Inspired Entertainment, Inc. Segments Disclosure
27. 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 and the President and Chief Executive 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 accounting policies of the segments are the same as those described in the “Summary of Significant Accounting Policies.”
INSPIRED ENTERTAINMENT, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
AS OF AND FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024
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, other segment items, operating profit/(loss), and total capital and other long-lived asset expenditures for the years ended December 31, 2025 and December 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. Asset information by reportable segment is not given as this information is not provided to the Company’s chief decision-making group due to it not being considered necessary in order for the group to assess the reportable segments’ performance or to make decisions concerning the allocation of resources.
Segment Information
Year Ended December 31, 2025
| Gaming | Virtual Sports |
Interactive | Leisure | Corporate Functions |
Total | |||||||||||||||||||
| (in millions) | ||||||||||||||||||||||||
| Revenue: | ||||||||||||||||||||||||
| Service | $ | 88.8 | $ | 36.6 | $ | 58.6 | $ | 94.6 | $ | $ | 278.6 | |||||||||||||
| Product sales | 23.5 | 2.0 | 25.5 | |||||||||||||||||||||
| Total segment revenue | 112.3 | 36.6 | 58.6 | 96.6 | 304.1 | |||||||||||||||||||
| Cost of sales, excluding depreciation and amortization: | ||||||||||||||||||||||||
| Cost of service | (20.6 | ) | (2.1 | ) | (2.9 | ) | (44.6 | ) | (70.2 | ) | ||||||||||||||
| Cost of product sales | (15.4 | ) | (0.9 | ) | (16.3 | ) | ||||||||||||||||||
| Staff-related selling, general and administrative expenses | (16.1 | ) | (9.3 | ) | (11.2 | ) | (15.4 | ) | (17.7 | ) | (69.7 | ) | ||||||||||||
| Non-staff related selling, general and administrative expenses | (11.7 | ) | (2.1 | ) | (6.9 | ) | (14.6 | ) | (14.5 | ) | (49.8 | ) | ||||||||||||
| Labor costs capitalized | 6.5 | 3.7 | 3.0 | 0.1 | 13.3 | |||||||||||||||||||
| Stock-based compensation expense | (1.2 | ) | (0.4 | ) | (0.7 | ) | (0.5 | ) | (3.9 | ) | (6.7 | ) | ||||||||||||
| Depreciation and amortization | (24.0 | ) | (7.8 | ) | (5.2 | ) | (12.5 | ) | (2.9 | ) | (52.4 | ) | ||||||||||||
| Loss on sale of business | (6.6 | ) | (6.6 | ) | ||||||||||||||||||||
| Other segment items | (2.2 | ) | (0.5 | ) | (12.5 | ) | (15.2 | ) | ||||||||||||||||
| Segment operating income (loss) | 27.6 | 18.6 | 34.7 | 1.1 | (51.5 | ) | 30.5 | |||||||||||||||||
| Net operating income | $ | 30.5 | ||||||||||||||||||||||
| Total goodwill at beginning of period | $ | 12.0 | 44.0 | 1.8 | 20.5 | 78.3 | ||||||||||||||||||
| Accumulated goodwill impairment losses | (20.5 | ) | (20.5 | ) | ||||||||||||||||||||
| Total goodwill at beginning of period, net | 12.0 | 44.0 | 1.8 | 57.8 | ||||||||||||||||||||
| Foreign currency translation adjustments | 0.9 | 3.3 | 0.1 | 4.3 | ||||||||||||||||||||
| Total goodwill at December 31, 2025, net | $ | 12.9 | $ | 47.3 | $ | 1.9 | $ | $ | $ | 62.1 | ||||||||||||||
| Total capital and other long-lived asset expenditures for the year ended December 31, 2025 | $ | 29.2 | $ | 3.5 | $ | 1.1 | $ | 7.7 | $ | 5.1 | $ | 46.6 | ||||||||||||
Year Ended December 31, 2024
| Gaming | Virtual Sports |
Interactive | Leisure | Corporate Functions | Total | |||||||||||||||||||
| (in millions) | ||||||||||||||||||||||||
| Revenue: | ||||||||||||||||||||||||
| Service | $ | 74.7 | $ | 45.4 | $ | 39.3 | $ | 99.2 | $ | $ | 258.6 | |||||||||||||
| Product sales | 35.9 | 2.6 | 38.5 | |||||||||||||||||||||
| Total revenue | 110.6 | 45.4 | 39.3 | 101.8 | 297.1 | |||||||||||||||||||
| Cost of sales, excluding depreciation and amortization: | ||||||||||||||||||||||||
| Cost of service | (20.0 | ) | (1.7 | ) | (1.7 | ) | (46.9 | ) | (70.3 | ) | ||||||||||||||
| Cost of product sales | (21.2 | ) | (0.8 | ) | (22.0 | ) | ||||||||||||||||||
| Staff-related selling, general and administrative expenses | (18.1 | ) | (9.2 | ) | (8.9 | ) | (16.8 | ) | (12.5 | ) | (65.5 | ) | ||||||||||||
| Non-staff related selling, general and administrative expenses | (10.5 | ) | (2.7 | ) | (5.4 | ) | (14.8 | ) | (17.6 | ) | (51.0 | ) | ||||||||||||
| Labor costs capitalized | 4.5 | 4.3 | 2.3 | 0.8 | 11.9 | |||||||||||||||||||
| Stock-based compensation expense | (0.9 | ) | (0.5 | ) | (0.4 | ) | (0.6 | ) | (5.2 | ) | (7.6 | ) | ||||||||||||
| Depreciation and amortization | (16.8 | ) | (5.6 | ) | (5.5 | ) | (12.9 | ) | (2.5 | ) | (43.3 | ) | ||||||||||||
| Other segment items | (3.7 | ) | (14.9 | ) | (18.6 | ) | ||||||||||||||||||
| Segment operating income (loss) | 23.9 | 30.0 | 19.7 | 9.8 | (52.7 | ) | 30.7 | |||||||||||||||||
| Net operating income | $ | 30.7 | ||||||||||||||||||||||
| Total goodwill at beginning of period | $ | 12.2 | 44.8 | 1.8 | 20.5 | 79.3 | ||||||||||||||||||
| Accumulated goodwill impairment losses | (20.5 | ) | (20.5 | ) | ||||||||||||||||||||
| Total goodwill at beginning of period, net | 12.2 | 44.8 | 1.8 | 58.8 | ||||||||||||||||||||
| Foreign currency translation adjustments | (0.2 | ) | (0.8 | ) | (1.0 | ) | ||||||||||||||||||
| Total goodwill at December 31, 2024, net | $ | 12.0 | $ | 44.0 | $ | 1.8 | $ | $ | $ | 57.8 | ||||||||||||||
| Total capital and other long-lived asset expenditures for the year ended December 31, 2024 | $ | 9.4 | $ | 9.6 | $ | 1.7 | $ | 11.5 | $ | 4.3 | $ | 36.5 | ||||||||||||
INSPIRED ENTERTAINMENT, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
AS OF AND FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024
Geographic Information
Geographic information for revenue is set forth below:
| Year
Ended December 31, 2025 |
Year
Ended December 31, 2024 |
|||||||
| (in millions) | ||||||||
| Total revenue | ||||||||
| UK | $ | 209.7 | $ | 217.0 | ||||
| Greece | 27.1 | 21.3 | ||||||
| Rest of world | 67.3 | 58.8 | ||||||
| Total | $ | 304.1 | $ | 297.1 | ||||
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 is set forth below:
| December 31,
2025 |
December 31, 2024 |
|||||||
| (in millions) | ||||||||
| UK | $ | 110.9 | $ | 115.1 | ||||
| Greece | 23.8 | 12.7 | ||||||
| Rest of world | 19.8 | 25.5 | ||||||
| Total | $ | 154.5 | $ | 153.3 | ||||
Software development costs are included as attributable to the market in which they are utilized.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 10, 2026 | Showing above |
| 2024 | Mar 26, 2025 | |
| 2023 | Apr 15, 2024 | |
| 2022 | Mar 16, 2023 | |
| 2021 | Mar 31, 2022 | |
| 2020 | Mar 29, 2021 | |
| 2019 | Mar 30, 2020 | |
| 2018 | Dec 10, 2018 | |
| 2017 | Dec 4, 2017 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.