Brightstar Lottery (BRSL) Q2 2025 earnings summary

Executive summary

• Achieved key milestones including the $4B sale of Gaming & Digital business, securing the Italy Lotto license through 2034, and launching a focused digital strategy for growth.

• Transitioned to a pure-play lottery business with global leadership, operating in nine jurisdictions and leading in iLottery platforms.

• Q2 results met expectations, with improved same-store sales, strong iLottery growth, and innovative product launches.

• Enhanced shareholder returns with a $3/share special dividend and $500M share repurchase authorization.

• Loss from continuing operations of $60M, including a $99M non-cash FX translation loss and $21M restructuring charge.

Financial highlights

• Q2 revenue was $631M, up 3% year-over-year; adjusted EBITDA was $274M, down 5% year-over-year, with a margin of 43.5%.

• Global same-store sales grew 2.6% in instant ticket and draw games; iLottery wagers increased over 30%.

• Free cash flow for the first half of 2025 was $259M, up from $241M in the prior year.

• Net debt at $5.2B, with pro forma leverage at 3.0x after $2B debt reduction.

• Adjusted EPS for Q2'25 was $0.12, down from $0.20 in Q2'24; reported diluted loss per share was $0.47.

Outlook and guidance

• Reaffirmed full-year adjusted EBITDA outlook of $1.1B; revenue guidance revised down $50M to $2.5B due to timing shifts and license fee amortization.

• Expect higher revenue and EBITDA in H2 2025, driven by improved jackpot activity and cost savings.

• Free cash flow outlook improved by $75M; annual CapEx expected at $375M through 2028, then reduced.

• EUR/USD assumption for FY'25 increased to 1.12, with FX benefit offset by U.S. jackpot impacts.

• Anticipate return to adjusted EBITDA near €1.2B in future years as temporary headwinds subside.