Brightstar Lottery PLC Reports 2025 Growth and 2026 Outlook

Brightstar Lottery PLC has reported a solid financial performance for the fourth quarter and full year 2025, supported by strong activity in U.S. multi state jackpots and continued expansion in digital lottery offerings. The company also significantly reduced its net debt, increased capital returns to shareholders and announced a strengthened dividend policy. Management has indicated that 2026 will mark an important phase of investment and accelerated organic growth.

The results reflect a year described by leadership as transformational, characterized by portfolio optimization, capital structure improvement and targeted investment in high return growth initiatives. The company has emphasized that its strategy is designed to balance shareholder returns with long term sustainable expansion across regulated markets.

Fourth quarter performance supported by jackpot activity and digital growth

In the fourth quarter of 2025, Brightstar reported revenue of €615 million, representing a 3 percent increase year over year. Same store sales rose by 3.5 percent, primarily driven by elevated U.S. multi state jackpot activity and continued growth in iLottery.

Adjusted EBITDA reached €280 million, up 5 percent compared to the prior year period. Management attributed the improvement to strong jackpot driven profit contribution and cost efficiencies generated under the OPtiMa cost reduction program. Income from continuing operations totaled €85 million compared to €107 million in the same quarter of the previous year.

Chief Executive Officer Vince Sadusky stated:

“Better-than-expected fourth quarter revenue and profit growth reflect the value of our diverse portfolio across geographies and games. 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.”

Operating cash flow during the quarter was affected by approximately €319 million in payments related to the Italy Lotto license fee. While this payment materially influenced cash metrics, it relates to a contractual obligation tied to long term market participation.

Full year results reflect stability and strategic investment

For the full year 2025, Brightstar reported total revenue of approximately €2.31 billion, broadly in line with the previous year. Same store sales grew 1.7 percent, reflecting stable demand across key markets and product segments.

Income from continuing operations was €124 million compared to €249 million in the prior year. Adjusted EBITDA totaled approximately €1.03 billion, reflecting increased investment in growth initiatives, transition costs in the United Kingdom and contract related amortization.

In U.S. dollar reporting, the company indicated total revenue of $2.51 billion for 2025. Adjusted EBITDA reached $1.12 billion, representing a 4 percent decline year over year due to investment and contract transition impacts.

Operating cash flow for the full year was negatively affected by $926 million in payments related to the Italy Lotto license. Despite this significant outflow, Brightstar concluded the year with $1.4 billion in cash and total liquidity of $3.0 billion, including additional borrowing capacity. Management emphasized that liquidity levels remain robust and aligned with contractual commitments and investment plans.

Balance sheet strengthened through debt reduction

One of the most notable developments in 2025 was the company’s substantial deleveraging. Net debt declined to approximately €2.51 billion compared to €4.39 billion at the end of 2024. Net debt leverage improved to 2.4 times EBITDA from 4.1 times in the previous year.

Chief Financial Officer Max Chiara commented:

“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.

We enter 2026 well-positioned to fund contractual obligations that put us on the path to achieving our 2028 financial targets.”

The company returned approximately €920 million to shareholders in 2025 through dividends and share repurchases. The quarterly dividend was increased, reflecting management’s confidence in the stability of cash flows and the strength of the capital structure.

From a governance perspective, leadership has highlighted that capital allocation decisions are evaluated within a framework that prioritizes long term value creation, regulatory compliance and prudent financial management.

Strategic initiatives and 2026 outlook

Looking ahead, Brightstar expects revenue between $2.50 billion and $2.55 billion in 2026. This outlook is supported by projected organic growth of more than 5 percent. Adjusted EBITDA is expected to range between $1.16 billion and $1.19 billion.

Management has identified several high return initiatives that are expected to drive performance in the medium term. These include expansion of Italy’s B2C digital lottery operations, continued growth in iLottery and the launch of a new lottery in São Paulo.

The focus on digital channels reflects broader industry trends in regulated lottery markets, where consumer behavior continues to evolve toward online participation. Brightstar has indicated that its investments are designed to enhance user experience, strengthen compliance frameworks and improve operational efficiency.

The company has also reiterated its intention to pursue disciplined growth opportunities in regulated jurisdictions, ensuring that expansion efforts align with local laws and established governance standards.

Board developments and corporate governance

Brightstar announced the appointment of Mariangela Zappia as an independent non executive director. The company stated that her experience in global diplomacy and international leadership will support strategic development and oversight.

Executive Chair Marco Sala said:

“We are delighted to welcome Mariangela to the Board as an independent, non-executive director. Her independence, global perspective, deep experience in navigating complex geopolitical and economic environments and her proven leadership of large and multifaceted organizations will be highly valuable as we continue to execute our strategy.”

Sala added:

“On behalf of the Board, I would like to thank Max for his continued leadership as our Chief Financial Officer and for his valuable contributions as a director over the last six years.

Max will remain fully engaged on executing our financial and strategic priorities as CFO and this change to his Board role reflects our ongoing focus on strategy execution and evolving our corporate governance standards and best practices, including the independence and composition of our Board.“

The changes reflect an emphasis on governance evolution, board independence and strategic execution. The company has indicated that its governance practices are periodically reviewed to ensure alignment with international standards and shareholder expectations.

Financial discipline and operational focus

Throughout 2025, Brightstar underscored the importance of operational efficiency. The OPtiMa cost reduction program contributed to improved margins, particularly in jackpot driven quarters. Management has stated that cost optimization does not compromise regulatory compliance or responsible gaming standards.

The company’s financial communications emphasize that all reported figures are prepared in accordance with applicable accounting standards and subject to standard audit and review procedures. No material irregularities have been disclosed.

Brightstar’s diversified geographic footprint has also been cited as a stabilizing factor. Exposure across multiple jurisdictions helps mitigate volatility associated with individual market fluctuations.

Conclusion

Brightstar Lottery PLC concludes 2025 with strengthened financial foundations, improved leverage metrics and renewed strategic clarity. While certain financial indicators were affected by significant license related payments and investment costs, the company has emphasized that these expenditures support long term contractual rights and digital expansion initiatives.

Management’s outlook for 2026 reflects cautious optimism grounded in measurable organic growth targets and disciplined capital allocation. The planned expansion of digital lottery offerings, including initiatives in Italy and São Paulo, signals a continued commitment to innovation within regulated frameworks.

The substantial reduction in net debt and increased shareholder returns suggest that Brightstar has successfully balanced investment with financial prudence. Board enhancements further indicate a structured approach to governance and strategic oversight.

As the company enters 2026, it does so with improved liquidity, lower leverage and clearly articulated growth objectives extending through 2028. Provided that market conditions remain stable and regulatory environments consistent, Brightstar appears positioned to pursue measured expansion while maintaining operational discipline and shareholder alignment.

FAQs

What drove Brightstar’s revenue growth in the fourth quarter of 2025?
Revenue growth was primarily driven by strong U.S. multi state jackpot activity and continued expansion in iLottery.

How much revenue did Brightstar report for the full year 2025?
The company reported approximately €2.31 billion in total revenue for 2025, broadly in line with the previous year.

Why did operating cash flow decline in 2025?
Operating cash flow was significantly affected by payments related to the Italy Lotto license fee.

How much did Brightstar reduce its net debt in 2025?
Net debt declined from approximately €4.39 billion at the end of 2024 to about €2.51 billion at the end of 2025.

What was the company’s adjusted EBITDA for 2025?
Adjusted EBITDA totaled approximately €1.03 billion for the full year 2025.

What are Brightstar’s revenue expectations for 2026?
The company expects revenue between $2.50 billion and $2.55 billion in 2026.

How much was returned to shareholders in 2025?
Approximately €920 million was returned to shareholders through dividends and share repurchases.

Who was appointed as an independent non executive director?
Mariangela Zappia was appointed to the Board as an independent non executive director.

What strategic initiatives are planned for 2026?
Key initiatives include Italy B2C digital expansion, continued iLottery growth and launching a new lottery in São Paulo.

How does Brightstar describe its financial position entering 2026?
The company describes its position as stable, with improved leverage, strong liquidity and a focus on disciplined growth.