Inspired Entertainment, Inc. Q4 FY2025 earnings call

• Interactive business had 53% revenue growth and 60% EBITDA growth in Q4, with 10 quarters of over 40% EBITDA growth. • Digital business mix improvement driving EBITDA margins, focus on CapEx light business and reduced headcount. • Strong relationships with key customers like Bet365 and Entane. • Successful launch with BetMGM in North America, with NFL license game live in New Jersey. • iGaming performance sustained by earlier games generating consistent revenue, proprietary game titles creating brand recognition and loyalty. • North American gaming machine sales seeing growth in Illinois with strong customer relationships.

The interactive business grew revenue and EBITDA by 53% and 60% respectively in the fourth quarter. Full year 2025 EBITDA was $111 million, with an EBITDA margin of 37% of revenue. Digital business accounted for 51% of EBITDA and leverage was 3.3. 2026 EBITDA is projected at the midpoint to be low double digits ahead of 2025 (excluding divested Holiday Park EBITDA), digital business is expected to grow from 51% of EBITDA to more than 60%, EBITDA margins to expand to 45% plus, and leverage to be 2.5% approaching 2%.

• Projecting 2026 EBITDA at midpoint 115 million, range 112 - 118 million, low double-digit growth over 2025 (excluding divested Holiday Park EBITDA). • Digital business to grow from 51% of EBITDA to more than 60%. • EBITDA margins to expand to 45% plus. • Leverage to be 2.5% approaching 2%.

• UK tax increase may impact operators' RTP and bonusing structures, but expecting to mitigate. • Virtual sports revenue in first quarter had softening in Brazil market, though margin expansion seen in Q4. • Potential impact of events like Iran conflict on business, though currently insulated.

Q: Concern about UK tax change and its impact on guidance, A: Operators adjusting RTP and bonusing structures, expecting to mitigate impact.

Q: Capital allocation strategy and market valuations, A: Insulated from prediction markets, will consider share repurchase at proper valuations.

Q: Expectations lifted for EBITDA targets, A: Momentum in interactive business continues with various drivers.

Q: iGaming market share improvement, A: Gain with top three operators and other companies.

Q: UK retail impact of tax increase, A: Operators trying to mitigate online tax thing, some shop closures benefiting other operators.

Q: Iran conflict impact on business, A: Generally insulated, supply chains in good shape.

Q: Strata lottery platform, A: Developed cloud-based platform, focus outside US initially with market opportunity.

Q: Sustainability of interactive business growth, A: No signs of slowing in UK and North America, adding new geographies.

Q: CapEx after shift to asset-light model, A: CapEx composition will be slightly different with investment in lottery terminals over next two years.