Inspired Entertainment, Inc. reported its financial results for the three and nine months ended September 30, 2024, revealing significant changes in revenue and profitability compared to the previous fiscal period. Total revenue for the third quarter was $78.0 million, a decrease of 20.2% from $97.5 million in the same period of 2023. For the nine-month period, revenue fell to $216.7 million from $241.8 million, marking a decline of 12.5%. The decrease in revenue was primarily attributed to a significant drop in Gaming product sales, which fell by $22.8 million in the third quarter, largely due to low-margin sales.

Despite the revenue decline, net income for the third quarter remained stable at $3.4 million, unchanged from the prior year. However, for the nine months ended September 30, 2024, the company reported a net loss of $0.3 million, a stark contrast to the net income of $7.6 million recorded in the same period in 2023. The comprehensive loss for the third quarter was $(2.6) million, compared to a comprehensive income of $7.2 million in the previous year.

The company's total assets increased to $388.6 million as of September 30, 2024, up from $340.9 million at the end of 2023. Current assets also rose to $165.4 million, while total liabilities increased to $466.9 million, up from $418.9 million. The stockholders’ deficit slightly decreased to $(78.3) million from $(78.0) million at the end of 2023.

Operating income for the third quarter was $11.9 million, a decrease of 2.5% from $12.2 million in the same period of 2023. The nine-month operating income also declined to $19.9 million from $31.0 million in the previous year. Selling, general, and administrative expenses rose by 23% in the third quarter, driven by exceptional items related to the restatement of prior financial statements and restructuring costs.

Strategically, the company has been active in expanding its service offerings, launching services with seventeen new operators in the Interactive segment during the third quarter. Additionally, Inspired Entertainment entered into a finance lease agreement for machine purchases totaling $21.0 million, to be repaid over six years.

The company maintained a cash position of $35.7 million as of September 30, 2024, compared to $26.4 million a year earlier, and reported net cash provided by operating activities of $24.8 million for the nine months, down from $43.0 million in 2023. Management believes that current cash balances and expected cash flows will be sufficient to meet cash requirements through November 2025.