.9% compound annual growth rate, reaching $304.1M in FY2025 with 2.4% revenue growth. Gross margin improved from 66.2% in FY2021 to 71.6% in FY2025, while operating margin came in at 12.2%. However, bottom-line results have fluctuated, shifting from net income of $64.8M in FY2024 to a net loss of -$17.0M in FY2025. Over the trailing twelve months ended June 30, 2026, revenue stood at $281.4M with a profit margin of -3.3% and an operating margin of 17.9%. In the latest quarter, revenue fell 24.3% year-over-year, while quarterly earnings grew 398190.6%.

INSE income statement →

Balance sheet and cash flow

As of June 30, 2026, Inspired Entertainment held $22.0M in cash and short-term investments against $343.2M in total debt, leaving net debt at $321.2M. The balance sheet reflects negative shareholders' equity of -$15.6M against total assets of $392.9M, alongside a current ratio of 2.27. In FY2025, operating cash flow reached $52.0M and free cash flow was $6.4M. Capital expenditures absorbed $45.6M during the year, while share buybacks totaled $400,000.

INSE balance sheet →

Valuation and performance

At a share price of $3.27, Inspired Entertainment has a market capitalization of $87.2M and an enterprise value of $450.6M. INSE trades at a forward price-to-earnings ratio of 5.9x, compared to 14.1x for the median of its US-listed Consumer Cyclical peers. Its enterprise value-to-EBITDA ratio is 4.4x, below the peer median of 11.1x, and its price-to-sales multiple is 0.3x versus 0.7x for peers. Over the trailing twelve months, INSE fell 58.5%, underperforming the S&P 500 ETF (SPY) return of 16.8%.

INSE key metrics →

What analysts expect

Wall Street coverage includes 3 Strong Buy, 1 Buy, and 2 Hold recommendations, with no Sell or Strong Sell ratings. The mean analyst price target is $11.00, representing 236.4% potential upside from the last close of $3.27. For the fiscal year ending December 31, 2026, consensus estimates project revenue of $252.1M and earnings per share of $0.22, representing 336.4% EPS growth. Inspired has beaten earnings per share estimates in 2 of the last 4 quarters, with its next earnings report scheduled for November 4, 2026.

INSE forecast and price target →

Key risks and what to watch

  • The balance sheet carries negative shareholders' equity of -$15.6M and substantial net debt of $321.2M.
  • Revenue contraction in the latest quarter showed a 24.3% year-over-year decline, bringing TTM revenue down to $281.4M.
  • The company swung to a net loss of -$17.0M in FY2025 after posting net income of $64.8M in FY2024.
  • With a beta of 1.23, the stock exhibits higher volatility than the broader equity market.

AI-generated research summary. Written with AI from Quotelinks data as of October 16, 2026 and checked so every figure matches that data. For information only, not investment advice. Disclaimer

About this INSE AI stock analysis

This page is an AI-written research summary of Inspired Entertainment, Inc. (INSE). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

Related: INSE income statement, INSE balance sheet, INSE key metrics, INSE analyst forecast, INSE chart. See the INSE stock overview for the latest quote and news.

INSE AI stock analysis FAQ

Does Inspired Entertainment pay a dividend?

Inspired Entertainment does not pay a dividend based on current company reporting.

What is Inspired Entertainment's net debt?

As of June 30, 2026, the company held $22.0M in cash and short-term investments alongside $343.2M in total debt, resulting in net debt of $321.2M.

What are analysts forecasting for INSE in FY2026?

Analysts estimate full-year revenue of $252.1M and an earnings per share figure of $0.22 for the fiscal year ending December 31, 2026.

When does Inspired Entertainment report earnings next?

The company's next earnings release date is scheduled for November 4, 2026.

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