Inspired Entertainment holders watched the stock fall 4.8% today to US$6.62, capping a tough three months, yet the earnings story behind that move is more nuanced. The headline is margin power. Q2 revenue came in around US$61 million, but the key detail was an adjusted earnings before interest, tax, depreciation and amortization margin near 45% and guidance for US$112 million to US$118 million of adjusted EBITDA for 2026. The market appears focused on the price slide, while the fundamentals highlight the company’s profitability profile.

Is Inspired Entertainment a genuine bargain at a P/S of 0.6x, or is the discount a warning sign given negative equity and past losses? See how the current share price compares with fair value in our valuation analysis for Inspired Entertainment

Q2 2026 Earnings Summary

• Revenue, Q2 2026 vs. Q2 2025: US$60.8 million vs. US$80.3 million (revenue declined 24.3%)
• Net Income, Q2 2026 vs. Q2 2025: profit of US$0.2 million vs. loss of US$7.8 million (swing to profitability)
• Basic EPS, Q2 2026 vs. Q2 2025: US$0.0069 vs. loss of US$0.2682 (earnings per share moved back into positive territory)
• Adjusted EBITDA Margin, Q2 2026: approximately 45% on roughly US$61 million of revenue (indicates high earnings generated per dollar of revenue)

If you prefer clear charts instead of a dense block of earnings figures and ratios, explore Inspired Entertainment’s full financial picture and see a clear view of its valuation in the company report for Inspired Entertainment.

Inspired Entertainment earnings support margin focused optimism

For investors looking at Inspired Entertainment as a content and platform supplier, Q2 results point in a supportive direction. Adjusted EBITDA margin near 45% on roughly US$61 million of revenue shows the business model converting sales into profit efficiently. Net income moved from a loss in Q2 2025 to a small profit, which backs the view that the mix shift toward higher margin Interactive and Virtual Sports is gaining traction. Reaffirmed adjusted EBITDA guidance for 2026 suggests management sees this profitability profile as sustainable based on current operations.

Short term revenue pressure keeps bear case alive

The bear case for Inspired Entertainment also finds support in the numbers. Revenue in Q2 2026 declined 24.3% year on year, which sits awkwardly against any simple growth story even with better margins. Longer term share price performance has been weak, with the stock down over the past 7, 30 and 90 days, and another fall of 4.75% after the latest report. That pattern suggests the market is still cautious about revenue momentum and the balance sheet picture, including negative equity and past losses.

Compare Inspired Entertainment’s margin focused optimism with how institutions are reacting to the latest price slide and Q2 reset. See the consensus price target analysis for Inspired Entertainment

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.