BRIGHTSTAR LOTTERY PLC REPORTS THIRD QUARTER 2025 RESULTS

• Third quarter revenue grew 7% to $629 million, primarily driven by 7.9% same-store sales growth reflecting strength across jurisdictions and game types
  
  
  
  
• Income from continuing operations of $95 million
  
  
  
  
• Adjusted EBITDA of $294 million increased 11%, on high profit flow-through of strong same-store sales growth and expense recoveries
  
  
  
  
• Returned $978 million to shareholders in YTD period; announced 10% increase in Q4'25 dividend to $0.22 per share
  
  
  
  
• Introducing medium-term targets including 2028 revenue of $2.75 billion and Adjusted EBITDA of $1.3 billion

LONDON, Nov. 4, 2025 /PRNewswire/ -- Brightstar Lottery PLC (NYSE:BRSL) ("Brightstar" or the "Company") today reported financial results for the third quarter ended September 30, 2025. Today, at 8:00 a.m. EST, management will host a conference call and webcast to present the results; access details are provided below.

"We achieved many milestones in Q3: closing the IGT Gaming sale for $4 billion in cash, executing our shareholder return plans, and completing the refocusing of the Company as a lottery pure play," said Vince Sadusky, CEO of Brightstar. "The better-than-expected Q3 revenue and profit results reflect a significant acceleration of same-store sales across all geographies. For nearly 50 years, our innovative products and services have helped our customers excel. The 2028 financial targets we are introducing today reflect a stronger organic growth profile that we believe will drive compelling, incremental value over the next few years."

"With $1.6 billion of cash and cash equivalents and net debt leverage of 2.3x at the end of Q3, we are well-positioned to execute on our strategic objectives," said Max Chiara, CFO of Brightstar. "As we released our mid-term targets, we expect to generate over $7 billion in gross cash in the 2025-2028 period, mostly allocated to funding organic growth, with $1.7 billion expected to be returned to shareholders over the same timeframe."

Overview of Consolidated Third Quarter 2025 Results

Third Quarter 2025 Financial Highlights

Third quarter revenue of $629 million, up 7% from $587 million in the prior year, primarily driven by:

• Instant ticket and draw same-store sales increased 3.9%, with growth across geographies and game types, primarily driven by a 6.1% increase in Italy and a 1.6% increase in the U.S.
• Higher U.S. multi-state jackpot revenue propelled by a $1.8 billion Powerball jackpot
• Benefit from foreign currency translation
• Increased terminal sales, partially offset by non-wager based service revenue related to European contracts in the prior year and U.K. service contract transition

Income from continuing operations was $95 million compared to loss from continuing operations of $46 million in the prior-year period, primarily resulting from:

• Higher gross profit coupled with general & administrative expense recoveries
• Foreign exchange gain versus foreign exchange loss in the prior year, primarily reflecting the non-cash impact of fluctuations in the EUR/USD exchange rate on debt
• Reduced restructuring charges and provision for income taxes

Adjusted EBITDA increased 11% to $294 million versus $264 million in the prior-year period, mainly due to:

• High profit flow-through of increased wager-based revenue from strong same-store sales and jackpot activity
• Lower costs associated with the execution of the OPtiMa efficiency plan and certain expense recoveries, partially offset by inflationary cost increases
• Benefit from foreign currency translation
• Partially offset by flow-through of non-wager based service revenue related to European contracts in the prior year and U.K. service contract transition

Diluted income per share from continuing operations was $0.29 compared to diluted loss per share from continuing operations of $0.39 in the prior year. Adjusted diluted earnings per share from continuing operations was $0.36 compared to adjusted diluted loss per share from continuing operations of $0.02 in the prior year, primarily driven by higher income from continuing operations.

YTD 2025 Financial Highlights

Year-to-date revenue of $1.84 billion versus $1.86 billion in the prior-year period, primarily due to increased instant ticket and draw same-store sales, which were more than offset by higher LMA incentives in the prior year.

Income from continuing operations was $43 million compared to $154 million in the prior year period, primarily driven by:

• Foreign exchange loss versus foreign exchange gain in the prior year, primarily reflecting the non-cash impact of fluctuations in the EUR/USD exchange rate on debt
• Higher gross profit in the prior year
• Partially offset by improvements in restructuring charges and provision for income taxes

Adjusted EBITDA of $818 million compares to $880 million in the prior year, primarily resulting from:

• High profit flow-through from LMA incentives in the prior year
• Beneficial product sales mix in the prior year
• Incremental investments to drive sustainable long-term growth in the current year
• Partially offset by positive foreign currency translation, general & administrative cost recoveries, and OPtiMa savings

Diluted loss per share from continuing operations was $0.31 compared to diluted earnings per share from continuing operations of $0.17 in the prior year. Adjusted diluted earnings per share from continuing operations of $0.55 compared to $0.46 in the prior year primarily driven by reductions in net interest, income tax, and general & administrative expenses, partially offset by higher gross profit in the prior year.

Net debt was $2.6 billion compared to $4.8 billion at December 31, 2024. The decrease was primarily driven by approximately $2 billion in proceeds from the sale of IGT Gaming allocated to debt reduction. Net debt leverage was 2.3x. 

Cash and Liquidity Update

Total liquidity was $3.2 billion as of September 30, 2025 with $1.6 billion in unrestricted cash and $1.6 billion in additional borrowing capacity from undrawn credit facilities; ample liquidity in advance of upcoming Italy Lotto upfront license fee payments.

Other Developments

On July 1, 2025, completed sale of IGT Gaming business for approximately $4 billion of net cash proceeds.

• $3.00 per share special cash dividend distribution to shareholders on July 29, 2025
• Launched $250 million accelerated share repurchase on July 29, 2025, as part of $500 million share repurchase authorization

The Company's Board of Directors declared a quarterly cash dividend of $0.22 per common share, representing a 10% increase over historical levels, with a record date of November 18, 2025 and a payment date of December 2, 2025.

For U.S. income tax purposes, dividends paid in 2025 are expected to be classified as a non-taxable return of capital to the extent of a shareholder's basis in its shares, and thereafter as capital gain. For further information, see the Form 6-K which will be filed later today with the SEC, which is available on the SEC's website at www.sec.gov and on the investor relations section of the Company's website at www.brightstarlottery.com.

Financial Outlook

Reaffirming FY'25 revenue and profit outlook:

• Revenue of approximately $2.5 billion
• Adjusted EBITDA of approximately $1.1 billion
• Net cash used in operating activities of approximately $220 million; upgrading cash from operations to approximately $700 million from approximately $645 million excluding Lotto upfront license fee
• Capital expenditures of approximately $340 million, an approximate $110 million decrease from the estimate at the beginning of the year, primarily related to timing shifts

Introducing medium-term targets:

• 2028 revenue of $2.75 billion reflects an accelerated, over 5% organic CAGR, led by continued core business growth and incremental expansion from iLottery in the U.S. and Italy B2C initiatives
• 2028 Adjusted EBITDA of $1.3 billion reflects a more than 6% CAGR as revenue growth is enhanced by OPtiMa savings and other efficiency initiatives
• Average annual capital expenditures of approximately $400 million for 2025 – 2028 reflecting peak contract renewal cycle; moderates to approximately $200 - $225 million post peak cycle
• Over $400 million in annual free cash flow before upfront license fees but after minority distributions and peak capital expenditure investment cycle; implies low-to-mid teens free cash flow yield at current share price

Earnings Conference Call and Webcast

November 4, 2025, at 8:00 a.m. EST

To register to participate in the conference call, or to listen to the live audio webcast, please visit the "Events Calendar" on Brightstar's Investor Relations website at www.brightstarlottery.com. A replay will be available on the website following the live event.

Comparability of Results

All figures presented in this news release are prepared under U.S. GAAP, unless noted otherwise. Amounts reported in millions are computed based on amounts in thousands. As a result, the sum of the components may not equal the total amount reported in millions due to rounding. Certain columns and rows within tables may not add due to the use of rounded numbers. Percentages and earnings per share amounts presented are calculated from the underlying unrounded amounts.

About Brightstar Lottery PLC

Brightstar Lottery PLC (NYSE:BRSL) is an innovative, forward-thinking global leader in lottery that builds on our renowned expertise in delivering secure technology and producing reliable, comprehensive solutions for our customers. As a premier pure play global lottery company, our best-in-class lottery operations, retail and digital solutions, and award-winning lottery games enable our customers to achieve their goals, entertain players, and distribute meaningful benefits to communities. Brightstar has a well-established local presence and is a trusted partner to governments and regulators around the world, creating value by adhering to the highest standards of service, integrity, and responsibility. Brightstar has approximately 6,000 employees. For more information, please visit www.brightstarlottery.com.

Cautionary Statement Regarding Forward-Looking Statements

This news release and the Company's earnings call include forward-looking statements (including within the meaning of the Private Securities Litigation Reform Act of 1995) concerning the Company and other matters. These statements may discuss goals, intentions, and expectations as to future plans and strategies, expected growth, transactions, trends, events, products and services, dividends and their classification for U.S. income tax purposes, results of operations, and/or financial condition or measures, including our expectations on future revenue, income from continuing operations, Adjusted EBITDA, cash from and used in operations, capital expenditures, cash to be returned to shareholders, FY'25 EUR/USD assumption, share repurchases, and any other future financial and operational performance, including 2028 revenue, profit, free cash flow and capital expenditure targets, based on current beliefs of the management of the Company as well as assumptions made by, and information currently available to, such management. Forward-looking statements may be accompanied by words such as "aim," "anticipate," "believe," "plan," "could," "would," "should," "shall," "continue," "estimate," "expect," "forecast," "future," "guidance," "intend," "may," "will," "outlook," "possible," "potential," "predict," "project," "target" or the negative or other variations of them. These forward-looking statements speak only as of the date on which such statements are made and are subject to various risks and uncertainties, many of which are outside the Company's control. Should one or more of these risks or uncertainties materialize, or should any of the underlying assumptions prove incorrect, actual results may differ materially from those predicted in the forward-looking statements and from past results, performance, or achievements. Therefore, you should not place undue reliance on such statements. Factors that could cause actual results to differ materially from those in the forward-looking statements include (but are not limited to) macroeconomic, regulatory and political uncertainty, including as a result of new or increased tariffs, trade wars, and other restrictions on trade between or among countries in which the Company operates, and related changes in discretionary consumer spending and behavior, fluctuations in foreign currency exchange rates, changes in prevailing interest rates, changing inflation rates, impacts from increased U.S. national deficits, financial market volatility and the other factors and risks described in the Company's annual report on Form 20-F for the financial year ended December 31, 2024 and other documents filed or furnished from time to time with the SEC, which are available on the SEC's website at www.sec.gov and on the investor relations section of the Company's website at www.brightstarlottery.com. Except as required under applicable law, the Company does not assume any obligation to update these forward-looking statements. You should carefully consider these factors and other risks and uncertainties that may affect the Company's business, including management's discussion and analysis of potential or actual impacts to operations and financial performance. Nothing in this news release is intended, or is to be construed, as a profit forecast or to be interpreted to mean that the financial performance of Brightstar Lottery PLC for the current or any future financial years will necessarily match or exceed the historical published financial performance of Brightstar Lottery PLC, as applicable. All forward-looking statements contained in this news release are qualified in their entirety by this cautionary statement. All subsequent written or oral forward-looking statements attributable to Brightstar Lottery PLC, or persons acting on its behalf, are expressly qualified in their entirety by this cautionary statement.

Non-GAAP Financial Measures

Management supplements the reporting of financial information, determined under GAAP, with certain non-GAAP financial information. Management believes the non-GAAP information presented provides investors with additional useful information, but it is not intended to, nor should it be considered in isolation or as a substitute for the related GAAP measures. Moreover, other companies may define non-GAAP measures differently, which limits the usefulness of these measures for comparisons with such other companies. The Company encourages investors to review its financial statements and publicly filed reports in their entirety and not to rely on any single financial measure.

Adjusted EBIT represents net income (loss) from continuing operations (a GAAP measure) before income taxes, interest expense, net, foreign exchange gain (loss), net, other expenses (e.g., gains/losses on extinguishment and modifications of debt, etc.), net, impairment losses, restructuring expenses, stock-based compensation, litigation expense (income), and certain other non-recurring items. Other non-recurring items are infrequent in nature and are not reflective of ongoing operational activities. Management believes that Adjusted EBIT is useful in providing period-to-period comparisons of the results of the Company's ongoing operational performance.

Adjusted EBIT margin represents Adjusted EBIT divided by revenue.

Adjusted EBITDA represents net income (loss) from continuing operations (a GAAP measure) before income taxes, interest expense, net, foreign exchange gain (loss), net, other expenses (e.g., gains/losses on extinguishment and modifications of debt, etc.), net, depreciation, impairment losses, amortization (service revenue, purchase accounting, and non-purchase accounting), restructuring expenses, stock-based compensation, litigation expense (income), and certain other non-recurring items. Other non-recurring items are infrequent in nature and are not reflective of ongoing operational activities. Management believes that Adjusted EBITDA is useful in providing period-to-period comparisons of the results of the Company's ongoing operational performance.

Adjusted EBITDA margin represents Adjusted EBITDA divided by revenue.

Adjusted EPS represents diluted earnings per share (a GAAP measure), excluding the effects of foreign exchange, impairments, amortization from purchase accounting, discrete tax items, and other significant non-recurring adjustments that are not reflective of on-going operational activities (e.g., gains/losses on sale of business, gains/losses on extinguishment and modifications of debt, etc.). Adjusted EPS is calculated using diluted weighted-average number of shares outstanding, including the impact of any potentially dilutive common stock equivalents that are anti-dilutive to GAAP net income (loss) per share but dilutive to Adjusted EPS. Management believes that Adjusted EPS is useful in providing period-to-period comparisons of the results of the Company's ongoing operational performance.

Net debt is a non-GAAP financial measure that represents debt (a GAAP measure, calculated as long-term obligations plus short-term borrowings) minus capitalized debt issuance costs and cash and cash equivalents, including cash and cash equivalents classified as held for sale. Cash and cash equivalents, including cash and cash equivalents held for sale, are subtracted from the GAAP measure because they could be used to reduce the Company's debt obligations. Management believes that net debt is a useful measure to monitor leverage and evaluate the balance sheet.

Net debt leverage is a non-GAAP financial measure that represents the ratio of Net debt as of a particular balance sheet date to Adjusted EBITDA for the last twelve months prior to such date. Management believes that net debt leverage is a useful measure to assess Brightstar's financial strength and ability to incur incremental indebtedness when making key investment decisions.

Free cash flow is a non-GAAP financial measure that represents cash flow from operations (a GAAP measure) less capital expenditures. Management believes free cash flow is a useful measure of liquidity and an additional basis for assessing Brightstar's ability to fund its activities, including debt service and distribution of earnings to shareholders.

Constant currency is a non-GAAP adjustment to certain financial measures that expresses current financial data using the prior-year/period exchange rate (i.e., the exchange rate used in preparing the financial statements for the prior year). Management believes that constant currency is a useful measure to compare period-to-period results without regard to the impact of fluctuating foreign currency exchange rates.

A reconciliation of the non-GAAP measures to the corresponding amounts prepared in accordance with GAAP appears in the tables in this release. The tables provide additional information as to the items and amounts that have been excluded from the adjusted measures.

The Company provides guidance of select information related to its financial and operating performance, and such measures may differ from year to year. The guidance is only an estimate of what the Company believes is realizable as of the date of this release. Actual results may vary from the guidance and the variations may be material. The Company undertakes no intent or obligation to publicly update or revise any of these projections, whether as a result of new information, future events or otherwise, except as required by law.

A reconciliation of the Company's forward-looking non-GAAP financial measures to the most directly comparable GAAP financial measure cannot be provided without unreasonable effort. This is due to the inherent difficulty of accurately forecasting the occurrence and financial impact of the adjusting items necessary for such a reconciliation to be prepared, for example, the provision for income taxes or net foreign exchange gain/loss, as such items have not yet occurred, are out of the Company's control, or cannot be reasonably predicted.

Contact

Mike DeAngelis, Corporate Communications, +1 (401) 392-1000, [email protected]

Matteo Selva, Italian media inquiries, +39 366 6803635

James Hurley, Investor Relations, +1 (401) 392-7190 

 

 

 

 

 

 

 

 

 

Recast Historical Financial Information

Recast data reflects the streamlined presentation of Brightstar's condensed consolidated statements of operations with no effect on previously reported total revenues, income from continuing operations, or net income.

 

 

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SOURCE Brightstar Lottery PLC