#London #United Kingdom #iLottery #Brightstar Lottery #Multi-state Jackpot

Brightstar Lottery PLC Reports Fourth Quarter and Full Year 2025 Results

Brightstar Lottery PLC (NYSE: BRSL) has recently unveiled its financial results for the fourth quarter and the entire year of 2025, showcasing stronger-than-anticipated revenue and profit growth. The company experienced a notable 3.5% increase in same-store sales, significantly influenced by activities surrounding U.S. multi-state jackpots and the rise of iLottery channels.

In his statement, CEO Vince Sadusky credited the company's diverse portfolio spanning various geographical regions and gaming options for the positive financial performance. “2025 was a transformational year for us,” he commented, highlighting key strategic maneuvers such as the sale of IGT Gaming and the boost in shareholder capital returns. Looking forward, 2026 marks a pivotal period as the company plans to invest in high-return growth initiatives, including expanding B2C digital operations in Italy and launching a new lottery in São Paulo, Brazil, which they anticipate will drive substantial sales and profit growth through 2028.

Key Financial Highlights

The figures published reflect a mixed bag of results when compared to previous year data. The total revenue for Q4 2025 reached $668 million, representing a 3% increase relative to Q4 2024. However, constant currency adjustments reveal a 2% decline. The year-end figures for total revenue stood at $2.51 billion, nearly identical to the previous year's total, with factors affecting performance including a 1.7% growth in same-store sales but hindered by the impact of the U.K. transition and increased amortization costs from Italy Lotto service revenues.

• - Income from Continuing Operations: Q4 saw a drop to $92 million, down 21% from the previous year. For the full year, it fell to $135 million, highlighting substantial challenges faced during the year.
• - Earnings Per Share: The diluted earnings per share were recorded at $0.32, a decrease from $0.40 in 2024, signaling a tougher profit environment. However, the adjusted diluted earnings per share showed a significant jump from $0.22 to $0.36.
• - Adjusted EBITDA: This measure increased by 5% in Q4, reaching $304 million, although it was down 4% for the full year at $1.12 billion.

Details about net cash flow were troubling as well, with operating activities resulting in a decrease of $193 million in 2025, compared to a robust $709 million in 2024. The company's net debt also demonstrated a significant improvement, dropping from $4.77 billion to $2.72 billion, thanks to over $2 billion in debt reduction made possible by the proceeds from the IGT Gaming sale.

Capital Returns and Future Dividends

In an effort to reward shareholders, Brightstar announced that it returned over $1 billion through dividends and share repurchase programs in 2025. The Board declared a quarterly cash dividend of $0.23, a slight improvement from the previous quarter’s $0.22, illustrating a clear commitment to boosting shareholder value while positioning itself for future investments.

The Board also made significant organizational changes, appointing Mariangela Zappia as an independent, non-executive director, further strengthening its governance as it navigates the evolving lottery landscape.

Expectations for FY 2026

As the company prepares for 2026, they expect revenues to land between $2.50 - $2.55 billion, anticipating more than 5% organic growth despite an anticipated $175 million impact from the Italy Lotto license fees. Adjusted EBITDA is projected to range from $1.16 - $1.19 billion, as they continue to focus on strategic investments.

The conference call held to discuss these results underscores Brightstar's confidence in its trajectory and commitment to maximizing returns for its shareholders while pursuing growth opportunities. As Brightstar Lottery PLC looks ahead, innovation and strategic growth will be at the forefront of its objectives, ensuring it remains a significant player in the global lottery market.