false --12-31 Q1 0001615063 0001615063 2025-01-01 2025-03-31 0001615063 2025-05-05 0001615063 2025-03-31 0001615063 2024-12-31 0001615063 2024-01-01 2024-03-31 0001615063 us-gaap:ServiceMember 2025-01-01 2025-03-31 0001615063 us-gaap:ServiceMember 2024-01-01 2024-03-31 0001615063 INSE:ProductSalesMember 2025-01-01 2025-03-31 0001615063 INSE:ProductSalesMember 2024-01-01 2024-03-31 0001615063 us-gaap:CommonStockMember 2024-12-31 0001615063 us-gaap:AdditionalPaidInCapitalMember 2024-12-31 0001615063 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2024-12-31 0001615063 us-gaap:RetainedEarningsMember 2024-12-31 0001615063 us-gaap:CommonStockMember 2023-12-31 0001615063 us-gaap:AdditionalPaidInCapitalMember 2023-12-31 0001615063 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2023-12-31 0001615063 us-gaap:RetainedEarningsMember 2023-12-31 0001615063 2023-12-31 0001615063 us-gaap:CommonStockMember 2025-01-01 2025-03-31 0001615063 us-gaap:AdditionalPaidInCapitalMember 2025-01-01 2025-03-31 0001615063 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2025-01-01 2025-03-31 0001615063 us-gaap:RetainedEarningsMember 2025-01-01 2025-03-31 0001615063 us-gaap:CommonStockMember 2024-01-01 2024-03-31 0001615063 us-gaap:AdditionalPaidInCapitalMember 2024-01-01 2024-03-31 0001615063 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2024-01-01 2024-03-31 0001615063 us-gaap:RetainedEarningsMember 2024-01-01 2024-03-31 0001615063 us-gaap:CommonStockMember 2025-03-31 0001615063 us-gaap:AdditionalPaidInCapitalMember 2025-03-31 0001615063 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2025-03-31 0001615063 us-gaap:RetainedEarningsMember 2025-03-31 0001615063 us-gaap:CommonStockMember 2024-03-31 0001615063 us-gaap:AdditionalPaidInCapitalMember 2024-03-31 0001615063 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2024-03-31 0001615063 us-gaap:RetainedEarningsMember 2024-03-31 0001615063 2024-03-31 0001615063 2024-01-01 2024-12-31 0001615063 INSE:NextTwelveMonthsMember 2025-03-31 0001615063 INSE:BetweenThirteenAndThirtySixMonthsMember 2025-03-31 0001615063 INSE:BetweenThirtySevenAndSixtyMonthsMember 2025-03-31 0001615063 INSE:SeniorSecuredNotesMember srt:ScenarioForecastMember 2026-06-21 0001615063 INSE:SeniorSecuredNotesMember srt:ScenarioForecastMember 2026-06-01 0001615063 INSE:SeniorSecuredNotesMember srt:ScenarioForecastMember 2026-06-01 2026-06-01 0001615063 INSE:IncentivePlanMember us-gaap:RestrictedStockUnitsRSUMember 2024-12-31 0001615063 INSE:IncentivePlanMember us-gaap:RestrictedStockUnitsRSUMember 2025-01-01 2025-03-31 0001615063 INSE:IncentivePlanMember us-gaap:RestrictedStockUnitsRSUMember 2025-03-31 0001615063 us-gaap:PerformanceSharesMember 2025-01-01 2025-03-31 0001615063 us-gaap:PerformanceSharesMember srt:MinimumMember 2025-01-01 2025-03-31 0001615063 us-gaap:PerformanceSharesMember srt:MaximumMember 2025-01-01 2025-03-31 0001615063 us-gaap:RestrictedStockUnitsRSUMember srt:MaximumMember 2024-01-01 2024-12-31 0001615063 us-gaap:PerformanceSharesMember srt:ChiefExecutiveOfficerMember 2025-01-01 2025-03-31 0001615063 us-gaap:PerformanceSharesMember INSE:RSUMember 2025-03-31 0001615063 us-gaap:RestrictedStockUnitsRSUMember us-gaap:ShareBasedCompensationAwardTrancheThreeMember 2025-01-01 2025-03-31 0001615063 us-gaap:RestrictedStockUnitsRSUMember us-gaap:ShareBasedCompensationAwardTrancheThreeMember 2024-12-31 2024-12-31 0001615063 us-gaap:RestrictedStockUnitsRSUMember us-gaap:ShareBasedCompensationAwardTrancheThreeMember 2020-01-01 2020-12-31 0001615063 us-gaap:RestrictedStockUnitsRSUMember us-gaap:ShareBasedCompensationAwardTrancheThreeMember 2023-01-01 2023-12-31 0001615063 us-gaap:RestrictedStockUnitsRSUMember 2025-01-01 2025-03-31 0001615063 us-gaap:RestrictedStockUnitsRSUMember 2024-01-01 2024-03-31 0001615063 INSE:MacquarieCorporateHoldingsPtyLimitedMember 2025-03-31 0001615063 INSE:MacquarieCorporateHoldingsPtyLimitedMember 2025-01-01 2025-03-31 0001615063 INSE:MacquarieCorporateHoldingsPtyLimitedMember 2024-01-01 2024-12-31 0001615063 INSE:MacquarieCorporateHoldingsPtyLimitedMember 2024-01-01 2024-03-31 0001615063 INSE:ConsultancyAgreementMember 2025-01-01 2025-03-31 0001615063 INSE:ConsultancyAgreementMember 2024-01-01 2024-03-31 0001615063 INSE:GamingMember us-gaap:ServiceMember 2025-01-01 2025-03-31 0001615063 INSE:VirtualsportsMember us-gaap:ServiceMember 2025-01-01 2025-03-31 0001615063 INSE:InteractiveMember us-gaap:ServiceMember 2025-01-01 2025-03-31 0001615063 INSE:LeisureMember us-gaap:ServiceMember 2025-01-01 2025-03-31 0001615063 INSE:CorporateFunctionsMember us-gaap:ServiceMember 2025-01-01 2025-03-31 0001615063 INSE:GamingMember INSE:ProductSalesMember 2025-01-01 2025-03-31 0001615063 INSE:VirtualsportsMember INSE:ProductSalesMember 2025-01-01 2025-03-31 0001615063 INSE:InteractiveMember INSE:ProductSalesMember 2025-01-01 2025-03-31 0001615063 INSE:LeisureMember INSE:ProductSalesMember 2025-01-01 2025-03-31 0001615063 INSE:CorporateFunctionsMember INSE:ProductSalesMember 2025-01-01 2025-03-31 0001615063 INSE:GamingMember 2025-01-01 2025-03-31 0001615063 INSE:VirtualsportsMember 2025-01-01 2025-03-31 0001615063 INSE:InteractiveMember 2025-01-01 2025-03-31 0001615063 INSE:LeisureMember 2025-01-01 2025-03-31 0001615063 INSE:CorporateFunctionsMember 2025-01-01 2025-03-31 0001615063 INSE:GamingMember us-gaap:ServiceMember 2024-01-01 2024-03-31 0001615063 INSE:VirtualsportsMember us-gaap:ServiceMember 2024-01-01 2024-03-31 0001615063 INSE:InteractiveMember us-gaap:ServiceMember 2024-01-01 2024-03-31 0001615063 INSE:LeisureMember us-gaap:ServiceMember 2024-01-01 2024-03-31 0001615063 INSE:CorporateFunctionsMember us-gaap:ServiceMember 2024-01-01 2024-03-31 0001615063 INSE:GamingMember INSE:ProductSalesMember 2024-01-01 2024-03-31 0001615063 INSE:VirtualsportsMember INSE:ProductSalesMember 2024-01-01 2024-03-31 0001615063 INSE:InteractiveMember INSE:ProductSalesMember 2024-01-01 2024-03-31 0001615063 INSE:LeisureMember INSE:ProductSalesMember 2024-01-01 2024-03-31 0001615063 INSE:CorporateFunctionsMember INSE:ProductSalesMember 2024-01-01 2024-03-31 0001615063 INSE:GamingMember 2024-01-01 2024-03-31 0001615063 INSE:VirtualsportsMember 2024-01-01 2024-03-31 0001615063 INSE:InteractiveMember 2024-01-01 2024-03-31 0001615063 INSE:LeisureMember 2024-01-01 2024-03-31 0001615063 INSE:CorporateFunctionsMember 2024-01-01 2024-03-31 0001615063 country:GB 2025-01-01 2025-03-31 0001615063 country:GB 2024-01-01 2024-03-31 0001615063 country:US 2025-01-01 2025-03-31 0001615063 country:US 2024-01-01 2024-03-31 0001615063 country:GR 2025-01-01 2025-03-31 0001615063 country:GR 2024-01-01 2024-03-31 0001615063 INSE:RestOfWorldMember 2025-01-01 2025-03-31 0001615063 INSE:RestOfWorldMember 2024-01-01 2024-03-31 0001615063 country:GB 2025-03-31 0001615063 country:GB 2024-12-31 0001615063 country:GR 2025-03-31 0001615063 country:GR 2024-12-31 0001615063 INSE:RestOfWorldMember 2025-03-31 0001615063 INSE:RestOfWorldMember 2024-12-31 0001615063 us-gaap:SalesRevenueNetMember us-gaap:CustomerConcentrationRiskMember INSE:NoCustomerMember 2025-01-01 2025-03-31 0001615063 us-gaap:SalesRevenueNetMember us-gaap:CustomerConcentrationRiskMember INSE:CustomerOneMember 2024-01-01 2024-03-31 0001615063 us-gaap:AccountsReceivableMember us-gaap:CustomerConcentrationRiskMember INSE:CustomerOneMember 2025-01-01 2025-03-31 0001615063 us-gaap:AccountsReceivableMember us-gaap:CustomerConcentrationRiskMember INSE:CustomerOneMember 2024-01-01 2024-12-31 0001615063 srt:ScenarioPreviouslyReportedMember 2024-01-01 2024-03-31 0001615063 srt:RevisionOfPriorPeriodReclassificationAdjustmentMember 2024-01-01 2024-03-31 iso4217:USD xbrli:shares iso4217:USD xbrli:shares INSE:Instrument INSE:Integer iso4217:EUR iso4217:GBP xbrli:pure

 

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 10-Q

 

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE

ACT OF 1934

 

For the quarterly period ended March 31, 2025

 

OR

 

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE

ACT OF 1934

 

For the transition period _______________

 

Commission File Number: 001-36689

 

INSPIRED ENTERTAINMENT, INC.

(Exact name of registrant as specified in its charter)

 

Delaware   47-1025534
(State or other jurisdiction of   (I.R.S. Employer
incorporation or organization)   Identification Number)

 

250 West 57th Street, Suite 415    
New York, NY   10107
(Address of principal executive offices)   (Zip Code)

 

Registrant’s telephone number, including area code: (646) 565-3861

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

 

Indicate by check mark whether the registrant has submitted electronically every Interactive Date File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See definitions of “large accelerated filer”, “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer ☐   Accelerated filer ☒
Non-accelerated filer ☐   Smaller reporting company ☒
    Emerging growth company ☐

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class   Trading Symbol(s)   Name of each exchange on which registered
Common stock, par value $0.0001 per share   INSE   The NASDAQ Stock Market LLC

 

As of May 5, 2025, there were 26,912,201 shares of the Company’s common stock issued and outstanding.

 

 

 

 

 

 

TABLE OF CONTENTS

 

PART I. FINANCIAL INFORMATION 1
     
ITEM 1. FINANCIAL STATEMENTS (Unaudited) 1
     
  Condensed Consolidated Balance Sheets 1
     
  Condensed Consolidated Statements of Operations and Comprehensive (Loss) Income 2
     
  Condensed Consolidated Statement of Stockholders’ Deficit 3
     
  Condensed Consolidated Statements of Cash Flows 5
     
  Notes to Condensed Consolidated Financial Statements 6
     
ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS 14
     
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK 35
     
ITEM 4. CONTROLS AND PROCEDURES 35
     
PART II. OTHER INFORMATION 36
     
ITEM 1. LEGAL PROCEEDINGS 36
     
ITEM 1A. RISK FACTORS 36
     
ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS 36
     
ITEM 3. DEFAULTS UPON SENIOR SECURITIES 36
     
ITEM 4. MINE SAFETY DISCLOSURES 36
     
ITEM 5. OTHER INFORMATION 36
     
ITEM 6. EXHIBITS 36
     
SIGNATURES 37

 

i

 

 

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

 

References in this report to “we,” “us,” “our,” the “Company” and “Inspired” refer to Inspired Entertainment, Inc. and its subsidiaries unless the context suggests otherwise.

 

Certain statements and other information set forth in this report, including in Item 2, “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and elsewhere herein, may relate to future events and expectations, and as such constitute “forward-looking statements” within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and Section 27A of the Securities Act of 1933, as amended (the “Securities Act”). Our 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 on 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,” “would” and similar expressions, among others, and negatives expressions including such words, may identify forward-looking statements.

 

Our forward-looking statements reflect our current expectations about our future results, performance, liquidity, financial condition, prospects and opportunities, and are based upon information currently available 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. This could occur as a result of various risks and uncertainties, including the following:

 

  ● government regulation of our industries;
     
  ● 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 relationships 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;
     
  ● 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 expansion;
     
  ● 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 economic and political conditions; and
     
  ● other factors described in the reports and documents we file from time to time with the U.S. Securities and Exchange Commission (the “SEC”).

 

In light of these risks and uncertainties, and others discussed in this report, 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, future 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.

 

ii

 

 

PART I - FINANCIAL INFORMATION

 

ITEM 1. FINANCIAL STATEMENTS

 

INSPIRED ENTERTAINMENT, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(in millions, except share data)

 

  

March 31, 2025

  

December 31, 2024

 
    (Unaudited)      
Assets          
Cash  $39.0   $29.3 
Accounts receivable, net   52.0    65.4 
Inventory   31.1    28.0 
Prepaid expenses and other current assets   35.4    36.0 
Corporate tax and other current taxes receivable   4.3    1.2 
Total current assets   161.8    159.9 
           
Property and equipment, net   62.7    56.4 
Software development costs, net   23.7    22.4 
Other acquired intangible assets subject to amortization, net   15.6    16.1 
Goodwill   59.6    57.8 
Finance lease right of use asset   22.7    18.7 
Operating lease right of use asset   16.0    16.2 
Costs of obtaining and fulfilling customer contracts, net   12.8    11.0 
Deferred tax   71.2    67.4 
Other assets   12.8    12.5 
Total assets  $458.9   $438.4 
           
Liabilities and Stockholders’ Deficit          
Current liabilities          
Accounts payable and accrued expenses  $69.6   $53.7 
Corporate tax and other current taxes payable   4.3    12.3 
Deferred revenue, current   5.7    5.8 
Operating lease liabilities   5.0    5.1 
Current portion of long-term debt   19.4    18.8 
Current portion of finance lease liabilities   4.9    4.4 
Other current liabilities   4.2    3.9 
Total current liabilities   113.1    104.0 
           
Long-term debt   301.5    292.2 
Finance lease liabilities, net of current portion   18.5    18.6 
Deferred revenue, net of current portion   14.6    12.8 
Operating lease liabilities   11.2    11.7 
Other long-term liabilities   2.2    2.4 
Total liabilities   461.1    441.7 
           
Commitments and contingencies   -    - 
           
Stockholders’ deficit          
Preferred stock; $0.0001 par value; 1,000,000 shares authorized, no shares issued and outstanding at March 31, 2025 and December 31, 2024, respectively.   —    — 
Common stock; $0.0001 par value; 49,000,000 shares authorized; 26,904,832 shares and 26,581,972 shares issued and outstanding at March 31, 2025 and December 31, 2024, respectively   —    — 
Additional paid in capital   391.3    389.9 
Accumulated other comprehensive income   48.1    48.3 
Accumulated deficit   (441.6)   (441.5)
Total stockholders’ deficit   (2.2)   (3.3)
Total liabilities and stockholders’ deficit  $458.9   $438.4 

 

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

 

1

 

 

INSPIRED ENTERTAINMENT, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)

(in millions, except share and per share data)

(Unaudited)

 

   2025   2024 
   Three Months Ended March 31, 
   2025   2024 
Revenue:          
Service  $57.0   $56.2 
Product sales   3.4    6.1 
Total revenue   60.4    62.3 
           
Cost of sales:          
Cost of service (1)   (15.0)   (15.9)
Cost of product sales (1)   (2.9)   (4.5)
Selling, general and administrative expenses   (30.3)   (34.2)
Depreciation and amortization   (10.6)   (9.8)
Net operating income (loss)   1.6    (2.1)
           
Other expense          
Interest expense, net   (7.0)   (6.5)
Other finance income   0.2    0.1 
           
Total other expense, net   (6.8)   (6.4)
           
Loss before income taxes   (5.2)   (8.5)
Income tax benefit   5.1    2.1 
Net loss   (0.1)   (6.4)
           
Other comprehensive (loss) income:          
Foreign currency translation (loss) gain   (0.4)   0.5 
Reclassification of loss on pension plan to comprehensive income   0.2    0.3 
Other comprehensive (loss) income   (0.2)   0.8 
           
Comprehensive loss  $(0.3)  $(5.6)
           
Net loss per common share – basic and diluted  $0.00   $(0.22)
           
Weighted average number of shares outstanding during the period – basic and diluted   28,973,938    28,603,734 
Supplemental disclosure of stock-based compensation expense          
Stock-based compensation included in:          
Selling, general and administrative expenses  $(1.4)  $(2.3)

 

(1) Excluding depreciation and amortization

 

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

 

2

 

 

INSPIRED ENTERTAINMENT, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ DEFICIT

THREE MONTHS ENDED MARCH 31, 2025

(in millions, except share data)

(Unaudited)

 

   Shares   Amount   income   capital   deficit   deficit 
   Common stock  

Additional

paid in

  

Accumulated

other

comprehensive

   Accumulated  

Total

stockholders’

 
   Shares   Amount   income   capital   deficit   deficit 
                         
Balance as of December 31, 2024    26,581,972    —    389.9    48.3    (441.5)   (3.3)
Foreign currency translation adjustments    —    —    —    (0.4)   —    (0.4)
Reclassification of loss on pension plan to comprehensive income    —    —    —    0.2    —    0.2 
Issuances under stock plans    322,860    —    —    —    —    — 
Stock-based compensation expense    —    —    1.4    —    —    1.4 
Net loss    —    —    —    —    (0.1)   (0.1)
Balance as of March 31, 2025    26,904,832   $—   $391.3   $48.1   $(441.6)  $(2.2)

 

 

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

 

3

 

 

INSPIRED ENTERTAINMENT, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ DEFICIT

THREE MONTHS ENDED MARCH 31, 2024

(in millions, except share data)

(Unaudited)

 

   Common stock  

Additional

paid in

  

Accumulated

other

comprehensive

   Accumulated  

Total

stockholders’

 
   Shares   Amount   capital   income   deficit   deficit 
                         
Balance as of December 31, 2023   26,219,021    —    386.1    44.3    (506.3)   (75.9)
                               
Foreign currency translation adjustments   —    —    —    0.5    —    0.5 
Reclassification of loss on pension plan to comprehensive income   —    —    —    0.3    —    0.3 
Issuances under stock plans   340,735    —    (0.8)   —    —    (0.8)
Stock-based compensation expense   —    —    2.0    —    —    2.0 
Net loss   —    —    —    —    (6.4)   (6.4)
Balance as of March 31, 2024   26,559,756   $—   $387.3   $45.1   $(512.7)  $(80.3)

 

 

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

 

4

 

 

INSPIRED ENTERTAINMENT, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in millions)

(Unaudited)

 

   2025   2024 
   Three Months Ended March 31, 
   2025   2024 
Cash flows from operating activities:          
Net loss  $(0.1)  $(6.4)
Adjustments to reconcile net loss to net cash provided by operating activities:          
Depreciation and amortization   9.7    9.8 
Amortization of finance lease right of use asset   0.9    — 
Amortization of operating lease right of use asset   0.8    1.1 
Stock-based compensation expense   1.4    2.3 
Amortization of deferred financing fees relating to senior debt   0.5    0.2 
Deferred tax   (1.9)   — 
Changes in assets and liabilities:          
Accounts receivable   15.1    1.6 
Inventory   (2.0)   0.4 
Prepaid expenses and other assets   (0.5)   6.2 
Corporate tax and other current taxes payable   (11.3)   (6.3)
Accounts payable and accrued expenses   14.3    (2.6)
Deferred revenues and customer prepayment   1.6    0.6 
Operating lease liabilities   (1.1)   (1.0)
Pension contributions   (0.2)   (0.4)
Other long-term liabilities   (1.7)   0.5 
Net cash provided by operating activities   25.5    6.0 
           
Cash flows from investing activities:          
Purchases of property and equipment   (9.2)   (4.4)
Purchases of capital software and internally developed costs   (2.1)   (3.3)
Contract cost expense   (3.8)   (2.4)
Net cash used in investing activities   (15.1)   (10.1)
           
Cash flows from financing activities:          
Repayments of finance leases   (1.7)   (0.2)
Net cash used in financing activities   (1.7)   (0.2)
           
Effect of exchange rate changes on cash   1.0    (0.4)
Net increase (decrease) in cash   9.7    (4.7)
Cash, beginning of period   29.3    40.0 
Cash, end of period  $39.0   $35.3 
           
Supplemental cash flow disclosures          
Cash paid during the period for interest  $1.2   $0.1 
Cash paid during the period for income taxes  $0.7   $— 
Cash paid during the period for operating leases  $1.7   $2.1 
           
Supplemental disclosure of noncash investing and financing activities          
Additional paid in capital from net settlement of RSUs  $—   $(0.8)
Lease liabilities arising from obtaining finance lease right of use assets  $(1.3)  $— 
Lease liabilities arising from obtaining operating lease right of use assets  $—   $(2.2)
Right of use property and equipment acquired through finance lease  $4.2   $1.3 

 

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

 

5

 

 

1. Nature of Operations, Management’s Plans and Summary of Significant Accounting Policies

 

Company Description and Nature of Operations

 

We are a global gaming technology company, supplying content, platform, gaming terminals and other products and services to online and land-based regulated lottery, betting and gaming operators worldwide through a broad range of distribution channels, predominantly on a business-to-business basis. We provide end-to-end digital gaming solutions (i) on our own proprietary and secure network, which accommodates a wide range of devices, including land-based gaming machine terminals, mobile devices and online computer applications and (ii) through third party networks. Our content and other products can be found through the consumer-facing portals of our interactive customers and, through our land-based customers, in licensed betting offices, adult gaming centers, pubs, bingo halls, airports, motorway service areas and leisure parks.

 

Management Liquidity Plans

 

As of March 31, 2025, the Company’s cash on hand was $39.0 million and the Company had working capital in addition to cash of $9.7 million. The Company recorded a net loss of $0.1 million and $6.4 million for the three months ended March 31, 2025 and 2024, respectively. Net losses include non-cash stock-based compensation of $1.4 million and $2.3 million for the three months ended March 31, 2025 and 2024, respectively.

 

Historically, the Company has generally had positive cash flows from operating activities and has relied on a combination of cash flows provided by operations and the incurrence of debt and/or the refinancing of existing debt to fund its obligations. Cash flows provided by operations amounted to $25.5 million and $6.0 million for the three months ended March 31, 2025 and 2024, respectively.

 

Management currently believes that the Company’s cash balances on hand, cash flows expected to be generated from operations, ability to control and defer capital projects and amounts available from the Company’s external borrowings will be sufficient to fund the Company’s net cash requirements through May 2026.

 

Basis of Presentation

 

The accompanying unaudited interim condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information and pursuant to the instructions to Form 10-Q and Article 8 of Regulation S-X of the United States Securities and Exchange Commission (“SEC”). Certain information or footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted, pursuant to the rules and regulations of the SEC for interim financial reporting. Accordingly, they do not include all the information and footnotes necessary for a comprehensive presentation of financial position, results of operations, or cash flows. It is management’s opinion, however, that the accompanying unaudited interim condensed consolidated financial statements include all adjustments, consisting of a normal recurring nature, which are necessary for a fair presentation of the financial position, operating results and cash flows for the periods presented.

 

The accompanying unaudited interim condensed consolidated financial statements should be read in conjunction with the Company’s consolidated financial statements and notes thereto for the years ended December 31, 2024 and 2023. The financial information as of December 31, 2024 is derived from the audited consolidated financial statements presented in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024 filed with the SEC on March 26, 2025. The financial information for the three months ended March 31, 2024 is derived from the unaudited consolidated financial statements presented in the Company’s Quarterly Report on Form 10-Q for the three months ended March 31, 2024 filed with the SEC on May 10, 2024, as revised (see note 19 to these financial statements for details of the revision). The interim results for the three months ended March 31, 2025 are not necessarily indicative of the results to be expected for the year ending December 31, 2025 or for any future interim periods.

 

6

 

 

2. Allowance for Credit Losses

 

Changes in the allowance for credit losses are as follows:

 

  

March 31, 2025

  

December 31, 2024

 
   (in millions) 
Beginning balance  $(1.0)  $(1.1)
Additional allowance for credit losses   —    (0.1)
Recoveries   —    — 
Write offs   —    0.2 
Foreign currency translation adjustments   —    — 
Ending balance  $(1.0)  $(1.0)

 

3. Inventory

 

Inventory consists of the following:

 

   March 31, 2025   December 31, 2024 
   (in millions) 
Component parts  $14.2   $12.3 
Work in progress   —    0.5 
Finished goods   16.9    15.2 
Total inventory  $31.1   $28.0 

 

Component parts include parts for gaming terminals. Our finished goods inventory primarily consists of gaming terminals which are ready for sale.

 

4. Prepaid Expenses and Other Assets

 

Prepaid expenses and other assets consist of the following:

 

  

March 31, 2025

  

December 31, 2024

 
   (in millions) 
Prepaid expenses and other assets  $8.1   $10.0 
Unbilled accounts receivable   27.3    26.0 
Total prepaid expenses and other assets  $35.4   $36.0 

 

5. Accounts Payable and Accrued Expenses

 

Accounts payable and accrued expenses consist of the following:

 

   March 31, 2025   December 31, 2024 
   (in millions) 
Accounts payable  $37.7   $29.3 
Interest payable   8.8    — 
Payroll and related costs   4.7    5.7 
Cost of sales including inventory   5.3    4.6 
Other creditors   13.1    14.1 
Total accounts payable and accrued expenses  $69.6   $53.7 

 

6. Contract Related Disclosures

 

The following table summarizes contract related balances:

 

   

Accounts

Receivable

  

Unbilled

Accounts

Receivable

  

Right to

recover

asset

  

Deferred

Income

  

Customer

Prepayments

and Deposits

 
    (in millions) 
At March 31, 2025   $47.3   $27.3   $0.6   $(20.3)  $(4.0)
At December 31, 2024   $61.5   $26.0   $0.6   $(18.6)  $(3.9)

 

Revenue recognized that was included in the deferred income balance at the beginning of the period amounted to $1.7 million and $1.9 million for the three months ended March 31, 2025 and 2024, respectively.

 

For the periods ended March 31, 2025 and 2024 respectively, there was no significant amounts of revenue recognized as a result of changes in contract transaction price related to performance obligations that were satisfied in the respective prior periods.

 

Transaction Price Allocated to Remaining Performance Obligations

 

At March 31, 2025, the transaction price allocated to unsatisfied performance obligations for contracts expected to be greater than one year, or performance obligations for which we do not have a right to consideration from the customer in the amount that corresponds to the value to the customer for our performance completed to date, variable consideration which is not accounted for in accordance with the sales-based or usage-based royalties guidance, or contracts which are not wholly unperformed, is approximately $144.7 million. Of this amount, we expect to recognize as revenue approximately 27% through December 31, 2025, approximately 43% through December 31, 2027, and the remaining 30% through December 31, 2031.

 

7. Long Term Debt

 

Senior Secured Notes

 

Long-term debt consists of £235.0 million ($303.4 million) of Senior Secured Notes less $1.9 million of capitalized debt fees which are being amortized over the length of the Senior Secured Notes. The Senior Secured Notes bear interest at a fixed rate of 7.875% and are fully repayable on June 1, 2026.

 

Under our debt facilities in place as of March 31, 2025, we were not subject to covenant testing on our senior secured notes (the “Senior Secured Notes”). We are, however, subject to covenant testing at the level of Inspired Entertainment Inc., the ultimate holding company, on our Revolving Credit Facility Agreement (the “RCF Agreement”) which required the Company to maintain a maximum consolidated senior secured net leverage ratio of 6.0x on March 31, 2022, stepping down to 5.75x on March 31, 2023 and 5.50x from March 31, 2024 and thereafter (the “RCF Financial Covenant”). The RCF Financial Covenant is calculated as the ratio of consolidated senior secured net debt to consolidated pro forma EBITDA (defined as net loss excluding depreciation and amortization, interest expense, interest income and income tax expense) for the 12-month period preceding the relevant quarterly testing date and is tested quarterly on a rolling basis, subject to the Initial Facility (as defined in the RCF Agreement) being drawn on the relevant test date. The RCF Financial Covenant does not include a minimum interest coverage ratio or other financial covenants. Covenant testing at March 31, 2025 showed covenant compliance with a net leverage of 2.9x.

 

The Indenture governing the Senior Secured Notes contains covenants and certain reporting requirements including the requirement to provide the lender, within 60 days after the close of the quarter, unaudited quarterly financial statements with footnote disclosures.

 

There were no covenant violations in the periods ended March 31, 2025 or March 31, 2024.

 

7

 

 

8. Stock-Based Compensation

 

A summary of the Company’s restricted stock unit (“RSU”) activity during the three months ended March 31, 2025 is as follows:

 

   Number of Shares 
     
Unvested Outstanding at January 1, 2025   786,551 
Granted (1)   809,124 
Forfeited   (117,422)
Vested   (85,214)
Unvested Outstanding at March 31, 2025   1,393,039 

 

(1) The amount shown as “granted” includes 259,717 performance-based target RSUs for 2025 as to which the number that ultimately vests would range from 0% to 200% of the target amount of RSUs (a maximum of 519,434 RSUs based on attainment of Adjusted EBITDA targets for 2025). The amount shown also includes tranches covering an aggregate of 104,166 Adjusted EBITDA RSUs (subject to performance criteria for 2025) which can be earned at up to 100% of the target amount of RSUs; such tranches were part of sign-on awards of multiple tranches approved in 2023 for our Executive Chairman and our Chief Executive Officer with respect to which the accounting grant date for the 2025 tranches did not occur until the targets were set in February 2025.

 

The Company issued a total of 322,860 shares during the three months ended March 31, 2025, in connection with the Company’s equity-based plans, which included an aggregate of 274,112 shares issued in connection with the net settlement of RSUs that vested during the prior year (on December 31, 2024) and an aggregate of 36,968 shares subject to awards that vested between 2020 and 2023.

 

9. Accumulated Other Comprehensive Loss (Income)

 

The accumulated balances for each classification of comprehensive loss (income) are presented below:

 

  

Foreign

Currency

Translation

Adjustments

  

Unrecognized

Pension

Benefit Costs

  

Accumulated

Other

Comprehensive

(Income)

 
   (in millions) 
Balance at January 1, 2025  $(78.5)  $30.2   $(48.3)
Change during the period   0.4    (0.2)   0.2 
Balance at March 31, 2025  $(78.1)  $30.0   $(48.1)

 

  

Foreign

Currency

Translation

Adjustments

  

Unrecognized

Pension

Benefit Costs

  

Accumulated

Other

Comprehensive

(Income)

 
   (in millions) 
Balance at January 1, 2024  $(78.1)  $33.8   $(44.3)
Change during the period   (0.5)   (0.3)   (0.8)
Balance at March 31, 2024  $(78.6)  $33.5   $(45.1)

 

8

 

 

10. Net Income (Loss) per Share

 

Basic income/loss per share (“EPS”) is computed by dividing net income/loss attributable to common stockholders by the weighted-average number of common shares outstanding during the period, excluding the effects of any potentially dilutive securities. Diluted EPS gives effect to all dilutive potential shares of common stock outstanding during the period, including stock options and RSUs, unless the inclusion would be anti-dilutive.

 

The computation of diluted EPS excludes the common stock equivalents of the following potentially dilutive securities because they were either contingently issuable shares or because their inclusion would be anti-dilutive:

 

    2025   2024 
    Three Months Ended March 31, 
    2025   2024 
RSUs   $1,393,039   $1,807,119 

 

There were no reconciling items for the three months ended March 31, 2025 or March 31, 2024.

 

The calculation of Basic EPS includes the effects of 2,160,393 and 1,840,165 shares for the three months ended March 31, 2025 and 2024, respectively, with respect to RSU awards that have vested but have not yet been issued.

 

11. Other Finance Income (Expense)

 

Other finance income (expense) consisted of the following:

 

   2025   2024 
   Three Months Ended March 31, 
   2025   2024 
   (in millions) 
Pension interest cost  $(0.9)  $(0.9)
Expected return on pension plan assets   1.1    1.0 
Other finance income (expense)  $0.2   $0.1 

 

12. Income Taxes

 

The effective income tax rate for the three months ended March 31, 2025 and 2024 was 97.3% and 25.4%, respectively, resulting in a $5.1 million and $2.1 million income tax benefit, respectively.

 

The effective tax rate reported in any given year will continue to be influenced by a variety of factors, including the level of pre-tax income or loss, the income mix between jurisdictions, and any discrete items that may occur.

In the fourth quarter of 2024, the Company determined that, due to positive income generation in the United Kingdom in recent years leading to a cumulative income position, and based on forecasted future taxable income, while considering expected permanent and temporary timing tax differences, a significant portion of the valuation allowance against its deferred tax assets was no longer necessary. Consistent with the position at December 31, 2024, the company maintains a valuation allowance related to capital loss carryovers in the United Kingdom, state net operating losses unable to be utilized in the United States, and United States interest expected to be limited under Section 163(j).

 

9

 

 

13. Related Parties

 

Macquarie Corporate Holdings Pty Limited (UK Branch) (“Macquarie UK”) (an arranger and lending party under our RCF Agreement) is an affiliate of MIHI LLC, which beneficially owned approximately 11.2% of our common stock as of March 31, 2025. Macquarie UK held $2.1 million of the total $19.4 million of RCF drawn at March 31, 2025 and $2.1 million of the total $18.8 million of RCF drawn at December 31, 2024. Interest expense payable to Macquarie UK for the three months ended March 31, 2025 and 2024 (including non-utilization fees) amounted to $0.1 million and $0.1 million, respectively. Macquarie UK did not hold any of the Company’s senior notes at March 31, 2025 or December 31, 2024. MIHI LLC is also a party to a stockholders agreement with the Company and other stockholders, dated December 23, 2016, pursuant to which, subject to certain conditions, MIHI LLC, jointly with Hydra Industries Sponsor LLC, are permitted to designate two directors to be nominated for election as directors of the Company at any annual or special meeting of stockholders at which directors are to be elected, until such time as MIHI LLC and Hydra Industries Sponsor LLC in the aggregate hold less than 5% of the outstanding shares of the Company.

 

Richard Weil, the brother of A. Lorne Weil, our Executive Chairman, provides consulting services to the Company relating to our lottery operations in the Dominican Republic under a consultancy agreement dated December 31, 2021, as amended. The aggregate amount incurred by the Company in consulting fees was $37,500 and $37,500 for the three months ended March 31, 2025 and 2024, respectively.

 

14. Leases

 

Certain of our arrangements include leases for equipment installed at customer locations. As the lessor, we combine lease and non-lease components for all classes of underlying assets in arrangements that involve operating leases. The single combined component is accounted for under ASC 606, Revenue from Contracts with Customers based on the consideration that the non-lease components are the predominant items in the arrangements. If a component cannot be combined, the consideration is allocated between the lease component and the non-lease component based on relative standalone selling price. The lease component is accounted for under ASC 842, Leases and the non-lease component is accounted for under ASC 606.

 

Lease income from operating leases is not material for any of the periods presented, and lease income from sales type leases for the three months ended March 31, 2024 is not material. Lease income from sales type leases for the three months ended March 31, 2025 is as follows:

 

     Three Months Ended March 31, 2025 
     (in millions) 
Interest receivable    $0.3 
Profit recognized at commencement date of sales type leases     1.1 
Unvested Outstanding at March 31, 2025     $ 1.4 

 

15. Commitments and Contingencies

 

Employment Agreements

 

We are party to employment agreements with our executive officers and other employees of the Company and our subsidiaries which contain, among other terms, provisions relating to severance and notice requirements.

 

Legal Matters

 

From time to time, the Company may become involved in lawsuits and legal matters arising in the ordinary course of business. While the Company believes that, currently, it has no such matters that are material, there can be no assurance that existing or new matters arising in the ordinary course of business will not have a material adverse effect on the Company’s business, financial condition or results of operations.

 

10

 

 

16. Pension Plan

 

We operate a defined contribution plan in the US, and both defined benefit and defined contribution pension schemes in the UK. The defined contribution scheme assets are held separately from those of the Company in independently administered funds.

 

Defined Benefit Pension Scheme

 

The defined benefit scheme has been closed to new entrants since April 1, 1999 and closed to future accruals for services rendered to the Company for the entire financial statement periods presented. The Actuarial Valuation of the scheme as at March 31, 2024, determined that the statutory funding objective was not met, i.e., there were insufficient assets to cover the scheme’s technical provisions and there was a funding shortfall.

 

In March 2025, a recovery plan was put in place to eliminate the funding shortfall. The plan expects the shortfall to be eliminated by October 31, 2026.

 

The following table presents the components of our net periodic pension cost:

 

   2025   2024 
   Three Months Ended March 31, 
   2025   2024 
   (in millions) 
Components of net periodic pension cost:          
Interest cost  $0.9   $0.9 
Expected return on plan assets   (1.1)   (1.0)
Amortization of net loss   0.2    0.3 
Net periodic cost  $—   $0.2 

 

11

 

 

17. Segment Reporting and Geographic Information

 

Operating segments are identified as components of an enterprise for which separate and discrete financial information is available and is used by the chief operating decision maker, or decision-making group, in making decisions on how to allocate resources and assess performance. The Company’s chief decision-making group consists of the Executive Chairman, the Chief Executive Officer and the Chief Financial Officer.

 

The Company’s chief decision-making group uses measures of segment profit and loss to evaluate the performance areas of 1) Achievement of revenue and gross margin; 2) Level of staff and non-staff expenses against budget; 3) Investment in capitalized software development; and 4) Additional cash expenditures impacting working capital. The decision-making group uses the information to allocate financial resources and drive operation decisions such as investing in new customers, products, geographies and refocusing commercial teams to drive new sales, accelerating or delaying staffing or other selling, general and administrative expenditures and ensuring technology staff utilization on new product development.

 

The Company operates its business along four operating segments, which are segregated on the basis of revenue stream: Gaming, Virtual Sports, Interactive and Leisure. The Company believes this method of segment reporting reflects both the way its business segments are managed and the way the performance of each segment is evaluated.

 

Other segment items consist of costs incurred in restructuring activities.

 

The following tables present revenue, cost of sales, excluding depreciation and amortization, staff-related selling, general and administrative expenses, non-staff related selling, general and administrative expenses, labor costs capitalized, depreciation and amortization, stock-based compensation expense, acquisition related transaction expenses, other segment items, operating profit/(loss), total assets and total capital and other long-lived asset expenditures for the periods ended March 31, 2025 and March 31, 2024, respectively, by business segment. Certain unallocated corporate function costs have not been allocated to the Company’s reportable operating segments because these costs are not allocable and to do so would not be practical. Corporate function costs consist primarily of selling, general and administrative expenses, depreciation and amortization, capital expenditures, right of use assets, cash, prepaid expenses and property and equipment and software development costs relating to corporate/shared functions. All acquisition and integration related transaction expenses are allocated as corporate function costs.

Segment Information

 

Three Months Ended March 31, 2025

 

   Gaming  

Virtual

Sports

   Interactive   Leisure  

Corporate

Functions

   Total 
   (in millions) 
Revenue:                              
Service  $18.9   $8.7   $12.1   $17.3   $—   $57.0 
Product sales   2.8    —    —    0.6    —    3.4 
Total revenue   21.7    8.7    12.1    17.9    —    60.4 
Cost of sales, excluding depreciation and amortization:                              
Cost of service   (5.4)   (0.5)   (0.6)   (8.5)   —    (15.0)
Cost of product sales   (2.6)   —    —    (0.3)   —    (2.9)
Staff-related selling, general and administrative expenses   (3.4)   (2.2)   (2.4)   (4.0)   (3.2)   (15.2)
Non-staff related selling, general and administrative expenses   (2.9)   (0.6)   (2.0)   (3.5)   (3.4)   (12.4)
Labor costs capitalized   1.9    0.9    0.6    0.1    —    3.5 
Stock-based compensation expense   (0.2)   (0.1)   (0.1)   (0.1)   (0.9)   (1.4)
Depreciation and amortization   (4.7)   (1.3)   (0.7)   (3.2)   (0.7)   (10.6)
Other segment items   (0.2)   —    —    (0.1)   (4.5)   (4.8)
Segment operating income (loss)   4.2    4.9    6.9    (1.7)   (12.7)   1.6 
                               
Net operating income                           $1.6 
                               
Total capital and other long-lived asset expenditures for the three months ended March 31, 2025  $8.1   $0.5   $0.5   $0.4   $1.0   $10.5 

 

12

 

 

Three Months Ended March 31, 2024

 

   Gaming  

Virtual

Sports

   Interactive   Leisure  

Corporate

Functions

   Total 
   (in millions) 
Revenue:                              
Service  $17.7   $12.4   $8.1   $18.0   $—   $56.2 
Product sales   5.5    —    —    0.6    —    6.1 
Total revenue   23.2    12.4    8.1    18.6    —    62.3 
Cost of sales, excluding depreciation and amortization:                              
Cost of service   (5.8)   (0.4)   (0.6)   (9.1)   —    (15.9)
Cost of product sales   (4.3)   —    —    (0.2)   —    (4.5)
Staff-related selling, general and administrative expenses   (4.7)   (2.2)   (2.1)   (4.2)   (2.6)   (15.8)
Non-staff related selling, general and administrative expenses   (2.9)   (0.7)   (1.4)   (3.6)   (5.0)   (13.6)
Labor costs capitalized   1.0    1.3    0.4    0.3    —    3.0 
Stock-based compensation expense   (0.2)   (0.1)   (0.1)   (0.1)   (1.8)   (2.3)
Acquisition and integration related transaction expenses   —    —    —    —    —    — 
Depreciation and amortization   (4.2)   (0.9)   (1.2)   (3.0)   (0.5)   (9.8)
Other segment items   —    —    —    —    (5.5)   (5.5)
Segment operating income (loss)   2.1    9.4    3.1    (1.3)   (15.4)   (2.1)
                               
Net operating loss                           $(2.1)
                               
Total capital and other long-lived asset expenditures for the three months ended March 31, 2024  $2.0   $1.2   $0.5   $4.9   $0.5   $9.1 

 

Geographic Information

 

Geographic information for revenue is set forth below:

 

   2025   2024 
   Three Months Ended March 31, 
   2025   2024 
   (in millions) 
Total revenue          
UK  $39.4   $46.4 
USA   6.5    3.7 
Greece   6.2    6.1 
Rest of world   8.3    6.1 
Total  $60.4   $62.3 

 

UK revenue includes revenue from customers headquartered in the UK, but whose revenue is generated globally.

 

Geographic information of our non-current assets excluding goodwill and deferred tax is set forth below:

 

   March 31, 2025   December 31, 2024 
   (in millions) 
UK  $122.6   $115.1 
Greece   18.8    12.7 
Rest of world   24.9    25.6 
Total  $166.3   $153.4 

 

Software development costs are included as attributable to the market in which they are utilized.

 

18. Customer Concentration

 

During the three months ended March 31, 2025, there were no customers that represented at least 10% of the Company’s revenues. During the three months ended March 31, 2024, there was one customer that represented at least 10% of the Company’s revenues, accounting for approximately 11% of the Company’s revenues. This customer was served by the Virtual Sports and Interactive segments.

 

At March 31, 2025 there was one customer that represented at least 10% of the Company’s accounts receivable, accounting for approximately 11% of the Company’s accounts receivable. At December 31, 2024, there was one customer that represented at least 10% of the Company’s accounts receivable, accounting for approximately 16% of the Company’s accounts receivable.

 

19. Revision of Previously Reported Information

 

In connection with the preparation of the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2024 (the “2024 Form 10-K”), the Company identified immaterial errors in its previously reported financial statements for the periods ended March 31, 2024, June 30, 2024 and September 30, 2024 relating to the classification of leases between operating and sales type.

 

In accordance with Staff Accounting Bulletin (“SAB”) 99, Materiality, and SAB 108, Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in the Current Year Financial Statements, the Company evaluated the materiality of the errors from qualitative and quantitative perspectives, and concluded that the errors were immaterial to any prior interim financial statements. Notwithstanding this conclusion, management has revised the accompanying consolidated financial statements for 2024, and related notes included herein to correct the errors. Management also revised the consolidated financial statements for 2024 and related notes in the 2024 Form 10-K, filed with the SEC on March 26, 2025.

 

The following tables present the effect of correcting this error on the Company’s previously issued financial statements.

 

For the period ended March 31, 2024

   As previously reported   Adjustment   As revised 
   (in millions, except per share data) 
Consolidated Statement of Operations               
Revenue  $63.1   $(0.8)  $62.3 
Depreciation and amortization   (9.9)   0.1    (9.8)
Net operating loss   (1.4)   (0.7)   (2.1)
Interest expense, net   (6.6)   0.1    (6.5)
Total other expense, net   (6.5)   0.1    (6.4)
Loss before income taxes   (7.9)   (0.6)   (8.5)
Net loss   (5.7)   (0.7)   (6.4)
Comprehensive loss   (4.4)   (1.2)   (5.6)
Net loss per common share – basic and diluted   (0.20)   (0.02)   (0.22)

 

For the period ended March 31, 2024

 

   As previously reported   Adjustment   As revised 
   (in millions) 
Consolidated Statement of Cashflows               
Net loss  $(5.7)  $(0.7)  $(6.4)
Depreciation and amortization   9.9    (0.1)   9.8 
Accounts receivable   2.7    (1.1)   1.6 
Prepaid expenses and other assets   4.3    1.9    6.2 
Net cash provided by operating activities   6.0    —    6.0 

 

20. Subsequent Events

 

The Company evaluates subsequent events and transactions that occur after the balance sheet date up to the date that the financial statements were issued. The Company did not identify subsequent events that would have required adjustment or disclosure in the consolidated financial statements.

 

13

 

 

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

 

The following discussion and analysis of our financial condition and results of operations should be read in conjunction with the financial statements and related notes thereto included elsewhere in this report. This discussion contains forward-looking statements that involve risks and uncertainties. Our actual future results could differ materially from the historical results discussed below. Factors that could cause or contribute to such differences include, but are not limited to, those identified below and those discussed in the section titled “Risk Factors” included elsewhere in this report.

 

Forward-Looking Statements

 

We make forward-looking statements in this Management’s Discussion and Analysis of Financial Condition and Results of Operations. For definitions of the term “forward-looking statements”, see the definitions provided in the Cautionary Note Regarding Forward-Looking Statements at the forepart of this report.

 

Seasonality

 

Our results of operations can fluctuate due to seasonal trends and other factors. Sales of our gaming machines can vary quarter on quarter due to both supply and demand factors. Player activity for our holiday parks is generally higher in the second and third quarters of the year, particularly during the summer months and slower during the first and fourth quarters of the year.

 

14

 

 

Revenue

 

We generate revenue in four principal ways: i) on a participation basis, ii) on a fixed rental fee basis, iii) through product sales and iv) through software license fees. Participation revenue generally includes a right to receive a share of our customers’ gaming revenue, typically as a share of net win but sometimes as a share of the handle or “coin in” which represents the total amount wagered.

 

Geographic Range

 

Geographically, the majority of our revenue is derived from, and the majority of our non-current assets are attributable to, our UK operations. The remainder of our revenue is derived from, and non-current assets attributable to, Greece and the rest of the world (including North America).

 

For the three-months ended March 31, 2025, we derived approximately 65% of our revenue from the UK (including customers headquartered in the UK but whose revenue is generated globally), 10% from Greece, 11% from USA, and the remaining 14% across the rest of the world. For the three-months ended March 31, 2024, we derived approximately 74% of our revenue from the UK (including customers headquartered in the UK but whose revenue is generated globally), 10% from Greece, 6% from USA, and the remaining 10% across the rest of the world.

 

As of March 31, 2025, our non-current assets (excluding goodwill) were attributable as follows: 74% to the UK, 11% to Greece and 15% across the rest of the world. As of March 31, 2024, our non-current assets (excluding goodwill) were attributable as follows: 75% to the UK, 8% to Greece and 17% across the rest of the world.

 

Foreign Exchange

 

Our results are affected by changes in foreign currency exchange rates as a result of the translation of foreign functional currencies into our reporting currency and the re-measurement of foreign currency transactions and balances. The impact of foreign currency exchange rate fluctuations represents the difference between current rates and prior-period rates applied to current activity. The geographic region in which the largest portion of our business is operated is the UK and the British pound (“GBP”) is considered to be our functional currency. Our reporting currency is the U.S. dollar (“USD”). Our results are translated from our functional currency of GBP into the reporting currency of USD using average rates for profit and loss transactions and applicable spot rates for period-end balances. The effect of translating our functional currency into our reporting currency, as well as translating the results of foreign subsidiaries that have a different functional currency into our functional currency, is reported separately in Accumulated Other Comprehensive Income.

 

During the three-months ended March 31, 2025, we derived approximately 35% of our revenue from sales to customers outside the UK, compared to 26% during the three months ended March 31, 2024.

 

In the section “Results of Operations” below, currency impacts shown have been calculated as the current-period average GBP:USD rate less the equivalent average rate in the prior period, multiplied by the current period amount in our functional currency (GBP). The remaining difference, referred to as functional currency at constant rate, is calculated as the difference in our functional currency, multiplied by the prior-period average GBP:USD rate. This is not a U.S. GAAP measure but is one which management believes gives a clearer indication of results. In the tables below, variances in particular line items from period to period exclude currency translation movements, and currency translation impacts are shown independently.

 

Non-GAAP Financial Measures

 

We use certain financial measures that are not compliant with U.S. GAAP (“Non-GAAP financial measures”), including EBITDA and Adjusted EBITDA, to analyze our operating performance. In this discussion and analysis, we present certain non-GAAP financial measures, define and explain these measures and provide reconciliations to the most comparable U.S. GAAP measures. See “Non-GAAP Financial Measures” below.

 

Results of Operations

 

Our results are affected by changes in foreign currency exchange rates, primarily between our functional currency (GBP) and our reporting currency (USD). During the periods ended March 31, 2025 and March 31, 2024, the average GBP:USD rates were for the three-month period 1.26 and 1.27, respectively.

 

The following discussion and analysis of our results of operations has been organized in the following manner:

 

  ● a discussion and analysis of the Company’s results of operations for the three-month period ended March 31, 2025, compared to the same period in 2024; and
     
  ● a discussion and analysis of the results of operations for each of the Company’s segments (Gaming, Virtual Sports, Interactive and Leisure) for the three-month period ended March 31, 2025, compared to the same period in 2024, including key performance indicator (“KPI”) analysis.

 

In the discussion and analysis below, certain data may vary from the amounts presented in our consolidated financial statements due to rounding.

 

For all reported variances, refer to the overall company and segment tables shown below. All variances discussed in the overall company and segment results are on a functional currency (at constant rate) basis, which excludes the impact of any changes in foreign currency exchange rates.

 

Key Events

 

During the three-month period ended March 31, 2025 in the Gaming segment, we completed the installation of 5,000 new Vantage® terminals to William Hill venues. In the Greek market 1,400 new terminals were delivered to OPAP as part of the order of 4,000 new VLT’s placed in the fourth quarter of 2024.

 

During the three-month period ended March 31, 2025 the Interactive segment went live with 18 new operators increasing the total number of customers at the end of the period by 15 due to the closure of a few smaller customers.

 

During the three-month period ended March 31, 2025 the Leisure segment opened two new motorway service areas with existing customers.

 

Key agreements signed in the three-month period ended March 31, 2025 include a five-year contract with Buzz Bingo, a five-year contract with MOTO and a five-year contract with Welcome Break all for the provision of gaming machines in the Leisure segment.

 

15

 

 

Overall Company Results

 

Three Months Ended March 31, 2025, compared to Three Months Ended March 31, 2024

 

   For the Three-Month   Variance     
   Period Ended   March 31, 2025 vs March 31, 2024     
(In millions) 

March 31,

2025

  

March 31,

2024

   Variance
Attributable
to Currency
Movement		    Variance
on a
Functional
currency
basis		   Total
Functional
Currency
Variance %		   Total
Reported
Variance %
Revenue:                          
Service  $57.0   $56.2   $(0.4)   $1.2    2%  1%
Product   3.4    6.1    0.1     (2.8)   (46)%  (44)%
Total revenue   60.4    62.3    (0.3)    (1.6)   (3)%  (3)%
Cost of Sales, excluding depreciation and amortization:                              
Cost of Service   (15.0)   (15.9)   -     0.9    6%  6%
Cost of Product   (2.9)   (4.5)   -     1.6    36%  36%
Staff-related selling, general and administrative expenses   (15.2)   (15.8)   0.2     0.4    3%  4%
Non-staff related selling, general and administrative expenses   (12.4)   (13.6)   0.2     1.0    7%  9%
Labor costs capitalized   3.5    3.0    -     0.5    17%  17%
Other segment items:                          
Stock-based compensation   (1.4)   (2.3)   -     0.9    39%  39%
Depreciation and amortization   (10.6)   (9.8)   -     (0.8)   (8)%  (8)%
Other selling, general and administrative expenses   (4.8)   (5.5)   -     0.7    13%  13%
Net operating Income / (Loss)   1.6    (2.1)   0.1     3.6    171%  176%
Other income (expense)                              
Interest expense, net   (7.0)   (6.5)   -     (0.5)   (8)%  (8)%
Other finance income (expense)   0.2    0.1    -     0.1    100%  100%
Total other income (expense), net   (6.8)   (6.4)   -     (0.4)   (6)%  (6)%
Net Loss from continuing operations before income taxes   (5.2)   (8.5)   0.1     3.2    38%  39%
Income tax income (expense)   5.1    2.1    0.1     2.9    138%  143%
                           
Net Loss  $(0.1)  $(6.4)  $0.2    $6.1    95%  98%
                               
Exchange Rate - $ to £   1.26    1.27                     

 

See “Segments Results” below for a more detailed explanation of the significant changes in our components of revenue within the individual segment results of operations.

 

Revenue (for the three-months ended March 31, 2025, compared to the three-months ended March 31, 2024)

 

Consolidated Reported Revenue by Segment

 

 

 

For the three-month period ended March 31, 2025, revenue on a functional currency (at constant rate) basis decreased by $1.6 million, or 3%.

 

For the three-month period ended March 31, 2025 Gaming revenue declined by $1.5 million, predominantly due to a decrease in product sales of $2.8 million due to a decline in Product sales as activity is not linear year-on-year. Gaming service revenue increased by $1.3 million, predominantly due to growth in the UK and Greece. Virtual Sports declined by $3.6 million, with $3.3 million of the reduction coming from online sales, while Interactive grew by $4.1 million due to growth driven in the UK and North American markets. Leisure revenue declined by $0.6 million predominantly due to Holiday Parks and Pubs sectors.

 

16

 

 

Cost of Sales, excluding depreciation and amortization

 

Cost of sales, excluding depreciation and amortization, for the three-month period ended March 31, 2025, decreased by $2.5 million, or 12%. This was driven by a decrease in cost of service of $0.9 million, mainly driven by seasonal timing of key UK public holidays in Leisure and a $1.6 million decrease in cost of product, predominantly driven by the decreased Video Lottery Terminal sales in Gaming.

 

Non-staff related selling, general and administrative expenses

 

Non-Staff related selling, general and administrative expenses for the three-month period ended March 31, 2025 decreased by $1.0 million, or 7%. The decrease in the three-month period was predominantly driven by reductions in Professional Fees of $1.0 million due to timing of activities, favorable realized gain on foreign currency movements of $0.3 million and lower facility costs of $0.2 million partially offset by higher IT costs of $0.5 million.

 

Stock-based compensation

 

During the three-month period ended March 31, 2025, the Company recorded expenses of $1.4 million, compared to expenses of $2.3 million, for the three-month period ended March 31, 2024. All expenses related to outstanding awards.

 

Depreciation and amortization

 

Depreciation and amortization for the three-month period ended March 31, 2025, increased by $0.8 million, driven mainly by increases in Gaming of $0.5 million and Leisure increase of $0.2 million due to an increase in machine assets, Virtual Sports of $0.4 million for increased software development and intangible assets, offset by a reduction in Interactive of $0.5 million as assets reached full amortization.

 

Other selling, general and administrative expenses

 

Other selling, general and administrative expenses for the three-month period ended March 31, 2025 decreased by $0.7 million, or 13%. The decrease in the three-month period was driven primarily by the timing of costs relating to the restatement of previously issued financial statements and expense relating to restructuring costs.

 

Net operating income / (Loss)

 

During the three-month period ended March 31, 2025, net operating income was $1.6 million, an increase of $3.6 million, compared to the prior year period. This increase was primarily driven by the increase in gross margin and a decrease in staff and non-staff related selling, general and administrative expenses, along with stock-based compensation and other selling general and administrative expenses, partially offset by an increase in depreciation and amortization.

 

Net Loss

 

For the three-month period ended March 31, 2025, net loss was $0.1 million, compared to net loss of $6.4 million in the prior year period. The increase was primarily driven by an increase of income tax income of $5.1 million as the effective tax rate in any given year is influenced by a variety of factors including the level of pre-tax income or loss, the income mix between jurisdictions, and any discrete items that may occur.

 

Deferred Tax

 

The Company maintains a valuation allowance related to capital loss carryovers in the United Kingdom, state net operating losses unable to be utilized in the United States, and United States interest expected to be limited under Section 163(j).

 

Segment Results (for the three-months ended March 31, 2025, compared to the three-months ended March 31, 2024)

 

Gaming

 

We generate revenue from our Gaming segment through the delivery of our gaming terminals preloaded with proprietary gaming software, server-based content, as well as services such as terminal repairs, maintenance, software updates and upgrades on a when and if available basis and content development. We receive rental fees for machines, typically in conjunction with long-term contracts, on both a participation and fixed fee basis. Our participation contracts are typically structured to pay us a percentage of net win (defined as net revenue to our operator customers, after deducting player winnings, free bets or plays and any relevant regulatory levies) from gaming terminals placed in our customers’ facilities. Typically, we recognize revenue from these arrangements on a daily basis over the term of the contract.

 

Revenue growth for our Gaming business is principally driven by changes in (i) the number of operator customers we have, (ii) the number of Gaming machines in operation, (iii) the net win performance of the machines and (iv) the net win percentage that we receive pursuant to our contracts with our customers.

 

Gaming, Key Performance Indicators

 

  

For the Three-Month

Period Ended

   Variance March 31, 2025
vs March 31, 2024		 
Gaming  March 31, 2025   March 31, 2024       % 
                 
End of period installed base (# of terminals) (2)   33,924    34,793    (869)   (2.5)%
Total Gaming - Average installed base (# of terminals) (2)   33,889    34,783    (894)   (2.6)%
Participation - Average installed base (# of terminals) (2)   28,880    29,834    (954)   (3.2)%
Fixed Rental - Average installed base (# of terminals)   8,012    4,949    3,063    61.9%
Service Only - Average installed base (# of terminals)   8,080    7,848    232    3.0%
Customer Gross Win per unit per day (1) (2)   £100.2   £98.8   £1.4    1.4%
Customer Net Win per unit per day (1) (2)   £73.1   £72.2   £0.9    1.2%
Inspired Blended Participation Rate   5.1%   5.4%   (0.3)%     
Inspired Fixed Rental Revenue per Gaming Machine per week  £22.8   £30.5   £(7.7)   (25.2)%
Inspired Service Rental Revenue per Gaming Machine per week  £7.8   £5.1   £2.7    52.9%
Gaming Long term license amortization (£’m)  £0.5   £0.5   £-    -%
Number of Machine sales   313    606    (293)   (48.3)%
Average selling price per terminal  £6,192   £7,171   £(979)   (13.7)%

 

(1) Includes all SBG terminals in which the Company takes a participation revenue share across all territories.
   
(2) Includes approximately 2,500 lottery terminals where the revenue share is on handle instead of net win.

 

In the table above:

 

“End of Period Installed Base” is equal to the number of deployed Gaming terminals at the end of each period that have been placed on a participation or fixed rental basis. Gaming participation revenue, which comprises the majority of Gaming Service revenue, is directly related to the participation terminal installed base. This is the medium by which our customers generate revenue and distribute a revenue share to the Company. To the extent all other KPIs and certain other factors remain constant, the larger the installed base, the higher the Company’s revenue would be for a given period. Management gives careful consideration to this KPI in terms of driving growth across the segment. This does not include Service Only terminals.

 

Revenue is derived from the performance of the installed base as described by the Gross and Net Win KPIs.

 

17

 

 

If the End of Period Installed Base is materially different from the Average Installed Base (described below), we believe this gives an indication as to potential future performance. We believe the End of Period Installed Base is particularly useful for assessing new customers or markets, to indicate the progress being made with respect to entering new territories or jurisdictions.

 

“Total Gaming - Average Installed Base” is the average number of deployed Gaming terminals during the period consisting of both participation terminals and fixed rental terminals. Therefore, it is more closely aligned to revenue in the period. We believe this measure is particularly useful for assessing existing customers or markets to provide comparisons of historical size and performance. This does not include Service Only terminals.

 

“Participation - Average Installed Base” is the average number of deployed Gaming terminals that generated revenue on a participation basis.

 

“Fixed Rental - Average Installed Base” is the average number of deployed Gaming terminals that generated revenue on a fixed rental basis.

 

“Service Only - Average Installed Base” is the average number of terminals that generated revenue on a Service only basis.

 

“Customer Gross Win per unit per day” is a KPI used by our management to (i) assess impact on the Company’s revenue, (ii) determine changes in the performance of the overall market and (iii) evaluate the impact of regulatory change and our new content releases on our customers. Customer Gross Win per unit per day is the average per unit cash generated across all Gaming terminals in which the Company takes a participation revenue share across all territories in the period, defined as the difference between the amounts staked less winnings to players divided by the Average Installed Base in the period, then divided by the number of days in the period.

 

Gaming revenue accrued in the period is derived from Customer Gross Win accrued in the period after deducting gaming taxes (defined as a regulatory levy paid by the Customer to government bodies) and applying the Company’s contractual revenue share percentage.

 

Our management believes Customer Gross Win measures are meaningful because they represent a view of customer operating performance that is unaffected by our revenue share percentage and allow management to (1) readily view operating trends, (2) perform analytical comparisons and benchmarking between customers and (3) identify strategies to improve operating performance in the different markets in which we operate.

 

“Customer Net Win per unit per day” is Customer Gross Win per unit per day after giving effect to the deduction of gaming taxes.

 

“Inspired Blended Participation Rate” is the Company’s average revenue share percentage across all participation terminals where revenue is earned on a participation basis, weighted by Customer Net Win per unit per day.

 

“Inspired Fixed Rental Revenue per Gaming Machine per week” is the Company’s average fixed rental amount across all fixed rental terminals where revenue is generated on a fixed fee basis, per unit per week.

 

“Inspired Service Rental Revenue per Gaming Machine per week” is the Company’s average service rental amount across all service only rental terminals where revenue is generated on a service only fixed fee basis, per unit per week.

 

“Gaming Long term license amortization” is the upfront license fee per terminal which is typically spread over the life of the terminal.

 

Our overall Gaming revenue from terminals placed on a participation basis can therefore be calculated as the product of the Participation - Average Installed Base, the Customer Net Win per unit per day, the number of days in the period, and the Inspired Blended Participation Rate, which is equal to “Participation Revenue”.

 

“Number of Machine sales” is the number of terminals sold during the period.

 

“Average selling price per terminal” is the total revenue in GBP of the Gaming terminals sold divided by the “number of Machine sales”.

 

18

 

 

Gaming, Recurring Revenue

 

Set forth below is a breakdown of our Gaming recurring revenue. Gaming recurring revenue principally consists of Gaming participation revenue and fixed rental revenue.

 

  

For the Three-Month

Period Ended

   Variance March 31, 2025
vs March 31, 2024		 
(In £ millions)  March 31, 2025   March 31, 2024       % 
Gaming Recurring Revenue                    
Total Gaming Revenue  £17.2   £18.4   £(1.2)   (7)%
                     
Gaming Participation Revenue  £9.7   £10.5   £(0.8)   (8)%
Gaming Project Recurring Revenue  £0.2   £0.2   £-    -%
Other Fixed Fee Recurring Revenue  £3.2   £2.5   £0.7    28%
Gaming Long-term license amortization  £0.5   £0.6   £(0.1)   (17)%
Total Gaming Recurring Revenue *  £13.6   £13.8   £(0.2)   (1)%
Gaming Recurring Revenue as a % of Total Gaming Revenue †   79%   75%   4%     

 

In the table above:

 

“Gaming Participation Revenue” includes our share of revenue generated from (i) our Gaming terminals placed in gaming and lottery venues; and (ii) licensing of our game content and intellectual property to third parties.

 

“Gaming Other Fixed Fee Recurring Revenue” includes service revenue in which the Company earns a periodic fixed fee on a contracted basis.

 

“Gaming Project Recurring Revenue” relates specifically to a single customer for machine estate upgrades and distribution.

 

“Gaming Long term license amortization” – see the definition provided above.

 

“Total Gaming Recurring Revenue” is equal to Gaming Participation Revenue plus Gaming Other Fixed Fee Recurring Revenue.

 

Gaming, Service Revenue by Region

 

Set forth below is a breakdown of our Gaming service revenue by geographic region. Gaming Service revenue consists principally of Gaming participation revenue, Gaming other fixed fee revenue, Gaming long-term license amortization and Gaming other non-recurring revenue. See “Gaming Segment Revenue” below for a discussion of gaming service revenue between the periods under review.

 

19

 

 

   

For the Three-Month

Period Ended

     Variance  
(In millions)   March 31, 2025     March 31, 2024     March 31, 2025
vs March 31, 2024		    

Total

Functional

Currency

%

  
                               
Service Revenue:                                        
UK LBO   $ 10.0     $ 9.2     $ 0.8       9 %     10 %
UK Other     2.3       2.6       (0.3 )     (12) %     (10) %
Italy     0.4       0.4       -       - %     (17) %
Greece     4.6       3.9       0.7       18 %     19 %
Rest of the World     0.3       0.2       0.1       50 %     46 %
Lotteries     1.3       1.4       (0.1 )     (7) %     (5) %
                                         
Total Service revenue   $ 18.9     $ 17.7     $ 1.2       7 %     8 %
                                         
Exchange Rate - $ to £     1.26       1.27                          

 

Note: Exchange rate in the table is calculated by dividing the USD total service revenue by the GBP total service revenue, therefore this could be slightly different from the average rate during the period depending on timing of transactions.

 

Gaming, Results of Operations

 

  

For the Three-Month

Period Ended

  

Variance

March 31, 2025 vs March 31, 2024

 
(In millions)  March 31, 2025   March 31, 2024  

Variance

Attributable

to Currency

Movement

  

Variance

on a Functional

currency

basis

  

Total

Functional

Currency

Variance %

  

Total

Reported

Variance %

 
Revenue:                        
Service  $18.9   $17.7   $(0.1)  $1.3    7%   7%
Product   2.8    5.5    0.1    (2.8)   (51)%   (49)%
Total revenue   21.7    23.2    0.0    (1.5)   (6)%   (6)%
                               
Cost of Sales, excluding depreciation and amortization:                              
Cost of Service   (5.4)   (5.8)   0.1    0.3    5%   7%
Cost of Product   (2.6)   (4.3)   -    1.7    40%   40%
Total cost of sales   (8.0)   (10.1)   0.1    2.0    20%   21%
                               
Staff-related selling, general and administrative expenses   (3.4)   (4.7)   -    1.3    28%   28%
Non-staff related selling, general and administrative expenses   (2.9)   (2.9)   -    -    -%   -%
Labor costs capitalized   1.9    1.0    0.1    0.8    80%   90%
                               
Other segment items:                              
                               
Stock-based compensation   (0.2)   (0.2)   -    -    -%   -%
                               
Depreciation and amortization   (4.7)   (4.2)   -    (0.5)   (12)%   (12)%
Other selling, general and administrative expenses   (0.2)   -    -    (0.2)   -%   -%
                               
Net operating Income  $4.2   $2.1   $0.2   $1.9    90%   100%
                               
Exchange Rate - $ to £   1.26    1.27                     

 

20

 

 

Note: Exchange rate in the table is calculated by dividing the USD total revenue by the GBP total revenue, therefore this could be slightly different from the average rate during the period depending on timing of transactions.

 

All variances discussed in the Gaming results below are on a functional currency (at a constant rate) basis, which excludes the impact of any changes in foreign currency exchange rates.

 

Gaming Revenue

 

During the three-month period ended March 31, 2025, Gaming revenue decreased by $1.5 million, or 6% compared to the three-month period ended March 31, 2024. This was driven by a $1.3 million increase in Service revenue offset by a $2.8 million decrease in Product revenue.

 

The increase in Gaming Service revenue was driven by $0.9 million growth in the UK, predominantly due to the William Hill Vantage® terminal deployment.

 

The Product revenue decrease was primarily driven by lower Product sales, as the prior year period contained higher volumes of hardware sales which are less predictable in nature.

 

Gaming Operating / Net Income

 

Net income for the three-month period ended March 31, 2025 increased by $1.9 million compared to the three-month period ended March 31, 2024. The increase was primarily due to a reduction in staff-related selling, general and administrative expenses of $1.3 million driven by the closure of the Bridgend manufacturing facility in 2024.

 

Virtual Sports

 

We generate revenue from our Virtual Sports segment through our on-premise licensing solution and hosting of our products. We primarily receive fees on a participation basis. Our participation contracts are typically structured to pay us a percentage of net win (defined as net revenue to our operator customers, after deducting player winnings, free bets or plays and other promotional costs and any relevant regulatory levies) from Virtual Sports content placed on our customers’ websites or in our customers’ facilities. Typically, we recognize revenue from these arrangements on a daily basis over the term of the contract.

 

21

 

 

Revenue growth for our Virtual Sports segment is principally driven by the number of customers we have, the net win performance of the games and the net win percentage that we receive pursuant to our contracts with our customers.

 

Virtual Sports, Key Performance Indicators

 

  

For the Three-Month

Period Ended

  

Variance

March 31, 2025 vs
March 31, 2024

 
   March 31, 2025   March 31, 2024       % 
Virtuals                
No. of Live Customers at the end of the period   57    55    2    3.6%
Average No. of Live Customers   57    54    3    5.6%
Total Revenue (£’m)  £6.9   £9.8   £(2.9)   (29.6)%
Total Revenue £’m - Retail  £2.2   £2.3   £(0.1)   (4.3)%
Total Revenue £’m - Online Virtuals  £4.7   £7.5   £(2.8)   (37.3)%

 

In the table above:

 

“No. of Live Customers at the end of the period” and “Average No. of Live Customers” represent the number of customers from which there is Virtual Sports revenue at the end of the period and the average number of customers from which there is Virtual Sports revenue during the period, respectively.

 

“Total Revenue (£m)” represents total revenue for the Virtual Sports segment, including recurring and upfront service revenue. Total revenue is also divided between “Total Revenue (£m) – Retail,” which consists of revenue earned through players wagering at Virtual Sports venues, “Total Revenue (£m) – Online Virtuals,” which consists of revenue earned through players wagering on Virtual Sports online.

 

Virtual Sports, Recurring Revenue

 

Set forth below is a breakdown of our Virtual Sports recurring revenue, which consists of Retail Virtuals and Online Virtuals recurring revenue as well as long-term license amortization. See “Virtual Sports Segment Revenue” below for a discussion of Virtual Sports Service revenue between the periods under review.

 

   

For the Three-Month

Period Ended

    

Variance

March 31, 2025 vs
March 31,2024

  
(In £ millions)   March 31, 2025     March 31, 2024           %  
Virtual Sports Recurring Revenue                                
Total Virtual Sports Revenue   £ 6.9     £ 9.8     £ (2.9 )     (29.6 )%
                                 
Recurring Revenue - Retail Virtuals   £ 2.0     £ 2.3     £ (0.3 )     (13.0 )%
Recurring Revenue - Online Virtuals   £ 4.7     £ 7.3     £ (2.6 )     (35.6 )%
Total Virtual Sports Long-term license amortization   £ 0.2     £ 0.1     £ 0.1       100.0 %
Total Virtual Sports Recurring Revenue   £ 6.9     £ 9.7     £ (2.8 )     (28.9 )%
Virtual Sports Recurring Revenue as a Percentage of Total Virtual Sports Revenue     100.0 %     99.0 %     (1.0 )%        

 

22

 

 

“Recurring Revenue” includes our share of revenue generated from (i) our Virtual Sports products placed with operators; (ii) licensing our game content and intellectual property to third parties; and (iii) our games on third-party online gaming platforms that are interoperable with our game servers.

 

“Virtual Sports Long term license amortization” is the upfront license fee which is typically spread over the life of the contract.

 

Virtual Sports, Results of Operations

 

  

For the Three-Month

Period Ended

  

Variance

March 31, 2025 vs March 31, 2024

 
(In millions)  March 31, 2025   March 31, 2024  

Variance

Attributable

to Currency

Movement

  

Variance on

a Functional

currency

basis

  

Total

Functional

Currency

Variance %

  

Total

Reported

Variance %

 
                         
Service Revenue  $8.7   $12.4   $(0.1)  $(3.6)   (29)%   (30)%
                               
Cost of Service   (0.5)   (0.4)   -    (0.1)   (25)%   (25)%
                               
Staff-related selling, general and administrative expenses   (2.2)   (2.2)   -    -    -%   -%
Non-staff related selling, general and administrative expenses   (0.6)   (0.7)   -    0.1    14%   14%
Labor costs capitalized   0.9    1.3    (0.1)   (0.3)   (23)%   (31)%
Other segment items:                              
                               
Stock-based compensation   (0.1)   (0.1)   -    -    -%   -%
                               
Depreciation and amortization   (1.3)   (0.9)   -    (0.4)   (44)%   (44)%
                               
Net operating Income  $4.9   $9.4   $(0.2)  $(4.3)   (46)%   (48)%
                               
Exchange Rate - $ to £   1.26    1.27                     

 

Note: Exchange rate in the table is calculated by dividing the USD service revenue by the GBP service revenue, therefore this could be slightly different from the average rate during the period depending on timing of transactions.

 

All variances discussed in the Virtual Sports results below are on a functional currency (at constant rate) basis, which excludes the impact of any changes in foreign currency exchange rates.

 

Virtual Sports revenue

 

During the three-month period ended March 31, 2025 revenue decreased by $3.6 million, or 29% compared to the three-month period ended March 31, 2024 primarily driven by a major customer optimizing its customer base as well as regulation of the Brazilian market.

 

Virtual Sports operating income

 

During the three-month period ended March 31, 2025, net operating income decreased by $4.3 million compared to the three-month period March 31, 2024. This decline was primarily due to the decrease in gross margin of $3.7 million, and an increase in depreciation and amortization of $0.3 million for increased software development and intangible assets.

 

Interactive

 

We generate revenue from our Interactive segment through various gaming content made available via third-party aggregation platforms integrated with our remote gaming server or directly on the Company’s remote gaming server platform, and services such as customer support, platform maintenance, updates and upgrades. Typically, we receive fees on a participation basis. Our participation contracts are usually structured to pay us a percentage of net win (defined as net revenue to our operator customers, after deducting player winnings, free bets or plays and other promotional costs and any relevant regulatory levies) from Interactive content placed on our customers’ websites. Typically, we recognize revenue from these arrangements on a daily basis over the term of the contract.

 

23

 

 

Revenue growth for our Interactive segment is principally driven by the number of customers we have, the number of live games, the net win performance of the games and the net win percentage that we receive pursuant to our contracts with our customers.

 

Interactive, Key Performance Indicators

 

  

For the Three-Month

Period Ended

  

Variance

March 31, 2025 vs
March 31, 2024

 
Interactive  March 31, 2025   March 31, 2024       % 
                 
No. of Live Customers at the end of the period   190    155    35    22.6%
Average No. of Live Customers   183    154    29    18.8%
No. of Games available at the end of the period   323    298    25    8.4%
Average No. of Games available   323    296    27    9.1%
No. of Live Games at the end of the period   299    283    16    5.7%
Average No. of Live Games   299    275    24    8.7%
Total Revenue (£’m)  £9.6   £6.4   £3.2    50.0%

 

In the table above:

 

“No. of Live Customers at the end of the period” and “Average No. of Live Customers” represent the number of customers from which there is Interactive revenue at the end of the period and the average number of customers from which there is Interactive revenue during the period, respectively.

 

“No. of Games available at the end of the period” and “Average No. of Games available” represents the number of games that are available for operators to deploy at the end of the period (including inactive legacy games still available in inactive new games that are available but have not yet gone live with any operators) and the average number of games that are available for operators to deploy during the period, respectively. This incorporated live games and inactive games.

 

“No. of Live Games at the end of the period” and “Average No. of Live Games” represents the number of games from which there is Interactive revenue at the end of the period and the average number of games from which there is Interactive revenue during the period, respectively.

 

“Total Revenue (£m)” represents total revenue for the Interactive segment, including recurring and upfront service revenue.

 

24

 

 

Interactive, Results of Operations

 

  

For the Three-Month

Period Ended

  

Variance

March 31, 2025 vs March 31, 2024

 
(In millions)  March 31, 2025   March 31, 2024  

Variance

Attributable

to Currency

Movement

  

Variance on

a Functional

currency

basis

  

Total

Functional

Currency

Variance %

  

Total

Reported

Variance %

 
                         
Service Revenue  $12.1   $8.1   $(0.1)  $4.1    51%   49%
                               
Cost of Service   (0.6)   (0.6)   -    -    -    - 
                               
Staff-related selling, general and administrative expenses   (2.4)   (2.1)   -    (0.3)   (14)%   (14)%
Non-staff related selling, general and administrative expenses   (2.0)   (1.4)   -    (0.6)   (43)%   (43)%
Labor costs capitalized   0.6    0.4    -    0.2    50%   50%
Other segment items:                              
                               
Stock-based compensation   (0.1)   (0.1)   (0.1)   0.1    100%   -%
                               
Depreciation and amortization   (0.7)   (1.2)   -    0.5    42%   42%
                               
Net operating Income  $6.9   $3.1   $(0.2)  $4.0    129%   123%
                               
Exchange Rate - $ to £   1.26    1.27                     

 

Note: Exchange rate in the table is calculated by dividing the USD service revenue by the GBP service revenue, therefore this could be slightly different from the average rate during the period depending on timing of transactions.

 

All variances discussed in the Interactive results below are on a functional currency (at constant rate) basis, which excludes the impact of any changes in foreign currency exchange rates.

 

Interactive revenue

 

During the three-month period ended March 31, 2025 revenue increased by $4.1 million, or 51% compared to the three-month period ended March 31, 2024, driven by recurring revenue growth in the UK and North America due to the launch of new content across the estate and increased promotional activity through exclusive deals with tier-one customers.

 

Interactive operating income

 

Operating income for the three-month period ended March 31, 2025 increased by $4.0 million compared to the three-month period ended March 31, 2024. This increase was driven by the increase in gross margin, partially offset by increases in staff related selling, general and administrative expenses of $0.3 million driven by annual salary increases and additional headcount, non-staff related selling, general and administrative expenses of $0.6 million predominantly due to increased IT network costs supporting revenues, partially offset by lower depreciation and amortization of $0.5 million as assets reached full amortization.

 

Leisure

 

We typically generate revenue from our Leisure segment through the supply of our gaming and amusement machines. We receive rental fees for machines, typically on a long-term contract basis, on both a participation and fixed fee basis. Our participation contracts are usually structured to pay us a percentage of net win (defined as net revenue to our operator customers, after deducting player winnings, free bets or plays, any relevant regulatory levies and minimum fixed incomes where applicable) from machines placed in our customers’ facilities. We generally recognize revenue from these arrangements on a daily basis over the term of the contract.

 

Revenue growth for our Leisure segment is principally driven by the number of customers we have, the number of machines in operation, the net win performance of the machines and the net win percentage that we receive pursuant to our contracts with our customers.

 

25

 

 

Leisure, Key Performance Indicators

 

  

For the Three-Month

Period Ended

  

Variance

March 31, 2025
vs March 31, 2024

 
Leisure  March 31, 2025   March 31, 2024       % 
                 
End of period installed base Gaming machines (# of terminals)   9,808    10,675    (867)   (8.1)%
Average installed base Gaming machines (# of terminals)   9,894    10,677    (783)   (7.3)%
End of period installed base Other (# of terminals)   3,322    4,072    (750)   (18.4)%
Average installed base Other (# of terminals)   3,422    4,101    (679)   (16.6)%
Pub Digital Gaming Machines - Average installed base (# of terminals)   6,130    6,308    (178)   (2.8)%
Pub Analogue Gaming Machines - Average installed base (# of terminals)   78    159    (81)   (50.9)%
MSA and Bingo Gaming Machines - Average installed base (# of terminals)(1)   2,673    3,057    (384)   (12.6)%
Inspired Leisure Revenue per Gaming Machine per week  £74.3   £70.2   £4.1    5.8%
Inspired Pub Digital Revenue per Gaming Machine per week  £74.0   £73.3   £0.7    1.0%
Inspired Pub Analogue Revenue per Gaming Machine per week  £24.9   £31.8   £(6.9)   (21.7)%
Inspired MSA and Bingo Revenue per Gaming Machine per week  £101.1   £91.6   £9.5    10.4%
Inspired Other Revenue per Machine per week  £30.3   £23.9   £6.4    26.8%
                     
Total Holiday Parks Revenue (Gaming and Non Gaming) (£’m)  £2.9   £3.2   £(0.3)   (9.4)%

 

(1) Motorway Service Area machines

 

In the table above:

 

“End of period installed base Gaming” and “Average installed base Gaming” represent the number of gaming machines installed (excluding Holiday Park machines) that are Category B and Category C only (UK Gambling Act 2005 places machines into categories dependent on maximum stake and prize available), from which there is participation or rental revenue at the end of the period or as an average over the period.

 

“End of period installed base Other” and “Average installed base Other” represent the number of all other category machines installed (excluding Holiday Park machines) from which there is participation or rental revenue at the end of the period or as an average over the period.

 

“Revenue per machine unit per week” represents the average weekly participation or rental revenue recognized during the period.

 

26

 

 

Leisure, Results of Operations

 

  

For the Three-Month

Period Ended

  

Variance

March 31, 2025 vs March 31, 2024

 
(In millions)  March 31, 2025   March 31, 2024  

Variance

Attributable

to Currency

Movement

  

Variance on

a Functional

currency

basis

  

Total

Functional

Currency

Variance %

  

Total

Reported

Variance %

 
Revenue:                        
Service  $17.3   $18.0   $(0.1)  $(0.6)   (3)%   (4)%
Product   0.6    0.6    -    -    -%   -%
Total revenue   17.9    18.6    (0.1)   (0.6)   (3)%   (4)%
                               
Cost of Sales, excluding depreciation and amortization:                              
Cost of Service   (8.5)   (9.1)   -    0.6    7%   7%
Cost of Product   (0.3)   (0.2)   -    (0.1)   (50)%   (50)%
Total cost of sales   (8.8)   (9.3)   -    0.5    5%   5%
                               
Staff-related selling, general and administrative expenses   (4.0)   (4.2)   0.1    0.1    2%   5%
Non-staff related selling, general and administrative expenses   (3.5)   (3.6)   -    0.1    3%   3%
Labor costs capitalized   0.1    0.3    -    (0.2)   (67)%   (67)%
Other segment items:                              
                               
Stock-based compensation   (0.1)   (0.1)   (0.1)   0.1    100%   -%
                               
Depreciation and amortization   (3.2)   (3.0)   -    (0.2)   (7)%   (7)%
 Other selling, general and administrative expenses   (0.1)   -    (0.1)   -    -%     (100)%
Net operating Loss   (1.7)   (1.3)  $(0.2)  $(0.2)   (15)%   (31)%
                               
Exchange Rate - $ to £   1.26    1.27                     

 

Note: Exchange rate in the table is calculated by dividing the USD total revenue by the GBP total revenue, therefore this could be slightly different from the average rate during the period depending on timing of transactions.

 

All variances discussed in the Leisure results below are on a functional currency (at constant rate) basis, which excludes the impact of any changes in foreign currency exchange rates.

 

Leisure Revenue

 

For the three-month period ended March 31, 2025 revenue decreased by $0.6 million or 3% compared to the three-month period ended March 31,2024, which was predominantly due to seasonality in Holiday Parks for the timing of a key public holiday in the UK.

 

Leisure Operating Income

 

Operating income for the three-month period ended March 31, 2025 decreased by $0.2 million compared to the three-month period ended March 31, 2024. This was primarily due to lower labor costs capitalized due to the mix of projects completed and higher depreciation and amortization for assets capitalized in previous periods.

 

27

 

 

Non-GAAP Financial Measures

 

We use certain non-GAAP financial measures, including EBITDA, to analyze our operating performance. We use these financial measures to manage our business on a day-to-day basis. We believe that these measures are also commonly used in our industry to measure performance. For these reasons, we believe that these non-GAAP financial measures provide expanded insight into our business, in addition to standard U.S. GAAP financial measures. There are no specific rules or regulations for defining and using non-GAAP financial measures, and as a result the measures we use may not be comparable to measures used by other companies, even if they have similar labels. The presentation of non-GAAP financial information should not be considered in isolation from, or as a substitute for, or superior to, financial information prepared and presented in accordance with U.S. GAAP. You should consider our non-GAAP financial measures in conjunction with our U.S. GAAP financial measures.

 

We define our non-GAAP financial measures as follows:

 

EBITDA is defined as net income (loss) excluding depreciation and amortization, interest expense, interest income and income tax expense.

 

Adjusted EBITDA is defined as net income (loss) excluding depreciation and amortization, interest expense, interest income and income tax expense, and other additional exclusions and adjustments (see Adjusted EBITDA reconciliation table). Such additional excluded amounts include stock-based compensation U.S. GAAP charges where the associated liability is expected to be settled in stock, and changes in the value of earnout liabilities and income and expenditure in relation to legacy portions of the business (being those portions where trading no longer occurs) including closed defined benefit pension schemes. Additional adjustments are made for items considered outside the normal course of business, including but not limited to (1) restructuring costs, which include charges attributable to employee severance, impairments, management changes, restructuring, dual running costs, costs related to facility closures and integration costs, (2) merger and acquisition costs and (3) gains or losses not in the ordinary course of business (4) the costs of the restatement of previously issued financial statements.

 

We believe Adjusted EBITDA, when considered along with other performance measures, is a particularly useful performance measure, because it focuses on certain operating drivers of the business, including sales growth, operating costs, selling and administrative expense and other operating income and expense. We believe Adjusted EBITDA can provide a more complete understanding of our operating results and the trends to which we are subject, and an enhanced overall understanding of our financial performance and prospects for the future. Adjusted EBITDA is not intended to be a measure of liquidity or cash flows from operations or a measure comparable to net income or loss, because it does not take into account certain aspects of our operating performance (for example, it excludes non-recurring gains and losses which are not deemed to be a normal part of underlying business activities). Our use of Adjusted EBITDA may not be comparable to the use by other companies of similarly termed measures. Management compensates for these limitations by using Adjusted EBITDA as only one of several measures for evaluating our operating performance. In addition, capital expenditures, which affect depreciation and amortization, interest expense, and income tax benefit (expense), are evaluated separately by management.

 

Functional Currency at Constant rate. Currency impacts discussed have been calculated as the current-period average GBP: USD rate less the equivalent average rate in the prior period, multiplied by the current period amount in our functional currency (GBP). The remaining difference, referred to as functional currency at constant rate, is calculated as the difference in our functional currency, multiplied by the prior-period average GBP: USD rate, as a proxy for functional currency at constant rate movement.

 

Currency Movement represents the difference between the results in our reporting currency (USD) and the results on a functional currency (at constant rate) basis.

 

28

 

 

Reconciliations from net loss, as shown in our Consolidated Statements of Operations and Comprehensive Income (Loss), to Adjusted EBITDA are shown below.

 

Reconciliation to Adjusted EBITDA by segment for the Three Months Ended March 31, 2025

 

      For the Three-Month Period Ended March 31, 2025 
(In millions) 

Statutory

Heading

  Total   Gaming   Virtual
Sports		   Interactive   Leisure   Corporate 
Net Income/ (loss)  Net Income  $(0.1)  $4.2   $4.9   $6.9   $(1.7)  $(14.4)
                                  
Pension charges (1)  Staff-related selling, general and administrative expenses  $0.2                        0.2 
                                  
Cost of Group Restructure (2)  Other selling, general and administrative expenses  $0.6    0.2              0.1    0.3 
Cost of Group Restatement (3)  Other selling, general and administrative expenses  $4.0                        4.0 
Stock-based compensation expense (4)  Stock-based compensation expense  $1.4    0.2    0.1    0.1    0.1    0.9 
                                  
Depreciation and amortization (4)  Depreciation and amortization  $10.6    4.7    1.3    0.7    3.2    0.7 
Interest expense net (4)  Interest expense net  $7.0                        7.0 
Other finance expenses / (income) (4)  Other finance expenses / (income)  $(0.2)                       (0.2)
Income Tax (4)  Income Tax  $(5.1)                       (5.1)
Adjusted EBITDA     $18.4   $9.3   $6.3   $7.7   $1.7   $(6.6)
                                  
Adjusted EBITDA     £14.6   £7.3   £5.0   £6.2   £1.5   £(5.4)
Exchange Rate - $ to £ (6)      1.26                          

 

Note: Certain unallocated corporate function costs have not been allocated to the Company’s reportable operating segments because these costs are not allocable and to do so would not be practical; these are shown in the Corporate category.

 

29

 

 

Reconciliation to Adjusted EBITDA by segment for the Three Months Ended March 31, 2024

 

      For the Three-Month Period Ended March 31, 2024 
(In millions) 

Statutory

Heading

  Total   Gaming   Virtual
Sports		   Interactive   Leisure   Corporate 
Net Income/ (loss)     $(6.4)  $2.1   $9.4   $3.1   $(1.3)  $(19.7)
                                  
Pension charges (1)  Staff-related selling, general and administrative expenses  $0.3                        0.3 
                                  
Cost of Group Restructure (2)  Other selling, general and administrative expenses  $0.2                        0.2 
Cost of Group Restatement (3)  Other selling, general and administrative expenses  $5.0                        5.0 
Stock-based compensation expense (4)  Stock-based compensation expense  $2.3    0.2    0.1    0.1    0.1    1.8 
Depreciation and amortization (4)  Depreciation and amortization  $9.8    4.2    0.9    1.2    3.0    0.5 
                                  
Interest expense net (4)  Interest expense net  $6.5                        6.5 
Other finance expenses / (income) (4)  Other finance expenses / (income)  $(0.1)                       (0.1)
Income tax (4)  Income tax  $(2.1)                       (2.1)
Adjusted EBITDA     $15.5   $6.5   $10.4   $4.4   $1.8   $(7.6)
                                  
Adjusted EBITDA     £12.3   £5.3   £8.1   £3.4   £1.5   £(6.0)
Exchange Rate - $ to £ (5)      1.27                          

 

Note: Certain unallocated corporate function costs have not been allocated to the Company’s reportable operating segments because these costs are not allocable and to do so would not be practical; these are shown in the Corporate category.

 

Notes to Adjusted EBITDA reconciliation tables above:

 

(1) “Pension charges” are profit and loss charges included within selling, general and administrative expenses, relating to a defined benefit scheme which was closed to new entrants in 1999 and to future accrual in 2010. As well as the amortization of net loss, the figure also includes charges relating to the Pension Protection Fund (which were historically borne by the pension scheme) and a small amount of associated professional services expenses. These costs are included within Corporate Functions.
   
(2) “Cost of Group Restructure” include redundancy costs, payment in lieu of notice costs and any associated employer taxes. To qualify as an adjusting item, costs must be part of a large restructuring project, which will net save ongoing future costs or be in relation to the exit of an Executive.
   
(3)

“Cost of Group Restatement” includes accounting advice and other related costs associated with the restatement of financial statements. It also includes costs relating to the SEC inquiry that was subsequently concluded in January 2025. To qualify as an adjusting item, costs must be specific to the event and be neither normal nor recurring in nature.

 

30

 

 

(4) Stock-based compensation expense, Depreciation and amortization, Total other expense, net and Income tax are as described above in the Results of Operations line item discussions. Total expense, net includes interest income, interest expense, change in fair value of earnout liability, change in fair value of derivative liability and other finance income.
   
(5) Exchange rate in the table is calculated by dividing the USD Adjusted EBITDA by the GBP Adjusted EBITDA, therefore this could be slightly different from the average rate during the period depending on timing of transactions.

 

Liquidity and Capital Resources

 

Three Months Ended March 31, 2025, compared to Three Months Ended March 31, 2024

 

Cash Flow Summary - A Two Year Comparative

 

   Three-Months Ended   Variance 
(in millions)  Mar 31,   Mar 31,     
   2025   2024   2025 to 2024 
Net loss  $(0.1)  $(6.4)  $6.3 
Non-cash interest expense relating to senior debt   0.5    0.2    0.3 
Change in fair value of derivative liabilities and stock-based compensation expense   1.4    2.3    (0.9)
Deferred income taxes   (1.9)   -    (1.9)
Depreciation and amortization (incl RoU assets)   11.4    10.9    0.5 
Other net cash generated/(utilized) by operating activities   14.2    (1.0)   15.2 
Net cash inflow provided by operating activities   25.5    6.0    19.5 
                
Net cash used in investing activities   (15.1)   (10.1)   (5.0)
Net cash used by financing activities   (1.7)   (0.2)   (1.5)
Effect of exchange rates on cash   1.0)   (0.4)   1.4 
Net increase/(decrease) in cash and cash equivalents  $9.7   $(4.7)  $14.4 

 

Net cash provided by operating activities

 

For the three-month period ended March 31, 2025, net cash inflow provided by operating activities was $25.5 million, compared to a $6.0 million inflow for the three-month period ended March 31, 2024, representing a $19.5 million increase in cash generation. The increase was driven primarily through improved working capital position with favorable movements in accounts receivable due to the collection in the three-month period ended March 31, 2025 of a number of the machine hardware sales made at the end of 2024 and favorable movements in accounts payable due to timing of payments and varying levels of production activity.

 

Non-cash interest expense increased by $0.3 million, to $0.5 million, due to the marking to market for short term currency contracts held as of March 31, 2025.

 

Change in the fair value of derivative liabilities and stock-based compensation expense decreased by $0.9 million from $2.3 million to $1.4 million due to lower stock-based compensation expense.

 

Depreciation and amortization increased by $0.5 million, to $11.4 million, with increases of $1.1 million in machine depreciation, $0.4 million in amortization of intangible assets and $0.3 million in contract costs amortization. These were offset by a $1.1 million decrease in software development cost amortization and a $0.3 million decrease in right of use asset amortization.

 

Other net cash generated by operating activities increased by $15.2 million to an inflow of $14.2 million. The relative movements between the three-month period ended March 31, 2025 and the three-month period ended March 31, 2024 resulted in favorable movements of $13.5 million in accounts receivable and $16.8 million in accounts payable and accrued expenses. The favorable movements in accounts receivable was largely due to the collection of receipts from hardware sales made at the end of 2024 and the favorable movements in accounts payable and accrued expenses was largely due to timing of procurement activity and on supplier payments with the prior year including a number of payments for professional fees relating to the restatement exercise. These favorable movements were partly offset by unfavorable movements in prepayments and accrued income of $6.7 million, inventory of $2.4 million and corporate tax and other current taxes of $5.0 million.

 

31

 

 

Net cash used in investing activities

 

Net cash utilized in investing activities increased by $5.0 million, to $15.1 million in the three-month period ended March 31, 2025. This was driven by a higher expenditure on plant, property and equipment ($4.9 million increase compared to 2024) and on contract cost additions ($1.4 million increase compared to 2024). These were partly offset by a $1.2 million decrease in capitalized software.

 

Net cash used by financing activities

 

During the three-month period ended March 31, 2025, net cash used by financing activities was $1.7 million, $1.5 million higher than the three-month period ended March 31, 2024 related to finance lease expenditure.

 

Funding Needs and Sources

 

To fund our obligations, historically we have relied on a combination of cash flows provided by operations and the incurrence of additional debt or the refinancing of existing debt. As of March 31, 2025, we had liquidity consisting of $39.0 million in cash and a further $6.5 million of undrawn revolver facility. This compares to $35.3 million of cash as of March 31, 2024, with a further $6.3 million of revolver facilities undrawn. We had a working capital inflow of $14.2 million for the three-month period ended March 31, 2025, compared to a $1.0 million outflow for the three-month period ended March 31, 2024.

 

The level of our working capital surplus or deficit varies with the level of machine production we are undertaking and our capitalization as well as the seasonality experienced in some of the businesses. In periods with minimal machine volumes and capital spend, our working capital is typically more stable. In periods where significant numbers of machines are being produced, the levels of inventory and creditors are typically higher and there is a natural timing difference between converting the stock into sellable or capitalized plant and settling payments to suppliers. These factors can result in significant working capital volatility. In periods of low activity, our working capital volatility is reduced. Working capital is reviewed and managed with the aim of ensuring that current liabilities are covered by the level of cash held and the expected level of short-term receipts.

 

Some of our business operations require cash to be held within the machines. As of March 31, 2025, $6.1 million of our $39.0 million of cash were held as operational floats within the machines. At March 31, 2024, $6.1 million of our $35.3 million of cash were held as operational floats within the machines

 

Management currently believes that the Company’s cash balances on hand, cash flows expected to be generated from operations, and the ability to control and defer capital projects will be sufficient to fund the Company’s net cash requirements through May 2026.

 

32

 

 

Long Term and Other Debt

 

(In millions)  March 31, 2025   March 31, 2024 
Cash held  £30.2   $39.0   £28.0   $35.3 
Revolver drawn   (15.0)   (19.4)   (15.0)   (18.9)
Original principal senior debt   (235.0)   (303.4)   (235.0)   (296.9)
Cash interest accrued   (6.8)   (8.8)   (6.6)   (8.4)
Finance lease creditors   (18.1)   (23.4)   (2.7)   (3.4)
Total  £(244.7)  $(316.0)  £(231.4)  $(292.3)

 

Debt Covenants

 

Under our debt facilities in place as of March 31, 2025, we are not subject to covenant testing on the Senior Secured Notes. We are, however, subject to covenant testing at the level of Inspired Entertainment Inc., the ultimate holding company, on our Super Senior Revolving Credit Facility which requires the Company to maintain a maximum consolidated senior secured net leverage ratio of 6.25x on the test date for the relevant period ended June 30, 2021, stepping down to 6.0x on March 31, 2022, 5.75x on March 31, 2023 and 5.50x from March 31, 2024 and thereafter (the “RCF Financial Covenant”). The RCF Financial Covenant is calculated as the ratio of consolidated senior secured net debt to consolidated pro forma EBITDA (defined as net loss excluding depreciation and amortization, interest expense, interest income and income tax expense) for the 12-month period preceding the relevant quarterly testing date and is tested quarterly on a rolling basis, subject to the Initial Facility (as defined in the RCF Agreement) being drawn on the relevant test date. The RCF Financial Covenant does not include a minimum interest coverage ratio or other financial covenants. Covenant testing at March 31, 2025 showed covenant compliance.

 

There were no breaches of the debt covenants in the three-month period ended March 31, 2025 or March 31, 2024.

 

Liens and Encumbrances

 

As of March 31, 2025, our senior secured notes were secured by the imposition of a fixed and floating charge in favor of the lender over all the assets of the Company and certain of the Company’s subsidiaries.

 

Share Repurchases

 

The Board of Directors has authorized the Company to use up to $25.0 million to repurchase shares of Inspired common stock, subject to repurchases being effected on or before May 10, 2025. Management has discretion as to whether to repurchase shares of the Company and as of March 31, 2025, an aggregate of $12.0 million of our shares of common stock had been repurchased. No shares have been repurchased after September 2023.

 

33

 

 

Contractual Obligations

 

As of March 31, 2025, our contractual obligations were as follows:

 

Contractual Obligations (in millions)  Total  

Less than

1 year

   1-2 years   3-5 years  

More than

5 years

 
Operating activities                         
Interest on long term debt  $35.8   $23.9   $11.9   $-   $- 
Purchase of Vantage machines   8.8    8.8    -    -    - 
Financing activities                         
Revolver repayment   20.3    20.3    -    -    - 
Senior secured notes - principal repayment   303.4    -    303.4    -    - 
Finance lease payments   23.4    4.9    4.8    13.7    - 
Operating lease payments   16.2    5.0    3.7    4.2    3.3 
Interest on non-utilization fees   0.1    0.1    -    -    - 
Total  $408.0   $63.0   $323.8   $17.9   $3.3 

 

Off-Balance Sheet Arrangements

 

As of March 31, 2025, there were no off-balance sheet arrangements, as defined in Item 303(a)(4)(ii) of Regulation S-K, promulgated by the U.S. Securities and Exchange Commission.

 

Critical Accounting Estimates

 

The preparation of our audited consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions. We exercise considerable judgment with respect to establishing sound accounting policies and in making estimates and assumptions that affect the reported amounts of our assets and liabilities, our recognition of revenue and expenses, and our disclosure of commitments and contingencies at the date of the consolidated financial statements. On an on-going basis, we evaluate our estimates and judgments. We base our estimates and judgments on a variety of factors, including our historical experience, knowledge of our business and industry and current and expected economic conditions, that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. We periodically re-evaluate our estimates and assumptions with respect to these judgments and modify our approach when circumstances indicate that modifications are necessary. While we believe that the factors we evaluate provide us with a meaningful basis for establishing and applying sound accounting policies, we cannot guarantee that the results will always be accurate. Since the determination of these estimates requires the exercise of judgment, actual results could differ from such estimates. 

 

A description of our critical accounting estimates was provided in item 7. “Management’s Discussion and Analysis of Financial Condition and Results of Operations” of our Annual Report on Form 10-K for the year ended December 31, 2024. There were no changes in the determination of these estimates during the first three months of 2025.

 

34

 

 

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

 

Our principal market risks are our exposure to changes in foreign currency exchange rates.

 

Interest Rate Risk

 

Following the Company’s refinancing of its debt in May 2021, the external borrowings of £235.0 million ($303.4 million) are provided at a fixed rate. Therefore, movements in rates such as LIBOR do not impact on the current borrowings and the only fluctuation that is expected to be reported will be that solely caused by movements in the exchange rates between the Company’s functional currency and its reporting currency.

 

Foreign Currency Exchange Rate Risk

 

Our operations are conducted in various countries around the world, and we receive revenue and pay expenses from these operations in a number of different currencies. As such, our earnings are subject to movements in foreign currency exchange rates when transactions are denominated in (i) currencies other than GBP, which is our functional currency, or (ii) the functional currencies of our subsidiaries, which is not necessarily GBP. To estimate our foreign currency exchange rate risk, we identify material Euro and USD trading and balance sheet amounts and recalculate the result using a 10% movement in the GBP:USD exchange rate. For the trading figures the 10% movement is based on the average exchange rate throughout the reported period and for the balance sheet figures the 10% movement is based on the exchange rate used at March 31, 2025.

 

Excluding intercompany balances, our Euro functional currency net assets total approximately $23.4 million, and our USD functional currency net assets total approximately $9.0 million. We use a sensitivity analysis model to measure the impact of a 10% adverse movement of foreign currency exchange rates against the USD. A hypothetical 10% adverse change in the value of the Euro and the USD relative to GBP as of March 31, 2025, would result in translation adjustments of approximately $2.2 million favorable and $0.9 million favorable, respectively, recorded in other comprehensive income.

 

Included within our trading results are earnings outside of our functional currency. Retained gains from Euro based entities earned in Euros and retained losses from USD based entities earned in USD in the three-month period ended March 31, 2025, were €3.9 million and $4.8 million, respectively. A hypothetical 10% adverse change in the value of the Euro and the USD relative to GBP as of March 31, 2025, would result in translation adjustments of approximately $0.4 million favorable and $0.4 million unfavorable, respectively, recorded in trading operations.

 

The majority of the Company’s trading is in GBP, the functional currency, although the reporting currency of the Company is the USD. As such, changes in the GBP:USD exchange rate have an effect on the Company’s results. A 10% weakening of GBP against the USD would not impact the trading operational results and would result in unfavorable translation adjustments of approximately $3.6 million, recorded in other comprehensive income.

 

ITEM 4. CONTROLS AND PROCEDURES 

 

Evaluation of Disclosure Controls and Procedures

 

Disclosure controls and procedures are controls and other procedures designed to ensure that information required to be disclosed in our reports filed or submitted under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed in our reports filed or submitted under the Exchange Act is accumulated and communicated to management, including our Certifying Officers, or persons performing similar functions, as appropriate, to allow timely decisions regarding required disclosure.

 

Under the supervision and with the participation of our management, including our principal executive officer and our principal financial officer (together, the “Certifying Officers”), we carried out an evaluation of the effectiveness of the design and operation of our disclosure controls and procedures as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act. Based on the foregoing, our Certifying Officers concluded that our disclosure controls and procedures were not effective at the reasonable assurance level as of March 31, 2025, due to the material weaknesses described in Item 9A of the Company’s Annual Report on Form 10-K for the year ended December 31, 2024, filed with the SEC on March 26, 2025. Management is redesigning and implementing existing and additional controls to remediate these material weaknesses.

 

Notwithstanding the identified material weaknesses and management’s assessment that our disclosure controls and procedures were not effective at the reasonable assurance level as of March 31, 2025, management believes that the interim consolidated financial statements and footnote disclosures included in this Quarterly Report on Form 10-Q fairly present, in all material respects, our financial condition, results of operations, cash flows and disclosures as of and for the periods presented in accordance with generally accepted accounting principles.

 

35

 

 

PART II - OTHER INFORMATION

 

ITEM 1. LEGAL PROCEEDINGS

 

Securities Matters Arising From the Company’s Restated Financial Statements and Related Matters

 

On March 12, 2024, the Company received a subpoena from the SEC seeking documents concerning, among other things, the Company’s recently restated financial statements. The Company cooperated with the SEC’s inquiry. On January 28, 2025, the SEC staff notified the Company that it had concluded its investigation as to the Company and did not intend to recommend an enforcement action.

 

From time to time, the Company is involved in legal matters arising in the ordinary course of business. While the Company believes that such matters in which it is currently involved are not material, there can be no assurance that such matters, or other legal matters, will not have a material adverse effect on its business, financial condition or results of operations. 

ITEM 1A. RISK FACTORS

 

Our business is subject to a high degree of risk. You should carefully consider the risk factors discussed in Part I, Item 1A of our Annual Report on Form 10-K for our fiscal year ended December 31, 2024, filed with the SEC on March 26, 2025. Any of these risks could materially and adversely affect our business, operating results, financial condition and prospects, and cause the value of our common stock to decline, which could cause investors in our common stock to lose all or part of their investments.

 

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

 

None.

 

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

 

None.

 

ITEM 4. MINE SAFETY DISCLOSURES

 

Not applicable.

 

ITEM 5. OTHER INFORMATION

 

None.

 

ITEM 6. EXHIBITS 

 

The following exhibits are filed as part of, or incorporated by reference into, this Quarterly Report on Form 10-Q:

 

Exhibit Number   Description
     
10.1#   Addendum, effective January 1, 2025, to the Employment Agreement dated October 9, 2020, as amended, by and between Inspired Entertainment, Inc. and A. Lorne Weil (incorporated herein by reference to Exhibit 10.1 to the Current Report on Form 8-K of the Company, filed with the SEC on February 4, 2025).
10.2#   Addendum, effective January 1, 2025, to the Employment Agreement dated February 17, 2020, as amended, by and between Inspired Entertainment, Inc. and Brooks H. Pierce (incorporated herein by reference to Exhibit 10.2 to the Current Report on Form 8-K of the Company, filed with the SEC on February 4, 2025).
10.3#   Employment Agreement, dated November 5, 2024 and effective January 1, 2025, by and between Inspired Gaming (UK) Limited and James Richardson (incorporated herein by reference to Exhibit 10.21 to the Company’s Annual Report on Form 10-K for the year ended December 31, 2024, filed with the SEC on March 26, 2025).
31.1*   Certification of Principal Executive Officer required by Rule 13a-14(a) or Rule 15d-14(a).
31.2*   Certification of Principal Financial Officer required by Rule 13a-14(a) or Rule 15d-14(a).
32.1**   Certification of Principal Executive Officer required by Rule 13a-14(b) or Rule 15d-14(b) and 18 U.S.C. 1350.
32.2**   Certification of Principal Financial Officer required by Rule 13a-14(b) or Rule 15d-14(b) and 18 U.S.C. 1350.
101.INS*   Inline XBRL Instance Document
101.SCH*   Inline XBRL Taxonomy Extension Schema
101.CAL*   Inline XBRL Taxonomy Extension Calculation Linkbase
101.DEF*   Inline XBRL Taxonomy Extension Definition Linkbase
101.LAB*   Inline XBRL Taxonomy Extension Label Linkbase
101.PRE*   Inline XBRL Taxonomy Extension Presentation Linkbase
104   Cover Page Interactive Data File (embedded within the Inline XBRL document)

 

# Indicates management contract or compensatory plan.
   
* Filed herewith.
   
** Furnished herewith.

 

36

 

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

  INSPIRED ENTERTAINMENT, INC.
     
Date: May 8, 2025   /s/ A. Lorne Weil
  Name: A. Lorne Weil
  Title: Executive Chairman
    (Principal Executive Officer)
     
Date: May 8, 2025   /s/ James Richardson
  Name: James Richardson
  Title: Chief Financial Officer
    (Principal Financial and Accounting Officer)

 

37

 

EXHIBIT 31.1

 

CERTIFICATION OF THE PRINCIPAL EXECUTIVE OFFICER

PURSUANT TO RULE 13a-14(a) AND RULE 15d-14(a)

UNDER THE SECURITIES EXCHANGE ACT OF 1934,

AS ADOPTED PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

 

I, A. Lorne Weil, certify that:

 

1. I have reviewed this Quarterly Report on Form 10-Q of Inspired Entertainment, Inc.;

 

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

 

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

 

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

 

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

 

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

 

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

 

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

 

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions):

 

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

 

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal controls over financial reporting.

 

Date: May 8, 2025 /s/ A. Lorne Weil
  A. Lorne Weil
  Executive Chairman
  (Principal Executive Officer)

 

 

 

 

EXHIBIT 31.2

 

CERTIFICATION OF THE PRINCIPAL FINANCIAL OFFICER

PURSUANT TO RULE 13a-14(a) AND RULE 15d-14(a)

UNDER THE SECURITIES EXCHANGE ACT OF 1934,

AS ADOPTED PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

 

I, James Richardson, certify that:

 

1. I have reviewed this Quarterly Report on Form 10-Q of Inspired Entertainment, Inc.;

 

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

 

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

 

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

 

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

 

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

 

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

 

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

 

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions):

 

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

 

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal controls over financial reporting.

 

Date: May 8, 2025 /s/ James Richardson
  James Richardson
  Chief Financial Officer
  (Principal Financial and Accounting Officer)

 

 

 

 

EXHIBIT 32.1

 

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

 

In connection with the Quarterly Report of Inspired Entertainment, Inc. (the “Company”) on Form 10-Q for the fiscal period ended March 31, 2025, as filed with the Securities and Exchange Commission (the “Report”), I, A. Lorne Weil, Executive Chairman of the Company, certify, pursuant to 18 U.S.C. §1350, as adopted pursuant to §906 of the Sarbanes-Oxley Act of 2002, that:

 

1. The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

 

2. To my knowledge, the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company as of and for the period covered by the Report.

 

Dated: May 8, 2025 By: /s/ A. Lorne Weil
    A. Lorne Weil
    Executive Chairman
    (Principal Executive Officer)

 

A signed original of this written statement required by Section 906 of the Sarbanes-Oxley Act of 2002 has been provided to the Company and will be retained by the Company and furnished to the SEC or its staff upon request.

 

 

 

EXHIBIT 32.2

 

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

 

In connection with the Quarterly Report of Inspired Entertainment, Inc. (the “Company”) on Form 10-Q for the fiscal period ended March 31, 2025, as filed with the Securities and Exchange Commission (the “Report”), I, James Richardson, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. §1350, as adopted pursuant to §906 of the Sarbanes-Oxley Act of 2002, that:

 

1. The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

 

2. To my knowledge, the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

 

Dated: May 8, 2025 By: /s/ James Richardson
    James Richardson
    Chief Financial Officer
    (Principal Financial and Accounting Officer)

 

A signed original of this written statement required by Section 906 of the Sarbanes-Oxley Act of 2002 has been provided to the Company and will be retained by the Company and furnished to the SEC or its staff upon request.

 

 

v3.25.1
Cover - shares
 3 Months Ended
Mar. 31, 2025
May 05, 2025
Cover [Abstract]    
Document Type 10-Q  
Amendment Flag false  
Document Quarterly Report true  
Document Transition Report false  
Document Period End Date Mar. 31, 2025  
Document Fiscal Period Focus Q1  
Document Fiscal Year Focus 2025  
Current Fiscal Year End Date --12-31  
Entity File Number 001-36689  
Entity Registrant Name INSPIRED ENTERTAINMENT, INC.  
Entity Central Index Key 0001615063  
Entity Tax Identification Number 47-1025534  
Entity Incorporation, State or Country Code DE  
Entity Address, Address Line One 250 West 57th Street  
Entity Address, Address Line Two Suite 415  
Entity Address, City or Town New York  
Entity Address, State or Province NY  
Entity Address, Postal Zip Code 10107  
City Area Code (646)  
Local Phone Number 565-3861  
Title of 12(b) Security Common stock, par value $0.0001 per share  
Trading Symbol INSE  
Security Exchange Name NASDAQ  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Filer Category Accelerated Filer  
Entity Small Business true  
Entity Emerging Growth Company false  
Entity Shell Company false  
Entity Common Stock, Shares Outstanding   26,912,201
v3.25.1
Condensed Consolidated Balance Sheets - USD ($)
$ in Millions
Mar. 31, 2025
Dec. 31, 2024
Assets    
Cash $ 39.0 $ 29.3
Accounts receivable, net 52.0 65.4
Inventory 31.1 28.0
Prepaid expenses and other current assets 35.4 36.0
Corporate tax and other current taxes receivable 4.3 1.2
Total current assets 161.8 159.9
Property and equipment, net 62.7 56.4
Software development costs, net 23.7 22.4
Other acquired intangible assets subject to amortization, net 15.6 16.1
Goodwill 59.6 57.8
Finance lease right of use asset 22.7 18.7
Operating lease right of use asset 16.0 16.2
Costs of obtaining and fulfilling customer contracts, net 12.8 11.0
Deferred tax 71.2 67.4
Other assets 12.8 12.5
Total assets 458.9 438.4
Current liabilities    
Accounts payable and accrued expenses 69.6 53.7
Corporate tax and other current taxes payable 4.3 12.3
Deferred revenue, current 5.7 5.8
Operating lease liabilities 5.0 5.1
Current portion of long-term debt 19.4 18.8
Current portion of finance lease liabilities 4.9 4.4
Other current liabilities 4.2 3.9
Total current liabilities 113.1 104.0
Long-term debt 301.5 292.2
Finance lease liabilities, net of current portion 18.5 18.6
Deferred revenue, net of current portion 14.6 12.8
Operating lease liabilities 11.2 11.7
Other long-term liabilities 2.2 2.4
Total liabilities 461.1 441.7
Commitments and contingencies
Stockholders’ deficit    
Preferred stock; $0.0001 par value; 1,000,000 shares authorized, no shares issued and outstanding at March 31, 2025 and December 31, 2024, respectively.
Common stock; $0.0001 par value; 49,000,000 shares authorized; 26,904,832 shares and 26,581,972 shares issued and outstanding at March 31, 2025 and December 31, 2024, respectively
Additional paid in capital 391.3 389.9
Accumulated other comprehensive income 48.1 48.3
Accumulated deficit (441.6) (441.5)
Total stockholders’ deficit (2.2) (3.3)
Total liabilities and stockholders’ deficit $ 458.9 $ 438.4
v3.25.1
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares
Mar. 31, 2025
Dec. 31, 2024
Statement of Financial Position [Abstract]    
Preferred stock, par value $ 0.0001 $ 0.0001
Preferred stock, shares authorized 1,000,000 1,000,000
Preferred stock, shares issued 0 0
Preferred stock, shares outstanding 0 0
Common stock, par value $ 0.0001 $ 0.0001
Common stock, shares authorized 49,000,000 49,000,000
Common stock, shares issued 26,904,832 26,581,972
Common stock, shares outstanding 26,904,832 26,581,972
v3.25.1
Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) (Unaudited) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2025
Mar. 31, 2024
Revenue:    
Total revenue $ 60.4 $ 62.3
Cost of sales:    
Selling, general and administrative expenses (30.3) (34.2)
Depreciation and amortization (10.6) (9.8)
Net operating income (loss) 1.6 (2.1)
Other expense    
Interest expense, net (7.0) (6.5)
Other finance income 0.2 0.1
Total other expense, net (6.8) (6.4)
Loss before income taxes (5.2) (8.5)
Income tax benefit 5.1 2.1
Net loss (0.1) (6.4)
Other comprehensive (loss) income:    
Foreign currency translation (loss) gain (0.4) 0.5
Reclassification of loss on pension plan to comprehensive income 0.2 0.3
Other comprehensive (loss) income (0.2) 0.8
Comprehensive loss $ (0.3) $ (5.6)
Net income per common share - basic $ 0.00 $ (0.22)
Net income per common share - diluted $ 0.00 $ (0.22)
Weighted average number of shares outstanding during the year - basic 28,973,938 28,603,734
Weighted average number of shares outstanding during the year - diluted 28,973,938 28,603,734
Stock-based compensation included in:    
Selling, general and administrative expenses $ (1.4) $ (2.3)
Service [Member]    
Revenue:    
Total revenue 57.0 56.2
Cost of sales:    
Cost of sales [1] (15.0) (15.9)
Product Sales [Member]    
Revenue:    
Total revenue 3.4 6.1
Cost of sales:    
Cost of sales [1] $ (2.9) $ (4.5)
[1] Excluding depreciation and amortization
v3.25.1
Condensed Consolidated Statements of Stockholders' Deficit (Unaudited) - USD ($)
Common Stock [Member]
Additional Paid-in Capital [Member]
AOCI Attributable to Parent [Member]
Retained Earnings [Member]
Total
Balance at Dec. 31, 2023 $ 386,100,000 $ 44,300,000 $ (506,300,000) $ (75,900,000)
Balance, shares at Dec. 31, 2023 26,219,021        
Foreign currency translation adjustments 500,000 500,000
Reclassification of loss on pension plan to comprehensive income 300,000 300,000
Issuances under stock plans (800,000) (800,000)
Issuances under stock plans, shares 340,735        
Stock-based compensation expense 2,000,000.0 2,000,000.0
Net loss (6,400,000) (6,400,000)
Balance at Mar. 31, 2024 387,300,000 45,100,000 (512,700,000) (80,300,000)
Balance, shares at Mar. 31, 2024 26,559,756        
Balance at Dec. 31, 2024 389,900,000 48,300,000 (441,500,000) (3,300,000)
Balance, shares at Dec. 31, 2024 26,581,972        
Foreign currency translation adjustments (400,000) (400,000)
Reclassification of loss on pension plan to comprehensive income 200,000 200,000
Issuances under stock plans
Issuances under stock plans, shares 322,860        
Stock-based compensation expense 1,400,000 1,400,000
Net loss (100,000) (100,000)
Balance at Mar. 31, 2025 $ 391,300,000 $ 48,100,000 $ (441,600,000) $ (2,200,000)
Balance, shares at Mar. 31, 2025 26,904,832        
v3.25.1
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2025
Mar. 31, 2024
Cash flows from operating activities:    
Net loss $ (0.1) $ (6.4)
Adjustments to reconcile net loss to net cash provided by operating activities:    
Depreciation and amortization 9.7 9.8
Amortization of finance lease right of use asset 0.9
Amortization of operating lease right of use asset 0.8 1.1
Stock-based compensation expense 1.4 2.3
Amortization of deferred financing fees relating to senior debt 0.5 0.2
Deferred tax (1.9)
Changes in assets and liabilities:    
Accounts receivable 15.1 1.6
Inventory (2.0) 0.4
Prepaid expenses and other assets (0.5) 6.2
Corporate tax and other current taxes payable (11.3) (6.3)
Accounts payable and accrued expenses 14.3 (2.6)
Deferred revenues and customer prepayment 1.6 0.6
Operating lease liabilities (1.1) (1.0)
Pension contributions (0.2) (0.4)
Other long-term liabilities (1.7) 0.5
Net cash provided by operating activities 25.5 6.0
Cash flows from investing activities:    
Purchases of property and equipment (9.2) (4.4)
Purchases of capital software and internally developed costs (2.1) (3.3)
Contract cost expense (3.8) (2.4)
Net cash used in investing activities (15.1) (10.1)
Cash flows from financing activities:    
Repayments of finance leases (1.7) (0.2)
Net cash used in financing activities (1.7) (0.2)
Effect of exchange rate changes on cash 1.0 (0.4)
Net increase (decrease) in cash 9.7 (4.7)
Cash, beginning of period 29.3 40.0
Cash, end of period 39.0 35.3
Supplemental cash flow disclosures    
Cash paid during the period for interest 1.2 0.1
Cash paid during the period for income taxes 0.7
Cash paid during the period for operating leases 1.7 2.1
Supplemental disclosure of noncash investing and financing activities    
Additional paid in capital from net settlement of RSUs (0.8)
Lease liabilities arising from obtaining finance lease right of use assets (1.3)
Lease liabilities arising from obtaining operating lease right of use assets (2.2)
Right of use property and equipment acquired through finance lease $ 4.2 $ 1.3
v3.25.1
Nature of Operations, Management’s Plans and Summary of Significant Accounting Policies
 3 Months Ended
Mar. 31, 2025
Accounting Policies [Abstract]  
Nature of Operations, Management’s Plans and Summary of Significant Accounting Policies

1. Nature of Operations, Management’s Plans and Summary of Significant Accounting Policies

 

Company Description and Nature of Operations

 

We are a global gaming technology company, supplying content, platform, gaming terminals and other products and services to online and land-based regulated lottery, betting and gaming operators worldwide through a broad range of distribution channels, predominantly on a business-to-business basis. We provide end-to-end digital gaming solutions (i) on our own proprietary and secure network, which accommodates a wide range of devices, including land-based gaming machine terminals, mobile devices and online computer applications and (ii) through third party networks. Our content and other products can be found through the consumer-facing portals of our interactive customers and, through our land-based customers, in licensed betting offices, adult gaming centers, pubs, bingo halls, airports, motorway service areas and leisure parks.

 

Management Liquidity Plans

 

As of March 31, 2025, the Company’s cash on hand was $39.0 million and the Company had working capital in addition to cash of $9.7 million. The Company recorded a net loss of $0.1 million and $6.4 million for the three months ended March 31, 2025 and 2024, respectively. Net losses include non-cash stock-based compensation of $1.4 million and $2.3 million for the three months ended March 31, 2025 and 2024, respectively.

 

Historically, the Company has generally had positive cash flows from operating activities and has relied on a combination of cash flows provided by operations and the incurrence of debt and/or the refinancing of existing debt to fund its obligations. Cash flows provided by operations amounted to $25.5 million and $6.0 million for the three months ended March 31, 2025 and 2024, respectively.

 

Management currently believes that the Company’s cash balances on hand, cash flows expected to be generated from operations, ability to control and defer capital projects and amounts available from the Company’s external borrowings will be sufficient to fund the Company’s net cash requirements through May 2026.

 

Basis of Presentation

 

The accompanying unaudited interim condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information and pursuant to the instructions to Form 10-Q and Article 8 of Regulation S-X of the United States Securities and Exchange Commission (“SEC”). Certain information or footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted, pursuant to the rules and regulations of the SEC for interim financial reporting. Accordingly, they do not include all the information and footnotes necessary for a comprehensive presentation of financial position, results of operations, or cash flows. It is management’s opinion, however, that the accompanying unaudited interim condensed consolidated financial statements include all adjustments, consisting of a normal recurring nature, which are necessary for a fair presentation of the financial position, operating results and cash flows for the periods presented.

 

The accompanying unaudited interim condensed consolidated financial statements should be read in conjunction with the Company’s consolidated financial statements and notes thereto for the years ended December 31, 2024 and 2023. The financial information as of December 31, 2024 is derived from the audited consolidated financial statements presented in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024 filed with the SEC on March 26, 2025. The financial information for the three months ended March 31, 2024 is derived from the unaudited consolidated financial statements presented in the Company’s Quarterly Report on Form 10-Q for the three months ended March 31, 2024 filed with the SEC on May 10, 2024, as revised (see note 19 to these financial statements for details of the revision). The interim results for the three months ended March 31, 2025 are not necessarily indicative of the results to be expected for the year ending December 31, 2025 or for any future interim periods.

 

 
v3.25.1
Allowance for Credit Losses
 3 Months Ended
Mar. 31, 2025
Receivables [Abstract]  
Allowance for Credit Losses

2. Allowance for Credit Losses

 

Changes in the allowance for credit losses are as follows:

 

  

March 31, 2025

  

December 31, 2024

 
   (in millions) 
Beginning balance  $(1.0)  $(1.1)
Additional allowance for credit losses   —    (0.1)
Recoveries   —    — 
Write offs   —    0.2 
Foreign currency translation adjustments   —    — 
Ending balance  $(1.0)  $(1.0)

 
v3.25.1
Inventory
 3 Months Ended
Mar. 31, 2025
Inventory Disclosure [Abstract]  
Inventory

3. Inventory

 

Inventory consists of the following:

 

   March 31, 2025   December 31, 2024 
   (in millions) 
Component parts  $14.2   $12.3 
Work in progress   —    0.5 
Finished goods   16.9    15.2 
Total inventory  $31.1   $28.0 

 

Component parts include parts for gaming terminals. Our finished goods inventory primarily consists of gaming terminals which are ready for sale.

 
v3.25.1
Prepaid Expenses and Other Assets
 3 Months Ended
Mar. 31, 2025
Prepaid Expenses And Other Assets  
Prepaid Expenses and Other Assets

4. Prepaid Expenses and Other Assets

 

Prepaid expenses and other assets consist of the following:

 

  

March 31, 2025

  

December 31, 2024

 
   (in millions) 
Prepaid expenses and other assets  $8.1   $10.0 
Unbilled accounts receivable   27.3    26.0 
Total prepaid expenses and other assets  $35.4   $36.0 

 
v3.25.1
Accounts Payable and Accrued Expenses
 3 Months Ended
Mar. 31, 2025
Payables and Accruals [Abstract]  
Accounts Payable and Accrued Expenses

5. Accounts Payable and Accrued Expenses

 

Accounts payable and accrued expenses consist of the following:

 

   March 31, 2025   December 31, 2024 
   (in millions) 
Accounts payable  $37.7   $29.3 
Interest payable   8.8    — 
Payroll and related costs   4.7    5.7 
Cost of sales including inventory   5.3    4.6 
Other creditors   13.1    14.1 
Total accounts payable and accrued expenses  $69.6   $53.7 

 
v3.25.1
Contract Related Disclosures
 3 Months Ended
Mar. 31, 2025
Revenue from Contract with Customer [Abstract]  
Contract Related Disclosures

6. Contract Related Disclosures

 

The following table summarizes contract related balances:

 

   

Accounts

Receivable

  

Unbilled

Accounts

Receivable

  

Right to

recover

asset

  

Deferred

Income

  

Customer

Prepayments

and Deposits

 
    (in millions) 
At March 31, 2025   $47.3   $27.3   $0.6   $(20.3)  $(4.0)
At December 31, 2024   $61.5   $26.0   $0.6   $(18.6)  $(3.9)

 

Revenue recognized that was included in the deferred income balance at the beginning of the period amounted to $1.7 million and $1.9 million for the three months ended March 31, 2025 and 2024, respectively.

 

For the periods ended March 31, 2025 and 2024 respectively, there was no significant amounts of revenue recognized as a result of changes in contract transaction price related to performance obligations that were satisfied in the respective prior periods.

 

Transaction Price Allocated to Remaining Performance Obligations

 

At March 31, 2025, the transaction price allocated to unsatisfied performance obligations for contracts expected to be greater than one year, or performance obligations for which we do not have a right to consideration from the customer in the amount that corresponds to the value to the customer for our performance completed to date, variable consideration which is not accounted for in accordance with the sales-based or usage-based royalties guidance, or contracts which are not wholly unperformed, is approximately $144.7 million. Of this amount, we expect to recognize as revenue approximately 27% through December 31, 2025, approximately 43% through December 31, 2027, and the remaining 30% through December 31, 2031.

 
v3.25.1
Long Term Debt
 3 Months Ended
Mar. 31, 2025
Debt Disclosure [Abstract]  
Long Term Debt

7. Long Term Debt

 

Senior Secured Notes

 

Long-term debt consists of £235.0 million ($303.4 million) of Senior Secured Notes less $1.9 million of capitalized debt fees which are being amortized over the length of the Senior Secured Notes. The Senior Secured Notes bear interest at a fixed rate of 7.875% and are fully repayable on June 1, 2026.

 

Under our debt facilities in place as of March 31, 2025, we were not subject to covenant testing on our senior secured notes (the “Senior Secured Notes”). We are, however, subject to covenant testing at the level of Inspired Entertainment Inc., the ultimate holding company, on our Revolving Credit Facility Agreement (the “RCF Agreement”) which required the Company to maintain a maximum consolidated senior secured net leverage ratio of 6.0x on March 31, 2022, stepping down to 5.75x on March 31, 2023 and 5.50x from March 31, 2024 and thereafter (the “RCF Financial Covenant”). The RCF Financial Covenant is calculated as the ratio of consolidated senior secured net debt to consolidated pro forma EBITDA (defined as net loss excluding depreciation and amortization, interest expense, interest income and income tax expense) for the 12-month period preceding the relevant quarterly testing date and is tested quarterly on a rolling basis, subject to the Initial Facility (as defined in the RCF Agreement) being drawn on the relevant test date. The RCF Financial Covenant does not include a minimum interest coverage ratio or other financial covenants. Covenant testing at March 31, 2025 showed covenant compliance with a net leverage of 2.9x.

 

The Indenture governing the Senior Secured Notes contains covenants and certain reporting requirements including the requirement to provide the lender, within 60 days after the close of the quarter, unaudited quarterly financial statements with footnote disclosures.

 

There were no covenant violations in the periods ended March 31, 2025 or March 31, 2024.

 

 
v3.25.1
Stock-Based Compensation
 3 Months Ended
Mar. 31, 2025
Share-Based Payment Arrangement [Abstract]  
Stock-Based Compensation

8. Stock-Based Compensation

 

A summary of the Company’s restricted stock unit (“RSU”) activity during the three months ended March 31, 2025 is as follows:

 

   Number of Shares 
     
Unvested Outstanding at January 1, 2025   786,551 
Granted (1)   809,124 
Forfeited   (117,422)
Vested   (85,214)
Unvested Outstanding at March 31, 2025   1,393,039 

 

(1) The amount shown as “granted” includes 259,717 performance-based target RSUs for 2025 as to which the number that ultimately vests would range from 0% to 200% of the target amount of RSUs (a maximum of 519,434 RSUs based on attainment of Adjusted EBITDA targets for 2025). The amount shown also includes tranches covering an aggregate of 104,166 Adjusted EBITDA RSUs (subject to performance criteria for 2025) which can be earned at up to 100% of the target amount of RSUs; such tranches were part of sign-on awards of multiple tranches approved in 2023 for our Executive Chairman and our Chief Executive Officer with respect to which the accounting grant date for the 2025 tranches did not occur until the targets were set in February 2025.

 

The Company issued a total of 322,860 shares during the three months ended March 31, 2025, in connection with the Company’s equity-based plans, which included an aggregate of 274,112 shares issued in connection with the net settlement of RSUs that vested during the prior year (on December 31, 2024) and an aggregate of 36,968 shares subject to awards that vested between 2020 and 2023.

 
v3.25.1
Accumulated Other Comprehensive Loss (Income)
 3 Months Ended
Mar. 31, 2025
Equity [Abstract]  
Accumulated Other Comprehensive Loss (Income)

9. Accumulated Other Comprehensive Loss (Income)

 

The accumulated balances for each classification of comprehensive loss (income) are presented below:

 

  

Foreign

Currency

Translation

Adjustments

  

Unrecognized

Pension

Benefit Costs

  

Accumulated

Other

Comprehensive

(Income)

 
   (in millions) 
Balance at January 1, 2025  $(78.5)  $30.2   $(48.3)
Change during the period   0.4    (0.2)   0.2 
Balance at March 31, 2025  $(78.1)  $30.0   $(48.1)

 

  

Foreign

Currency

Translation

Adjustments

  

Unrecognized

Pension

Benefit Costs

  

Accumulated

Other

Comprehensive

(Income)

 
   (in millions) 
Balance at January 1, 2024  $(78.1)  $33.8   $(44.3)
Change during the period   (0.5)   (0.3)   (0.8)
Balance at March 31, 2024  $(78.6)  $33.5   $(45.1)

 

 
v3.25.1
Net Income (Loss) per Share
 3 Months Ended
Mar. 31, 2025
Earnings Per Share [Abstract]  
Net Income (Loss) per Share

10. Net Income (Loss) per Share

 

Basic income/loss per share (“EPS”) is computed by dividing net income/loss attributable to common stockholders by the weighted-average number of common shares outstanding during the period, excluding the effects of any potentially dilutive securities. Diluted EPS gives effect to all dilutive potential shares of common stock outstanding during the period, including stock options and RSUs, unless the inclusion would be anti-dilutive.

 

The computation of diluted EPS excludes the common stock equivalents of the following potentially dilutive securities because they were either contingently issuable shares or because their inclusion would be anti-dilutive:

 

    2025   2024 
    Three Months Ended March 31, 
    2025   2024 
RSUs   $1,393,039   $1,807,119 

 

There were no reconciling items for the three months ended March 31, 2025 or March 31, 2024.

 

The calculation of Basic EPS includes the effects of 2,160,393 and 1,840,165 shares for the three months ended March 31, 2025 and 2024, respectively, with respect to RSU awards that have vested but have not yet been issued.

 
v3.25.1
Other Finance Income (Expense)
 3 Months Ended
Mar. 31, 2025
Other Income and Expenses [Abstract]  
Other Finance Income (Expense)

11. Other Finance Income (Expense)

 

Other finance income (expense) consisted of the following:

 

   2025   2024 
   Three Months Ended March 31, 
   2025   2024 
   (in millions) 
Pension interest cost  $(0.9)  $(0.9)
Expected return on pension plan assets   1.1    1.0 
Other finance income (expense)  $0.2   $0.1 

 
v3.25.1
Income Taxes
 3 Months Ended
Mar. 31, 2025
Income Tax Disclosure [Abstract]  
Income Taxes

12. Income Taxes

 

The effective income tax rate for the three months ended March 31, 2025 and 2024 was 97.3% and 25.4%, respectively, resulting in a $5.1 million and $2.1 million income tax benefit, respectively.

 

The effective tax rate reported in any given year will continue to be influenced by a variety of factors, including the level of pre-tax income or loss, the income mix between jurisdictions, and any discrete items that may occur.

In the fourth quarter of 2024, the Company determined that, due to positive income generation in the United Kingdom in recent years leading to a cumulative income position, and based on forecasted future taxable income, while considering expected permanent and temporary timing tax differences, a significant portion of the valuation allowance against its deferred tax assets was no longer necessary. Consistent with the position at December 31, 2024, the company maintains a valuation allowance related to capital loss carryovers in the United Kingdom, state net operating losses unable to be utilized in the United States, and United States interest expected to be limited under Section 163(j).

 

 
v3.25.1
Related Parties
 3 Months Ended
Mar. 31, 2025
Related Party Transactions [Abstract]  
Related Parties

13. Related Parties

 

Macquarie Corporate Holdings Pty Limited (UK Branch) (“Macquarie UK”) (an arranger and lending party under our RCF Agreement) is an affiliate of MIHI LLC, which beneficially owned approximately 11.2% of our common stock as of March 31, 2025. Macquarie UK held $2.1 million of the total $19.4 million of RCF drawn at March 31, 2025 and $2.1 million of the total $18.8 million of RCF drawn at December 31, 2024. Interest expense payable to Macquarie UK for the three months ended March 31, 2025 and 2024 (including non-utilization fees) amounted to $0.1 million and $0.1 million, respectively. Macquarie UK did not hold any of the Company’s senior notes at March 31, 2025 or December 31, 2024. MIHI LLC is also a party to a stockholders agreement with the Company and other stockholders, dated December 23, 2016, pursuant to which, subject to certain conditions, MIHI LLC, jointly with Hydra Industries Sponsor LLC, are permitted to designate two directors to be nominated for election as directors of the Company at any annual or special meeting of stockholders at which directors are to be elected, until such time as MIHI LLC and Hydra Industries Sponsor LLC in the aggregate hold less than 5% of the outstanding shares of the Company.

 

Richard Weil, the brother of A. Lorne Weil, our Executive Chairman, provides consulting services to the Company relating to our lottery operations in the Dominican Republic under a consultancy agreement dated December 31, 2021, as amended. The aggregate amount incurred by the Company in consulting fees was $37,500 and $37,500 for the three months ended March 31, 2025 and 2024, respectively.

 
v3.25.1
Leases
 3 Months Ended
Mar. 31, 2025
Leases  
Leases

14. Leases

 

Certain of our arrangements include leases for equipment installed at customer locations. As the lessor, we combine lease and non-lease components for all classes of underlying assets in arrangements that involve operating leases. The single combined component is accounted for under ASC 606, Revenue from Contracts with Customers based on the consideration that the non-lease components are the predominant items in the arrangements. If a component cannot be combined, the consideration is allocated between the lease component and the non-lease component based on relative standalone selling price. The lease component is accounted for under ASC 842, Leases and the non-lease component is accounted for under ASC 606.

 

Lease income from operating leases is not material for any of the periods presented, and lease income from sales type leases for the three months ended March 31, 2024 is not material. Lease income from sales type leases for the three months ended March 31, 2025 is as follows:

 

     Three Months Ended March 31, 2025 
     (in millions) 
Interest receivable    $0.3 
Profit recognized at commencement date of sales type leases     1.1 
Unvested Outstanding at March 31, 2025     $ 1.4 

 
v3.25.1
Commitments and Contingencies
 3 Months Ended
Mar. 31, 2025
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies

15. Commitments and Contingencies

 

Employment Agreements

 

We are party to employment agreements with our executive officers and other employees of the Company and our subsidiaries which contain, among other terms, provisions relating to severance and notice requirements.

 

Legal Matters

 

From time to time, the Company may become involved in lawsuits and legal matters arising in the ordinary course of business. While the Company believes that, currently, it has no such matters that are material, there can be no assurance that existing or new matters arising in the ordinary course of business will not have a material adverse effect on the Company’s business, financial condition or results of operations.

 

 
v3.25.1
Pension Plan
 3 Months Ended
Mar. 31, 2025
Retirement Benefits [Abstract]  
Pension Plan

16. Pension Plan

 

We operate a defined contribution plan in the US, and both defined benefit and defined contribution pension schemes in the UK. The defined contribution scheme assets are held separately from those of the Company in independently administered funds.

 

Defined Benefit Pension Scheme

 

The defined benefit scheme has been closed to new entrants since April 1, 1999 and closed to future accruals for services rendered to the Company for the entire financial statement periods presented. The Actuarial Valuation of the scheme as at March 31, 2024, determined that the statutory funding objective was not met, i.e., there were insufficient assets to cover the scheme’s technical provisions and there was a funding shortfall.

 

In March 2025, a recovery plan was put in place to eliminate the funding shortfall. The plan expects the shortfall to be eliminated by October 31, 2026.

 

The following table presents the components of our net periodic pension cost:

 

   2025   2024 
   Three Months Ended March 31, 
   2025   2024 
   (in millions) 
Components of net periodic pension cost:          
Interest cost  $0.9   $0.9 
Expected return on plan assets   (1.1)   (1.0)
Amortization of net loss   0.2    0.3 
Net periodic cost  $—   $0.2 

 

 
v3.25.1
Segment Reporting and Geographic Information
 3 Months Ended
Mar. 31, 2025
Segment Reporting [Abstract]  
Segment Reporting and Geographic Information

17. Segment Reporting and Geographic Information

 

Operating segments are identified as components of an enterprise for which separate and discrete financial information is available and is used by the chief operating decision maker, or decision-making group, in making decisions on how to allocate resources and assess performance. The Company’s chief decision-making group consists of the Executive Chairman, the Chief Executive Officer and the Chief Financial Officer.

 

The Company’s chief decision-making group uses measures of segment profit and loss to evaluate the performance areas of 1) Achievement of revenue and gross margin; 2) Level of staff and non-staff expenses against budget; 3) Investment in capitalized software development; and 4) Additional cash expenditures impacting working capital. The decision-making group uses the information to allocate financial resources and drive operation decisions such as investing in new customers, products, geographies and refocusing commercial teams to drive new sales, accelerating or delaying staffing or other selling, general and administrative expenditures and ensuring technology staff utilization on new product development.

 

The Company operates its business along four operating segments, which are segregated on the basis of revenue stream: Gaming, Virtual Sports, Interactive and Leisure. The Company believes this method of segment reporting reflects both the way its business segments are managed and the way the performance of each segment is evaluated.

 

Other segment items consist of costs incurred in restructuring activities.

 

The following tables present revenue, cost of sales, excluding depreciation and amortization, staff-related selling, general and administrative expenses, non-staff related selling, general and administrative expenses, labor costs capitalized, depreciation and amortization, stock-based compensation expense, acquisition related transaction expenses, other segment items, operating profit/(loss), total assets and total capital and other long-lived asset expenditures for the periods ended March 31, 2025 and March 31, 2024, respectively, by business segment. Certain unallocated corporate function costs have not been allocated to the Company’s reportable operating segments because these costs are not allocable and to do so would not be practical. Corporate function costs consist primarily of selling, general and administrative expenses, depreciation and amortization, capital expenditures, right of use assets, cash, prepaid expenses and property and equipment and software development costs relating to corporate/shared functions. All acquisition and integration related transaction expenses are allocated as corporate function costs.

Segment Information

 

Three Months Ended March 31, 2025

 

   Gaming  

Virtual

Sports

   Interactive   Leisure  

Corporate

Functions

   Total 
   (in millions) 
Revenue:                              
Service  $18.9   $8.7   $12.1   $17.3   $—   $57.0 
Product sales   2.8    —    —    0.6    —    3.4 
Total revenue   21.7    8.7    12.1    17.9    —    60.4 
Cost of sales, excluding depreciation and amortization:                              
Cost of service   (5.4)   (0.5)   (0.6)   (8.5)   —    (15.0)
Cost of product sales   (2.6)   —    —    (0.3)   —    (2.9)
Staff-related selling, general and administrative expenses   (3.4)   (2.2)   (2.4)   (4.0)   (3.2)   (15.2)
Non-staff related selling, general and administrative expenses   (2.9)   (0.6)   (2.0)   (3.5)   (3.4)   (12.4)
Labor costs capitalized   1.9    0.9    0.6    0.1    —    3.5 
Stock-based compensation expense   (0.2)   (0.1)   (0.1)   (0.1)   (0.9)   (1.4)
Depreciation and amortization   (4.7)   (1.3)   (0.7)   (3.2)   (0.7)   (10.6)
Other segment items   (0.2)   —    —    (0.1)   (4.5)   (4.8)
Segment operating income (loss)   4.2    4.9    6.9    (1.7)   (12.7)   1.6 
                               
Net operating income                           $1.6 
                               
Total capital and other long-lived asset expenditures for the three months ended March 31, 2025  $8.1   $0.5   $0.5   $0.4   $1.0   $10.5 

 

 

Three Months Ended March 31, 2024

 

   Gaming  

Virtual

Sports

   Interactive   Leisure  

Corporate

Functions

   Total 
   (in millions) 
Revenue:                              
Service  $17.7   $12.4   $8.1   $18.0   $—   $56.2 
Product sales   5.5    —    —    0.6    —    6.1 
Total revenue   23.2    12.4    8.1    18.6    —    62.3 
Cost of sales, excluding depreciation and amortization:                              
Cost of service   (5.8)   (0.4)   (0.6)   (9.1)   —    (15.9)
Cost of product sales   (4.3)   —    —    (0.2)   —    (4.5)
Staff-related selling, general and administrative expenses   (4.7)   (2.2)   (2.1)   (4.2)   (2.6)   (15.8)
Non-staff related selling, general and administrative expenses   (2.9)   (0.7)   (1.4)   (3.6)   (5.0)   (13.6)
Labor costs capitalized   1.0    1.3    0.4    0.3    —    3.0 
Stock-based compensation expense   (0.2)   (0.1)   (0.1)   (0.1)   (1.8)   (2.3)
Acquisition and integration related transaction expenses   —    —    —    —    —    — 
Depreciation and amortization   (4.2)   (0.9)   (1.2)   (3.0)   (0.5)   (9.8)
Other segment items   —    —    —    —    (5.5)   (5.5)
Segment operating income (loss)   2.1    9.4    3.1    (1.3)   (15.4)   (2.1)
                               
Net operating loss                           $(2.1)
                               
Total capital and other long-lived asset expenditures for the three months ended March 31, 2024  $2.0   $1.2   $0.5   $4.9   $0.5   $9.1 

 

Geographic Information

 

Geographic information for revenue is set forth below:

 

   2025   2024 
   Three Months Ended March 31, 
   2025   2024 
   (in millions) 
Total revenue          
UK  $39.4   $46.4 
USA   6.5    3.7 
Greece   6.2    6.1 
Rest of world   8.3    6.1 
Total  $60.4   $62.3 

 

UK revenue includes revenue from customers headquartered in the UK, but whose revenue is generated globally.

 

Geographic information of our non-current assets excluding goodwill and deferred tax is set forth below:

 

   March 31, 2025   December 31, 2024 
   (in millions) 
UK  $122.6   $115.1 
Greece   18.8    12.7 
Rest of world   24.9    25.6 
Total  $166.3   $153.4 

 

Software development costs are included as attributable to the market in which they are utilized.

 
v3.25.1
Customer Concentration
 3 Months Ended
Mar. 31, 2025
Risks and Uncertainties [Abstract]  
Customer Concentration

18. Customer Concentration

 

During the three months ended March 31, 2025, there were no customers that represented at least 10% of the Company’s revenues. During the three months ended March 31, 2024, there was one customer that represented at least 10% of the Company’s revenues, accounting for approximately 11% of the Company’s revenues. This customer was served by the Virtual Sports and Interactive segments.

 

At March 31, 2025 there was one customer that represented at least 10% of the Company’s accounts receivable, accounting for approximately 11% of the Company’s accounts receivable. At December 31, 2024, there was one customer that represented at least 10% of the Company’s accounts receivable, accounting for approximately 16% of the Company’s accounts receivable.

 
v3.25.1
Revision of Previously Reported Information
 3 Months Ended
Mar. 31, 2025
Accounting Changes and Error Corrections [Abstract]  
Revision of Previously Reported Information

19. Revision of Previously Reported Information

 

In connection with the preparation of the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2024 (the “2024 Form 10-K”), the Company identified immaterial errors in its previously reported financial statements for the periods ended March 31, 2024, June 30, 2024 and September 30, 2024 relating to the classification of leases between operating and sales type.

 

In accordance with Staff Accounting Bulletin (“SAB”) 99, Materiality, and SAB 108, Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in the Current Year Financial Statements, the Company evaluated the materiality of the errors from qualitative and quantitative perspectives, and concluded that the errors were immaterial to any prior interim financial statements. Notwithstanding this conclusion, management has revised the accompanying consolidated financial statements for 2024, and related notes included herein to correct the errors. Management also revised the consolidated financial statements for 2024 and related notes in the 2024 Form 10-K, filed with the SEC on March 26, 2025.

 

The following tables present the effect of correcting this error on the Company’s previously issued financial statements.

 

For the period ended March 31, 2024

   As previously reported   Adjustment   As revised 
   (in millions, except per share data) 
Consolidated Statement of Operations               
Revenue  $63.1   $(0.8)  $62.3 
Depreciation and amortization   (9.9)   0.1    (9.8)
Net operating loss   (1.4)   (0.7)   (2.1)
Interest expense, net   (6.6)   0.1    (6.5)
Total other expense, net   (6.5)   0.1    (6.4)
Loss before income taxes   (7.9)   (0.6)   (8.5)
Net loss   (5.7)   (0.7)   (6.4)
Comprehensive loss   (4.4)   (1.2)   (5.6)
Net loss per common share – basic and diluted   (0.20)   (0.02)   (0.22)

 

For the period ended March 31, 2024

 

   As previously reported   Adjustment   As revised 
   (in millions) 
Consolidated Statement of Cashflows               
Net loss  $(5.7)  $(0.7)  $(6.4)
Depreciation and amortization   9.9    (0.1)   9.8 
Accounts receivable   2.7    (1.1)   1.6 
Prepaid expenses and other assets   4.3    1.9    6.2 
Net cash provided by operating activities   6.0    —    6.0 

 
v3.25.1
Subsequent Events
 3 Months Ended
Mar. 31, 2025
Subsequent Events [Abstract]  
Subsequent Events

20. Subsequent Events

 

The Company evaluates subsequent events and transactions that occur after the balance sheet date up to the date that the financial statements were issued. The Company did not identify subsequent events that would have required adjustment or disclosure in the consolidated financial statements.
v3.25.1
Nature of Operations, Management’s Plans and Summary of Significant Accounting Policies (Policies)
 3 Months Ended
Mar. 31, 2025
Accounting Policies [Abstract]  
Company Description and Nature of Operations

Company Description and Nature of Operations

 

We are a global gaming technology company, supplying content, platform, gaming terminals and other products and services to online and land-based regulated lottery, betting and gaming operators worldwide through a broad range of distribution channels, predominantly on a business-to-business basis. We provide end-to-end digital gaming solutions (i) on our own proprietary and secure network, which accommodates a wide range of devices, including land-based gaming machine terminals, mobile devices and online computer applications and (ii) through third party networks. Our content and other products can be found through the consumer-facing portals of our interactive customers and, through our land-based customers, in licensed betting offices, adult gaming centers, pubs, bingo halls, airports, motorway service areas and leisure parks.

 
Management Liquidity Plans

Management Liquidity Plans

 

As of March 31, 2025, the Company’s cash on hand was $39.0 million and the Company had working capital in addition to cash of $9.7 million. The Company recorded a net loss of $0.1 million and $6.4 million for the three months ended March 31, 2025 and 2024, respectively. Net losses include non-cash stock-based compensation of $1.4 million and $2.3 million for the three months ended March 31, 2025 and 2024, respectively.

 

Historically, the Company has generally had positive cash flows from operating activities and has relied on a combination of cash flows provided by operations and the incurrence of debt and/or the refinancing of existing debt to fund its obligations. Cash flows provided by operations amounted to $25.5 million and $6.0 million for the three months ended March 31, 2025 and 2024, respectively.

 

Management currently believes that the Company’s cash balances on hand, cash flows expected to be generated from operations, ability to control and defer capital projects and amounts available from the Company’s external borrowings will be sufficient to fund the Company’s net cash requirements through May 2026.

 
Basis of Presentation

Basis of Presentation

 

The accompanying unaudited interim condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information and pursuant to the instructions to Form 10-Q and Article 8 of Regulation S-X of the United States Securities and Exchange Commission (“SEC”). Certain information or footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted, pursuant to the rules and regulations of the SEC for interim financial reporting. Accordingly, they do not include all the information and footnotes necessary for a comprehensive presentation of financial position, results of operations, or cash flows. It is management’s opinion, however, that the accompanying unaudited interim condensed consolidated financial statements include all adjustments, consisting of a normal recurring nature, which are necessary for a fair presentation of the financial position, operating results and cash flows for the periods presented.

 

The accompanying unaudited interim condensed consolidated financial statements should be read in conjunction with the Company’s consolidated financial statements and notes thereto for the years ended December 31, 2024 and 2023. The financial information as of December 31, 2024 is derived from the audited consolidated financial statements presented in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024 filed with the SEC on March 26, 2025. The financial information for the three months ended March 31, 2024 is derived from the unaudited consolidated financial statements presented in the Company’s Quarterly Report on Form 10-Q for the three months ended March 31, 2024 filed with the SEC on May 10, 2024, as revised (see note 19 to these financial statements for details of the revision). The interim results for the three months ended March 31, 2025 are not necessarily indicative of the results to be expected for the year ending December 31, 2025 or for any future interim periods.
v3.25.1
Allowance for Credit Losses (Tables)
 3 Months Ended
Mar. 31, 2025
Receivables [Abstract]  
Schedule of Changes in Allowance for Credit Losses

Changes in the allowance for credit losses are as follows:

 

  

March 31, 2025

  

December 31, 2024

 
   (in millions) 
Beginning balance  $(1.0)  $(1.1)
Additional allowance for credit losses   —    (0.1)
Recoveries   —    — 
Write offs   —    0.2 
Foreign currency translation adjustments   —    — 
Ending balance  $(1.0)  $(1.0)
v3.25.1
Inventory (Tables)
 3 Months Ended
Mar. 31, 2025
Inventory Disclosure [Abstract]  
Schedule of Inventory

Inventory consists of the following:

 

   March 31, 2025   December 31, 2024 
   (in millions) 
Component parts  $14.2   $12.3 
Work in progress   —    0.5 
Finished goods   16.9    15.2 
Total inventory  $31.1   $28.0 
v3.25.1
Prepaid Expenses and Other Assets (Tables)
 3 Months Ended
Mar. 31, 2025
Prepaid Expenses And Other Assets  
Schedule of Prepaid Expenses and Other Assets

Prepaid expenses and other assets consist of the following:

 

  

March 31, 2025

  

December 31, 2024

 
   (in millions) 
Prepaid expenses and other assets  $8.1   $10.0 
Unbilled accounts receivable   27.3    26.0 
Total prepaid expenses and other assets  $35.4   $36.0 
v3.25.1
Accounts Payable and Accrued Expenses (Tables)
 3 Months Ended
Mar. 31, 2025
Payables and Accruals [Abstract]  
Schedule of Accounts Payable and Accrued Expenses

Accounts payable and accrued expenses consist of the following:

 

   March 31, 2025   December 31, 2024 
   (in millions) 
Accounts payable  $37.7   $29.3 
Interest payable   8.8    — 
Payroll and related costs   4.7    5.7 
Cost of sales including inventory   5.3    4.6 
Other creditors   13.1    14.1 
Total accounts payable and accrued expenses  $69.6   $53.7 
v3.25.1
Contract Related Disclosures (Tables)
 3 Months Ended
Mar. 31, 2025
Revenue from Contract with Customer [Abstract]  
Schedule of Contract Related Balances

The following table summarizes contract related balances:

 

   

Accounts

Receivable

  

Unbilled

Accounts

Receivable

  

Right to

recover

asset

  

Deferred

Income

  

Customer

Prepayments

and Deposits

 
    (in millions) 
At March 31, 2025   $47.3   $27.3   $0.6   $(20.3)  $(4.0)
At December 31, 2024   $61.5   $26.0   $0.6   $(18.6)  $(3.9)
v3.25.1
Stock-Based Compensation (Tables)
 3 Months Ended
Mar. 31, 2025
Share-Based Payment Arrangement [Abstract]  
Schedule of Restricted Stock Unit Activity

A summary of the Company’s restricted stock unit (“RSU”) activity during the three months ended March 31, 2025 is as follows:

 

   Number of Shares 
     
Unvested Outstanding at January 1, 2025   786,551 
Granted (1)   809,124 
Forfeited   (117,422)
Vested   (85,214)
Unvested Outstanding at March 31, 2025   1,393,039 

 

(1) The amount shown as “granted” includes 259,717 performance-based target RSUs for 2025 as to which the number that ultimately vests would range from 0% to 200% of the target amount of RSUs (a maximum of 519,434 RSUs based on attainment of Adjusted EBITDA targets for 2025). The amount shown also includes tranches covering an aggregate of 104,166 Adjusted EBITDA RSUs (subject to performance criteria for 2025) which can be earned at up to 100% of the target amount of RSUs; such tranches were part of sign-on awards of multiple tranches approved in 2023 for our Executive Chairman and our Chief Executive Officer with respect to which the accounting grant date for the 2025 tranches did not occur until the targets were set in February 2025.
v3.25.1
Accumulated Other Comprehensive Loss (Income) (Tables)
 3 Months Ended
Mar. 31, 2025
Equity [Abstract]  
Schedule of Accumulated Other Comprehensive Loss (Income)

The accumulated balances for each classification of comprehensive loss (income) are presented below:

 

  

Foreign

Currency

Translation

Adjustments

  

Unrecognized

Pension

Benefit Costs

  

Accumulated

Other

Comprehensive

(Income)

 
   (in millions) 
Balance at January 1, 2025  $(78.5)  $30.2   $(48.3)
Change during the period   0.4    (0.2)   0.2 
Balance at March 31, 2025  $(78.1)  $30.0   $(48.1)

 

  

Foreign

Currency

Translation

Adjustments

  

Unrecognized

Pension

Benefit Costs

  

Accumulated

Other

Comprehensive

(Income)

 
   (in millions) 
Balance at January 1, 2024  $(78.1)  $33.8   $(44.3)
Change during the period   (0.5)   (0.3)   (0.8)
Balance at March 31, 2024  $(78.6)  $33.5   $(45.1)
v3.25.1
Net Income (Loss) per Share (Tables)
 3 Months Ended
Mar. 31, 2025
Earnings Per Share [Abstract]  
Schedule of Anti-dilutive Securities Excluded from Computation of Earnings Per Share

The computation of diluted EPS excludes the common stock equivalents of the following potentially dilutive securities because they were either contingently issuable shares or because their inclusion would be anti-dilutive:

 

    2025   2024 
    Three Months Ended March 31, 
    2025   2024 
RSUs   $1,393,039   $1,807,119 
v3.25.1
Other Finance Income (Expense) (Tables)
 3 Months Ended
Mar. 31, 2025
Other Income and Expenses [Abstract]  
Schedule of Other Finance Income

Other finance income (expense) consisted of the following:

 

   2025   2024 
   Three Months Ended March 31, 
   2025   2024 
   (in millions) 
Pension interest cost  $(0.9)  $(0.9)
Expected return on pension plan assets   1.1    1.0 
Other finance income (expense)  $0.2   $0.1 

 
v3.25.1
Leases (Tables)
 3 Months Ended
Mar. 31, 2025
Leases  
Schedule of Lease Income from Sales

Lease income from operating leases is not material for any of the periods presented, and lease income from sales type leases for the three months ended March 31, 2024 is not material. Lease income from sales type leases for the three months ended March 31, 2025 is as follows:

 

     Three Months Ended March 31, 2025 
     (in millions) 
Interest receivable    $0.3 
Profit recognized at commencement date of sales type leases     1.1 
Unvested Outstanding at March 31, 2025     $ 1.4 
v3.25.1
Pension Plan (Tables)
 3 Months Ended
Mar. 31, 2025
Retirement Benefits [Abstract]  
Schedule of Defined Benefit Plans

The following table presents the components of our net periodic pension cost:

 

   2025   2024 
   Three Months Ended March 31, 
   2025   2024 
   (in millions) 
Components of net periodic pension cost:          
Interest cost  $0.9   $0.9 
Expected return on plan assets   (1.1)   (1.0)
Amortization of net loss   0.2    0.3 
Net periodic cost  $—   $0.2 
v3.25.1
Segment Reporting and Geographic Information (Tables)
 3 Months Ended
Mar. 31, 2025
Segment Reporting [Abstract]  
Schedule of Segment Reporting Information by Segment

Segment Information

 

Three Months Ended March 31, 2025

 

   Gaming  

Virtual

Sports

   Interactive   Leisure  

Corporate

Functions

   Total 
   (in millions) 
Revenue:                              
Service  $18.9   $8.7   $12.1   $17.3   $—   $57.0 
Product sales   2.8    —    —    0.6    —    3.4 
Total revenue   21.7    8.7    12.1    17.9    —    60.4 
Cost of sales, excluding depreciation and amortization:                              
Cost of service   (5.4)   (0.5)   (0.6)   (8.5)   —    (15.0)
Cost of product sales   (2.6)   —    —    (0.3)   —    (2.9)
Staff-related selling, general and administrative expenses   (3.4)   (2.2)   (2.4)   (4.0)   (3.2)   (15.2)
Non-staff related selling, general and administrative expenses   (2.9)   (0.6)   (2.0)   (3.5)   (3.4)   (12.4)
Labor costs capitalized   1.9    0.9    0.6    0.1    —    3.5 
Stock-based compensation expense   (0.2)   (0.1)   (0.1)   (0.1)   (0.9)   (1.4)
Depreciation and amortization   (4.7)   (1.3)   (0.7)   (3.2)   (0.7)   (10.6)
Other segment items   (0.2)   —    —    (0.1)   (4.5)   (4.8)
Segment operating income (loss)   4.2    4.9    6.9    (1.7)   (12.7)   1.6 
                               
Net operating income                           $1.6 
                               
Total capital and other long-lived asset expenditures for the three months ended March 31, 2025  $8.1   $0.5   $0.5   $0.4   $1.0   $10.5 

 

 

Three Months Ended March 31, 2024

 

   Gaming  

Virtual

Sports

   Interactive   Leisure  

Corporate

Functions

   Total 
   (in millions) 
Revenue:                              
Service  $17.7   $12.4   $8.1   $18.0   $—   $56.2 
Product sales   5.5    —    —    0.6    —    6.1 
Total revenue   23.2    12.4    8.1    18.6    —    62.3 
Cost of sales, excluding depreciation and amortization:                              
Cost of service   (5.8)   (0.4)   (0.6)   (9.1)   —    (15.9)
Cost of product sales   (4.3)   —    —    (0.2)   —    (4.5)
Staff-related selling, general and administrative expenses   (4.7)   (2.2)   (2.1)   (4.2)   (2.6)   (15.8)
Non-staff related selling, general and administrative expenses   (2.9)   (0.7)   (1.4)   (3.6)   (5.0)   (13.6)
Labor costs capitalized   1.0    1.3    0.4    0.3    —    3.0 
Stock-based compensation expense   (0.2)   (0.1)   (0.1)   (0.1)   (1.8)   (2.3)
Acquisition and integration related transaction expenses   —    —    —    —    —    — 
Depreciation and amortization   (4.2)   (0.9)   (1.2)   (3.0)   (0.5)   (9.8)
Other segment items   —    —    —    —    (5.5)   (5.5)
Segment operating income (loss)   2.1    9.4    3.1    (1.3)   (15.4)   (2.1)
                               
Net operating loss                           $(2.1)
                               
Total capital and other long-lived asset expenditures for the three months ended March 31, 2024  $2.0   $1.2   $0.5   $4.9   $0.5   $9.1 
Schedule of Geographic Information

Geographic information for revenue is set forth below:

 

   2025   2024 
   Three Months Ended March 31, 
   2025   2024 
   (in millions) 
Total revenue          
UK  $39.4   $46.4 
USA   6.5    3.7 
Greece   6.2    6.1 
Rest of world   8.3    6.1 
Total  $60.4   $62.3 

 

UK revenue includes revenue from customers headquartered in the UK, but whose revenue is generated globally.

 

Geographic information of our non-current assets excluding goodwill and deferred tax is set forth below:

 

   March 31, 2025   December 31, 2024 
   (in millions) 
UK  $122.6   $115.1 
Greece   18.8    12.7 
Rest of world   24.9    25.6 
Total  $166.3   $153.4 
v3.25.1
Revision of Previously Reported Information (Tables)
 3 Months Ended
Mar. 31, 2025
Accounting Changes and Error Corrections [Abstract]  
Schedule of Effect of Correcting this Error on Previously Issued Financial Statements

The following tables present the effect of correcting this error on the Company’s previously issued financial statements.

 

For the period ended March 31, 2024

   As previously reported   Adjustment   As revised 
   (in millions, except per share data) 
Consolidated Statement of Operations               
Revenue  $63.1   $(0.8)  $62.3 
Depreciation and amortization   (9.9)   0.1    (9.8)
Net operating loss   (1.4)   (0.7)   (2.1)
Interest expense, net   (6.6)   0.1    (6.5)
Total other expense, net   (6.5)   0.1    (6.4)
Loss before income taxes   (7.9)   (0.6)   (8.5)
Net loss   (5.7)   (0.7)   (6.4)
Comprehensive loss   (4.4)   (1.2)   (5.6)
Net loss per common share – basic and diluted   (0.20)   (0.02)   (0.22)

 

For the period ended March 31, 2024

 

   As previously reported   Adjustment   As revised 
   (in millions) 
Consolidated Statement of Cashflows               
Net loss  $(5.7)  $(0.7)  $(6.4)
Depreciation and amortization   9.9    (0.1)   9.8 
Accounts receivable   2.7    (1.1)   1.6 
Prepaid expenses and other assets   4.3    1.9    6.2 
Net cash provided by operating activities   6.0    —    6.0 
v3.25.1
Nature of Operations, Management’s Plans and Summary of Significant Accounting Policies (Details Narrative) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2025
Mar. 31, 2024
Dec. 31, 2024
Accounting Policies [Abstract]      
Cash on hand $ 39.0   $ 29.3
Additional working capital 9.7    
Net income 0.1 $ 6.4  
Stock-based compensation 1.4 2.3  
Cash flows provided by operations $ 25.5 $ 6.0  
v3.25.1
Schedule of Changes in Allowance for Credit Losses (Details) - USD ($)
$ in Millions
 3 Months Ended 12 Months Ended
Mar. 31, 2025
Dec. 31, 2024
Receivables [Abstract]    
Beginning balance $ (1.0) $ (1.1)
Additional allowance for credit losses (0.1)
Recoveries
Write offs 0.2
Foreign currency translation adjustments
Ending balance $ (1.0) $ (1.0)
v3.25.1
Schedule of Inventory (Details) - USD ($)
$ in Millions
Mar. 31, 2025
Dec. 31, 2024
Inventory Disclosure [Abstract]    
Component parts $ 14.2 $ 12.3
Work in progress 0.5
Finished goods 16.9 15.2
Total inventory $ 31.1 $ 28.0
v3.25.1
Schedule of Prepaid Expenses and Other Assets (Details) - USD ($)
$ in Millions
Mar. 31, 2025
Dec. 31, 2024
Prepaid Expenses And Other Assets    
Prepaid expenses and other assets $ 8.1 $ 10.0
Unbilled accounts receivable 27.3 26.0
Total prepaid expenses and other assets $ 35.4 $ 36.0
v3.25.1
Schedule of Accounts Payable and Accrued Expenses (Details) - USD ($)
$ in Millions
Mar. 31, 2025
Dec. 31, 2024
Payables and Accruals [Abstract]    
Accounts payable $ 37.7 $ 29.3
Interest payable 8.8
Payroll and related costs 4.7 5.7
Cost of sales including inventory 5.3 4.6
Other creditors 13.1 14.1
Total accounts payable and accrued expenses $ 69.6 $ 53.7
v3.25.1
Schedule of Contract Related Balances (Details) - USD ($)
$ in Millions
Mar. 31, 2025
Dec. 31, 2024
Revenue from Contract with Customer [Abstract]    
Accounts receivable $ 47.3 $ 61.5
Unbilled accounts receivable 27.3 26.0
Right to recover asset 0.6 0.6
Deferred income (20.3) (18.6)
Customer prepayments and deposits $ (4.0) $ (3.9)
v3.25.1
Contract Related Disclosures (Details Narrative) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2025
Mar. 31, 2024
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]    
Revenue recognized in deferred income $ 1.7 $ 1.9
Remaining performance obligations $ 144.7  
Next Twelve Months [Member]    
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]    
Revenue percentage 27.00%  
Between Thirteen and Thirty Six Months [Member]    
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]    
Revenue percentage 43.00%  
Between Thirty Seven and Sixty Months [Member]    
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]    
Revenue percentage 30.00%  
v3.25.1
Long Term Debt (Details Narrative) - Senior Secured Notes [Member] - Forecast [Member]
€ in Millions, $ in Millions
Jun. 01, 2026
USD ($)
Jun. 21, 2026
EUR (€)
Short-Term Debt [Line Items]    
Long term debt $ 303.4 € 235.0
Capitalized debt fees 1.9  
Senior secured notes interest rate 7.875%  
v3.25.1
Schedule of Restricted Stock Unit Activity (Details) - shares
 3 Months Ended
Mar. 31, 2025
Mar. 31, 2024
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]    
Unvested Outstanding, Number of shares, Vested (2,160,393) (1,840,165)
Incentive Plan [Member] | Restricted Stock Units (RSUs) [Member]    
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]    
Unvested Outstanding, Number of shares, Balance [1] 786,551  
Unvested Outstanding, Number of shares, Granted 809,124  
Unvested Outstanding, Number of shares, Forfeited (117,422)  
Unvested Outstanding, Number of shares, Vested (85,214)  
Unvested Outstanding, Number of shares, Balance 1,393,039  
[1] The amount shown as “granted” includes 259,717 performance-based target RSUs for 2025 as to which the number that ultimately vests would range from 0% to 200% of the target amount of RSUs (a maximum of 519,434 RSUs based on attainment of Adjusted EBITDA targets for 2025). The amount shown also includes tranches covering an aggregate of 104,166 Adjusted EBITDA RSUs (subject to performance criteria for 2025) which can be earned at up to 100% of the target amount of RSUs; such tranches were part of sign-on awards of multiple tranches approved in 2023 for our Executive Chairman and our Chief Executive Officer with respect to which the accounting grant date for the 2025 tranches did not occur until the targets were set in February 2025.
v3.25.1
Schedule of Restricted Stock Unit Activity (Details) (Parenthetical) - shares
 3 Months Ended 12 Months Ended
Mar. 31, 2025
Dec. 31, 2024
Performance Shares [Member]    
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]    
Restricted stock shares granted 259,717  
Performance Shares [Member] | RSU [Member]    
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]    
Restricted stock shares granted 100.00%  
Performance Shares [Member] | Chief Executive Officer [Member]    
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]    
Restricted stock shares granted 104,166  
Performance Shares [Member] | Minimum [Member]    
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]    
Share-Based Compensation Arrangement by Share-Based Payment Award, Award Vesting Rights, Percentage 0.00%  
Performance Shares [Member] | Maximum [Member]    
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]    
Share-Based Compensation Arrangement by Share-Based Payment Award, Award Vesting Rights, Percentage 200.00%  
Restricted Stock Units (RSUs) [Member] | Maximum [Member]    
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]    
Restricted stock shares granted   519,434
v3.25.1
Stock-Based Compensation (Details Narrative) - Restricted Stock Units (RSUs) [Member] - Share-Based Payment Arrangement, Tranche Three [Member] - shares
 3 Months Ended 12 Months Ended
Dec. 31, 2024
Mar. 31, 2025
Dec. 31, 2023
Dec. 31, 2020
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]        
Share-based payment award, shares issued in period   322,860    
Number of shares issued RUSs 274,112   36,968 36,968
v3.25.1
Schedule of Accumulated Other Comprehensive Loss (Income) (Details) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2025
Mar. 31, 2024
Equity [Abstract]    
Foreign currency translation adjustments, beginning balance $ (78.5) $ (78.1)
Unrecognized pension benefit costs, beginning balance 30.2 33.8
Accumulated other comprehensive (income), beginning balance (48.3) (44.3)
Foreign currency translation adjustments, change during the period 0.4 (0.5)
Unrecognized pension benefit costs, change during the period (0.2) (0.3)
Accumulated other comprehensive (Income), change during the period 0.2 (0.8)
Foreign currency translation adjustments, beginning balance (78.1) (78.6)
Unrecognized pension benefit costs, beginning balance 30.0 33.5
Accumulated other comprehensive (income), beginning balance $ (48.1) $ (45.1)
v3.25.1
Schedule of Anti-dilutive Securities Excluded from Computation of Earnings Per Share (Details) - shares
 3 Months Ended
Mar. 31, 2025
Mar. 31, 2024
Restricted Stock Units (RSUs) [Member]    
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]    
RSUs 1,393,039 1,807,119
v3.25.1
Net Income (Loss) per Share (Details Narrative) - shares
 3 Months Ended
Mar. 31, 2025
Mar. 31, 2024
Earnings Per Share [Abstract]    
Effect of RSU awards vested 2,160,393 1,840,165
v3.25.1
Schedule of Other Finance Income (Details) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2025
Mar. 31, 2024
Other Income and Expenses [Abstract]    
Pension interest cost $ (0.9) $ (0.9)
Expected return on pension plan assets 1.1 1.0
Other finance income (expense) $ 0.2 $ 0.1
v3.25.1
Income Taxes (Details Narrative) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2025
Mar. 31, 2024
Income Tax Disclosure [Abstract]    
Effective income tax rate 97.30% 25.40%
Income tax benefit $ 5.1 $ 2.1
v3.25.1
Related Parties (Details Narrative) - USD ($)
 3 Months Ended 12 Months Ended
Mar. 31, 2025
Mar. 31, 2024
Dec. 31, 2024
Related Party Transaction [Line Items]      
Proceeds from lines of credit $ 19,400,000   $ 18,800,000
Consultancy Agreement [Member]      
Related Party Transaction [Line Items]      
Consulting fees $ 37,500 $ 37,500  
Macquarie Corporate Holdings Pty Limited [Member]      
Related Party Transaction [Line Items]      
Related party beneficially owned 11.20%    
Proceeds from lines of credit $ 2,100,000   $ 2,100,000
Interest and debt expense $ 100,000 $ 100,000  
Outstanding shares percentage 5.00%    
v3.25.1
Schedule of Lease Income from Sales (Details)
$ in Millions
 3 Months Ended
Mar. 31, 2025
USD ($)
Leases  
Interest receivable $ 0.3
Profit recognized at commencement date of sales type leases 1.1
Unvested Outstanding at March 31, 2025 $ 1.4
v3.25.1
Schedule of Defined Benefit Plans (Details) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2025
Mar. 31, 2024
Retirement Benefits [Abstract]    
Interest cost $ 0.9 $ 0.9
Expected return on plan assets (1.1) (1.0)
Amortization of net loss 0.2 0.3
Net periodic cost $ 0.2
v3.25.1
Schedule of Segment Reporting Information by Segment (Details) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2025
Mar. 31, 2024
Segment Reporting Information [Line Items]    
Total revenue $ 60.4 $ 62.3
Staff-related selling, general and administrative expenses (15.2) (15.8)
Non-staff related selling, general and administrative expenses (12.4) (13.6)
Labor costs capitalized 3.5 3.0
Stock-based compensation expense (1.4) (2.3)
Acquisition and integration related transaction expenses  
Depreciation and amortization (10.6) (9.8)
Other segment items (4.8) (5.5)
Segment operating income (loss) 1.6 (2.1)
Net operating loss 1.6 (2.1)
Total capital and other long-lived asset expenditures 10.5 9.1
Service [Member]    
Segment Reporting Information [Line Items]    
Total revenue 57.0 56.2
Cost of product sales [1] (15.0) (15.9)
Product Sales [Member]    
Segment Reporting Information [Line Items]    
Total revenue 3.4 6.1
Cost of product sales [1] (2.9) (4.5)
Gaming [Member]    
Segment Reporting Information [Line Items]    
Total revenue 21.7 23.2
Staff-related selling, general and administrative expenses (3.4) (4.7)
Non-staff related selling, general and administrative expenses (2.9) (2.9)
Labor costs capitalized 1.9 1.0
Stock-based compensation expense (0.2) (0.2)
Acquisition and integration related transaction expenses  
Depreciation and amortization (4.7) (4.2)
Other segment items (0.2)
Segment operating income (loss) 4.2 2.1
Total capital and other long-lived asset expenditures 8.1 2.0
Gaming [Member] | Service [Member]    
Segment Reporting Information [Line Items]    
Total revenue 18.9 17.7
Cost of product sales (5.4) (5.8)
Gaming [Member] | Product Sales [Member]    
Segment Reporting Information [Line Items]    
Total revenue 2.8 5.5
Cost of product sales (2.6) (4.3)
Virtual Sports [Member]    
Segment Reporting Information [Line Items]    
Total revenue 8.7 12.4
Staff-related selling, general and administrative expenses (2.2) (2.2)
Non-staff related selling, general and administrative expenses (0.6) (0.7)
Labor costs capitalized 0.9 1.3
Stock-based compensation expense (0.1) (0.1)
Acquisition and integration related transaction expenses  
Depreciation and amortization (1.3) (0.9)
Other segment items
Segment operating income (loss) 4.9 9.4
Total capital and other long-lived asset expenditures 0.5 1.2
Virtual Sports [Member] | Service [Member]    
Segment Reporting Information [Line Items]    
Total revenue 8.7 12.4
Cost of product sales (0.5) (0.4)
Virtual Sports [Member] | Product Sales [Member]    
Segment Reporting Information [Line Items]    
Total revenue
Cost of product sales
Interactive [Member]    
Segment Reporting Information [Line Items]    
Total revenue 12.1 8.1
Staff-related selling, general and administrative expenses (2.4) (2.1)
Non-staff related selling, general and administrative expenses (2.0) (1.4)
Labor costs capitalized 0.6 0.4
Stock-based compensation expense (0.1) (0.1)
Acquisition and integration related transaction expenses  
Depreciation and amortization (0.7) (1.2)
Other segment items
Segment operating income (loss) 6.9 3.1
Total capital and other long-lived asset expenditures 0.5 0.5
Interactive [Member] | Service [Member]    
Segment Reporting Information [Line Items]    
Total revenue 12.1 8.1
Cost of product sales (0.6) (0.6)
Interactive [Member] | Product Sales [Member]    
Segment Reporting Information [Line Items]    
Total revenue
Cost of product sales
Leisure [Member]    
Segment Reporting Information [Line Items]    
Total revenue 17.9 18.6
Staff-related selling, general and administrative expenses (4.0) (4.2)
Non-staff related selling, general and administrative expenses (3.5) (3.6)
Labor costs capitalized 0.1 0.3
Stock-based compensation expense (0.1) (0.1)
Acquisition and integration related transaction expenses  
Depreciation and amortization (3.2) (3.0)
Other segment items (0.1)
Segment operating income (loss) (1.7) (1.3)
Total capital and other long-lived asset expenditures 0.4 4.9
Leisure [Member] | Service [Member]    
Segment Reporting Information [Line Items]    
Total revenue 17.3 18.0
Cost of product sales (8.5) (9.1)
Leisure [Member] | Product Sales [Member]    
Segment Reporting Information [Line Items]    
Total revenue 0.6 0.6
Cost of product sales (0.3) (0.2)
Corporate Functions [Member]    
Segment Reporting Information [Line Items]    
Total revenue
Staff-related selling, general and administrative expenses (3.2) (2.6)
Non-staff related selling, general and administrative expenses (3.4) (5.0)
Labor costs capitalized
Stock-based compensation expense (0.9) (1.8)
Acquisition and integration related transaction expenses  
Depreciation and amortization (0.7) (0.5)
Other segment items (4.5) (5.5)
Segment operating income (loss) (12.7) (15.4)
Total capital and other long-lived asset expenditures 1.0 0.5
Corporate Functions [Member] | Service [Member]    
Segment Reporting Information [Line Items]    
Total revenue
Cost of product sales
Corporate Functions [Member] | Product Sales [Member]    
Segment Reporting Information [Line Items]    
Total revenue
Cost of product sales
[1] Excluding depreciation and amortization
v3.25.1
Schedule of Geographic Information (Details) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2025
Mar. 31, 2024
Dec. 31, 2024
Revenues from External Customers and Long-Lived Assets [Line Items]      
Total revenue $ 60.4 $ 62.3  
Total non-current assets excluding goodwill 166.3   $ 153.4
UNITED KINGDOM      
Revenues from External Customers and Long-Lived Assets [Line Items]      
Total revenue 39.4 46.4  
Total non-current assets excluding goodwill 122.6   115.1
UNITED STATES      
Revenues from External Customers and Long-Lived Assets [Line Items]      
Total revenue 6.5 3.7  
GREECE      
Revenues from External Customers and Long-Lived Assets [Line Items]      
Total revenue 6.2 6.1  
Total non-current assets excluding goodwill 18.8   12.7
Rest of World [Member]      
Revenues from External Customers and Long-Lived Assets [Line Items]      
Total revenue 8.3 $ 6.1  
Total non-current assets excluding goodwill $ 24.9   $ 25.6
v3.25.1
Customer Concentration (Details Narrative) - Customer Concentration Risk [Member]
 3 Months Ended 12 Months Ended
Mar. 31, 2025
Mar. 31, 2024
Dec. 31, 2024
Revenue Benchmark [Member] | No Customer [Member]      
Concentration Risk [Line Items]      
Concentration risk, percentage 0.00%    
Revenue Benchmark [Member] | Customer One [Member]      
Concentration Risk [Line Items]      
Concentration risk, percentage   11.00%  
Accounts Receivable [Member] | Customer One [Member]      
Concentration Risk [Line Items]      
Concentration risk, percentage 11.00%   16.00%
v3.25.1
Schedule of Effect of Correcting this Error on Previously Issued Financial Statements - Schedule of Consolidated Statement of Operations (Details) - USD ($)
$ / shares in Units, $ in Millions
 3 Months Ended
Mar. 31, 2025
Mar. 31, 2024
New Accounting Pronouncements or Change in Accounting Principle [Line Items]    
Revenue $ 60.4 $ 62.3
Depreciation and amortization (10.6) (9.8)
Net operating income (loss) 1.6 (2.1)
Interest expense, net (7.0) (6.5)
Total other expense, net (6.8) (6.4)
Loss before income taxes (5.2) (8.5)
Net loss (0.1) (6.4)
Comprehensive loss $ (0.3) $ (5.6)
Net income per common share - basic $ 0.00 $ (0.22)
Net income per common share - diluted $ 0.00 $ (0.22)
Previously Reported [Member]    
New Accounting Pronouncements or Change in Accounting Principle [Line Items]    
Revenue   $ 63.1
Depreciation and amortization   (9.9)
Net operating income (loss)   (1.4)
Interest expense, net   (6.6)
Total other expense, net   (6.5)
Loss before income taxes   (7.9)
Net loss   (5.7)
Comprehensive loss   $ (4.4)
Net income per common share - basic   $ (0.20)
Net income per common share - diluted   $ (0.20)
Revision of Prior Period, Reclassification, Adjustment [Member]    
New Accounting Pronouncements or Change in Accounting Principle [Line Items]    
Revenue   $ (0.8)
Depreciation and amortization   0.1
Net operating income (loss)   (0.7)
Interest expense, net   0.1
Total other expense, net   0.1
Loss before income taxes   (0.6)
Net loss   (0.7)
Comprehensive loss   $ (1.2)
Net income per common share - basic   $ (0.02)
Net income per common share - diluted   $ (0.02)
v3.25.1
Schedule of Effect of Correcting this Error on Previously Issued Financial Statements - Schedule of Consolidated Statement of Cashflows (Details) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2025
Mar. 31, 2024
New Accounting Pronouncements or Change in Accounting Principle [Line Items]    
Net loss $ (0.1) $ (6.4)
Depreciation and amortization 10.6 9.8
Accounts receivable 15.1 1.6
Prepaid expenses and other assets (0.5) 6.2
Net cash provided by operating activities $ 25.5 6.0
Previously Reported [Member]    
New Accounting Pronouncements or Change in Accounting Principle [Line Items]    
Net loss   (5.7)
Depreciation and amortization   9.9
Accounts receivable   2.7
Prepaid expenses and other assets   4.3
Net cash provided by operating activities   6.0
Revision of Prior Period, Reclassification, Adjustment [Member]    
New Accounting Pronouncements or Change in Accounting Principle [Line Items]    
Net loss   (0.7)
Depreciation and amortization   (0.1)
Accounts receivable   (1.1)
Prepaid expenses and other assets   1.9
Net cash provided by operating activities  
Inspired Entertainment (NASDAQ:INSE)
Historical Stock Chart
From Jun 2025 to Jul 2025 Click Here for more Inspired Entertainment Charts.
Inspired Entertainment (NASDAQ:INSE)
Historical Stock Chart
From Jul 2024 to Jul 2025 Click Here for more Inspired Entertainment Charts.