Inspired Entertainment, Inc.

been placed on mute to prevent any background noise. After the speaker's remarks, we will open the call for a question and answer session. Please note that today's event is being recorded. Before we begin, please refer to the company's forward-looking statements that appear in the third quarter 2025 earnings press release and in accompanying slide presentation. both of which are available in the Investors section of the company's website at www.inseinc.com. These also apply to today's conference call. Management will be making forward-looking statements within the meaning of United States securities laws. These statements are based on management's current expectations and beliefs and are subject to various risk uncertainties and other factors that may cause actual results to differ materially from those exposed or implied in such statements. For a discussion on this risk and uncertainties, please refer to the company's filing with securities and exchange commissions. The company assumes no obligation to update or review any forward-looking statements except as required by law during today's call the company will discuss both gap and non-gap financial measures reconciliations of these non-gap measures to the most directly comparable gap measures can be found in today's earnings release and slide presentation which are both available on the website As a reminder, the slide presentation will be advanced by the operator to company management's remarks. A PDF version of the slides will be available following the call in the investor section of the company's website. With that, I would now like to turn the call over to Lorne Wheel, the company's executive chairman. Mr. Wheel, please go ahead.

Thank you, operator. Good morning, everyone, and thank you for joining our third quarter conference call. As we reported earlier this morning, third quarter and trailing 12-month adjusted EBITDA were $32.3 million and $110 million respectively, both well ahead of consensus and last year, and a result that we're pleased with. In departure from press protocols, we have prepared a brief slide deck today, summarized here in slide four, which will be presented by President and CEO Brooks Pierce and myself. There are a lot of moving parts right now, the sale of holiday parks, the restructuring of pubs, the continued phenomenal growth of Interactive as examples that paint a very exciting picture. and we feel that this kind of comprehensive discussion will help us put everything in proper perspective. Then at the conclusion, we will discuss earnings, balance sheet, and cash flow projections for 26 and 27. To begin, I'll hand it over to Brooks, who will discuss in some detail current results and operations.

Okay, thanks, Lorne. Before I dive into the business update, I want to briefly address the upcoming UK budget announcement. on November 26th in the discussion around potential tax changes in the gaming industry. There's been a lot of coverage and discussion on all sides of the issue and its impact on the industry, but frankly, this isn't new. We managed through the 2019 triennial, which cut maximum stakes in betting shops from effectively 50 pounds to two pounds, a major change that we successfully navigated through product innovation and operational discipline. Today, performance in that business is well above pre-triennial levels. Potential shop closures have been in the headlines as well, and our experience tells us that this is also manageable. Typically, lower-performing shops are most at risk, and much of that play finds its way to nearby shops, effectively lowering our servicing costs. The potential increase in remote gaming duty would be another facet we have experienced dealing with. We've managed similar changes in other markets, and our performance in the interactive segment speaks to our ability to adapt effectively. Once the UK budget's announced, we'll share more specifics, but in the meantime, we're planning proactively and are confident in our ability to manage changes effectively, just as we have in the past, and we have a number of levers and opportunities at our disposal to navigate our way through this. Okay, moving to the SWAT, next slide. We're pleased with the performance of the business in the third quarter and are carrying that momentum into the fourth quarter. We're confident we'll exceed Q4 2024 performance and current guidance, assuming current FX rates don't change materially. The interactive and gaming segments were particularly strong, with interactive achieving more than 40% year-over-year adjusted EBITDA growth for the ninth consecutive quarter. October is now complete and is the single largest revenue month for this segment in our history. And last week was the biggest week we've ever had. This was all highlighted by the success of some of our seasonal games. But frankly, we're seeing strong performance throughout the portfolio and market share gains across our key geographies in both the UK and North America. We're also pleased to see a second consecutive quarter of stabilization in the virtual sports segment. and are confident that it will grow year over year in the fourth quarter. The close of the sale of the Holiday Parks business on November 7th is a milestone in our shift to higher adjusted EBITDA margins, lower CapEx, and close to 40% lower headcount going forward. Taking the proceeds from the Holiday Park sale to improve our net leverage puts us in a stronger financial position as we move through the fourth quarter and into 2026. In addition, we announced today that our board has reauthorized a $25 million share buyback plan as part of our plans going forward. The next slide demonstrates the success of our strategy in making North America a bigger part of our business, in large part due to the growth we're seeing in this market from our interactive business, but we're also gaining momentum in our North American VLT business that I'll cover in more detail later in the presentation. The success of the Vantage cabinet and the William Hill estate is coming through in our results and was highlighted recently by Evoke in their trading update. We're also starting to see the impact on performance of the refreshed terminals in the Greek estate. Although the year-over-year performance in the virtual segment continues to be impacted by the taxation that started in January in Brazil, our comps in the fourth quarter and 2026 will be easier. And we've also introduced a number of initiatives and increased our customer counts in Brazil and Turkey, and we're starting to see some of that improvement come through the numbers. As you can see on slide eight, we've been generating solid year-over-year adjusted EBITDA growth every quarter, and the trailing 12 months adjusted EBITDA is now at 110 million. This is certainly a positive, but the most important aspect of this slide is the impact we expect to see going forward with the sale of the holiday parks business and the move in our pubs business to a machine and content-led strategy. Both the interactive and virtual segments are operating at higher than 60% EBITDA margins after corporate allocations, and we expect the operating leverage of both of these segments to strengthen further as revenue increases. Combination of margin expansion, the sale of the holiday parks business, and the change in the pubs business model will significantly reduce our capital intensity and have a very positive impact on cash flow. The next couple slides highlight not only the strong performance of the interactive segment, but frankly, the significant opportunity we see ahead as additional iGaming states potentially come online, the potential we believe could be transformational for our business. Our content's resonating broadly across all the key geographies, and we're positioning the business to scale across even more. Looking ahead to next year, we plan to increase game deliveries through added capacity and a new interactive studio. The most common feedback we get from customers is they want more of our great content, and we're excited to deliver on that challenge. As we've talked about in the past, we're very bullish on the opportunity for an increase in the number of iGaming states, as it's clear that iGaming is a much larger opportunity than online sports betting, as you can see in the GGR from just three of the existing iGaming states. The delivery of additional states is very seamless and frankly should produce significant operating leverage as the only real cost to add states is in bandwidth. We don't have a crystal ball, of course, but we're confident that states will see the opportunity and feel it's a matter of when, not if. Now moving over to hybrid dealer, we've been talking about hybrid dealer for some time and we felt validated to have won the award at G2E for innovative product of the year. More importantly, we're starting to see the network effect of rolling this product out across our customer base. We have a very good mix of both tier one and tier two customers and have seen success with both. Our William Hill branded roulette game in the UK is producing amazing results, which we view as a proof point for other operators. The next phase of development will emphasize and highlight our proprietary player favorite content, such as our Wolf It Up and Piggy Bank family of games. We see this as the natural evolution of our product strategy supported by an increasing pace of game delivery to meet the strong market demand. While hybrid deal is not expected to be as large as the broader interactive market, we believe it will be a valuable compliment to our portfolio, enhance our offering, add diversity to our content, and contribute meaningfully in 2026 and beyond. Moving over to gaming, our gaming business continues to perform well across our three key markets of the UK, Greece, and North America. In the UK, we're gaining share in the betting shop business with the addition of two key customers. In Greece, our new cabinets are strengthening our leading position and with nearly half of our machines still to be upgraded, we see continued opportunity for growth. In North America, performance in Illinois and key Canadian provinces is at its highest level since we introduced these products into mature markets, which frankly is never easy. Notably, 98% of our Illinois customers ordered our Game Pack subscriptions this year, validating our philosophy that server-based gaming is a powerful tool for operators to keep their players engaged And we see applicability for that in many more markets around the world. And I'll pass it over to Lorne.