📊 INSE Key Takeaways
Is Inspired Entertainment, Inc. (INSE) a Good Investment?
Inspired Entertainment exhibits critical balance sheet weakness with negative stockholders equity of -$12.4M, indicating technical insolvency. While the company generates strong operating cash flow ($26.7M) and maintains adequate short-term liquidity, it is unprofitable at the net income level (-$500K) with weak revenue growth (2.4% YoY) and a deteriorating earnings trajectory. The substantial debt burden ($326.3M long-term) relative to the asset base creates material financial distress risk.
Inspired Entertainment shows some operating resilience with positive operating income, solid liquidity, and positive free cash flow, but overall fundamentals are pressured by weak growth, a return to net losses, and a highly leveraged balance sheet with negative equity. The combination of modest revenue growth and deteriorating bottom-line profitability suggests limited margin for error until debt burden and earnings quality improve.
Inspired Entertainment, Inc. Key Strengths (INSE)
- Strong operating cash flow of $26.7M and excellent FCF margin of 40.2%
- Adequate short-term liquidity with 2.08x current ratio and $41.1M cash position
- Positive operating income of $9.2M with 16.1% operating margin
- Positive operating cash flow and free cash flow indicate the business is still generating cash despite net losses
- Current and quick ratios above 1.0 suggest near-term liquidity is adequate
- Operating income remained positive with a 10.0% operating margin
INSE Stock Risks: Inspired Entertainment, Inc. Investment Risks
- Negative stockholders equity of -$12.4M indicates technical balance sheet insolvency
- Net loss of -$500K and negative net margin of -0.9% despite operating profitability
- Excessive leverage with $326.3M long-term debt and total liabilities exceeding total assets
- Anemic revenue growth of 2.4% YoY and sharply deteriorating diluted EPS down 126.1% YoY
- Net income and diluted EPS deteriorated sharply year over year, indicating weak bottom-line profitability
- Negative stockholders equity and substantial long-term debt point to elevated balance-sheet risk
- Revenue growth of only 2.4% suggests limited growth momentum relative to the company’s leverage and earnings pressure
Key Metrics to Watch
- Net income recovery and path to profitability
- Stockholders equity trajectory and debt reduction
- Revenue growth acceleration and operating cash flow sustainability
- Debt refinancing needs and covenant compliance
- Free cash flow generation relative to debt obligations
- Net income recovery and operating margin trend
Inspired Entertainment, Inc. (INSE) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The 40.2% free cash flow margin provides substantial flexibility for dividends, buybacks, and strategic investments. Strong liquidity with a 2.08x current ratio provides a solid financial cushion.
INSE Profit Margin, ROE & Profitability Analysis
INSE vs Technology Sector: How Inspired Entertainment, Inc. Compares
How Inspired Entertainment, Inc. compares to Technology sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Inspired Entertainment, Inc. Stock Overvalued? INSE Valuation Analysis 2026
Based on fundamental analysis, Inspired Entertainment, Inc. has mixed fundamental signals relative to the Technology sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Inspired Entertainment, Inc. Balance Sheet: INSE Debt, Cash & Liquidity
INSE Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Inspired Entertainment, Inc.'s revenue has grown significantly by 46% over the 5-year period, indicating strong business expansion. The most recent EPS of $2.22 reflects profitable operations.
INSE Revenue Growth, EPS Growth & YoY Performance
INSE Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $57.2M | -$100.0K | $0.00 |
| Q3 2025 | $77.2M | -$100.0K | $-0.07 |
| Q2 2025 | $74.8M | -$100.0K | $0.05 |
| Q1 2025 | $60.4M | -$100.0K | $0.00 |
| Q3 2024 | $78.0M | -$300.0K | $-0.01 |
| Q2 2024 | $75.6M | -$1.4M | $0.07 |
| Q1 2024 | $63.1M | -$1.4M | $-0.05 |
| Q3 2023 | $74.2M | -$1.4M | $0.12 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Inspired Entertainment, Inc. Dividends, Buybacks & Capital Allocation
INSE SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Inspired Entertainment, Inc. (CIK: 0001615063)
📋 Recent SEC Filings
❓ Frequently Asked Questions about INSE
What is the AI rating for INSE?
Inspired Entertainment, Inc. (INSE) has a Combined AI Grade of C from Claude (C) and ChatGPT (C) with 77% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are INSE's key strengths?
Claude: Strong operating cash flow of $26.7M and excellent FCF margin of 40.2%. Adequate short-term liquidity with 2.08x current ratio and $41.1M cash position. ChatGPT: Positive operating cash flow and free cash flow indicate the business is still generating cash despite net losses. Current and quick ratios above 1.0 suggest near-term liquidity is adequate.
What are the risks of investing in INSE?
Claude: Negative stockholders equity of -$12.4M indicates technical balance sheet insolvency. Net loss of -$500K and negative net margin of -0.9% despite operating profitability. ChatGPT: Net income and diluted EPS deteriorated sharply year over year, indicating weak bottom-line profitability. Negative stockholders equity and substantial long-term debt point to elevated balance-sheet risk.
What is INSE's revenue and growth?
Inspired Entertainment, Inc. reported revenue of $57.2M.
Does INSE pay dividends?
Inspired Entertainment, Inc. does not currently pay dividends.
Where can I find INSE SEC filings?
Official SEC filings for Inspired Entertainment, Inc. (CIK: 0001615063) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is INSE's EPS?
Inspired Entertainment, Inc. has a diluted EPS of $-0.02.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is INSE's fundamental grade?
Based on our AI fundamental analysis in June 2026, Inspired Entertainment, Inc. has a C grade with 77% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is INSE stock overvalued or undervalued?
Valuation metrics for INSE: ROE of N/A (sector avg: 22%), net margin of -0.9% (sector avg: 18%). Compare these metrics with sector averages to assess valuation.
What is INSE's AI grade for 2026?
Our dual AI analysis gives Inspired Entertainment, Inc. a combined C grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is INSE's free cash flow?
Inspired Entertainment, Inc.'s operating cash flow is $26.7M, with capital expenditures of $3.7M. FCF margin is 40.2%.
How does INSE compare to other Technology stocks?
Vs Technology sector averages: Net margin -0.9% (avg: 18%), ROE N/A (avg: 22%), current ratio 2.08 (avg: 2.5).