Brightstar Lottery (BRSL) Q3 2025 earnings summary

Executive summary

• Q3 2025 revenue rose 7% year-over-year to $629M, driven by strong same-store sales and instant ticket and draw game growth across geographies.

• Income from continuing operations was $95M, reversing a $46M loss in Q3 2024, with adjusted EBITDA up 11% to $294M.

• Closed the $4B IGT Gaming sale, transforming into a lottery pure-play and refocusing on digital and AI-driven product innovation.

• Returned nearly $1B to shareholders year-to-date via dividends and share repurchases, including a $3/share special dividend and a 10% increase in the Q4 dividend to $0.22/share.

• Accelerated global same-store sales growth, especially in Italy (+6.1%) and Rest of World (+14.3%).

Financial highlights

• Q3 revenue reached $629M, up 7% year-over-year; YTD revenue was $1.84B.

• Adjusted EBITDA rose 11% to $294M; adjusted EPS improved from a $0.02 loss to $0.36.

• Net debt reduced to $2.6B after using $2B from the IGT sale for debt repayment; net debt leverage at 2.3x.

• Total liquidity at quarter-end was $3.2B, including $1.6B in cash and $1.6B in undrawn credit facilities.

• Free cash flow for Q3 was $(504)M due to the Italy Lotto upfront license fee; cash from operations was $140M net of this fee.

Outlook and guidance

• FY 2025 revenue and adjusted EBITDA outlook reaffirmed at ~$2.5B and ~$1.1B, respectively.

• Upgraded FY 2025 cash from operations guidance to ~$700M (excluding Lotto upfront license fee); CapEx for FY 2025 expected at $340M.

• 2028 targets: revenue ~$2.75B, adjusted EBITDA ~$1.3B, and >$400M annual free cash flow post-peak CapEx.

• Projecting >5% organic CAGR through 2028, with reported revenue CAGR >3% due to Italy Lotto license accounting.

• Over $7B in gross cash expected to be generated from 2025–2028, with $1.7B to be returned to shareholders.