Brightstar Lottery PLC reported stable full-year revenue of $2.51bn (£1.86bn) for FY25, despite the company absorbing huge licence costs and completing its transition into a standalone lottery-focused business.
However, income from continuing operations fell by 50% to $135m, down from $271m in FY24. The business, which sold its IGT Gaming business for $4.1bn in July 2025, was impacted by increased licence amortisation, foreign exchange losses and transitional impacts.
Even though full-year results were down year-on-year in most areas, Brightstar reported better-than-expected Q4 results, with revenues rising by 3% to $668m, driven by 3.5% same-store sales growth led by elevated US multi-state jackpot activity and iLottery expansion.
Adjusted EBITDA increased 5% to $304m, with margins improving to 45.5%, demonstrating strong operational flow-through despite impacts such as Italy amortisation and UK transition headwinds.
“Better-than-expected fourth quarter revenue and profit growth reflect the value of our diverse portfolio across geographies and games,” said Vince Sadusky, Chief Executive Officer of Brightstar.
“2025 was a transformational year for us. We executed major strategic priorities, including selling IGT Gaming and increasing capital returns to shareholders.”
Brightstar’s financial performance was heavily influenced by costs associated with securing a new nine-year Lotto Italia licence, which resulted in $926m in upfront payments during the year.
The company also reported negative free cash flow of $509m for FY25, compared to positive free cash flow of $560m in the prior year, reflecting the same licence-related payments.
Adjusted EBITDA for the full year declined 4% year-on-year to $1.12bn, while adjusted EBITDA margin narrowed to 44.7%, down from 46.6%.
Brightstar attributed the decline to increased licence amortisation, lower product sales linked to the timing of terminal and software deliveries, as well as operational transition impacts, including changes related to its UK lottery operations.
Brightstar restructuring
Fourth-quarter performance showed signs of operational stability following the company’s strategic restructuring.
A key milestone during the year was the London-headquartered firm’s completion of the IGT sale, which generated around $2bn in proceeds allocated toward debt reduction. As a result, Brightstar reduced its net debt to $2.7bn as of 31 December 2025 – down from $4.8bn the previous year.
Max Chiara, Brightstar’s Chief Financial Officer, added: “Our balanced approach to capital allocation was on display in 2025 with over $2bn in debt reduction, bringing leverage to historic lows; over $1bn returned to shareholders; and investments in key initiatives.
“We enter 2026 well-positioned to fund contractual obligations that put us on the path to achieving our 2028 financial targets.”
Brightstar also secured several new and extended lottery contracts during the year, including its aforementioned renewed Lotto Italia licence, a 15-year lottery licence in São Paulo, Brazil, and multiple US facilities management agreements.
Looking ahead, the business has forecast revenue between $2.5bn and $2.55bn for FY26, representing more than 5% organic growth. Adjusted EBITDA is expected to range from $1.16bn to $1.19bn.
Despite the expected slight improvement next year, the business is anticipating that its 2026 operating cash flow will be impacted by the final €1.43bn instalment of the Italy licence fee.
Excluding this payment, Brightstar projects approximately $750m in operating cash generation.
Sadusky said the company would focus on expansion initiatives, including digital lottery growth in Italy and launching a new lottery in São Paulo.
“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,” he concluded.