BRIGHTSTAR LOTTERY PLC REPORTS SECOND QUARTER 2025 RESULTS

Rhea-AI Summary

Brightstar Lottery PLC (NYSE:APO) reported Q2 2025 results with mixed performance. The company achieved 2.6% global same-store sales growth in instant ticket and draw games, but recorded a loss from continuing operations of $60 million, impacted by $99 million in foreign currency translation losses and a $21 million restructuring charge.

Key highlights include $274 million in Adjusted EBITDA, completion of Gaming & Digital business sale for $4 billion, securing the Italy Lotto license through 2034, and maintaining strong liquidity of $2.9 billion. The company announced a $250 million accelerated share repurchase program and reaffirmed its FY'25 Adjusted EBITDA outlook of approximately $1.10 billion.

Positive

• Completed Gaming & Digital business sale for $4.0 billion in cash proceeds
• Secured nine-year Italy Lotto operator license and eight-year Missouri contract
• Strong liquidity position of $2.9 billion
• 2.6% global same-store sales growth in instant ticket and draw games
• Product sales revenue increased by 59%
• Launching $250 million accelerated share repurchase program
• Declared special cash dividend of $3.00 per share

Negative

• Loss from continuing operations of $60 million vs. $84 million income in prior year
• $99 million non-cash loss from foreign currency translation
• Adjusted EBITDA declined 5% to $274 million from $290 million
• Adjusted EPS decreased to $0.12 from $0.20 year-over-year
• Net debt increased to $5.2 billion from $4.8 billion at December 2024
• Revenue outlook reduced by $50 million due to timing shift in product sales

Insights

Financial Analyst

Mixed Q2 with revenue growth (+3%) but operational challenges, cushioned by strategic $4B sale and significant shareholder returns.

Brightstar's Q2 results reveal a complex financial picture following its transformation into a pure lottery company. While revenue grew 3% to $631 million, the loss from continuing operations of $60 million stands in stark contrast to last year's $84 million profit. This decline largely stems from $99 million in non-cash foreign currency translation impacts and $21 million in restructuring charges for their expanded cost-cutting program.

The company's core lottery business shows resilience with global instant ticket and draw same-store sales growing 2.6% across markets (Italy +3.7%, US +0.6%, Rest of World +8.4%). Product sales jumped 59% on higher instant ticket printing and terminal sales. However, comparisons were challenging due to unusually high multi-state jackpot activity in the prior year.

Brightstar's strategic repositioning is the headline story here. The $4 billion sale of their Gaming & Digital business (closed July 1) has transformed their capital structure and shareholder return profile. Management is deploying these proceeds strategically: $2 billion for debt reduction (already completed), $1.1 billion returned to shareholders ($3.00/share special dividend plus $500 million share repurchase program), $500 million for Italy Lotto license payments, and $400 million for general corporate purposes.

The company's liquidity position is exceptionally strong at $2.9 billion, with $1.3 billion in cash and $1.6 billion in available credit. Despite a challenging quarter operationally, Adjusted EBITDA of $274 million (43.5% margin) demonstrates the lottery business's cash-generating capabilities, though down from $290 million (47.3% margin) year-over-year.

Management has reaffirmed their FY25 Adjusted EBITDA outlook of approximately $1.1 billion while slightly reducing revenue expectations by $50 million to $2.5 billion due to timing shifts in product sales and accounting impacts from the Italy Lotto license fee. Cash flow projections have improved with lower capital expenditure forecasts.

The announced $250 million accelerated share repurchase program signals management's confidence in the business and commitment to shareholder returns, complementing the regular quarterly dividend of $0.20 per share.

• 2.6% global same-store sales growth in instant ticket and draw games and double-digit increase in product sales revenue; prior year comparisons impacted by ongoing multi-state jackpot and LMA dynamics
• Loss from continuing operations of $60 million includes $99 million non-cash impact of foreign currency translation and $21 million restructuring charge associated with upsized OPtiMa 3.0 cost reduction program
• Delivered Adjusted EBITDA of $274 million, demonstrating resilient profit despite incremental investments in the business and multi-state jackpot and LMA dynamics
• Strong financial condition with significant liquidity of $2.9 billion
• 2025 Adjusted EBITDA outlook reaffirmed, cash flow improved
• Launching $250 million accelerated share repurchase program

LONDON, July 29, 2025 /PRNewswire/ -- Brightstar Lottery PLC ("Brightstar" or the "Company") (NYSE:BRSL) today reported financial results for the second quarter ended June 30, 2025. Today, at 8:00 a.m. EDT, management will host a conference call and webcast to present the results; access details are provided below.

"We achieved several important milestones over the last few months," said Vince Sadusky, CEO of Brightstar. "We secured the Italy Lotto license through November 2034, closed the sale of our Gaming & Digital business for $4 billion in cash, and announced plans to return significant capital to shareholders. With a singular focus on lottery and unmatched industry expertise, we are well positioned to create value for all stakeholders with our mission to elevate lotteries and inspire players around the world."

"Our second quarter results reflect sustained global demand for instant ticket and draw games," said Max Chiara, CFO of Brightstar. "We are investing in key initiatives to drive sustainable, long-term growth, while also delivering structural cost reductions to right-size the business. The Company's attractive profit profile and strong, predictable cash flows support our balanced approach to capital allocation."    

Overview of Consolidated Second Quarter 2025 Results

	Quarter Ended			Y/Y Change	Constant Currency Change
All amounts from continuing operations	June 30,
	2025		2024
($ in millions, except per share data)
GAAP Financials:
Revenue	631		613	3 %	— %
Operating income	139		179	(22) %	(27) %
Operating income margin	22.0 %		29.2 %
Income from continuing operations	(60)		84	NA
Income from continuing operations margin	(9.5) %		13.8 %
Earnings per share - diluted	$(0.47)		$0.21	NA
Net cash provided by operating activities	265		250	6 %
Cash and cash equivalents	1,309		374	250 %
Non-GAAP Financial Measures:
Adjusted EBITDA	274		290	(5) %	(9) %
Adjusted EBITDA margin	43.5 %		47.3 %
Adjusted earnings per share - diluted	$0.12		$0.20	(41) %
Free cash flow	167		210	(21) %
Net debt	5,240		5,173	1 %

Note: Reconciliations of non-GAAP financial measures to the most directly comparable GAAP financial measures, and other disclosures regarding non-GAAP financial measures, are provided at the end of this news release

Key Highlights

• Successful completion of Gaming & Digital sale for approximately $4.0 billion of net cash proceeds on July 1, 2025.
• Secured several meaningful contract wins and extensions including a nine-year Lotto operator license in Italy, an eight-year contract in Missouri which includes a fully-integrated OMNIA™ retail and digital solution, and several multi-year instant ticket printing contract extensions.
• Expanding OPtiMa 3.0 cost reduction program to $50 million to right-size the business following the Gaming & Digital sale.

Second Quarter 2025 Financial Highlights
Second quarter revenue was $631 million, up 3% or stable at constant currency.

• Instant ticket & draw same-store sales increased across geographies with Italy increasing 3.7%, U.S. higher by 0.6%, and Rest of World climbing 8.4%.
• Product sales rose 59% on higher instant ticket printing and terminal sales.
• Foreign currency translation had a positive impact on growth.
• Growth from the drivers above was partially offset by elevated U.S. multi-state jackpot activity and associated LMA incentives in the prior year.

Loss from continuing operations was $60 million compared to income from continuing operations of $84 million in the prior year period.

• Incurred a foreign exchange loss versus a foreign exchange gain in the prior year, primarily reflecting the non-cash impact of fluctuations in the EUR/USD exchange rate on debt.
• Operating income was lower, driven by the high profit flow-through from elevated U.S. multi-state jackpot sales and associated LMA incentives in the prior year and restructuring charges related to the expanded OPtiMa 3.0 cost reduction program in the current year.
• Increased provision for income taxes.
• Dynamics noted above were partially offset by reduced interest expense.

Adjusted EBITDA was $274 million compared to $290 million in the prior-year period, demonstrating resiliency despite incremental investments in the business and multi-state jackpot and LMA dynamics.

• Prior year results include the high profit flow-through from elevated U.S. multi-state jackpot sales and associated LMA incentives.
• Selling, general, and administrative costs were modestly higher as ongoing investments in the business were partially offset by OPtiMa cost savings.
• The Q2'25 period benefited from positive foreign currency translation.

Diluted loss per share from continuing operations was $0.47 compared to diluted earnings per share from continuing operations of $0.21 in the prior year. Adjusted diluted earnings per share from continuing operations was $0.12 compared to $0.20 in the prior year, primarily driven by lower operating income.

YTD 2025 Financial Highlights
Year-to-date revenue of $1.2 billion compares to $1.3 billion in the prior-year period.

• The decline was due to higher U.S. multi-state jackpot activity and associated LMA incentives in the prior year.
• Global instant ticket & draw same-store sales rose 1.2%.

Loss from continuing operations was $52 million compared to income from continuing operations of $200 million in the prior year period.

• Lower operating income, primarily due to the items affecting Adjusted EBITDA as noted below.
• 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.

Adjusted EBITDA of $524 million compares to $617 million in the prior-year, primarily driven by high profit flow-through from elevated U.S. multi-state jackpot sales and associated LMA incentives in the prior year, partially offset by positive foreign currency translation.

Diluted loss per share from continuing operations was $0.59 compared to diluted earnings per share from continuing operations of $0.56 in the prior year. Adjusted diluted earnings per share from continuing operations of $0.20 compares to $0.47 in the prior year primarily driven by lower operating income, partially offset by reductions in net interest and income tax expense.

Net debt was $5.2 billion compared to $4.8 billion at December 31, 2024. The increase was primarily driven by an approximate $340 million impact from fluctuations in the EUR/USD exchange rate. Net debt leverage was 3.0x pro forma for $2 billion debt reduction completed in July.

Cash and Liquidity Update
Total liquidity was $2.9 billion as of June 30, 2025 with $1.3 billion in unrestricted cash and $1.6 billion in additional borrowing capacity from undrawn credit facilities.

Other Developments
The Company plans to launch a $250 million accelerated share repurchase program (ASR) by entering into an accelerated share repurchase agreement with a counterparty bank. The Company plans to execute the ASR as part of its $500 million share repurchase authorization outlined below and in accordance with the share repurchase authorization provided by the Company's shareholders at the Company's 2025 Annual General Meeting. The Company has been informed by De Agostini S.p.A., that it does not intend to participate in the ASR.

The Company's Board of Directors declared a quarterly cash dividend of $0.20 per common share with a record date of August 12, 2025 and a payment date of August 26, 2025.

Completed the sale of the Gaming & Digital business on July 1, 2025. The Company received approximately $4.0 billion of net cash proceeds that are expected to be allocated in the following manner:

• $2.0 billion used to reduce debt (completed in July 2025).
  • Redeemed in whole the 4.125% Senior Secured U.S. Dollar Notes due April 2026 and the 3.500% Senior Secured Euro Notes due June 2026.
  • Prepaid €300 million of the Term Loan Facilities due January 2027.
  • The remaining amount was allocated to prepay the Revolving Credit Facilities due July 2027.
• $1.1 billion to be returned to shareholders.
  • The Company's Board of Directors declared a special cash dividend to common shareholders in the amount of $3.00 per share. The record date of the distribution was July 14, 2025, and it is payable July 29, 2025.
  • In addition, the Board authorized a $500 million, two-year share repurchase program. The new authorization replaces the Company's existing share repurchase program.
• $500 million to partially fund upcoming Italy Lotto license payments.
• $400 million to be used for general corporate purposes.

The U.S. federal income tax consequences of distributions by the Company will depend, in part, on whether the Company has current or accumulated earnings and profits ("E&P"), as determined under U.S. federal income tax principles. Based on preliminary estimates, the Company does not expect to have current E&P for fiscal year 2025 or accumulated E&P from prior fiscal years that would offset the current year expected E&P deficit. Accordingly, the Company anticipates that the special dividend, the Q1 dividend paid on June 12, and any future dividends paid in the current fiscal year will be treated for U.S. income tax purposes as a non-taxable return of capital to the extent of a shareholder's basis in its shares, and thereafter as capital gain, although no assurances can be provided because the determination of E&P is a full-year calculation which depends upon facts that are not known as of the date hereof.

FY'25 Outlook: Adjusted EBITDA Reaffirmed, Cash Flow Improved

• Revenue of approximately $2.50 billion; adjusting revenue down $50 million compared to the previous outlook to reflect a timing shift in product sales and increased amortization related to Italy Lotto upfront license fee (which is treated as contra-revenue).
• Adjusted EBITDA of approximately $1.10 billion, in line with the previous outlook as incremental benefit from foreign currency translation is offset by higher-than-expected U.S. multi-state jackpot and LMA impacts.
• Net cash used in operating activities of approximately $275 million reflects a $75 million improvement versus the previous outlook driven by interest, income taxes, and other working capital items.
• Capital expenditures of approximately $375 million, a $75 million improvement from the previous outlook to reflect timing shifts related to recent contract extensions.
• Increasing FY'25 EUR/USD assumption to 1.12.

Earnings Conference Call and Webcast
July 29, 2025, at 8:00 a.m. EDT

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
Brightstar Lottery (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, fulfill player needs 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 may contain forward-looking statements (including within the meaning of the Private Securities Litigation Reform Act of 1995) concerning Brightstar Lottery PLC and its consolidated subsidiaries (the "Company") and other matters. These statements may discuss goals, intentions, and expectations as to future plans and strategies, expected growth, transactions, including the impacts on the Company of the sale of the Gaming & Digital business to a holding company owned by funds managed by affiliates of Apollo Global Management, Inc. (NYSE: APO) and the calculation of gain on sale and use of net proceeds therefrom, trends, events, products and services, customer relationships, dividends, results of operations, and/or financial condition or measures, including our expectations on future revenue, operating income, Adjusted EBITDA, cash from and used in operations, capital expenditures, FY'25 EUR/USD assumption, share repurchases, and any other future financial performance guidance for continuing operations, 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" 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, 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 EBITDA represents net income (loss) from continuing operations (a GAAP measure) before income taxes, interest expense, net, foreign exchange gain (loss), net, other non-operating 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.

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 ("LTM") 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 will 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, mike.deangelis@brightstarlottery.com
Matteo Selva, Italian media inquiries, +39 366 6803635
James Hurley, Investor Relations, +1 (401) 392-7190 

Select Performance and KPI data ($ in millions, unless otherwise noted)								Constant
		Q2'25		Q2'24		Y/Y		Currency
Revenue						Change		Change(1)
Service
Instant ticket & draw wager-based revenue		516		487		6 %		2 %
U.S. multi-state jackpot wager-based revenue		15		23		(35) %		(35) %
Upfront license fee amortization		(53)		(49)		(6) %		— %
Other		110		126		(13) %		(15) %
Total service revenue		588		586		— %		(3) %
Product sales		42		27		59 %		55 %
Total revenue		631		613		3 %		— %
Income from continuing operations		(60)		84		NA
Operating income		139		179		(22) %		(27) %
Adjusted EBITDA(1)		274		290		(5) %		(9) %
Same-store sales growth (%) at constant currency (wager-based growth) (2)
Global
Instant ticket & draw games		2.6 %		(0.2 %)
U.S. multi-state jackpots		(34.5 %)		22.5 %
Total		0.3 %		0.9 %
U.S.
Instant ticket & draw games		0.6 %		(1.9 %)
U.S. multi-state jackpots		(34.5 %)		22.5 %
Total		(2.7 %)		— %
Italy
Instant ticket & draw games		3.7 %		2.3 %
Rest of world
Instant ticket & draw games		8.4 %		3.0 %
(1) Non-GAAP measure; see disclaimer on page 6 and reconciliations to the most directly comparable GAAP measure in Appendix for further details
(2) Same-store sales represents the change in wagers recorded in lottery jurisdictions where Brightstar is the operator or facilities management supplier,  using the same lottery jurisdictions and perimeter for comparisons between periods
								Constant
		Q2'25		Q2'24		Y/Y		Currency
						Change		Change(1)
Same-store revenue growth (%) at constant currency (Same-store sales inclusive of contract mix) (2)
Global
Instant ticket & draw games		2.5 %		0.6 %
U.S. multi-state jackpots		(34.9) %		21.4 %
Total		0.9 %		1.4 %
U.S.
Instant ticket & draw games		(0.6) %		(1.7) %
U.S. multi-state jackpots		(34.9) %		21.4 %
Total		(4.3) %		0.4 %
Italy
Instant ticket & draw games		3.6 %		2.2 %
Rest of world
Instant ticket & draw games		9.1 %		1.1 %
Revenue (by geography)
U.S. & Canada		293		306		(4) %		(4) %
Italy		259		234		10 %		4 %
Rest of world		79		72		9 %		2 %
Total revenue		631		613		3 %		— %
(1) Non-GAAP measure; see disclaimer on page 6 and reconciliations to the most directly comparable GAAP measure in Appendix for further details
(2) Same-store revenue represents the change in same-store sales net of contract mix

 

Brightstar Lottery PLC
Consolidated Statements of Operations
($ and shares in millions, except per share amounts)
Unaudited
	For the three months ended				For the six months ended
	June 30,				June 30,
	2025		2024		2025		2024
Service revenue	588		586		1,146		1,205
Product sales	42		27		68		69
Total revenue	631		613		1,214		1,274
Cost of services	321		304		626		608
Cost of product sales	35		22		57		48
Selling, general and administrative	100		96		204		198
Research and development	12		11		23		22
Restructuring	21		—		21		—
Other operating expense, net	3		1		5		1
Total operating expenses	492		434		937		877
Operating income	139		179		277		397
Interest expense, net	49		53		94		106
Foreign exchange loss (gain), net	99		(4)		131		(16)
Other non-operating expense, net	2		3		5		7
Total non-operating expenses	149		52		231		97
(Loss) income from continuing operations before provision for income taxes	(10)		127		46		300
Provision for income taxes	50		43		97		100
(Loss) income from continuing operations	(60)		84		(52)		200
Income from discontinued operations, net of tax	40		—		92		13
Net (loss) income	(20)		85		40		213
Less: Net income attributable to non-controlling interests from continuing operations	36		41		67		86
Less: Net income attributable to non-controlling interests from discontinued operations	2		2		4		3
Net (loss) income attributable to Brightstar Lottery PLC	(58)		42		(31)		123
Net (loss) income from continuing operations attributable to Brightstar Lottery PLC per common share - basic	(0.47)		0.21		(0.59)		0.57
Net (loss) income from continuing operations attributable to Brightstar Lottery PLC per common share - diluted	(0.47)		0.21		(0.59)		0.56
Net (loss) income attributable to Brightstar Lottery PLC per common share - basic	(0.29)		0.21		(0.15)		0.61
Net (loss) income attributable to Brightstar Lottery PLC per common share - diluted	(0.29)		0.21		(0.15)		0.61
Weighted-average shares - basic	203		201		203		201
Weighted-average shares - diluted	203		203		203		203

 

Brightstar Lottery PLC
Consolidated Balance Sheets
($ in millions)
Unaudited
		June 30,		December 31,
		2025		2024
Assets
Current assets:
Cash and cash equivalents		1,309		584
Restricted cash and cash equivalents		92		120
Trade and other receivables, net		428		468
Inventories, net		117		113
Other current assets		153		114
Assets held for sale		4,957		4,765
Total current assets		7,057		6,165
Systems, equipment and other assets related to contracts, net		637		581
Property, plant and equipment, net		86		85
Operating lease right-of-use assets		99		102
Goodwill		2,706		2,650
Intangible assets, net		90		89
Other non-current assets		563		606
Total non-current assets		4,182		4,113
Total assets		11,238		10,278
Liabilities and shareholders' equity
Current liabilities:
Accounts payable		680		718
Current portion of long-term debt		1,861		208
Other current liabilities		605		619
Liabilities held for sale		981		1,142
Total current liabilities		4,126		2,687
Long-term debt, less current portion		4,688		5,153
Deferred income taxes		206		170
Operating lease liabilities		79		83
Other non-current liabilities		126		125
Total non-current liabilities		5,100		5,530
Total liabilities		9,226		8,217
Commitments and contingencies
Brightstar Lottery PLC's shareholders' equity		1,531		1,652
Non-controlling interests		481		409
Shareholders' equity		2,012		2,061
Total liabilities and shareholders' equity		11,238		10,278

 

Brightstar Lottery PLC
Consolidated Statements of Cash Flows
($ in millions)
Unaudited
	For the three months ended				For the six months ended
	June 30,				June 30,
	2025		2024		2025		2024
Cash flows from operating activities
Net income	(20)		85		40		213
Less: Income from discontinued operations, net of tax	40		—		92		13
Adjustments to reconcile net income to net cash provided by operating activities from continuing operations:
Foreign exchange loss (gain), net	99		(4)		131		(16)
Amortization of upfront license fees	53		49		101		99
Depreciation	45		43		90		84
Amortization	9		8		18		16
Stock-based compensation	5		9		12		18
Deferred income taxes	(6)		5		(24)		10
Other non-cash items, net	10		3		16		7
Changes in operating assets and liabilities, excluding the effects of dispositions:
Trade and other receivables	27		64		78		19
Inventories	(8)		(4)		(6)		(6)
Accounts payable	(23)		(44)		(77)		(69)
Accrued interest payable	32		27		7		(11)
Accrued income taxes	33		2		89		8
Other assets and liabilities	48		8		49		(45)
Net cash provided by operating activities from continuing operations	265		250		433		315
Net cash provided by operating activities from discontinued operations	45		93		101		148
Net cash provided by operating activities	310		343		534		463
Cash flows from investing activities
Capital expenditures	(98)		(40)		(174)		(74)
Other	1		1		(1)		(2)
Net cash used in investing activities from continuing operations	(97)		(39)		(175)		(76)
Net cash used in investing activities from discontinued operations	(46)		(58)		(85)		(104)
Net cash used in investing activities	(143)		(97)		(260)		(180)
Cash flows from financing activities
Proceeds from long-term debt	572		—		1,112		—
Net repayments of Revolving Credit Facilities	24		35		(105)		(37)
Principal payments on long-term debt	—		—		(208)		—
Net payments of short-term borrowings	—		(6)		—		(16)
Net payments on financial liabilities	(3)		(1)		(81)		(64)
Dividends paid	(41)		(80)		(81)		(80)
Dividends paid - non-controlling interests	(152)		(59)		(163)		(159)
Return of capital - non-controlling interests	(47)		(35)		(47)		(45)
Capital increase - non-controlling interests	176		—		178		2
Other	(2)		(12)		(23)		(14)
Net cash provided by (used in) financing activities from continuing operations	527		(159)		581		(413)
Net cash used in financing activities from discontinued operations	(10)		(11)		(143)		(20)
Net cash provided by (used in) financing activities	517		(170)		438		(433)
Net increase (decrease) in cash and cash equivalents and restricted cash and cash equivalents	684		76		712		(149)
Effect of exchange rate changes on cash and cash equivalents and restricted cash and cash equivalents	39		(14)		58		(31)
Cash and cash equivalents and restricted cash and cash equivalents at the beginning of the period	823		497		775		739
Cash and cash equivalents and restricted cash and cash equivalents at the end of the period	1,546		559		1,546		559
Less: Cash and cash equivalents and restricted cash and cash equivalents of discontinued operations	144		86		144		86
Cash and cash equivalents and restricted cash and cash equivalents at the end of the period of continuing operations	1,401		473		1,401		473
Supplemental disclosures of cash flow information for continuing operations:
Interest paid	17		25		89		117
Income taxes paid	22		36		32		82

 

Brightstar Lottery PLC
Net Debt
($ in millions)
Unaudited
	June 30,		December 31,
	2025		2024
4.125% Senior Secured U.S. Dollar Notes due April 2026	—		748
3.500% Senior Secured Euro Notes due June 2026	—		777
6.250% Senior Secured U.S. Dollar Notes due January 2027	748		748
2.375% Senior Secured Euro Notes due April 2028	584		517
5.250% Senior Secured U.S. Dollar Notes due January 2029	747		746
4.250% Senior Secured Euro Notes due March 2030	579		513
Senior Secured Notes	2,658		4,050
Euro Term Loan Facilities due January 2027	465		619
Euro Term Loan Facilities due September 2030	1,166		—
Revolving Credit Facility A due July 2027	370		157
Revolving Credit Facility B due July 2027	30		328
Long-term debt, less current portion	4,688		5,153
4.125% Senior Secured U.S. Dollar Notes due April 2026	749		—
3.500% Senior Secured Euro Notes due June 2026	878		—
Euro Term Loan Facilities due January 2027	234		208
Current portion of long-term debt	1,861		208
Total debt	6,549		5,361
Less: Cash and cash equivalents	1,309		584
Net debt	5,240		4,777
Note: Net debt is a non-GAAP financial measure

 

Brightstar Lottery PLC
Reconciliation of Non-GAAP Financial Measures
(Unaudited, $ in millions)
		For the three months ended June 30,				For the six months ended June 30,
		2025		2024		2025		2024
(Loss) income from continuing operations		(60)		84		(52)		200
Provision for income taxes		50		43		97		100
Interest expense, net		49		53		94		106
Foreign exchange loss (gain), net		99		(4)		131		(16)
Other non-operating expense, net		2		3		5		7
Operating income		139		179		277		397
Depreciation		45		43		90		84
Amortization - service revenue (1)		53		49		101		99
Amortization - non-purchase accounting		7		6		14		11
Amortization - purchase accounting		2		2		4		5
Restructuring		21		—		21		—
Stock-based compensation		5		9		12		18
Other		3		1		5		1
Adjusted EBITDA		274		290		524		617
(1) Includes amortization of upfront license fees
Cash flows from operating activities - continuing operations		265		250		433		315
Capital expenditures		(98)		(40)		(174)		(74)
Free Cash Flow		167		210		259		241

 

Brightstar Lottery PLC
Reconciliation of Non-GAAP Financial Measures
(Unaudited)
		For the three months ended June 30,												For the six months ended June 30,
		2025						2024						2025						2024
		Pre- Tax Impact		Tax Impact (1)		Net Impact		Pre- Tax Impact		Tax Impact (1)		Net Impact		Pre- Tax Impact		Tax Impact (1)		Net Impact		Pre- Tax Impact		Tax Impact (1)		Net Impact
Reported EPS from continuing operations attributable to Brightstar Lottery PLC - diluted						(0.47)						0.21						(0.59)						0.56
Adjustments:
Foreign exchange loss (gain), net		0.48		(0.01)		0.49		(0.02)		0.01		(0.03)		0.64		(0.03)		0.68		(0.08)		0.03		(0.11)
Amortization - purchase accounting		0.01		—		0.01		0.01		—		0.01		0.02		—		0.02		0.02		0.01		0.02
Restructuring		0.10		0.03		0.07		—		—		—		0.10		0.03		0.07		—		—		—
Other (non-recurring adjustments)		0.01		—		0.01		0.01		—		0.01		0.03		0.01		0.02		0.01		—		0.01
Net adjustments						0.59						(0.01)						0.79						(0.08)
Adjusted EPS from continuing operations attributable to Brightstar Lottery PLC - diluted						0.12						0.20						0.20						0.47
Reported effective tax rate						(482.6) %						33.6 %						212.9 %						33.3 %
Adjusted effective tax rate						47.5 %						35.6 %						47.6 %						37.1 %
Adjusted EPS weighted average shares outstanding (in millions)						204 (2)						203 (2)						204 (2)						203 (2)
(1) Calculated based on nature of item, including any realizable deductions, and statutory tax rate in effect for the relevant jurisdiction
(2) Includes the dilutive impact of share-based payment awards

 

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SOURCE Brightstar Lottery PLC

FAQ

What were Brightstar Lottery's (NYSE:APO) key financial results for Q2 2025?

Brightstar reported revenue of $631 million (up 3%), Adjusted EBITDA of $274 million (down 5%), and a loss from continuing operations of $60 million. Global same-store sales grew 2.6%.

How will Brightstar use the $4 billion proceeds from the Gaming & Digital sale?

The proceeds will be allocated as follows: $2.0 billion for debt reduction, $1.1 billion returned to shareholders, $500 million for Italy Lotto license payments, and $400 million for general corporate purposes.

What is Brightstar's dividend and share repurchase plan for 2025?

Brightstar declared a $0.20 quarterly dividend, a $3.00 special dividend, and announced a $250 million accelerated share repurchase program as part of a new $500 million share repurchase authorization.

What is Brightstar's financial outlook for FY 2025?

Brightstar expects revenue of $2.50 billion (reduced by $50 million), Adjusted EBITDA of $1.10 billion, and capital expenditures of $375 million.

What major contracts did Brightstar secure in Q2 2025?

Brightstar secured a nine-year Lotto operator license in Italy, an eight-year contract in Missouri with integrated OMNIA™ solution, and several multi-year instant ticket printing contract extensions.