Slides
Page 1
Third Quarter 2025 Earnings NOVEMBER 5, 2025
Page 2
Forward-Looking Statements This presentation includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 . These forward-looking statements include, but are not limited to, statements regarding our business strategy, plans and objectives and our expected or contemplated future operations, results, financial condition, beliefs and intentions. In addition, any statements that refer to projections, forecasts or other characterizations or predictions of future events or circumstances, including any underlying assumptions o n which such statements are expressly or implicitly based, are forward -looking statements. The words “anticipate”, “believe”, “continue”, “can”, “could”, “estimate”, “expect”, “intend”, “may”, “might”, “plan”, “possible”, “potential”, “predict”, “project”, “scheduled”, “seek”, “should”, “will”, “would” and similar expressions, among others, and negative expressions including such words, may identify forward -looking statements. These forward-looking statements reflect our current expectations about our future results, performance, liquidity, financial condition, prospects and opportunities, and are based upon information currently a vailable to us, our interpretation of what we believe to be significant factors affecting our business and many assumptions regarding future events. Actual results, performance, liquidity, financial condition, prospects and opportunities could differ materially from those expressed in, or implied by, our forward-looking statements. We cannot guarantee that the results anticipated by management, as set forth herein, will be realize d or, even if realized, will have the expected effects on our results of operations or financial performance. Such results may be affected by various risks and uncertainties, including the following: our ability to compete effectively in our industries; the effect of evolving technology on our business; our ability to renew long-term contracts and retain customers, and secure new contracts and customers; our ability to maintain relat ionships with suppliers; our ability to protect our intellectual property; our ability to protect our business against cybersecurity threats; our ability to successfully grow by acquisition as well as organically; g overnment regulation of our industries; fluctuations due to seasonality; our ability to attract and retain key members of our management team; our need for working capital; our ability to secure capital for growth and exp ansion; changing consumer, technology and other trends in our industries; our ability to successfully operate across multiple jurisdictions and markets around the world; changes in local, regional and global eco nomic and political conditions; our ability to effectively integrate the operations of businesses we acquire, and to grow and expand such operations; and other factors described in our Annual Report on Form 10 -K for the year ended December 31, 2024 and other filings with the U.S. Securities and Exchange Commission (“SEC”), which are available, free of charge, on the SEC’s website at www.sec.gov. In light of these risk s and uncertainties, there can be no assurance that any matters covered by our forward - looking statements will develop as predicted, expected or implied. Readers should not place undue reliance on any forward -looking statements. Except as expressly required by the federal securities laws, we undertake no obligation to publicly update or revise any forward -looking statements, whether as a result of new information, fut ure events, changed circumstances or any other reason. We advise you to carefully review the reports and documents we file from time to time with the SEC. The information contained in this presentation is qualified in its entirety by the information contained in our Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2025 filed with the SEC. Financial Information and Non-GAAP Financial Measures All years represented in this presentation are fiscal years unless otherwise indicated. All information presented for quarterly periods is unaudited. This presentation contains certain historical and pro forma financial measures that have not been prepared in accordance with United States generally accepted accounting principles (“non-GAAP”). A “non-GAAP financial measure” is defined as a numerical measure of a company’s financial performance that excludes or includes amounts that are different than the most directly comparable measure calculated and presented in accordance with United States generally accepted accounting principles (“GAAP”) in the statements of income, balance sheets or statements of cash flow of the company. These measures are presented as supplemental disclosures because we use such measures to analyze our operating performance and because certain of the measures are widely used measures of performance in our industry. See the Appendix for a reconciliation of our non-GAAP financial measures to the most comparable GAAP measures. EBITDA is defined as earnings before interest expense, provision for income taxes and depreciation and amortization. Adjusted EBITDA adjusts EBITDA to remove the effects of certain stock-based compensation charges, certain changes related to legacy portions of the business and items considered outside the normal course of business, including restructuring costs, merger and acquisition costs and gains or losses not in the ordinary course of business. Adjusted Revenue (also Revenue Excluding Low Margin Gaming Hardware Sales) is defined as revenue excluding hardware sales that are sold at low margin with the intention of securing longer term recurring revenue streams. The disclosure of EBITDA, Adjusted EBITDA, Adjusted Revenue and other non-GAAP financial measures may not be comparable to similarly titled measures reported by other companies. Such non-GAAP financial measures should be considered in addition to, and not in isolation from, as a substitute for, or superior to, net income, operating income, cash flows, revenue, and other measures of financial performance prepared in accordance with GAAP. Our results are translated from the British pound (GBP), our functional currency, into US dollars (USD), our reporting currency. In order to isolate the effect of translation exchange rate differences between periods, we also present results on a Constant Currency basis, which is a non-GAAP financial measure that assumes a constant translation exchange rate between periods. The currency impact has been calculated as the current period GBP:USD rate less the equivalent average rate in the prior period, multiplied by the current period amount in the functional currency (GBP). The remaining difference, referred to as Constant Currency, is calculated as the difference in the functional currency, multiplied by the prior period average GBP:USD rate, as a proxy for Constant Currency movement. Certain of the trademarks used herein are trademarks of third parties. Safe Harbor / Non-GAAP Financial Disclosures 2
Page 3
Outlook Lorne Weil Executive Chairman Introduction Lorne Weil Executive Chairman Q&A 3Q25 Review Brooks Pierce President & CEO Agenda 1 3 2 4 3
Page 4
Strong fundamentals – 3Q performance reflects continued momentum Overview Introduction1 Clear execution plan with forward-looking guidance Well positioned for growth & margin expansion Transition underway into digital-led, asset-light business model 4
Page 5
Outlook Lorne Weil Executive Chairman Introduction Lorne Weil Executive Chairman Q&A Business Update Brooks Pierce President & CEO Agenda 1 3 2 4 5
Page 6
Demonstrating Momentum and Executing on Core Strategy ▪ Total Revenue of $86.2m grew +12 YoY (+8% cc1) led by strength in Interactive +48% YoY ▪ Net Operating Income of $9.7 million, Net Loss of $1.9 million and Adjusted Net Income of $8.3 million ▪ Total Adjusted EBITDA2 of $32.3m increased +11% YoY (+7% cc) led by Interactive +55% YoY demonstrating strong operational leverage 3Q 2025 Financial Results Exceeded Expectations Executing on Core Strategic Objectives Improving Financial Flexibility Capturing Market Share in Interactive ▪ Interactive gained market share in UK & US markets during 3Q ▪ Ranked fourth in Eilers amongst online slot suppliers in the US with 30bp of market share gain in 3Q3 ▪ Achieved over 10% online slots market share in UK for first time in June 20254 (1) CC is defined as functional currency at constant rate basis, translating 2025 and 2024 performance at 2024 exchange rates. (2) Reconciliation of non-GAAP financial measures to the most comparable GAAP financial measures shown in appendix. (3) Source: October 2025 Edition of Eilers and Fantini US Online Game Performance Report. (4) Source: UKGC June 2025 and management estimates. Business Update2 ▪ Closing on sale of UK holiday parks business and certain associated leisure assets for £18.6 million ▪ Transitioning pubs to asset light content supply model ▪ Progress on multi-year targeted effort to streamline and make business more adaptable and agile ▪ Proceeds from holiday parks sale to improve net leverage, further strengthen the balance sheet and support future growth investments ▪ Board authorized $25 million share repurchase program 6
Page 7
Key takeaways • Interactive +48%YoY (+44%cc) • Strong growth trajectory driven by increased number of games and increased revenue per game • 50% growth in North America and 40% growth in the UK • Virtual Sports -17% YoY (-20%cc); +1% QoQ • Growth from new customers in Brazil • Now live with Brazil operators representing over 50% of online sports betting market, including key aggregator Altenar • Gaming +20% (+17%cc) • Strong performance from new Vantage terminals in William Hill • Installed 148 machines with new UK customer Corbett’s • Strong sales with 1,799 gaming machines sold, majority of which were part of pubs restructure • Leisure +4% (flat cc) • Revenue growth in holiday parks during peak season Diversified revenue growth Standout performance in Interactive and North America Business Update2 3Q 2025 YOY REVENUE PERFORMANCE 5% 17% 22% 40% UK GREECE REST OF WORLD NORTH AMERICA GEOGRAPHY SEGMENT 4% 20% -17% 48%INTERACTIVE VIRTUAL SPORTS GAMING LEISURE 7
Page 8
Mix shifting toward higher margin segments Business Update2 QUARTERLY ADJUSTED EBITDA1,3 SEGMENTS ALLOCATED FOR CORPORATE (1) Reconciliation of non-GAAP financial measures to the most comparable GAAP financial measures for 3Q25 and 3Q24 shown in appendix . Reconciliations of non -GAAP financial measures to the most comparable GAAP measures for 1Q24 to 2Q25 are available in the Company’s filings with the SEC, including in its 2024 Annual Report on Fo rm 10-K, 2025 Quarterly Reports on Form 10 -Q, and year end 2024 and quarterly 2025 earnings releases furnished to the SEC. (2) Adjusted EBITDA margin defined as Adjusted EBITDA as a percent of revenue. (3) Segment level Adjusted EBITDA including pro rated corporate allocation. Corporate allocation pro -rated by segment % of total rev enue contribution. ADJUSTED EBITDA MARGINS1,2 SEGMENTS ALLOCATED FOR CORPORATE Key takeaways • Interactive • Driven by increased revenue base YoY • Virtual Sports • Stabilized QoQ but impacted YoY by regulated Brazil tax • Gaming • Upgraded terminals and updated William Hill contract benefitting 3Q25 • Higher margin hardware sales from second hand equipment • Leisure • UK employment-related costs impacted YoY comparison • Sale of holiday parks to remove seasonal and lowest margin business 1Q24 2Q24 3Q24 4Q24 1Q25 2Q25 3Q25 Leisure Gaming Virtual Sports Interactive 22% 36% 70% 59% 38% 18% 39% 62% 62% 37% Leisure Gaming Virtual Sports Interactive Total 3Q25 3Q24 ($ in millions) $32.3 $28.4 $18.4 $30.9 $29.2 $24.7 $15.5 8
Page 9
68% 71% 3Q24 3Q25 21% 29% 3Q24 3Q25 REVENUE ($ in millions) $10.2 $15.1 3Q24 3Q25 $6.9 $10.7 3Q24 3Q25 ADJ EBITDA1 ($ in millions) % OF TOTAL ADJ EBITDA3 ADJ EBITDA MARGIN2 Interactive delivering strong profitable growth Strong execution delivering double-digit growth as our game portfolio scales INTERACTIVE Business Update2 +48% +55% +300bp +800bp 9 (1) Reconciliation of non-GAAP financial measures to the most comparable GAAP financial measures shown in appendix. (2) Adjusted EBITDA margin defined as Adjusted EBITDA as a percent of revenue. (3) Segment contribution to Adjusted EBITDA including pro rated corporate allocation. Corporate allocation pro -rated by segment % of total revenue contribution.
Page 10
Future growth opportunities in the U.S. are meaningful Well positioned to capitalize on large and growing addressable U.S. iGaming market iGaming states with Inspired content iGaming Online Sports Betting Regulated US states1 7 39 2024 Total US regulated GGR2 $8.4bn $14.6bn 2024 GGR in PA, MI & NJ3 $7.5bn $2.0bn Projected TAM at Maturity4 $97.3bn $34.3bn 5x iGaming v. Online Sports Betting GGR in PA & MI3 Business Update2 10 (1) Inspired content is available in 6 of the 7 regulated US iGaming states. (2) Source: American Gaming Association. (3) Source: Pennsylvania Gaming Control Board, Michigan Gaming Commission and New Jersey Division of Gaming Enforcement reports. (4) SourcE: Eilers-Fantini US Sports Betting and Casino Outlook – September 2025.
Page 11
Hybrid Dealer: Driving growth and market presence Network effect as we grow our footprint across Tier 1 and 2 customers 23 CUSTOMERS LIVE 56 WEBSITES LIVE 20k+ ACTIVE PLAYERS/ MONTH ~$7m STAKES/ MONTH • Accelerating content rollout with launches of top-performing Inspired brands like Wolf it Up and Big Piggy Bank • Expanding the portfolio with new games and player-favorite mechanics, including seasonal themes and innovative Hybrid Dealer slot-style experiences with bonus features • Boosting game velocity to maximize hourly play rates and drive engagement • Strengthening title visibility and promotion with a strategic focus on placement in the “Live” table games tab STRATEGY: VELOCITY , VISIBILITY , AND IMPACT 11 Business Update2
Page 12
Floor Avg INSE 3Q253Q24 3Q25 WILLIAM HILL BETTING SHOP GROSS WIN/UNIT/DAY GREECE BETTING SHOP GROSS WIN/UNIT/DAY ILLINOIS NET TERMINAL INCOME2 Positive performance from new Gaming terminals Strong performance across key markets GAMING Business Update2 +HSD%1 3Q24 3Q25 (1) HSD refers to high single-digit growth (approximately 7–9%), and MSD refers to mid single-digit growth (approximately 4–6%). (2) Net terminal income performance measured against floor average. Illinois is a for -sale market and we do not receive a revenue sh are. +HSD%1+MSD%1 12
Page 13
Outlook Lorne Weil Executive Chairman Introduction Lorne Weil Executive Chairman Q&A 3Q25 Review Brooks Pierce President & CEO Agenda 1 3 2 4 13
Page 14
Adjusted EBITDA YoY % change Revenue $310m Adjusted EBITDA1 Adjusted EBITDA3 margin Digital mix2 Net leverage4 $110m 49% 3.2x35% 16% Outlook3 Overview of Inspired A solid foundation supporting the next phase of sustainable, profitable expansion LTM ENDED SEPTEMBER 30, 2025 (1) Reconciliation of non-GAAP financial measures to the most comparable GAAP financial measures shown in appendix. (2) Digital mix defined as segment level Adjusted EBITDA for Virtual Sports and Interactive including pro rated corporate allocation. Corporate allocation pro -rated by segment % of total revenue contribution. (3) Adjusted EBITDA margin defined as Adjusted EBITDA as a percent of revenue. (4) Net leverage equals senior debt plus finance leases less cash divided by LTM September 30, 2025 Adjusted EBITDA. 14
Page 15
Digital led, capital light transition already underway Building blocks to accelerate our growth Outlook 3 Scaling Digital Intentional shift toward scaling digital areas with strongest growth potential, highest margin profile, and lowest capital intensity Divesting Holiday Parks business Agreed sale of capital and labor-intensive holiday parks business making revenue and free cash flow generation more predictable Restructuring Pubs business Focus on asset-light content supply model for Pubs with higher margins and lower headcount Develop once, deliver everywhere Streamlining technology and content development to enable develop once, deploy across all distribution channels Process re-engineering Multi-year targeted effort to streamline and make business more adaptable and agile 15
Page 16
Clear execution plan to accelerate profitable growth Drive Revenue Growth Expand Adjusted EBITDA Margin Improve Free Cash Flow Content & Product Innovation: Invest in content, product development and delivery channels Market Share: Deeper penetration with existing customers from increased game cadence, brand franchise/branded titles and new player mechanics, etc. New Customers: Expand footprint within growth markets Capitalize on Market Expansion: Substantial upside potential for new markets – US states and foreign countries Mix Shift to Digital: Increase contribution from highest-margin segments Evolving our Operating Model: Streamlining structure, technology, and processes to enhance agility, margins, and long-term scalability (i.e. asset-light content supply model for Pubs business) + Digital revenue growth + Higher Adjusted EBITDA margins Increased Free Cash Flow + Lower capital expenditures Outlook 3 16
Page 17
Targeting over 45% Adjusted EBITDA margin by 2027 Outlook3 ADJUSTED EBITDA MARGIN PROGRESSION LTM 9/30/25 - 2027 target1 35% 45% LTM 9/30/25 Holiday park divestiture Process re-engineering Higher Digital EBITDA mix Target 2027 + (1) 2027 targets are consistent with the assumptions discussed in the Company’s conference call and presentation. 17 1
Page 18
LTM 9/30/25 2026 TARGETS8 2027 TARGETS8 Adj EBITDA1 $110m HSD% YoY growth9 HSD% YoY growth9 Adj EBITDA margin2 35% 43% 45%+ Digital as a % of Adj EBITDA3 49% 57% 60%+ Headcount4 1,460 900 900 Cash Capex5 $42m $30m - $35m $30m - $35m Free cash flow conversion6 N/A 20% - 25% 25% - 30% Net leverage ratio7 3.2x 2.5x - 3.0x 2.0x - 2.5x Simplified and more predictable earnings Two-year targets to drive shareholder value (1) Non-GAAP reconciliation in appendix. (2) Adjusted EBITDA margin defined as Adjusted EBITDA divided by Revenue. (3) Digital mix defined as segment level Adjusted EBITDA for Virtual Sports and Interactive including pro rated corporate allocation. Corporate allocation pro-rated by segment % of total revenue contribution. (4) Headcount defined as full time equivalent employees. Results primarily from anticipated disposition of holiday parks business (5) Cash capital expenditures includes purchases of property and equipment, purchases of capital software and internally developed costs, and contract cost expenses and excludes customer funded purchases of property and equipment. (6) Free cash flow defined as cash flow from operating activities less cash flow from investing activities less repayments of finance leases. Free cash flow conversion defined as free cash flow divided by Adjusted EBITDA. (7) Net leverage equals senior debt plus finance leases less cash divided by LTM September 30, 2025 Adjusted EBITDA. (8) 2026 and 2027 targets are consistent with the assumptions discussed in the Company’s conference call and presentation and assumes that GBP:USD exchange rates will remain broadly in line with current levels. (9) HSD refers to high single-digit growth (approximately 7–9%). Outlook 3 18
Page 19
Outlook Lorne Weil Executive Chairman Introduction Lorne Weil Executive Chairman Q&A 3Q25 Review Brooks Pierce President & CEO Agenda 1 3 2 4 19
Page 20
Appendix 20
Page 21
Commentary • Holiday parks sale resulted in an impairment ($5.9m) as the sales price was below book value • Income tax credit stems from reduced tax expense due to impairment • Interest expense increase was driven by higher principal and interest rate ($2.7m), along with additional debt fees for refi ($0.6m), higher finance lease interest ($0.8m), and FX hedging/other ($1.3m) Financials: Adjusted Income Statement 21 Three months ended 2025 2024 Change % 30-Sep $m $m Revenue 86.2 77.2 12% Less: cost of sales (25.7) (23.4) 10% Gross Profit 60.5$ 53.8$ 12% SG&A (31.7) (31.4) 1% Depreciation & amortizaion (13.2) (11.2) 18% Impairment loss on classification as held for sale (5.9) - Net operating income 9.7$ 11.2$ -13% Interest expense (12.5) (7.5) Other finance income 0.2 0.1 Net (loss) income before taxes (2.6)$ 3.8$ Income tax benefit (expense) 0.7 (1.0) Net (loss) income (1.9)$ 2.8$ Pension charges 0.3 0.3 Costs of group restructure 1.7 1.8 Costs of group restatement 0.1 2.9 Effect of exchange rates on cash 0.9 (2.0) Mark to market movement on currency deals - (0.3) Held for sale adjustment - impairment 5.9 - Other finance income (0.2) (0.1) Tax impact of add backs 1.5 - Adjusted Net Income 8.3$ 5.4$ Reported EPS - diluted (0.07)$ 0.10$ Adjusted EPS - diluted 0.28$ 0.19$ Diluted shares outstanding 29,094,787 29,188,787
Page 22
Non-GAAP Reconciliation: Q3 2025 Adjusted EBITDA by Segment Note: Exchange rate in the table is calculated by dividing the USD total revenue by the GBP total revenue, therefore this cou ld be slightly different from the average rate during the period depending on timing of transactions. 22
Page 23
Q3 2025 Pro Rated Segment Adjusted EBITDA Contribution 23
Page 24
Note: Exchange rate in the table is calculated by dividing the USD total revenue by the GBP total revenue, therefore this cou ld be slightly different from the average rate during the period depending on timing of transactions. Non-GAAP Reconciliation: Q3 2024 Adjusted EBITDA by Segment 24
Page 25
Q3 2024 Pro Rated Segment Adjusted EBITDA Contribution 25
Page 26
Non-GAAP Reconciliation: Q3 2025 Last Twelve Months (“LTM”) Adjusted EBITDA 26
Page 27
Non-GAAP Reconciliation: Q3 2024 Last Twelve Months (“LTM”) Adjusted EBITDA 27
Page 28
Q3 2025 LTM Pro Rated Segment Adjusted EBITDA Contribution 28