Lottery company Brightstar posts impressive Q2 earnings, accomplishes strategic goals
Brightstar Lottery has published its second quarter financial results for the year 2025, revealing a resilient performance in the face of challenges and investments aimed at driving sustainable growth.
Key Highlights
- Revenue: The company reported a revenue of $631 million, marking a 3% increase or stability at constant currency, slightly below analyst expectations of $633.8 million.
- Adjusted EBITDA: The adjusted EBITDA for Q2 2025 decreased to $274 million, a 5% year-over-year decrease from $290 million in Q2 2024.
- Loss from Continuing Operations: Brightstar reported a loss from continuing operations of $60 million, which included $99 million in non-cash foreign currency translation impacts and a $21 million restructuring charge linked to their OPtiMa 3.0 cost reduction program.
- Cash and Cash Equivalents: Despite these challenges, the company maintained a strong cash and cash equivalents position with $2.9 billion available, benefiting from the recent $4 billion cash proceeds from the sale of their Gaming & Digital business completed on July 1, 2025.
Global Same-Store Sales Growth
Brightstar achieved 2.6% global same-store sales growth in instant ticket and draw games, with double-digit growth in product sales revenue. The increase in instant ticket and draw same-store sales was the highest out of any other region, with the United States showing a 0.6% increase and Italy recording a 3.7% year-over-year increase. The rest of the world region also saw an increase of 8.4% in instant ticket and draw same-store sales.
Strategic Initiatives
Brightstar's CEO, Vince Sadusky, spoke about achieving several important milestones, including securing a license with Italy Lotto and finalizing the sale of Brightstar's Gaming & Digital business in a $4bn deal. The company also announced plans to return capital to Brightstar Lottery's shareholders coinciding with the divestment of the strategic asset.
Max Chiara, Brightstar Lottery's CFO, expressed excitement about the latest results and attributed the growth to sustained global demand for instant ticket and draw games. Chiara also mentioned that the company is investing in key initiatives to drive sustainable, long-term growth, while also delivering structural cost reductions to right-size the business.
Outlook
Brightstar reaffirmed its 2025 Adjusted EBITDA outlook and improved cash flow, while launching a $250 million accelerated share repurchase program. The company's CEO predicted further growth and expansion for the company, expected to create value for its stakeholders and deliver unique experiences to lottery players across the globe.
In summary, Brightstar Lottery's Q2 2025 financial performance shows a resilient core lottery business despite challenges from jackpot dynamics and investments to grow the business. The company's financial results indicate a continued growth trajectory for the company.
| Metric | Q2 2025 Value | Prior Year Comparison | |------------------------------|----------------------------------|----------------------------------------| | Revenue | $631 million (up 3%, stable at constant currency) | Slight revenue miss vs. analyst estimates (expected $633.8 million) | | Adjusted EBITDA | $274 million | Down from $290 million (prior year) | | Loss from continuing operations | $60 million | From income of $84 million (prior year)| | Cash & cash equivalents | $2.9 billion | Strong liquidity position post-$4B sale|
[1]: Brightstar Lottery Press Release, Q2 2025 Financial Results [2]: Yahoo Finance, Brightstar Lottery Q2 2025 Earnings Call Transcript [3]: Seeking Alpha, Brightstar Lottery Q2 2025 Earnings Preview [4]: Seeking Alpha, Brightstar Lottery Q2 2025 Earnings Recap [5]: FactSet, Brightstar Lottery Q2 2025 Earnings Estimates
- In the strategic initiatives section, Max Chiara, Brightstar Lottery's CFO, mentioned that the company is investing in key initiatives to drive sustainable, long-term growth, a move that also involves elements of personal-finance management and business strategy.
- Brightstar's CEO, Vince Sadusky, highlighted the company's multiple achievements, including securing a license with Italy Lotto and finalizing the sale of the Gaming & Digital business, an operation that can be likened to gambling given its correlation with the finance industry and its potential impact on the company's future investing decisions.
