Executive Summary

Q2 revenue rose 7% year over year to $80.3M, with strength in Interactive (+45% YoY) driving consolidated Adjusted EBITDA up 15% to $28.4M and margin expansion to 35% .
GAAP results were weighed by an $8.8M tax expense; the company reported a net loss of $7.8M (−$0.27/share) versus net income of $1.4M ($0.05/share) in Q2 2024; Adjusted Net Loss was $5.6M (vs. Adjusted Net Income $5.2M a year ago) .
Segment mix was favorable: Gaming EBITDA +35% YoY on Vantage cabinet rollouts and cost efficiencies; Interactive EBITDA +49% YoY with 67% margin; Virtual Sports improved sequentially; Leisure +26% EBITDA YoY aided by UK holiday timing .
Balance sheet and liquidity improved via a comprehensive refinancing: £270M senior secured notes due 2030 (SONIA + 550–600 bps) and a new £17.8M RCF; management plans to swap to fixed and prioritize deleveraging, aided by the proposed Holiday Parks divestiture .

What Went Well and What Went Wrong

What Went Well

Interactive outperformance and scalability: revenue +45% YoY; Adjusted EBITDA +49% YoY; margin expanded ~200 bps to 67% in Q2, with momentum across North America and UK (“key growth engine…scalable, high-margin product”) .
Gaming execution: segment Adjusted EBITDA +35% YoY on top-line growth, margin expansion, and the William Hill Vantage rollout delivering high single-digit revenue growth; Jenningsbet five-year deal for ~570 Vantage terminals starts Q4 2025 .
Strategic refinancing and operational progress: £270M 2030 notes and £17.8M RCF completed; management expects a rate swap, step-downs as leverage falls, and liquidity tailwinds post Holiday Parks sale (agreement in principle; aiming to sign/close in coming months) .

What Went Wrong

GAAP profitability: tax expense drove a $7.8M net loss (−$0.27/share) vs. $1.4M net income ($0.05/share) in Q2 2024; Adjusted Net Loss was $5.6M vs. $5.2M Adjusted Net Income a year ago .
Virtual Sports still down YoY: revenue −21% YoY; segment Adjusted EBITDA −31% YoY, despite sequential improvement; management now expects YoY inflection more likely in Q4 than Q3 .
Higher corporate costs and tax: corporate Adjusted EBITDA more negative YoY (−$7.8M vs. −$6.6M), and tax drove the bottom line; non-GAAP adjustments include ~$3.2M restructuring costs and FX effects .

Financial Results

Consolidated P&L and Profitability (oldest → newest)

Metric	Q4 2024	Q1 2025	Q2 2025
Revenue ($M)	$83.0	$60.4	$80.3
Net Income (Loss) ($M)	$68.0	$(0.1)	$(7.8)
Diluted EPS ($)	$2.33	$0.00	$(0.27)
Net Operating Income ($M)	$14.0	$1.6	$7.9
Adjusted EBITDA ($M)	$30.9	$18.4	$28.4
Adjusted EBITDA Margin (%)	37%	30%	35%

Q2 2025 vs. Q2 2024

Metric	Q2 2024	Q2 2025	YoY Change
Revenue ($M)	$74.8	$80.3	+7%
Net Operating Income ($M)	$8.7	$7.9	−9%
Net (Loss) Income ($M)	$1.4	$(7.8)	NM
Diluted EPS ($)	$0.05	$(0.27)	NM
Adjusted EBITDA ($M)	$24.7	$28.4	+15%
Adjusted Net (Loss) Income ($M)	$5.2	$(5.6)	NM

Segment Breakdown – Q2 2025 vs. Q2 2024

Segment Revenue ($M)	Q2 2024	Q2 2025	YoY %
Gaming	$26.3	$27.2	+3%
Virtual Sports	$11.7	$9.2	−21%
Interactive	$9.4	$13.6	+45%
Leisure	$27.4	$30.3	+11%
Total	$74.8	$80.3	+7%

Segment Adjusted EBITDA ($M)	Q2 2024	Q2 2025	YoY %
Gaming	$9.5	$12.8	+35%
Virtual Sports	$9.6	$6.6	−31%
Interactive	$6.1	$9.1	+49%
Leisure	$6.1	$7.7	+26%
Corporate	$(6.6)	$(7.8)	(18%)
Total	$24.7	$28.4	+15%

KPIs

KPI	Q4 2024	Q1 2025	Q2 2025
Company Adjusted EBITDA Margin	37%	30%	35%
Interactive Adjusted EBITDA Margin	71% (Q4’24)	64%	67%
Virtual Sports EBITDA Margin	—	—	72% (sequential commentary)

Note on estimates: S&P Global consensus data for Q2 2025 EPS, Revenue, EBITDA, Target Price, and Recommendation were unavailable via our tool; therefore, explicit vs-consensus comparisons are not provided. Management stated EBITDA was “well ahead of consensus.”

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue / EPS	FY/Q3	None provided	No formal numeric guidance; management emphasized Interactive momentum, Virtual Sports sequential improvement, and ongoing Gaming strength	Maintained qualitative only
Virtual Sports	H2 2025	N/A	YoY inflection more likely in Q4 than Q3	Qualitative timing shift
Company EBITDA Margin (post Leisure sale)	Medium-term	N/A	“Approach”/“comfortably over” 40% after Leisure portfolio actions and Holiday Parks sale completion	Qualitative target reiterated
Capital Allocation / Interest	2025–2026	N/A	Deleveraging priority post-refi; plan to swap floating to fixed; step-downs as leverage falls; refi terms: SONIA +550–600 bps on £270M notes due 2030; £17.8M RCF	New financing in place; deleveraging focus

No dividend guidance was discussed in Q2 materials .

Earnings Call Themes & Trends

Topic	Q4 2024 (Mar 17, 2025)	Q1 2025 (May 8, 2025)	Q2 2025 (Aug 6, 2025)	Trend
Interactive growth/scalability	Interactive revenue +45% YoY; margin to 71%; strong Tier-1 momentum	Revenue +49% YoY; EBITDA +75%; margin to 64%	Revenue +45% YoY; EBITDA +49%; margin 67%	Sustained, high-margin growth
Hybrid Dealer rollout	Live with BetMGM, bet365; Loto-Québec roulette planned; robust pipeline	Multiple geographies/customers; new derivatives; PA pending	Broader deployments (BetMGM, Caesars, bet365, Loto-Québec); regional operator traction	Expanding footprint
Virtual Sports trajectory	Stabilization expected; Brazil and innovation to help; margins >70%	Stabilizing; Brazil regulatory reset; lottery (VA) launch	Sequential growth; YoY inflection more likely Q4	Improving sequentially
Deleveraging/refi	New facility expected pre-June; high recurring revenue	Commitment letter for £287.8M facilities	£270M notes + £17.8M RCF closed; plan to swap; prioritize deleveraging	Executed, focus on leverage
UK retail/terminals	Vantage rollout driving >10% cash box uplift; Illinois indexing high	UK: William Hill strong; others softer; stakes limits minimal impact expected	Gaming EBITDA +35% YoY; new Jenningsbet deal	Positive mix, selective softness
Regulatory/legal	—	Tariffs immaterial; potential UK trade deal mention	Brazil regulatory normalization; VA Lottery online virtuals	Manageable; new channels

Management Commentary

“Interactive remains a key growth engine… Interactive Adjusted EBITDA margin expanded to 67%… Hybrid Dealer continues to gain traction… initial indications… are encouraging” — Lorne Weil, Executive Chairman .
“Gaming… Adjusted EBITDA increasing 35% year-over-year… roll out of our Vantage cabinets with William Hill… delivering high single-digit revenue growth… operational initiatives… improving the segment’s margin profile” — Lorne Weil .
“Virtual Sports saw sequential growth… localized content… in Brazil… expanded… William Hill… ~300 new daily events… launches underway in Turkey and North America” — Lorne Weil .
“We refinanced… prior to June… arranging a swap… lowering our effective rate… step down opportunities to lower our spread as we deleverage… agreement in principle [to sell] Holiday Park” — Lorne Weil .
“Q2 saw our eighth consecutive quarter of more than 40% year over year adjusted EBITDA growth [in Interactive]… margin… 67%… considerable room for further growth” — Brooks Pierce, CEO .

Q&A Highlights

Hybrid Dealer traction: Mix of Tier-1 and Tier-2 customers (via aggregators Relax, Games Global); roulette and wheel games performing; four-ball roulette underperforming expectations; more innovation coming (e.g., FanDuel bespoke game in September) .
Virtual Sports inflection: Sequential improvement; YoY inflection more likely Q4 than Q3 given product timing and Brazil rollout cadence .
Gaming growth drivers: Vantage cabinet performance across markets; Illinois replacement cycle early; Canada provincial sales; potential Brazil machine market opportunity .
Capital allocation priorities: Fund growth (capital-light), deleveraging first (spread step-downs), then consider buybacks; plan to swap floating to fixed .

Estimates Context

S&P Global consensus estimates for Q2 2025 EPS, Revenue, EBITDA, Target Price, and Recommendation were unavailable via our tool at the time of analysis; as a result, we cannot quantify beats/misses versus consensus. Management stated Q2 EBITDA was “well ahead of consensus” on the call .
Given Interactive outperformance and Gaming margin expansion (YoY), upward estimate revisions for Interactive and Gaming profitability appear likely; Virtual Sports revisions may depend on Q4 inflection execution and Brazil/operator additions .

Key Takeaways for Investors

Digital mix expanding: Interactive continues to deliver outsized growth and 60–70%+ margins, with Hybrid Dealer scaling across Tier-1 and regional operators—supportive of multiple expansion and higher FCF conversion .
Deleveraging underway: The June refinancing extends maturities and positions the company to reduce interest costs via swaps and spread step-downs as leverage falls; completing the Holiday Parks sale should accelerate the path to targeted 40%+ EBITDA margins .
Gaming execution durable: Vantage cabinets are lifting revenue for key UK partners and are being rolled out in Greece and North America; Illinois replacement cycle offers multi-year runway .
Virtual Sports is turning the corner sequentially, but YoY growth likely shifts to Q4; watch Brazil rollouts (localized products, additional operators) and North America (lottery, BetMGM) for confirmation .
Non-GAAP adjustments matter: Q2 Adjusted Net Loss ($5.6M) was materially better than GAAP (−$7.8M) driven by restructuring, FX, and restatement-related items; investors should monitor the pace of normalization as one-offs fade .
Near-term trading setup: Positive narratives around Interactive/Hybrid Dealer momentum, Jenningsbet award, and refinancing/deleveraging may support the stock; timing risk around Virtual Sports inflection and tax expense impacts are the main offsets .
Medium-term thesis: Mix shift to high-margin digital, capital-light growth, and deleveraging support structural FCF improvement and margin expansion above 40% post Leisure actions .

Additional Reference Data

Cash from operations improved materially in 1H25: $40.7M vs. $3.6M in 1H24; cash ended Q2 at $46.3M (vs. $29.3M at YE24) .
Pro forma business development in/around Q2: Loto‑Québec branded Hybrid Dealer roulette launch; BetMGM exclusive Hybrid Dealer 4‑Ball roulette in the U.S.; Brazil V‑Play Football (Betano), with broader LatAm initiatives .

Note on estimates: S&P Global consensus values for Q2 2025 were unavailable via our tool at the time of analysis.

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