Inspired Entertainment, Inc.

Good morning, everyone, and welcome to the Inspired Entertainment first quarter 2026 conference call. All participants' lines have been placed on mute to prevent any background noise. After the speaker's prepared remarks, we will open the call for 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 first quarter 2026 earning press release. and in the accompanying slide presentation, both of which are available in the Investors section of the company's website at www.inse.inc.com. This also applies to today's conference call. Management will be making forward-looking statements within the meaning of United States security laws. These statements are based on management's current expectations and beliefs and are subject to various risks uncertainties, and other factors that may cause actual results to differ materially from those expressed or implied in such a statement. For discussion of these risks and uncertainties, please refer to the company's filing with the Securities and Exchange Commission. During today's call, the company will discuss both GAAP and non-GAAP financial measures. Reconciliations of these non-GAAP measures to the most directly comparable GAAP measures can be found in today's earnings release and slide presentation. which are both available on the website. With that, I would now like to turn the call over to Loren Wheel, the company's executive chairman. Mr. Wheel, please go ahead.

Thank you, operator. Good morning, everyone, and thanks for joining our first quarter conference call. Once again, we've prepared a slide deck to help focus the conversation, and Brooks and I will be using that opportunity for the balance of the program. So, beginning with slide three, we continued in the first quarter to see the benefits of steps taken in 2025. As been reported previously, we took two important actions in 2025 to alter the balance of our portfolio. We sold the holiday park business, which we've discussed a number of times, and we restructured the pubs business to significantly reduce both capital and labor requirements Overall, we've reduced company headcount by about a third from over 1500 to around 950 and cut our annualized capital spending from the mid 40 millions to the low 30 millions. Adjusting for the one time impact of the holiday park and pub restructuring, which I'll discuss a little bit more in a moment, our continuing revenue grew by 15% year to year. driven in large part by 38% revenue growth in Interactive. Our Q1 reported EBITDA grew by 29%. Our EBITDA margin expanded by 1,100 basis points. We paid down 13 million in debt, and we bought back close to 400,000 shares. So it was a very busy quarter. Slide four illustrates a little more clearly what's going on with revenue. The actions taken in Holiday Parks and Pub Together had the effect of reducing revenue in the first quarter of 2025 by about $10 million from $60 million to $50 million, as illustrated in the slide. And then driven importantly, but by no means exclusively, by interactive growth, this continuing revenue of $50 million grew by 15%. to a little more than 57 million in the first quarter of 2026. Interactive is certainly the primary growth driver, but as Brooks will discuss in more detail in a minute, our retail business has been performing very well in all its worldwide markets. The sustained interactive growth illustrated in slide five has in turn been driven importantly by superior content development, as has the retail business, though obviously to a lesser extent. In the retail business, the markets themselves are growing less quickly, and particularly in the UK and Greece, our market share is much higher. In just a moment, Brooks will elaborate on our content strategy, including the bringing on stream of the new studio. But along with the focus on content development, we've been entering new markets, winning new customers, strengthening our accounts management team in order to maximize the benefit of our content. And with that, I'll hand it over to Brooks.

Okay, great. Thanks, Lauren. And moving to slide six and to build on the points you made. Our core strength and focus is on developing the best content and delivering it wherever it's consumed, including retail, online, or in any number of geographies worldwide. One of our key markets is North America, which is now over 30% of our interactive GGR overall and continuing to grow. And as you can see on slide six, we continue to climb the ladder in the Eilers US online report, moving up to fourth in the April report from number eight just a year ago. We're continuing to increase our share in both North America and the UK. This is driven not just by content alone, but by a consistent roadmap of high-performing new game releases. We've also enhanced our account management teams to work more closely with our operator partners on securing prime placements and supporting promotional activity for exclusives as a key part of our offering. On slide seven, you can clearly see that we've built a portfolio of high performing content across the last few years, with growth accelerating since January of 2025. We've seen these trends continue into April where we ended the month on a high note with our highest ever single day total value played. These continuing results validate our strategy, and we're excited to bring an additional studio online in the second half of the year to continue to feed our operator partners with more great content that they've come to count on. Turning to the UK, as of April 1st, the increased tax rate from 21% to 40% came into effect in our interactive business. With just over a month of data, the impact we are seeing tracks exactly with what we had forecasted. Importantly, despite the step up, we saw our UK interactive revenue grow in April driven by our continuing share gains. Our UK GGR in April was more than 40% higher than a year ago, offsetting the tax increase and net-net resulting in our revenue growing by more than 10%. Where we see others retrenching in the UK market, we see opportunity to continue to grow our share and we're committed to the resources to leverage this opportunity. Even with the tax headwind, the UK continues to demonstrate strength and resilience of this segment. Moving to slide eight, we're seeing the benefits of both strong content and the rollout of new machines across several key customers and geographies in our retail solutions business, proving that this phenomenon exists beyond interactive. In the UK, William Hill in particular, but frankly, our entire UK LBO business, showed positive momentum in the first quarter, and we expect that to continue. We also added two new customers, Jennings Bed and Corbett's, and signed a multi-year contract extension with Paddy Power early in the second quarter. In Greece, our win per unit per day increased 11%, led by our recently introduced Valor slant top machine, and we will continue upgrading over the rest of 2026 and into 2027. We believe that this machine refresh will continue to drive growth in the retail solution segment. In North America, we're cautiously optimistic about the expansion into Chicago and see the broader Illinois market as a good opportunity for us over the next 12 to 18 months. And combined with our growing footprint across several Canadian provinces, starting to see the beginning of providing the scale that we really need in North America. So moving to slide nine, as we've talked about over the last year, we've seen stabilization in virtual sports despite the ongoing headwinds in Brazil, which remains a key market for us. Unfortunately, growth we are seeing in other regions is currently being offset by performance in Brazil. However, we see a clear path to growth supported by additional key customers and upcoming product releases, as well as the tailwind from the World Cup. Moving to slide 10, which I think really validates what we've been talking about for some time. Optimizing our portfolio is delivering the outcome we expected. Divesting the lower margin for more capital intensive. Lauren, keep your phone off. I actually will. Divesting the lower margin, more capital intensive and less strategic holiday parks business, along with restructuring of our public state to be less capital and labor intensive. has had the exact impact we were expecting. As a result, the shift to higher-margin digital businesses combined with improved retail performance is leading to overall growth in EBITDA, margin expansion, and significant improvement in cash flow. And all of this is underpinned by our continued focus on delivering the best content to support this strategy. So I'll turn it back over to Len.