The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s take a look at how gaming solutions stocks fared in Q1, starting with Inspired (NASDAQ: INSE).
Gaming solution companies operate in a dynamic and evolving market, and the digital transformation of the gaming industry presents significant opportunities for innovation and growth, whether it be immersive slot machine terminals or mobile sports betting. However, the gaming solution industry is not without its challenges. Regulatory compliance is a crucial consideration as companies must navigate a complex and often fragmented regulatory landscape across different jurisdictions. Changes in regulations can impact product offerings, operational practices, and market access, requiring companies to maintain flexibility and adaptability in their business strategies. Additionally, the competitive nature of the industry necessitates continuous investment in research and development to stay ahead of competitors and meet evolving consumer demands.
The 7 gaming solutions stocks we track reported a mixed Q1. As a group, revenues missed analysts’ consensus estimates by 2.4%.
Luckily, gaming solutions stocks have performed well with share prices up 12% on average since the latest earnings results.
Inspired (NASDAQ: INSE)
Specializing in digital casino gaming, Inspired (NASDAQ: INSE) is a provider of gaming hardware, virtual sports platforms, and server-based gaming systems.
Inspired reported revenues of $60.4 million, down 3% year on year. This print fell short of analysts’ expectations by 10%. Overall, it was a slower quarter for the company with a miss of analysts’ Leisure revenue estimates.
“We are pleased to report a strong start to 2025, reflecting the continued momentum across our diversified business segments,” said Lorne Weil, Executive Chairman of Inspired.
Inspired delivered the weakest performance against analyst estimates of the whole group. Interestingly, the stock is up 30.4% since reporting and currently trades at $9.69.
Read our full report on Inspired here, it’s free.
Best Q1: Rush Street Interactive (NYSE: RSI)
Specializing in online casino gaming and sports betting, Rush Street Interactive (NYSE: RSI) is an operator of digital gaming platforms.
Rush Street Interactive reported revenues of $262.4 million, up 20.7% year on year, outperforming analysts’ expectations by 0.5%. The business had a strong quarter with a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ adjusted operating income estimates.
Rush Street Interactive delivered the fastest revenue growth among its peers. The market seems happy with the results as the stock is up 21.5% since reporting. It currently trades at $14.73.
Is now the time to buy Rush Street Interactive? Access our full analysis of the earnings results here, it’s free.
Weakest Q1: Light & Wonder (NASDAQ: LNW)
With names as crazy as Ultimate Fire Link Power 4 for its products, Light & Wonder (NASDAQ: LNW) is a gaming company supplying the casino industry with slot machines, table games, and digital games.
Light & Wonder reported revenues of $774 million, up 2.4% year on year, falling short of analysts’ expectations by 4.3%. It was a softer quarter as it posted a miss of analysts’ Gaming revenue estimates and a significant miss of analysts’ EPS estimates.
Interestingly, the stock is up 4.9% since the results and currently trades at $98.23.
Read our full analysis of Light & Wonder’s results here.
Churchill Downs (NASDAQ: CHDN)
Famous for hosting the Kentucky Derby, Churchill Downs (NASDAQ: CHDN) operates a horse racing, online wagering, and gaming entertainment business in the United States.
Churchill Downs reported revenues of $642.6 million, up 8.7% year on year. This number was in line with analysts’ expectations. Aside from that, it was a mixed quarter as it also produced a decent beat of analysts’ EPS estimates but a miss of analysts’ adjusted operating income estimates.
The stock is flat since reporting and currently trades at $105.85.
Read our full, actionable report on Churchill Downs here, it’s free.
Accel Entertainment (NYSE: ACEL)
Established in Illinois, Accel Entertainment (NYSE: ACEL) is a provider of electronic gaming machines and interactive amusement terminals to bars and entertainment venues.
Accel Entertainment reported revenues of $323.9 million, up 7.3% year on year. This print surpassed analysts’ expectations by 1.6%. It was a strong quarter as it also recorded a solid beat of analysts’ EPS estimates and a decent beat of analysts’ video gaming terminals sold estimates.
Accel Entertainment pulled off the biggest analyst estimates beat among its peers. The stock is up 14% since reporting and currently trades at $12.27.
Read our full, actionable report on Accel Entertainment here, it’s free.
Market Update
Thanks to the Fed’s series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs, drawing closer to the 2% goal. This disinflation has occurred without severely impacting economic growth, suggesting the success of a soft landing. The stock market thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% in November), and a notable surge followed Donald Trump’s presidential election win in November, propelling indices to historic highs. Nonetheless, the outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. The path forward holds both optimism and caution as new policies take shape.
Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Quality Compounder Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.
StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.
