Brightstar Lottery Reports Q4 and FY25 Results

iGaming and lottery supplier Brightstar Lottery PLC has reported financial results for the fourth quarter and full year ended 31 December 2025, highlighting stable full-year revenue, improved net debt metrics and continued shareholder returns. The company posted fourth quarter revenue of $668m, up 3% year-on-year on a reported basis and down 2% at constant currency, while full-year revenue totalled $2.51bn, broadly in line with the prior year.

Income from continuing operations for Q4 2025 was $92m, compared to $116m in the same period of 2024, reflecting lower pre-tax income, increased Italy Lotto service revenue amortisation and reduced foreign exchange gains. For the full year, income from continuing operations declined to $135m from $271m in 2024, driven primarily by foreign exchange movements and higher amortisation related to the Italy Lotto licence.

Adjusted EBITDA, a non-GAAP measure, reached $304m in the fourth quarter, up 5% year-on-year as reported and down 2% at constant currency. Full-year Adjusted EBITDA was $1.12bn, compared to $1.17bn in 2024, reflecting reduced incentive income, lower product sales due to delivery timing, the impact of the UK transition and increased investments, partially offset by growth in wager-based revenue and cost savings under the OPtiMa programme. Adjusted diluted earnings per share increased to $0.36 in Q4 2025 from $0.22 a year earlier, while full-year adjusted diluted earnings per share rose to $0.91 from $0.67.

Cash and cash equivalents stood at $1.45bn at year-end, compared to $584m at the end of 2024. Net debt was reduced to $2.7bn from $4.8bn, supported by approximately $2bn in proceeds allocated to debt reduction following the sale of IGT Gaming in July 2025. Net debt leverage improved to 2.4x, down from 4.1x a year earlier. The company reported consolidated cash used in operating activities of $193m for the year, primarily reflecting $926m in cash outflows related to the Italy Lotto upfront licence fee.

During FY25, Brightstar returned more than $1bn to shareholders through dividends and share repurchases. The Board declared a quarterly cash dividend of $0.23 per share, an increase of $0.01 from the previous quarter and a 15% increase from the historical run rate, payable on 24 March 2026 to shareholders of record on 10 March 2026.

The company also reported a series of contract wins and extensions, including a nine-year Lotto operator licence in Italy, facilities management contracts in Missouri and Wisconsin, a 15-year licence in São Paulo, Brazil in partnership with Scientific Games, a 19-year contract in Western Australia, a two-year extension in Texas and multiple instant ticket printing contract extensions.

Looking ahead, Brightstar expects FY26 revenue in the range of $2.50bn to $2.55bn, including more than 5% organic growth, and Adjusted EBITDA between $1.16bn and $1.19bn. The outlook reflects organic growth and OPtiMa savings offsetting increased investment in growth initiatives, research and development, and costs associated with a recent contract renewal cycle.

On the governance front, the Board appointed Mariangela Zappia as an independent, non-executive director with effect from 19 February 2026. The company also confirmed that Chief Financial Officer Max Chiara will not stand for re-election to the Board at the next annual general meeting in May 2026 but will continue in his executive role with expanded responsibilities for strategy and mergers and acquisitions.

“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.”

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