Inspired Entertainment Inc. Common Stock (INSE)

Turnaround

FairStock Score: 14/100 — RISKY

Key Financials

Current Price$3.17
Market Cap$84M
P/E Ratio-9.91
ROE—%
Dividend Yield0%
SectorConsumer Cyclical

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look at Inspired Entertainment as a small-cap supplier to regulated gambling, a business with recurring content and platform needs but no obvious wide moat. The numbers are volatile: in fiscal 2023, the year ended 2023-12-31, revenue was $322.9M and net income $6.9M; in fiscal 2024, the year ended 2024-12-31, revenue was $297.1M and net income $64.8M; in fiscal 2025, the year ended 2025-12-31, revenue was $304.1M but net loss was $17.0M, or $0.58 per diluted share. That swing tells me reported profits are not dependable. The latest filing is better: in fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $60.8M, net income $0.2M, and diluted EPS $0.01, compared with a fiscal Q2 2025 net loss of $7.8M and diluted EPS -$0.27, though revenue was $80.3M in that earlier quarter ended 2025-06-30. Free cash flow is positive at $6.0M trailing, a 6.3% FCF yield, Piotroski is 7/9, and FairStock's EV/EBITDA is 4.08. But Altman Z is -1.06 and the quoted P/E is negative at -11.31, while P/B, ROE, and D/E are not provided. At the 2026-10-13 close of $3.62, near the low end of a $3.20-$9.95 range, the market is pricing trouble. FairStock Score 14/100 and the computed TURNAROUND label fit. I see a speculator's turnaround, not a fortress; I would need consistent profit and cash generation before calling it a margin-of-safety bargain.

In plain English: Inspired Entertainment makes games and technology for lotteries, betting shops, and online gambling operators. Its latest reported year showed a loss and sales have moved up and down, so the business looks weak and unstable right now. At $3.62, the stock looks cheap against its sales and cash flow, but the risks are high and the numbers have not yet proven a lasting recovery.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K/A (period ended 2025-12-31) · FY2024 10-K/A (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer