BRIGHTSTAR LOTTERY PLC REPORTS FOURTH QUARTER AND FULL YEAR 2025 RESULTS

Rhea-AI Summary

Brightstar Lottery (NYSE:BRSL) reported Q4 and full‑year 2025 results with revenue of $668M in Q4 and $2.51B for FY'25, adjusted EBITDA of $304M (Q4) and $1.12B (FY'25), and adjusted EPS of $0.36 (Q4) and $0.91 (FY'25).

The company completed the IGT Gaming sale, reduced net debt to $2.7B (leverage 2.4x), returned over $1B to shareholders, increased the quarterly dividend to $0.23, and provided FY'26 guidance including revenue of $2.50–2.55B.

Positive

• Net debt reduced by ~$2.0B, lowering leverage to 2.4x
• Completed IGT Gaming sale for approximately $4.1B net proceeds
• Returned over $1B to shareholders via dividends and buybacks
• Adjusted EBITDA of $1.12B for FY'25 with Q4 adjusted EBITDA up 5%

Negative

• GAAP income from continuing operations down 50% YoY to $135M for FY'25
• Consolidated cash used in operations ($193M) in FY'25 due to Italy license fee outflows
• Free cash flow ($509M) for FY'25, reflecting large upfront Italy Lotto payments

News Market Reaction – BRSL

+5.13%

1 alert

+5.13% News Effect

+$121M Valuation Impact

$2.48B Market Cap

3K Volume

On the day this news was published, BRSL gained 5.13%, reflecting a notable positive market reaction. This price movement added approximately $121M to the company's valuation, bringing the market cap to $2.48B at that time.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

Q4 2025 revenue: $668M Q4 same-store sales growth: 3.5% Net debt leverage: 2.4x +5 more

8 metrics

Q4 2025 revenue $668M Quarter ended Dec 31, 2025

Q4 same-store sales growth 3.5% Q4 2025, led by U.S. Multi-state jackpots and iLottery

Net debt leverage 2.4x End of FY 2025

Capital returned to shareholders Over $1B FY 2025 via dividends and buybacks

Quarterly dividend $0.23 per share Declared for March 24, 2026 payment

Q4 2025 Adjusted EBITDA $304M Up 5% year over year as reported

FY 2026 revenue outlook $2.50–$2.55B Includes >5% organic growth, Italy Lotto amortization headwind

FY 2026 net cash from ops excl. license fee $750M Cash from operations excluding Italy Lotto license payment

Market Reality Check

Price: $13.77 Vol: Volume 2,213,681 is eleva...

normal vol

$13.77 Last Close

Volume Volume 2,213,681 is elevated vs. 20-day average 1,567,086 (relative volume 1.41x). normal

Technical Shares at $13.05 trade below 200-day MA of $15.75 and sit close to the $12.76 52-week low, well under the $18.565 52-week high.

Peers on Argus

Gambling peers showed mixed moves: SBET appeared in momentum scanners and was do...

2 Up 1 Down

Gambling peers showed mixed moves: SBET appeared in momentum scanners and was down 1.85%, while SGHC was up 13.68% and FLUT up 0.81%. With the stock-specific earnings catalyst for BRSL and peers not moving uniformly, trading pressure looked more idiosyncratic than sector-driven.

Previous Earnings Reports

2 past events · Latest: Nov 04 (Positive)

Same Type Pattern 2 events

Date	Event	Sentiment	Move	Catalyst
Nov 04	Q3 2025 earnings	Positive	+0.4%	Q3 beat with strong same-store sales and capital returns, FY’25 guidance reaffirmed.
Jul 29	Q2 2025 earnings	Neutral	+7.6%	FX-driven loss but resilient EBITDA, Italy Lotto win and $4B asset sale supported shares.

Pattern Detected

Recent earnings releases have generally been received constructively, with both prior earnings events showing positive price reactions despite mixed underlying results.

Recent Company History

Over the last few quarters, Brightstar’s earnings updates have combined solid same-store sales growth with active balance sheet management and capital returns. The July 29, 2025 Q2 release highlighted a loss from continuing operations tied to FX and restructuring, but also a $4B Gaming & Digital sale and strong liquidity. The Nov 4, 2025 Q3 release showed revenue of $629M, Adjusted EBITDA of $294M, and reaffirmed FY’25 guidance. Today’s Q4/FY’25 report extends that narrative with leverage reduced to 2.4x and an increased dividend plus a detailed FY’26 outlook.

Historical Comparison

+4.0% avg move · In the past two earnings releases, BRSL’s stock moved on average 4.03%, suggesting that earnings hav...

earnings

+4.0%

Average Historical Move earnings

In the past two earnings releases, BRSL’s stock moved on average 4.03%, suggesting that earnings have been meaningful trading catalysts for this name.

Earnings updates show a progression from announcing the $4B Gaming sale and Italy Lotto win to executing debt reduction, capital returns, and now outlining detailed 2026 growth and investment plans.

Market Pulse Summary

The stock moved +5.1% in the session following this news. A strong positive reaction aligns with pri...

Analysis

The stock moved +5.1% in the session following this news. A strong positive reaction aligns with prior earnings events where BRSL’s results and guidance acted as key catalysts. This release combined better-than-expected Q4 growth, leverage at 2.4x, and over $1B returned to shareholders, alongside detailed FY’26 targets. Investors would still need to weigh heavy Italy Lotto cash outflows and ongoing FX sensitivity when considering how durable any upside move might be.

Key Terms

adjusted ebitda, free cash flow, non-gaap, adjusted eps, +4 more

8 terms

adjusted ebitda financial

"Adjusted EBITDA of $304 million, up 5% as reported and down 2% at constant currency"

Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.

free cash flow financial

"Free cash flow | (298) | | 129 | NA | | (509) | | 560 | NA"

Free cash flow is the amount of money a company has left over after paying all its expenses and investing in its business, like buying equipment or updating facilities. It shows how much cash is available to reward shareholders, pay down debt, or save for future growth. This helps investors understand if a company is financially healthy and able to grow.

non-gaap financial

"Non-GAAP Financial Measures:"

Non-GAAP refers to financial measures that companies use to show their earnings or performance without including certain expenses or income that are often added back to give a different picture. It matters because it can make a company's results look better or more favorable, but it may also hide important costs, so investors need to look at both GAAP (official rules) and non-GAAP numbers to get a full understanding.

adjusted eps financial

"Adjusted earnings per share — diluted | $0.36 | | $0.22 | 59 %"

Adjusted earnings per share (adjusted eps) is a measure of a company's profit per share that has been modified to exclude certain one-time or unusual items, such as costs from restructuring or asset sales. It provides a clearer picture of the company’s core performance by removing events that may distort the usual earnings. Investors use adjusted eps to better understand a company's ongoing profitability and compare it more accurately over time.

adjusted ebit financial

"Adjusted EBIT represents net income (loss) from continuing operations"

Adjusted EBIT is a company’s operating profit before interest and taxes, but cleaned up by removing one-time or unusual items that can obscure ongoing performance. Investors use it like a tidied-up report card — it aims to show the underlying profitability of the business by excluding irregular gains, losses, or costs so comparisons across periods or companies are clearer and more meaningful for valuing operational strength.

iLottery technical

"growth initiatives such as Italy B2C digital expansion and launching a new lottery in São Paulo, which we expect to drive"

iLottery is the sale and management of lottery tickets and related games through digital channels like websites and mobile apps, allowing people to buy entries, play instant-win games, and check results online. For investors, it matters because it can expand a lottery operator’s customer reach and recurring revenue in the same way a retail store adds an online shop — often increasing convenience, data-driven marketing, and steady digital income streams.

b2c technical

"growth initiatives such as Italy B2C digital expansion and launching a new lottery in São Paulo"

Business-to-consumer (B2C) describes companies that sell products or services directly to individual customers rather than to other businesses. Investors care because B2C firms’ revenues, growth and risks are driven by consumer demand, brand strength and marketing — like a shop whose success depends on foot traffic and repeat shoppers — so shifts in consumer tastes, pricing power or distribution can quickly affect sales and profitability.

forward-looking statements regulatory

"Cautionary Statement Regarding Forward-Looking Statements"

Forward-looking statements are predictions or plans that companies share about what they expect to happen in the future, like estimating sales or profits. They matter because they help investors understand a company's outlook, but since they are based on guesses and assumptions, they can sometimes be wrong.

AI-generated analysis. Not financial advice.

• Better-than-expected Q4'25 revenue and profit growth driven by a 3.5% increase in same-store sales, led by U.S. Multi-state Jackpot activity and iLottery
• Significant improvement in net debt; net debt leverage of 2.4x at end of FY'25
• Returned over $1 billion to shareholders in FY'25 through dividends and share repurchases
• Board of Directors declared a regular quarterly cash dividend of $0.23, up $0.01 from prior quarter and a 15% increase from the historical run rate
• FY'26 outlook includes accelerated organic revenue growth
• Mariangela Zappia appointed as an independent, non-executive director

LONDON, Feb. 24, 2026 /PRNewswire/ -- Brightstar Lottery PLC (NYSE:BRSL) ("Brightstar") today reported financial results for the fourth quarter and full year ended December 31, 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.

"Better-than-expected fourth quarter revenue and profit growth reflect the value of our diverse portfolio across geographies and games," said Vince Sadusky, CEO of Brightstar. "2025 was a transformational year for us. We executed major strategic priorities, including selling IGT Gaming and increasing capital returns to shareholders. 2026 is an important year of investment in several high-ROI growth initiatives such as Italy B2C digital expansion and launching a new lottery in São Paulo, which we expect to drive accelerated sales and profit growth through 2028."

"Our balanced approach to capital allocation was on display in 2025 with over $2 billion in debt reduction, bringing leverage to historic lows; over $1 billion returned to shareholders; and investments in key initiatives," said Max Chiara, CFO of Brightstar. "We enter 2026 well-positioned to fund contractual obligations that put us on the path to achieving our 2028 financial targets."

Overview of Fourth Quarter and Full Year 2025 Results

	Quarter Ended			Y/Y Change	Constant Currency Change	Year Ended			Y/Y Change	Constant Currency Change
All amounts from continuing operations	December 31,					December 31,
	2025		2024			2025		2024
($ in millions, except per share data)
GAAP Financials:
Revenue	668		651	3 %	(2) %	2,511		2,512	— %	(2) %
Income from continuing operations	92		116	(21) %		135		271	(50) %
Income from continuing operations margin	13.7 %		17.9 %			5.4 %		10.8 %
Earnings per share — diluted	$0.32		$0.40	(21) %		$(0.01)		$0.57	NA
Net cash (used in) provided by operating activities	(222)		174	NA		(193)		709	NA
Includes $347M and $926M in cash outflows related to Italy Lotto upfront license fee in Q4'25 and FY'25 periods, respectively
Cash and cash equivalents	1,446		584	148 %		1,446		584	148 %
Non-GAAP Financial Measures:
Adjusted EBITDA	304		290	5 %	(2) %	1,121		1,170	(4) %	(7) %
Adjusted EBITDA margin	45.5 %		44.5 %			44.7 %		46.6 %
Adjusted earnings per share — diluted	$0.36		$0.22	59 %		$0.91		$0.67	36 %
Free cash flow	(298)		129	NA		(509)		560	NA
Includes $347M and $926M in cash outflows related to Italy Lotto upfront license fee in Q4'25 and FY'25 periods, respectively
Net debt	2,723		4,777	(43) %		2,723		4,777	(43) %

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

Select 2025 & Recent Key Highlights

• Successful completion of IGT Gaming sale for approximately $4.1 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 facilities management contract in Missouri; an eight-year facilities management contract in Wisconsin; a 15-year license in São Paulo, Brazil in partnership with Scientific Games; a 19-year contract in Western Australia; a two-year extension in Texas; and several multi-year instant ticket printing contract extensions
• Expanded OPtiMa cost reduction program to $80 million
• Returned over $1 billion to shareholders in FY'25

Fourth Quarter 2025 Financial Highlights
Revenue was $668 million, up 3% as reported and down 2% at constant currency, compared to $651 million in the prior-year period, primarily resulting from:

• 3.5% same-store sales growth led by U.S. Multi-state jackpot activity and iLottery
• Impact of U.K. transition and increased Italy Lotto service revenue amortization

Income from continuing operations of $92 million, versus $116 million in the prior-year period, primarily driven by:

• Reduced provision for income taxes, mostly from lower pre-tax income
• Increased Italy Lotto service revenue amortization and lower foreign exchange gain, primarily reflecting the non-cash impact of fluctuations in the EUR/USD exchange rate on debt

Adjusted EBITDA of $304 million, up 5% as reported and down 2% at constant currency, versus $290 million in the prior year, mainly due to:

• High profit flow through from elevated U.S. Multi-state Jackpot activity and OPtiMa cost savings
• Impact of U.K. transition and increased investments in the business

Diluted earnings per share of $0.32, versus $0.40 in the prior year, primarily driven by the after-tax impact of higher foreign currency gains in the prior year and partially offset by a lower provision for income taxes; Adjusted diluted earnings per share of $0.36, versus $0.22 in the prior year.

Full Year 2025 Financial Highlights
Revenue was $2.5 billion, in line with the prior-year period as reported and down 2% at constant currency, primarily due to:

• 1.7% increase in same-store sales, with growth across geographies and game types
• Reduced LMA incentive; increased Italy Lotto service revenue amortization; and impact of U.K. transition

Income from continuing operations was $135 million, compared to $271 million in the prior-year period, primarily driven by:

• Reduced provision for income taxes, mostly from lower pre-tax income
• Foreign exchange loss versus foreign exchange gain in the prior-year period, principally related to the impact of fluctuations in the EUR/USD exchange rate on debt and increased Italy Lotto service revenue amortization

Adjusted EBITDA was $1.12 billion, down 4% as reported and 7% at constant currency, compared to $1.17 billion in the prior-year period, primarily resulting from:

• Reduced LMA incentive; lower product sales, mainly due to the timing in terminal and software services deliveries; impact of U.K. transition; and increased investments in the business
• Growth in wager-based revenue; OPtiMa cost savings

Diluted loss per share was $0.01, versus diluted earnings per share of $0.57 in the prior year, primarily driven by the after-tax impact of foreign currency losses versus foreign currency gains in the prior year, partially offset by a lower provision for income taxes; Adjusted diluted earnings per share of $0.91 compared to $0.67 in the prior year.

Consolidated cash used in operating activities of $193 million, versus consolidated cash from operations of $709 million in the prior-year period, primarily due to $926 million in cash outflows related to the Italy Lotto upfront license fee.

Net debt was $2.7 billion, versus $4.8 billion at December 31, 2024. The decrease was primarily driven by $2 billion in proceeds from the sale of IGT Gaming allocated to debt reduction. Net debt leverage improved to 2.4x from 4.1x in the prior year.

Cash and Liquidity Update
Total liquidity of $3.0 billion as of December 31, 2025, reflecting $1.4 billion in unrestricted cash and $1.6 billion in additional borrowing capacity.

Other Developments
The Company's Board of Directors (the "Board") declared a quarterly cash dividend of $0.23 per common share, representing a $0.01 per share increase, following a $0.02 per share increase in Q3'25 from the historical $0.20 per share level.

• Record date of March 10, 2026
• Payment date of March 24, 2026

Board & Governance Update
The Board appointed Mariangela Zappia as an independent, non-executive director, effective on February 19, 2026. Ms. Zappia is a career diplomat with more than 40 years of experience at the highest levels of international diplomacy and public service.

Ms. Zappia was the first woman in Italy to hold the positions of Ambassador to NATO, to the United Nations in New York, and to the United States of America. She was also the first woman to serve as Diplomatic Counsellor to the Prime Minister of Italy and as G7/G20 Sherpa. In these capacities, she has been at the center of decision-making processes on global political and economic issues of the highest relevance to national security and international relations, and she brings extensive leadership and managerial experience in overseeing complex organizations and structures.

"We are delighted to welcome Mariangela to the Board as an independent, non-executive director," said Marco Sala, the Company's Executive Chair. "Her independence, global perspective, deep experience in navigating complex geopolitical and economic environments, and her proven leadership of large and multifaceted organizations will be highly valuable as we continue to execute our strategy."

The Company also announced that Max Chiara, Chief Financial Officer and a member of the Board since May 2020, has informed the Board that he will not stand for re-election at the Company's next Annual General Meeting of shareholders in May 2026. Mr. Chiara will continue to serve as Chief Financial Officer of the Company, where he has taken on additional responsibilities for strategy and mergers and acquisitions.

Marco Sala added, "On behalf of the Board, I would like to thank Max for his continued leadership as our Chief Financial Officer and for his valuable contributions as a director over the last six years. Max will remain fully engaged on executing our financial and strategic priorities as CFO, and this change to his Board role reflects our ongoing focus on strategy execution and evolving our corporate governance standards and best practices, including the independence and composition of our Board."

Introducing Full Year 2026 Expectations

• Revenue of $2.50 - $2.55 billion includes more than five percent organic growth; approximately $175 million in incremental Italy Lotto license fee amortization impacts reported growth
• Adjusted EBITDA of $1.16 - $1.19 billion; organic growth and OPtiMa savings more than offset approximately $50 million of investments in growth initiatives such as Italy B2C and iLottery expansion; R&D for technology products and services; and project costs associated with the extensive contract renewal cycle recently completed
• Net cash used in operating activities of approximately $900 million includes €1.43 billion or approximately $1.68 billion related to final Italy Lotto license fee payment; $750 million in cash from operations excluding Italy Lotto license fee
• Capital expenditures of approximately $450 - $475 million reflects contractual obligations related to recent contract wins and extensions

Earnings Conference Call and Webcast
February 24, 2026, 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 global leader in lottery focused on innovation and forward-thinking strategies and solutions, building 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 serves nearly 90 lottery customers and their players on six continents. It is the primary technology provider to 26 of the 46 lottery jurisdictions in the U.S. and eight of the world's 10 largest lotteries.  Brightstar has approximately 6,000 employees. For more information, please visit www.brightstarlottery.com.

Cautionary Statement Regarding Forward-Looking Statements
This release contains forward‑looking statements (including within the meaning of the U.S. Private Securities Litigation Reform Act of 1995) regarding the Brightstar Lottery PLC's (the "Company") future plans, strategies, expected growth, regulatory developments, anticipated new or renewed contracts, and future products, services, technologies, and operational initiatives. Forward‑looking statements include, without limitation, expectations regarding future revenue, income from continuing operations, Adjusted EBITDA, cash flows (including free cash flow), capital expenditures, capital allocation plans, dividend levels, share repurchases, FY'26 financial outlook, organic growth expectations, and the Company's medium‑term financial targets. These statements also include expectations relating to iLottery expansion, Italy B2C digital execution, U.S. regulatory momentum, international expansion opportunities, anticipated contributions from long‑term contract awards, OPtiMa cost‑savings and AI‑related initiatives, as well as statements concerning the Company's future debt maturity profile and related liquidity planning. Forward‑looking statements may be identified by terms such as "expect," "anticipate," "intend," "plan," "may," "will," "target," "estimate," "project," "guidance," or similar expressions. These statements are based on current assumptions and are subject to risks and uncertainties—many of which are outside the Company's control—that could cause actual results to differ materially, including macroeconomic, regulatory, and political conditions; changes in consumer behavior; foreign exchange and interest rate volatility; inflation; financial market conditions; and the risk factors described in the Company's most recent annual report on Form 20‑F 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. Forward‑looking statements speak only as of the date made, and except as required by law, the Company undertakes no obligation to update them. Nothing in this release constitutes a profit forecast or indicates that future performance will match or exceed past results. All subsequent written or oral forward-looking statements attributable to the Company, 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, 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)
		Q4'25		Q4'24		Y/Y Change		Constant Currency Change(1)		FY'25		FY'24		Y/Y Change		Constant Currency Change(1)
Revenue
Service
Instant ticket & draw wager-based revenue		530		511		4 %		(2) %		2,058		1,989		3 %		1 %
U.S. multi-state jackpot wager-based revenue		38		26		46 %		46 %		106		101		5 %		5 %
Upfront license fee amortization		(69)		(49)		(42) %		(29) %		(223)		(198)		(12) %		(7) %
Other		111		103		8 %		5 %		420		471		(11) %		(12) %
Total service revenue		611		591		3 %		(1) %		2,360		2,363		— %		(2) %
Product sales		57		60		(4) %		(9) %		151		149		1 %		(1) %
Total revenue		668		651		3 %		(2) %		2,511		2,512		— %		(2) %
Income from continuing operations		92		116		(21) %				135		271		(50) %
Adjusted EBIT		177		188		(6) %		(13) %		677		768		(12) %		(15) %
Adjusted EBITDA(1)		304		290		5 %		(2) %		1,121		1,170		(4) %		(7) %
Same-store sales growth (%) at constant currency (wager-based growth) (2)
Global
Instant ticket & draw games		0.3 %		3.9 %						1.6 %		1.1 %
U.S. multi-state jackpots		43.6 %		(20.2 %)						3.4 %		(22.1 %)
Total		3.5 %		1.8 %						1.7 %		(0.8 %)
U.S.
Instant ticket & draw games		0.1 %		2.2 %						0.3 %		(0.5 %)
U.S. multi-state jackpots		43.6 %		(20.2 %)						3.4 %		(22.1 %)
Total		4.7 %		(0.7 %)						0.6 %		(3.3 %)
Italy
Instant ticket & draw games		(0.5 %)	(3)	7.0 %						2.0 %	(3)	4.1 %
Rest of world
Instant ticket & draw games		5.0 %		5.6 %						8.0 %		3.3 %
(1) Non-GAAP measure; see disclaimer on page 5 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
(3) Instant ticket & draw game same-store sales normalized for a like number of Italy Lotto draws and sell-in days were 0.3% and 2.9% in Q4'25 and FY'25, respectively
		Q4'25		Q4'24		Y/Y Change		Constant Currency Change(1)		FY'25		FY'24		Y/Y Change		Constant Currency Change(1)
Same-store revenue growth (%) at constant currency (Same-store sales inclusive of contract mix) (2)
Global
Instant ticket & draw games		0.6 %		4.3 %						2.0 %		1.8 %
U.S. multi-state jackpots		45.9 %		(20.6 %)						5.0 %		(22.9 %)
Total		2.9 %		(2.7 %)						2.1 %		0.2 %
U.S.
Instant ticket & draw games		1.9 %		2.9 %						0.8 %		(0.5 %)
U.S. multi-state jackpots		45.9 %		(20.6 %)						5.0 %		(22.9 %)
Total		7.2 %		(0.6 %)						1.3 %		(3.8 %)
Italy
Instant ticket & draw games		(0.9 %)		5.4 %						1.8 %		3.6 %
Rest of world
Instant ticket & draw games		6.3 %		3.1 %						8.4 %		0.8 %
Revenue (by geography)
U.S. & Canada		320		307		4 %		4 %		1,176		1,223		(4) %		(4) %
Italy		258		251		3 %		(6) %		1,018		968		5 %		1 %
Rest of world		91		93		(3) %		(9) %		317		321		(1) %		(4) %
Total revenue		668		651		3 %		(2) %		2,511		2,512		— %		(2) %
(1) Non-GAAP measure; see disclaimer on page 5 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 year ended
	December 31,				December 31,
	2025		2024		2025		2024
Service revenue (includes amortization of upfront license fees)	611		591		2,360		2,363
Product sales	57		60		151		149
Total revenue	668		651		2,511		2,512
Cost of services (excluding Depreciation and amortization)	297		273		1,116		1,068
Cost of product sales (excluding Depreciation and amortization)	42		44		128		111
General and administrative	51		57		215		235
Research and development	13		10		47		43
Sales and marketing	31		34		123		122
Depreciation and amortization	58		52		221		204
Restructuring	7		—		28		39
Interest expense, net	42		46		172		206
Foreign exchange (gain) loss, net	(8)		(75)		124		(52)
Other expense, net	17		4		39		16
Income from continuing operations before provision for income taxes	119		206		299		521
Provision for income taxes	28		89		165		250
Income from continuing operations	92		116		135		271
Less: Net income attributable to non-controlling interests from continuing operations	31		34		136		154
Net income (loss) from continuing operations attributable to Brightstar Lottery PLC	61		83		(1)		117
Income from discontinued operations, net of tax	—		136		75		238
Gain on sale of discontinued operations, net of tax	—		—		77		—
Income from discontinued operations	—		136		152		238
Less: Net income attributable to non-controlling interests from discontinued operations	—		1		4		6
Net income from discontinued operations attributable to Brightstar Lottery PLC	—		135		148		231
Net income	92		253		287		508
Net income attributable to non-controlling interests	31		35		140		160
Net income attributable to Brightstar Lottery PLC	61		217		147		348
Net income (loss) from continuing operations attributable to Brightstar Lottery PLC per common share - basic	0.32		0.41		(0.01)		0.58
Net income (loss) from continuing operations attributable to Brightstar Lottery PLC per common share - diluted	0.32		0.40		(0.01)		0.57
Net income attributable to Brightstar Lottery PLC per common share - basic	0.32		1.08		0.74		1.73
Net income attributable to Brightstar Lottery PLC per common share - diluted	0.32		1.07		0.74		1.71
Weighted-average shares - basic	189		202		197		202
Weighted-average shares - diluted	191		204		197		204

 

Brightstar Lottery PLC
Consolidated Balance Sheets
($ in millions)
Unaudited
	December 31,
	2025		2024
Assets
Current assets:
Cash and cash equivalents	1,446		584
Restricted cash and cash equivalents	54		120
Trade and other receivables, net	526		468
Inventories, net	116		113
Other current assets	193		114
Assets held for sale	—		4,765
Total current assets	2,336		6,165
Systems, equipment and other assets related to contracts, net	678		581
Property, plant and equipment, net	90		85
Operating lease right-of-use assets	92		102
Goodwill	2,707		2,650
Intangible assets, net	125		89
Other non-current assets	3,130		606
Total non-current assets	6,822		4,113
Total assets	9,158		10,278
Liabilities and shareholders' equity
Current liabilities:
Accounts payable	766		718
Current portion of long-term debt	118		208
Payable to ADM	1,680		—
Other current liabilities	508		619
Liabilities held for sale	—		1,142
Total current liabilities	3,072		2,687
Long-term debt, less current portion	4,060		5,153
Deferred income taxes	208		170
Operating lease liabilities	72		83
Other non-current liabilities	156		125
Total non-current liabilities	4,496		5,530
Total liabilities	7,568		8,217
Commitments and contingencies
Brightstar Lottery PLC's shareholders' equity	875		1,652
Non-controlling interests	715		409
Total shareholders' equity	1,590		2,061
Total liabilities and shareholders' equity	9,158		10,278

 

Brightstar Lottery PLC
Consolidated Statements of Cash Flows
($ in millions)
Unaudited
	For the three months ended				For the year ended
	December 31,				December 31,
	2025		2024		2025		2024
Cash flows from operating activities
Net income	92		253		287		508
Less: Income from discontinued operations, net of tax	—		136		152		238
Adjustments to reconcile net income to net cash (used in) provided by operating activities from continuing operations:
Amortization of upfront license fees	69		49		223		198
Depreciation	46		44		182		171
Amortization	12		8		39		33
Loss on extinguishment of debt	10		—		19		—
Stock-based compensation	—		7		15		38
Foreign exchange (gain) loss, net	(8)		(75)		124		(52)
Deferred income taxes	(54)		(25)		(45)		(36)
Other non-cash items, net	2		5		18		14
Changes in operating assets and liabilities, excluding the effects of dispositions:
Trade and other receivables	(10)		(96)		(14)		(85)
Inventories	5		6		1		(5)
Accounts payable	45		45		89		106
Accrued interest payable	5		29		(20)		(16)
Accrued income taxes	(19)		42		(11)		45
Italian lotto license payment	(347)		—		(926)		—
Other assets and liabilities	(70)		17		(22)		26
Net cash (used in) provided by operating activities from continuing operations	(222)		174		(193)		709
Net cash provided by operating activities from discontinued operations	—		107		94		341
Net cash (used in) provided by operating activities	(222)		282		(99)		1,050
Cash flows from investing activities
Capital expenditures	(76)		(45)		(316)		(149)
Investment in SP Loterias SPE S.A	(53)		—		(53)		—
Other investing activities, net	2		(1)		1		—
Net cash used in investing activities from continuing operations	(127)		(47)		(367)		(150)
Net cash (used in) provided by investing activities from discontinued operations	—		(41)		3,868		(207)
Net cash (used in) provided by investing activities	(127)		(87)		3,502		(357)
Cash flows from financing activities
Principal payments on long-term debt	(750)		—		(2,936)		(500)
Payments of debt issuance costs	(3)		(1)		(14)		(5)
Net repayments of Revolving Credit Facilities	—		(56)		(515)		(175)
Net receipts from (payments on) financial liabilities	71		76		(11)		24
Proceeds from long-term debt	750		—		1,862		556
Repurchases of common stock	(20)		—		(271)		—
Net (repayment of) receipt of funds payable and amounts due to others	(41)		25		(75)		(20)
Receipts from foreign currency derivative	—		—		46		(7)
Dividends paid	(42)		(40)		(770)		(161)
Return of capital - non-controlling interests	(12)		(18)		(69)		(73)
Dividends paid - non-controlling interests	—		—		(163)		(159)
Capital increase - non-controlling interests	209		—		386		2
Other financing activities, net	(14)		(29)		(41)		(37)
Net cash provided by (used in) financing activities from continuing operations	147		(44)		(2,573)		(556)
Net cash used in financing activities from discontinued operations	—		(12)		(143)		(50)
Net cash provided by (used in) financing activities	147		(56)		(2,716)		(606)
Net (decrease) increase in cash and cash equivalents and restricted cash and cash equivalents	(202)		138		686		87
Effect of exchange rate changes on cash and cash equivalents and restricted cash and cash equivalents	5		(37)		39		(51)
Cash and cash equivalents and restricted cash and cash equivalents at the beginning of the period	1,696		674		775		739
Cash and cash equivalents and restricted cash and cash equivalents at the end of the period	1,500		775		1,500		775
Less: Cash and cash equivalents and restricted cash and cash equivalents of discontinued operations	—		71		—		71
Cash and cash equivalents and restricted cash and cash equivalents at the end of the period of continuing operations	1,500		704		1,500		704
Supplemental disclosures of cash flow information for continuing operations:
Interest paid	42		18		213		221
Income taxes paid	101		72		220		241

 

Brightstar Lottery PLC
Net Debt
($ in millions)
Unaudited
		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
2.375% Senior Secured Euro Notes due April 2028		586		517
5.250% Senior Secured U.S. Dollar Notes due January 2029		747		746
4.250% Senior Secured Euro Notes due March 2030		581		513
5.750% Senior Secured U.S. Dollar Notes due January 2033		742		—
Senior Secured Notes		2,657		4,050
Euro Term Loan Facilities due January 2027		234		619
Euro Term Loan Facilities due September 2030		1,169		—
Revolving Credit Facility A due July 2027		—		157
Revolving Credit Facility B due July 2027		—		328
Long-term debt, less current portion		4,060		5,153
Euro Term Loan Facilities due January 2027		118		208
Current portion of long-term debt		118		208
Total debt		4,178		5,361
Less: Cash and cash equivalents		1,446		584
Less: Debt issuance costs, net - Revolving Credit Facility A due July 2027		4		—
Less: Debt issuance costs, net - Revolving Credit Facility B due July 2027		4		—
Net debt		2,723		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 December 31,				For the year ended December 31,
		2025		2024		2025		2024
Income from continuing operations		92		116		135		271
Provision for income taxes		28		89		165		250
Interest expense, net		42		46		172		206
Foreign exchange loss (gain), net		(8)		(75)		124		(52)
Restructuring		7		—		28		39
Stock-based compensation		—		7		15		38
Other expense, net		17		4		39		16
Adjusted EBIT		177		188		677		768
Income from continuing operations		92		116		135		271
Provision for income taxes		28		89		165		250
Interest expense, net		42		46		172		206
Foreign exchange loss (gain), net		(8)		(75)		124		(52)
Depreciation		46		44		182		171
Amortization - service revenue (1)		69		49		223		198
Amortization - non-purchase accounting		9		6		31		23
Amortization - purchase accounting		2		2		9		9
Restructuring		7		—		28		39
Stock-based compensation		—		7		15		38
Other expenses, net		17		4		39		16
Adjusted EBITDA		304		290		1,121		1,170
Cash flows from operating activities - continuing operations		(222)		174		(193)		709
Capital expenditures		(76)		(45)		(316)		(149)
Free Cash Flow		(298)		129		(509)		560
(1) Includes amortization of upfront license fees

 

Brightstar Lottery PLC
Reconciliation of Non-GAAP Financial Measures
(Unaudited)
		For the three months ended December 31,												For the year ended December 31,
		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						0.32						0.40						(0.01)						0.57
Adjustments:
Foreign exchange (gain) loss, net		(0.04)		—		(0.04)		(0.37)		0.01		(0.38)		0.62		(0.04)		0.66		(0.25)		0.02		(0.27)
Amortization - purchase accounting		0.01		—		0.01		0.01		—		0.01		0.04		0.01		0.04		0.05		0.01		0.03
Loss on extinguishment and modifications of debt, net		0.05		0.01		0.04		—		—		—		0.09		0.01		0.08		—		—		—
Discrete tax items		—		—		—		—		(0.18)		0.18		—		—		—		—		(0.19)		0.19
Restructuring		0.03		0.01		0.02		—		0.01		(0.01)		0.14		0.04		0.10		0.19		0.06		0.13
Other (non-recurring adjustments)		0.01		—		0.01		0.01		—		0.01		0.05		0.01		0.04		0.03		—		0.02
Net adjustments						0.04						(0.19)						0.91						0.10
Adjusted EPS from continuing operations attributable to Brightstar Lottery PLC - diluted
						0.36						0.22						0.91						0.67
Reported effective tax rate						23.2 %						43.4 %						55.0 %						48.0 %
Adjusted effective tax rate						25.2 %						42.1 %						35.2 %						44.3 %
Adjusted EPS weighted average shares outstanding (in millions)						191	(2)					204	(2)					199	(2)					204	(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 (BRSL) Q4 2025 revenue and adjusted EBITDA results?

Q4 2025 revenue was $668 million with adjusted EBITDA of $304 million. According to the company, revenue rose 3% year-over-year and adjusted EBITDA increased 5% as reported, aided by U.S. jackpot activity and cost savings.

How did the IGT Gaming sale affect Brightstar (BRSL) balance sheet and leverage?

The IGT Gaming sale generated about $4.1 billion of net cash proceeds, enabling net debt to fall to $2.7 billion. According to the company, proceeds were largely allocated to debt reduction, improving leverage to 2.4x.

What dividend did Brightstar (BRSL) declare and when will it be paid?

Brightstar declared a quarterly cash dividend of $0.23 per share, up $0.01 from the prior quarter. According to the company, the record date is March 10, 2026 and the payment date is March 24, 2026.

What guidance did Brightstar (BRSL) give for FY 2026 revenue and adjusted EBITDA?

FY 2026 revenue guidance is $2.50–2.55 billion and adjusted EBITDA guidance is $1.16–1.19 billion. According to the company, guidance assumes more than 5% organic growth and includes Italy Lotto amortization impacts.

Why did Brightstar (BRSL) report negative operating cash flow and lower free cash flow in FY 2025?

Negative cash flow largely reflects upfront Italy Lotto license payments totaling about €1.43B (≈$1.68B). According to the company, these license fee outflows drove consolidated cash used in operations and reduced free cash flow in FY'25.