Brightstar Lottery (BRSL) Q4 2025 earnings summary

Executive summary

• Completed sale of IGT Gaming, transforming into a pure-play lottery leader, reducing debt, and strengthening the balance sheet.

• Secured the Italy Lotto license/contract for nine years, enabling major digital expansion and B2C initiatives.

• Achieved $2.51 billion in FY'25 revenue, with strong Q4 growth and over $1 billion returned to shareholders via dividends and buybacks.

• Launched growth initiatives in digital, technology, geographic expansion, and retail, with significant investments in teams and processes.

• Board declared a quarterly dividend of $0.23, up 15% from the historical run rate.

Financial highlights

• Q4'25 revenue was $668 million, up 3% year-over-year, driven by U.S. jackpot activity and iLottery.

• FY'25 revenue reached $2.51 billion, flat year-over-year, with growth in instant ticket and draw games offset by contract transitions and license fee amortization.

• Adjusted EBITDA for FY'25 was $1.12 billion, down 4% year-over-year, reflecting higher Italy Lotto license fee amortization and investments.

• Net income from continuing operations for FY'25 was $135 million, down 50% year-over-year.

• Free cash flow for FY'25 was $(509) million, impacted by the Italy Lotto upfront license fee payment.

Outlook and guidance

• FY'26 revenue expected at $2.50–$2.55 billion, with over 5% organic growth, led by Italy B2C digital and core business expansion.

• Adjusted EBITDA guidance for FY'26 is $1.16–$1.19 billion, with growth and cost savings offsetting $50 million in new investments.

• Cash from operations projected at -$900 million or +$750 million excluding the final Lotto license fee; CapEx expected at $450–$475 million.

• 2028 targets: revenue of ~$2.75 billion and adjusted EBITDA of ~$1.3 billion.