Inspired records $60.4m of revenue for Q1 2025, declines 3% year-over-year

Despite the fall in revenue from the prior year period, Inspired still managed to report a net loss of just $100k, which represents a $6m-plus decrease from the total generated for Q1 2024.

Inspired Entertainment has released its financial results for the first quarter of 2025, with revenue having decreased by 3% year-over-year to $60.4m while adjusted EBITDA managed to witness growth of 19% from the prior year period to $18.4m for Q1 2025. 

Throughout Q1 2025, Inspired generated record quarterly results across its Interactive division, which reported a revenue total of $12.1m, representing an increase of 49% year-over-year. 

Gaming led the way with $21.7m generated for the first quarter of 2025, but the sector also reported a decrease of 6% from the prior year period. Inspired’s Virtual sports and Leisure divisions reported Q1 2025 revenues of $8.7m and $17.9m, respectively, equating to decreases of 30% and 4% year-over-year. 

Despite the fall in revenue, the company also managed to generate a net loss of just $100k for Q1 2025, which is over $6.3m less than the net loss reported throughout the first quarter of 2024. The increase in adjusted EBITDA was also primarily driven from Inspired’s Interactive division, which grew by 75% from the prior year period for an additional quarterly record of $7.7m. 

“Our Interactive segment continues to be a standout performer, with revenue increasing by 49% year-over-year, driven by robust growth in the UK and North America. We are excited about the progress in our Hybrid Dealer rollout strategy, including the successful launch of new games and partnerships that position us well for continued future growth,” Inspired Executive Chairman Lorne Weil said. 

“In Virtual Sports, Brazil’s regulatory and tax changes impacted the early part of the quarter. With the change in regulatory regime, there were disruptions across the market affecting performance and our Virtuals business was not immune. Our Leisure segment performed as expected in a seasonally slow quarter. Year over year performance was driven by timing differences of key UK public holiday periods.”

Good to know: Light & Wonder reported its financial results throughout the first quarter of 2025 on May 7, including an increase in revenue of 2% year-over-year to $774m and a net income of $82m for the period

Gaming was able to achieve an increase in adjusted EBITDA as well, having risen by 43% year-over-year for a Q1 2025 total of $9.3m. Virtual sports and Leisure reported decreases of 39% and 6% from the prior year period, respectively, to generate adjusted EBITDAs of $6.3m and $1.7m throughout the first quarter of 2025. 

Inspired reported its cost of service was $15m for Q1 2025, while selling, general and administrative expenses came out to $30.3m and the depreciation and amortization of assets cost an additional $10.6m. 

Prior to the net loss of $100k, Inspired managed to report a net operating income of $1.6m for Q1 2025, a rise from the $2.1m loss generated during the first quarter of 2024.

Kirk Geller

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