Brightstar's Big Bet: Debt Slashed, Investors Rewarded, Eyes on Global Growth

LONDON, Feb. 24, 2026 -- Brightstar Lottery PLC (NYSE:BRSL) today announced robust fourth-quarter financial results, capping what its CEO called a "transformational year" that saw the company reshape its balance sheet, shower shareholders with returns, and pivot aggressively towards a future focused on digital and international expansion.

The global lottery operator reported better-than-expected revenue and profit for the final quarter of 2025, driven by strong U.S. jackpot activity and growth in its iLottery segment. The results signal the early success of a major strategic shift that began with the sale of its IGT Gaming division, a move that has turned Brightstar into a leaner, more focused "pure-play" lottery leader.

"Better-than-expected fourth quarter revenue and profit growth reflect the value of our diverse portfolio across geographies and games," said Vince Sadusky, CEO of Brightstar. "2025 was a transformational year for us. We executed major strategic priorities, including selling IGT Gaming and increasing capital returns to shareholders."

A Strategic Overhaul Pays Off

The cornerstone of Brightstar's 2025 transformation was the July sale of its IGT Gaming business, which generated approximately $4.1 billion in net cash proceeds. The company immediately put this capital to work, executing a dramatic financial restructuring.

A significant $2 billion of the proceeds were used to pay down debt, slashing the company's net debt from $4.8 billion at the end of 2024 to $2.7 billion by the end of 2025. This move drastically improved its financial health, with net debt leverage falling from a multiple of 4.1x to a much more manageable 2.4x.

"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," said Max Chiara, CFO of Brightstar.

Shareholders were major beneficiaries of this newfound financial flexibility. The company returned over $1 billion to investors during fiscal 2025 through a combination of share repurchases and dividends. This included a substantial share buyback program and an increased regular dividend, which the board just raised again by another cent to $0.23 per share quarterly—a 15% increase from its historical rate.

Betting on Digital and New Frontiers

With a fortified balance sheet, Brightstar is now channeling its resources into what it sees as high-return growth initiatives. The company's outlook for 2026 projects accelerated organic revenue growth of over five percent and Adjusted EBITDA between $1.16 billion and $1.19 billion, fueled by strategic investments in key markets.

Two major international projects are at the forefront: a digital expansion in Italy and the launch of a new lottery in Brazil. In Italy, where Brightstar recently secured a new nine-year Lotto operator license, the company is pushing a direct-to-consumer (B2C) digital strategy. This involves expanding its "My Lotteries" app, which integrates iLottery, iCasino, and sports betting, to capture more of the country's highly established gaming market.

Perhaps more ambitious is its entry into Brazil. Through a joint venture with Scientific Games, Brightstar was awarded a 15-year license to operate a new state lottery in São Paulo. This represents a rare "greenfield" opportunity in a state with over 44 million residents, offering a full suite of lottery games across both retail and digital channels.

Sadusky highlighted these plans, stating, "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."

Navigating Global Waters with New Leadership

To support its expanding global ambitions, Brightstar is also evolving its corporate governance. The company announced the appointment of Mariangela Zappia to its board as an independent, non-executive director. A career diplomat with over 40 years of experience, Ms. Zappia has served as Italy's ambassador to the U.S., the U.N., and NATO. Her extensive experience in navigating complex geopolitical and economic environments is seen as a significant asset.

"Her independence, global perspective, deep experience in navigating complex geopolitical and economic environments... will be highly valuable as we continue to execute our strategy," said Marco Sala, the company's Executive Chair.

This move coincides with a change for CFO Max Chiara, who will not stand for re-election to the board but will remain as CFO with added responsibilities for strategy and mergers and acquisitions. The company framed this as part of an ongoing focus on enhancing board independence and evolving its corporate governance standards.

A Closer Look at the Numbers

While the strategic narrative is strong, the company's GAAP (Generally Accepted Accounting Principles) results for the full year tell a more complex story. Full-year revenue was flat at $2.5 billion, and income from continuing operations fell 50% to $135 million. This was largely due to non-cash factors, including foreign exchange losses and increased amortization related to its valuable Italy Lotto license.

However, the company's non-GAAP adjusted earnings per share (EPS) for the full year rose an impressive 36% to $0.91, suggesting the core operational business remains robust when one-time and non-cash items are excluded. The fourth quarter showed more direct momentum, with revenue up 3% to $668 million and same-store sales growing 3.5%.

Looking ahead, Brightstar's cash flow will be significantly impacted by a final, massive payment of approximately $1.68 billion for its Italy Lotto license in the second quarter of 2026. This will cause reported net cash from operating activities to be negative for the year. However, excluding this contractual payment, the company projects a healthy $750 million in cash from operations, underscoring the underlying strength of the business as it embarks on its next chapter of focused growth.