Chavdar Vasilev is a journalist covering the casino and sports betting market sectors for CasinoBeats. He joined CasinoBeats in May 2025 and reports on industry-shaping stories across the US and beyond, including legislative debates, market...
Read Full BioBrightstar Lottery (NASDAQ: BRSL), the newly rebranded lottery division spun off from IGT, reported mixed second-quarter results on July 29. That includes higher-than-expected revenue and healthy cash flow, but earnings fell short, likely as a result of ongoing restructuring into a standalone lottery operator.
Brightstar stock edged down 0.28% following the release of its earnings. Shares have dropped almost 12% since the beginning of the year and by nearly 33% in the past 12 months.
Brightstar emerged from restructuring at gambling giant IGT. The company merged its Gaming and Digital divisions with Everi Holdings and renamed its lottery division to Brightstar. The changes took effect on July 1.
Revenue Rises & Profit Slides
Brightstar reported Q2 revenue of $631 million, a 3% increase year-over-year.
The company credited the growth to instant ticket and draw same-store sales increases. That includes growth of 3.7% in Italy, 0.6% in the US, and 8.4% in the rest of the world. Product sales surged by 59% due to higher instant ticket printing and terminal sales.
Despite the revenue growth, operating income plunged 22% to $139 million. Additionally, the company posted a net loss of $60 million from continuing operations. That’s in stark contrast to the $84 million income in the previous year.
Brightstar cited factors such as a foreign exchange loss versus a gain last year in the EUR/USD exchange rate. Additionally, operating income was lower, primarily due to elevated US multi-state jackpot sales and restructuring charges.
GAAP diluted earnings per share were -$0.47, compared to $0.21 in Q2 2024. Adjusted earnings were $0.12, missing the analysts’ consensus estimate of $0.15.
EBITDA Declines, but Cash Flow Remains Strong
Adjusted EBITDA for Q2 declined to $274 million (from $290 million in 2024). The margin also fell from 47.3% in Q2 2024 to 43.5% in Q2 2025. The decline could be attributed to higher amortization related to the newly renewed license in Italy and currency exchange headwinds.
Still, Brightstar generated $265 million in operating cash flow and $167 million in free cash flow, reinforcing its capital-light, high-margin business model.
The company’s total liquidity was $2.9 billion as of June 30. That includes $1.3 billion in cash and $1.6 billion in undrawn credit facilities.
Meanwhile, net debt stood at $5.2 billion, up from $4.8 billion at the start of the year, primarily due to the EUR/USD exchange rate. The leverage ratio is approximately 3.0x following a $2 billion debt reduction completed in July.
Strategic Milestones: IGT Gaming Sale, Capital Returns, Italy License
The second quarter was a transformative period for Brightstar. It finalized the sale of its two other divisions to Apollo Global Management for approximately $4 billion in net cash. The transaction allowed Brightstar to focus solely on lottery operations.
The company allocated the $4 billion in proceeds across four major initiatives:
- $2.0 billion to reduce debt (completed July 2025)
- $1.1 billion to be returned to shareholders
- $500 million to partially fund Italian lotto payments after it secured a 10-year extension of its concession in the country.
- $400 million for general corporate expenses.
CEO Vince Sadusky highlighted the company’s achieved milestones in the quarter:
“We secured the Italy Lotto license through November 2034, closed the sale of our Gaming & Digital business for $4 billion in cash, and announced plans to return significant capital to shareholders. With a singular focus on lottery and unmatched industry expertise, we are well positioned to create value for all stakeholders with our mission to elevate lotteries and inspire players around the world.”
2025 Outlook: Revenue Trimmed, Margins Intact
Brightstar lowered its 2025 revenue outlook by $50 million to $2.5 billion. Still, it reaffirmed its full-year adjusted EBITDA guidance of $1.1 billion.
The company has improved its full-year net cash usage forecast to approximately $275 million, a $75 million improvement from the previous forecast, citing factors such as interest and income taxes.
Brightstar also lowered its capital expenditure expectations to $375 million, a $75 million improvement from the previous forecast to reflect timing shifts related to recent contract extensions.
The company also raised its EUR/USD assumption to 1.12.
