BRIGHTSTAR LOTTERY PLC REPORTS THIRD QUARTER 2025 RESULTS

FREE Breaking News Alerts from StreetInsider.com!

E-mail Address

StreetInsider.com Top Tickers, 7/16/2026

1. JBHT
2. ASML
3. SPY
4. JNJ
5. TSM
6. ATAI
7. PNC
8. ASML:NA
9. UNH
10. NVDA

November 4, 2025 6:40 AM EST
  • Third quarter revenue grew 7% to $629 million, primarily driven by 7.9% same-store sales growth reflecting strength across jurisdictions and game types
  • Income from continuing operations of $95 million
  • Adjusted EBITDA of $294 million increased 11%, on high profit flow-through of strong same-store sales growth and expense recoveries
  • Returned $978 million to shareholders in YTD period; announced 10% increase in Q4'25 dividend to $0.22 per share
  • Introducing medium-term targets including 2028 revenue of $2.75 billion and Adjusted EBITDA of $1.3 billion

LONDON, Nov. 4, 2025 /PRNewswire/ -- Brightstar Lottery PLC (NYSE: BRSL) ("Brightstar" or the "Company") today reported financial results for the third quarter ended September 30, 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.

"We achieved many milestones in Q3: closing the IGT Gaming sale for $4 billion in cash, executing our shareholder return plans, and completing the refocusing of the Company as a lottery pure play," said Vince Sadusky, CEO of Brightstar. "The better-than-expected Q3 revenue and profit results reflect a significant acceleration of same-store sales across all geographies. For nearly 50 years, our innovative products and services have helped our customers excel. The 2028 financial targets we are introducing today reflect a stronger organic growth profile that we believe will drive compelling, incremental value over the next few years."

"With $1.6 billion of cash and cash equivalents and net debt leverage of 2.3x at the end of Q3, we are well-positioned to execute on our strategic objectives," said Max Chiara, CFO of Brightstar. "As we released our mid-term targets, we expect to generate over $7 billion in gross cash in the 2025-2028 period, mostly allocated to funding organic growth, with $1.7 billion expected to be returned to shareholders over the same timeframe."

Overview of Consolidated Third Quarter 2025 Results


Quarter Ended

Y/Y
Change

Constant
Currency
Change

All amounts from continuing operations

September 30,


2025


2024

($ in millions, except per share data)






GAAP Financials:






Revenue

629


587

7 %

5 %







Income (loss) from continuing operations

95


(46)

NA


Income (loss) from continuing operations margin

15.0 %


(7.8) %









Earnings per share - diluted

$0.29


$(0.39)

NA








Net cash (used in) provided by operating activities

(439)


173

NA


  Q3'25 cash from operations of $140M net of Italy Lotto upfront license fee












Cash and cash equivalents

1,599


501

219 %








Non-GAAP Financial Measures:






Adjusted EBIT

185


162

14 %

10 %

Adjusted EBIT margin

29.5 %


27.7 %









Adjusted EBITDA

294


264

11 %

7 %

Adjusted EBITDA margin

46.7 %


44.9 %









Adjusted earnings per share - diluted

$0.36


$(0.02)

NA








Free cash flow

(504)


144

NA








Net debt

2,572


5,156

(50) %



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

Third Quarter 2025 Financial Highlights
 Third quarter revenue of $629 million, up 7% from $587 million in the prior year, primarily driven by:

  • Instant ticket and draw same-store sales increased 3.9%, with growth across geographies and game types, primarily driven by a 6.1% increase in Italy and a 1.6% increase in the U.S.
  • Higher U.S. multi-state jackpot revenue propelled by a $1.8 billion Powerball jackpot
  • Benefit from foreign currency translation
  • Increased terminal sales, partially offset by non-wager based service revenue related to European contracts in the prior year and U.K. service contract transition

Income from continuing operations was $95 million compared to loss from continuing operations of $46 million in the prior-year period, primarily resulting from:

  • Higher gross profit coupled with general & administrative expense recoveries
  • Foreign exchange gain versus foreign exchange loss in the prior year, primarily reflecting the non-cash impact of fluctuations in the EUR/USD exchange rate on debt
  • Reduced restructuring charges and provision for income taxes

Adjusted EBITDA increased 11% to $294 million versus $264 million in the prior-year period, mainly due to:

  • High profit flow-through of increased wager-based revenue from strong same-store sales and jackpot activity
  • Lower costs associated with the execution of the OPtiMa efficiency plan and certain expense recoveries, partially offset by inflationary cost increases
  • Benefit from foreign currency translation
  • Partially offset by flow-through of non-wager based service revenue related to European contracts in the prior year and U.K. service contract transition

Diluted income per share from continuing operations was $0.29 compared to diluted loss per share from continuing operations of $0.39 in the prior year. Adjusted diluted earnings per share from continuing operations was $0.36 compared to adjusted diluted loss per share from continuing operations of $0.02 in the prior year, primarily driven by higher income from continuing operations.

YTD 2025 Financial Highlights
 Year-to-date revenue of $1.84 billion versus $1.86 billion in the prior-year period, primarily due to increased instant ticket and draw same-store sales, which were more than offset by higher LMA incentives in the prior year.

Income from continuing operations was $43 million compared to $154 million in the prior year period, primarily driven by:

  • Foreign exchange loss versus foreign exchange gain in the prior year, primarily reflecting the non-cash impact of fluctuations in the EUR/USD exchange rate on debt
  • Higher gross profit in the prior year
  • Partially offset by improvements in restructuring charges and provision for income taxes

Adjusted EBITDA of $818 million compares to $880 million in the prior year, primarily resulting from:

  • High profit flow-through from LMA incentives in the prior year
  • Beneficial product sales mix in the prior year
  • Incremental investments to drive sustainable long-term growth in the current year
  • Partially offset by positive foreign currency translation, general & administrative cost recoveries, and OPtiMa savings

Diluted loss per share from continuing operations was $0.31 compared to diluted earnings per share from continuing operations of $0.17 in the prior year. Adjusted diluted earnings per share from continuing operations of $0.55 compared to $0.46 in the prior year primarily driven by reductions in net interest, income tax, and general & administrative expenses, partially offset by higher gross profit in the prior year.

Net debt was $2.6 billion compared to $4.8 billion at December 31, 2024. The decrease was primarily driven by approximately $2 billion in proceeds from the sale of IGT Gaming allocated to debt reduction. Net debt leverage was 2.3x. 

Cash and Liquidity Update
 Total liquidity was $3.2 billion as of September 30, 2025 with $1.6 billion in unrestricted cash and $1.6 billion in additional borrowing capacity from undrawn credit facilities; ample liquidity in advance of upcoming Italy Lotto upfront license fee payments.

Other Developments
 On July 1, 2025, completed sale of IGT Gaming business for approximately $4 billion of net cash proceeds.

  • $3.00 per share special cash dividend distribution to shareholders on July 29, 2025
  • Launched $250 million accelerated share repurchase on July 29, 2025, as part of $500 million share repurchase authorization

The Company's Board of Directors declared a quarterly cash dividend of $0.22 per common share, representing a 10% increase over historical levels, with a record date of November 18, 2025 and a payment date of December 2, 2025.

For U.S. income tax purposes, dividends paid in 2025 are expected to be classified as a non-taxable return of capital to the extent of a shareholder's basis in its shares, and thereafter as capital gain. For further information, see the Form 6-K which will be filed later today with the SEC, which is 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.

Financial Outlook
 Reaffirming FY'25 revenue and profit outlook:

  • Revenue of approximately $2.5 billion
  • Adjusted EBITDA of approximately $1.1 billion
  • Net cash used in operating activities of approximately $220 million; upgrading cash from operations to approximately $700 million from approximately $645 million excluding Lotto upfront license fee
  • Capital expenditures of approximately $340 million, an approximate $110 million decrease from the estimate at the beginning of the year, primarily related to timing shifts

Introducing medium-term targets:

  • 2028 revenue of $2.75 billion reflects an accelerated, over 5% organic CAGR, led by continued core business growth and incremental expansion from iLottery in the U.S. and Italy B2C initiatives
  • 2028 Adjusted EBITDA of $1.3 billion reflects a more than 6% CAGR as revenue growth is enhanced by OPtiMa savings and other efficiency initiatives
  • Average annual capital expenditures of approximately $400 million for 2025 – 2028 reflecting peak contract renewal cycle; moderates to approximately $200 - $225 million post peak cycle
  • Over $400 million in annual free cash flow before upfront license fees but after minority distributions and peak capital expenditure investment cycle; implies low-to-mid teens free cash flow yield at current share price

Earnings Conference Call and Webcast
 November 4, 2025, 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 an innovative, forward-thinking global leader in lottery that builds 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 has approximately 6,000 employees. For more information, please visit www.brightstarlottery.com.

Cautionary Statement Regarding Forward-Looking Statements
 This news release and the Company's earnings call include forward-looking statements (including within the meaning of the Private Securities Litigation Reform Act of 1995) concerning the Company and other matters. These statements may discuss goals, intentions, and expectations as to future plans and strategies, expected growth, transactions, trends, events, products and services, dividends and their classification for U.S. income tax purposes, results of operations, and/or financial condition or measures, including our expectations on future revenue, income from continuing operations, Adjusted EBITDA, cash from and used in operations, capital expenditures, cash to be returned to shareholders, FY'25 EUR/USD assumption, share repurchases, and any other future financial and operational performance, including 2028 revenue, profit, free cash flow and capital expenditure targets, based on current beliefs of the management of the Company as well as assumptions made by, and information currently available to, such management. Forward-looking statements may be accompanied by words such as "aim," "anticipate," "believe," "plan," "could," "would," "should," "shall," "continue," "estimate," "expect," "forecast," "future," "guidance," "intend," "may," "will," "outlook," "possible," "potential," "predict," "project," "target" or the negative or other variations of them. These forward-looking statements speak only as of the date on which such statements are made and are subject to various risks and uncertainties, many of which are outside the Company's control. Should one or more of these risks or uncertainties materialize, or should any of the underlying assumptions prove incorrect, actual results may differ materially from those predicted in the forward-looking statements and from past results, performance, or achievements. Therefore, you should not place undue reliance on such statements. Factors that could cause actual results to differ materially from those in the forward-looking statements include (but are not limited to) macroeconomic, regulatory and political uncertainty, including as a result of new or increased tariffs, trade wars, and other restrictions on trade between or among countries in which the Company operates, and related changes in discretionary consumer spending and behavior, fluctuations in foreign currency exchange rates, changes in prevailing interest rates, changing inflation rates, impacts from increased U.S. national deficits, financial market volatility and the other factors and risks described in the Company's annual report on Form 20-F for the financial year ended December 31, 2024 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. Except as required under applicable law, the Company does not assume any obligation to update these forward-looking statements. You should carefully consider these factors and other risks and uncertainties that may affect the Company's business, including management's discussion and analysis of potential or actual impacts to operations and financial performance. Nothing in this news release is intended, or is to be construed, as a profit forecast or to be interpreted to mean that the financial performance of Brightstar Lottery PLC for the current or any future financial years will necessarily match or exceed the historical published financial performance of Brightstar Lottery PLC, as applicable. All forward-looking statements contained in this news release are qualified in their entirety by this cautionary statement. All subsequent written or oral forward-looking statements attributable to Brightstar Lottery PLC, 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, [email protected]
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)










Constant



Q3'25


Q3'24


Y/Y


Currency

Revenue




Change


Change(1)

Service









Instant ticket & draw wager-based revenue


512


477


7 %


4 %

U.S. multi-state jackpot wager-based revenue


36


21


74 %


74 %

Upfront license fee amortization


(53)


(51)


(5) %


— %

Other


109


119


(8) %


(9) %

Total service revenue


604


566


7 %


4 %










Product sales


25


20


24 %


22 %

Total revenue


629


587


7 %


5 %










Income (loss) from continuing operations


95


(46)


NA



Adjusted EBITDA(1)


294


264


11 %


7 %










Same-store sales growth (%) at constant currency (wager-based growth) (2)

Global









Instant ticket & draw games


3.9 %

(3)

1.0 %





U.S. multi-state jackpots


69.2 %


(55.2 %)





Total


7.9 %


(5.8 %)














U.S.









Instant ticket & draw games


1.6 %


0.2 %





U.S. multi-state jackpots


69.2 %


(55.2 %)





Total


7.7 %


(9.8 %)














Italy









Instant ticket & draw games


6.1 %

(3)

2.7 %














Rest of world









Instant ticket & draw games


14.3 %


1.9 %















(1) Non-GAAP measure; see disclaimer on page 6 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 were 3.7% on a global basis and 5.3% in Italy

 






Constant



Q3'25


Q3'24


Y/Y


Currency





Change


Change(1)










Same-store revenue growth (%) at constant currency (Same-store sales inclusive of contract mix) (2)

Global









Instant ticket & draw games


5.6 %


0.6 %





U.S. multi-state jackpots


73.6 %


(56.2) %





Total


8.5 %


(4.6) %














U.S.









Instant ticket & draw games


3.5 %


(0.6) %





U.S. multi-state jackpots


73.6 %


(56.2) %





Total


10.7 %


(12.1) %














Italy









Instant ticket & draw games


5.9 %


1.7 %














Rest of world









Instant ticket & draw games


14.1 %


(0.6) %
































Revenue (by geography)









U.S. & Canada


304


284


7 %


7 %

Italy


257


228


12 %


7 %

Rest of world


69


75


(7) %


(10) %

Total revenue


629


587


7 %


5 %











(1) Non-GAAP measure; see disclaimer on page 6 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

Condensed Consolidated Statements of Operations

($ and shares in millions, except per share amounts)

Unaudited










For the three months ended


For the nine months ended


September 30,


September 30,


2025


2024


2025


2024

Service revenue (includes amortization of upfront license fees)

604


566


1,750


1,771

Product sales

25


20


93


89

Total revenue

629


587


1,843


1,861









Cost of services (excluding Depreciation and amortization)

276


261


819


795

Cost of product sales (excluding Depreciation and amortization)

31


22


86


67

General and administrative

44


61


164


178

Research and development

11


12


33


33

Sales and marketing

29


30


92


89

Depreciation and amortization

55


51


163


151

Restructuring

—


38


21


39

Interest expense, net

36


53


130


160

Foreign exchange loss, net

1


39


132


23

Other expense, net

12


4


23


12









Income from continuing operations before provision for
income taxes

134


15


180


315

Provision for income taxes

40


61


137


161

Income (loss) from continuing operations

95


(46)


43


154

(Loss) income from discontinued operations, net of tax

(16)


88


75


101

Gain on sale of discontinued operations, net of tax

77


—


77


—

Income from discontinued operations

60


88


152


101

Net income

155


43


195


256









Less: Net income attributable to non-controlling interests from
continuing operations

38


34


105


120

Less: Net income attributable to non-controlling interests from
discontinued operations

—


1


4


5

Net income attributable to Brightstar Lottery PLC

117


7


86


130









Net income (loss) from continuing operations attributable to
Brightstar Lottery PLC per common share - basic

0.29


(0.39)


(0.31)


0.17

Net income (loss) from continuing operations attributable to
Brightstar Lottery PLC per common share - diluted

0.29


(0.39)


(0.31)


0.17

Net income attributable to Brightstar Lottery PLC per
common share - basic

0.60


0.04


0.43


0.65

Net income attributable to Brightstar Lottery PLC per
common share - diluted

0.60


0.04


0.43


0.64

Weighted-average shares - basic

195


202


200


201

Weighted-average shares - diluted

196


202


200


203

 

Brightstar Lottery PLC

Condensed Consolidated Balance Sheets

($ in millions)

Unaudited








September 30,


December 31,



2025


2024

Assets





Current assets:





Cash and cash equivalents


1,599


584

Restricted cash and cash equivalents


97


120

Trade and other receivables, net


514


468

Inventories, net


115


113

Other current assets


191


114

Assets held for sale


—


4,765

Total current assets


2,516


6,165

Systems, equipment and other assets related to contracts, net


636


581

Property, plant and equipment, net


88


85

Operating lease right-of-use assets


95


102

Goodwill


2,707


2,650

Intangible assets, net


104


89

Other non-current assets


3,142


606

Total non-current assets


6,771


4,113

Total assets


9,288


10,278






Liabilities and shareholders' equity










Liabilities





Current liabilities:





Accounts payable


758


718

Current portion of long-term debt


117


208

Payable to ADM


2,031


—

Other current liabilities


514


619

Liabilities held for sale


—


1,142

Total current liabilities


3,420


2,687

Long-term debt, less current portion


4,064


5,153

Deferred income taxes


232


170

Operating lease liabilities


75


83

Other non-current liabilities


143


125

Total non-current liabilities


4,513


5,530

Total liabilities


7,934


8,217






Shareholders' Equity





Brightstar Lottery PLC's shareholders' equity


871


1,652

Non-controlling interests


483


409

Total shareholders' equity


1,354


2,061

Total liabilities and shareholders' equity


9,288


10,278

 

Brightstar Lottery PLC

Condensed Consolidated Statements of Cash Flows

($ in millions)

Unaudited


For the three months ended


For the nine months ended


September 30,


September 30,


2025


2024


2025


2024

Cash flows from operating activities








Net income

155


43


195


256

Less: Income from discontinued operations, net of tax

60


88


152


101

Adjustments to reconcile net income to net cash (used in) provided by operating activities
from continuing operations:








Amortization of upfront license fees

53


51


154


150

Depreciation

45


42


135


127

Amortization

10


8


28


24

Stock-based compensation

3


12


15


31

Foreign exchange loss, net

1


39


132


23

Other non-cash items, net

41


(19)


33


(3)

Changes in operating assets and liabilities, excluding the effects of dispositions:








Trade and other receivables

(82)


(8)


(4)


11

Inventories

2


(6)


(4)


(12)

Accounts payable

87


87


11


18

Accrued interest payable

(32)


(34)


(25)


(44)

Accrued income taxes

(80)


(6)


9


3

Italian Lotto License payment

(579)


—


(579)


—

Other assets and liabilities

(2)


52


47


7

Net cash (used in) provided by operating activities from continuing operations

(439)


173


(6)


489

Net cash (used in) provided by operating activities from discontinued operations

(7)


87


94


235

Net cash (used in) provided by operating activities

(446)


260


88


724









Cash flows from investing activities








Capital expenditures

(65)


(30)


(239)


(104)

Other

—


2


—


1

Net cash used in investing activities from continuing operations

(64)


(27)


(240)


(103)

Net cash provided by (used in) investing activities from discontinued operations

3,953


(62)


3,868


(166)

Net cash provided by (used in) investing activities

3,889


(90)


3,629


(270)









Cash flows from financing activities








Proceeds from long-term debt

—


556


1,112


556

Net (payments on) receipts from financial liabilities

(1)


12


(82)


(52)

Payments of debt issuance costs

(2)


(2)


(11)


(3)

Net repayments of Revolving Credit Facilities

(410)


(82)


(515)


(119)

Principal payments on long-term debt

(1,978)


(500)


(2,186)


(500)

Repurchases of common stock

(251)


—


(251)


—

Dividends paid

(647)


(40)


(728)


(121)

Dividends paid - non-controlling interests

—


—


(163)


(159)

Return of capital - non-controlling interests

(10)


(10)


(57)


(55)

Capital increase - non-controlling interests

—


—


178


2

Other

33


12


18


(16)

Net cash used in financing activities from continuing operations

(3,268)


(54)


(2,686)


(467)

Net cash used in financing activities from discontinued operations

—


(19)


(143)


(39)

Net cash used in financing activities

(3,268)


(73)


(2,829)


(505)









Net increase (decrease) in cash and cash equivalents and restricted cash and cash
equivalents

175


98


888


(51)

Effect of exchange rate changes on cash and cash equivalents and restricted cash and cash
equivalents

(25)


17


33


(14)

Cash and cash equivalents and restricted cash and cash equivalents at the beginning of the
period

1,546


559


775


739

Cash and cash equivalents and restricted cash and cash equivalents at the end of the period

1,696


674


1,696


674

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

1,696


604


1,696


604









Supplemental disclosures of cash flow information for continuing operations:








Interest paid

82


87


171


204

Income taxes paid

87


87


119


169

 

Brightstar Lottery PLC

Net Debt

($ in millions)

Unaudited






September 30,


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

749


748

2.375% Senior Secured Euro Notes due April 2028

585


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

Senior Secured Notes

2,661


4,050





Euro Term Loan Facilities due January 2027

234


619

Euro Term Loan Facilities due September 2030

1,168


—

Revolving Credit Facility A due July 2027

—


157

Revolving Credit Facility B due July 2027

—


328

Long-term debt, less current portion

4,064


5,153





Euro Term Loan Facilities due January 2027

117


208

Current portion of long-term debt

117


208





Total debt

4,181


5,361





Less: Cash and cash equivalents

1,599


584

Less: Debt issuance costs, net - Revolving Credit Facility A due July 2027

5


—

Less: Debt issuance costs, net - Revolving Credit Facility B due July 2027

5


—

Net debt

2,572


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
September 30,


For the nine months ended
September 30,



2025


2024


2025


2024

Income (loss) from continuing operations


95


(46)


43


154

Provision for income taxes


40


61


137


161

Interest expense, net


36


53


130


160

Foreign exchange loss, net


1


39


132


23

Restructuring


—


38


21


39

Stock-based compensation


3


12


15


31

Other expense, net


12


4


23


12

Adjusted EBIT


185


162


500


580



















Income (loss) from continuing operations


95


(46)


43


154

Provision for income taxes


40


61


137


161

Interest expense, net


36


53


130


160

Foreign exchange loss, net


1


39


132


23

Depreciation


45


42


135


127

Amortization - service revenue (1)


53


51


154


150

Amortization - non-purchase accounting


8


6


21


17

Amortization - purchase accounting


2


2


7


7

Restructuring


—


38


21


39

Stock-based compensation


3


12


15


31

Other expense, net


12


4


23


12

Adjusted EBITDA


294


264


818


880

(1) Includes amortization of upfront license fees
























Cash flows from operating activities - continuing operations


(439)


173


(6)


489

Capital expenditures


(65)


(30)


(239)


(104)

Free Cash Flow


(504)


144


(245)


385

 

Brightstar Lottery PLC

Reconciliation of Non-GAAP Financial Measures

(Unaudited)




For the three months ended September 30,


For the nine months ended September 30,




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





0.29






(0.39)






(0.31)






0.17




























Adjustments:


























Foreign exchange loss, net


—


—


0.01


0.19


(0.03)


0.22


0.66


(0.03)


0.69


0.11


—


0.11


Amortization - purchase accounting


0.01


—


0.01


0.01


—


0.01


0.03


—


0.03


0.03


0.01


0.03


Loss on extinguishment and modifications of debt,
net


0.04


—


0.04


—


—


—


0.04


—


0.04


—


—


—


Restructuring


—


—


—


0.19


0.06


0.13


0.10


0.03


0.08


0.19


0.06


0.13


Other (non-recurring adjustments)


0.01


—


0.01


0.01


—


0.01


0.04


0.01


0.03


0.02


—


0.02


Net adjustments






0.07






0.38






0.86






0.29


Adjusted EPS from continuing operations
attributable to Brightstar Lottery PLC - diluted





0.36






(0.02)






0.55






0.46
















































Reported effective tax rate






29.6 %






394.3 %






76.1 %






51.0 %


Adjusted effective tax rate






26.7 %






68.9 %






38.9 %






45.1 %


Adjusted EPS weighted average shares outstanding (in millions)




196

(2)





202

(3)





201

(2)





203

(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

(3) Excludes  the anti-dilutive impact of share-based payment awards

 

Recast Historical Financial Information

Recast data reflects the streamlined presentation of Brightstar's condensed consolidated statements of operations with no effect on previously reported total revenues, income from continuing operations, or net income.

 

Brightstar Lottery PLC

Condensed Consolidated Statements of Operations

($ and shares in millions, except per share amounts)

Unaudited


















For the three months ended


For the three months ended


For the year ended



2025


2024


2023



June 30,


March 31,


December 31,


September 30,


June 30,


March 31,


December 31,

Service revenue (includes amortization of upfront license fees)


588


557


591


566


586


619


2,358

Product sales


42


26


60


20


27


42


171

Total revenue


631


583


651


587


613


661


2,529
















Cost of services (excluding Depreciation and amortization)


279


262


273


261


265


269


1,048

Cost of product sales (excluding Depreciation and amortization)


34


20


44


22


20


24


105

General and administrative


60


63


57


61


56


60


252

Research and development


11


11


10


12


11


11


36

Sales and marketing


30


32


34


30


29


29


107

Depreciation and amortization


54


54


52


51


51


49


215

Restructuring


21


—


—


38


—


—


13

Interest expense, net


49


46


46


53


53


53


207

Foreign exchange (gain) loss, net


99


33


(75)


39


(4)


(11)


44

Other expense, net


5


6


4


4


4


4


13

(Loss) income from continuing operations before provision for income taxes


(10)


56


206


15


127


173


488

Provision for income taxes


50


48


89


61


43


57


223

(Loss) income from continuing operations


(60)


8


116


(46)


84


116


265

Income from discontinued operations, net of tax


40


52


136


88


—


13


43

Net (loss) income


(20)


60


253


43


85


128


307

Less: Net income attributable to non-controlling interests from continuing operations


36


31


34


34


41


45


149

Less: Net income attributable to non-controlling interests from discontinued
operations


2


2


1


1


2


2


2

Net (loss) income attributable to Brightstar Lottery PLC


(58)


27


217


7


42


82


156
















Net (loss) income from continuing operations attributable to Brightstar
Lottery PLC per common share - basic


(0.47)


(0.11)


0.41


(0.39)


0.21


0.35


0.58

Net (loss) income from continuing operations attributable to Brightstar
Lottery PLC per common share - diluted


(0.47)


(0.11)


0.40


(0.39)


0.21


0.35


0.57

Net (loss) income attributable to Brightstar Lottery PLC per common share -
basic


(0.29)


0.13


1.08


0.04


0.21


0.41


0.78

Net (loss) income attributable to Brightstar Lottery PLC per common share -
diluted


(0.29)


0.13


1.07


0.04


0.21


0.40


0.77

Weighted-average shares - basic


203


202


202


202


201


200


200

Weighted-average shares - diluted


203


202


204


202


203


203


203

 

Cision View original content to download multimedia:https://www.prnewswire.com/news-releases/brightstar-lottery-plc-reports-third-quarter-2025-results-302603335.html

SOURCE Brightstar Lottery PLC


Serious News for Serious Traders! Try StreetInsider.com Premium Free!

You May Also Be Interested In





Related Categories

PRNewswire, Press Releases

Related Entities

Dividend, Stock Buyback, Earnings