BRIGHTSTAR LOTTERY PLC REPORTS THIRD QUARTER 2025 RESULTS

Core Insights - Brightstar Lottery PLC reported strong financial results for Q3 2025, achieving a revenue of $629 million, a 7% increase from $587 million in Q3 2024, driven by a 7.9% growth in same-store sales across all regions [4][5][34] - The company completed the sale of its IGT Gaming business for $4 billion, which significantly improved its cash position and reduced net debt to $2.6 billion from $4.8 billion [2][9][10] - Brightstar introduced medium-term financial targets, projecting 2028 revenue of $2.75 billion and Adjusted EBITDA of $1.3 billion, reflecting a robust organic growth profile [2][16] Financial Performance - Q3 2025 revenue was $629 million, up 7% year-over-year, with same-store sales growth of 7.9% [3][4] - Income from continuing operations was $95 million, compared to a loss of $46 million in the prior year [5][39] - Adjusted EBITDA increased by 11% to $294 million, with an Adjusted EBITDA margin of 46.7% [3][4] Cash and Debt Management - The company ended Q3 2025 with $1.6 billion in cash and cash equivalents, and net debt leverage of 2.3x [2][9] - Total liquidity stood at $3.2 billion, providing ample resources for strategic initiatives and upcoming license fee payments [9] - Brightstar returned $978 million to shareholders year-to-date and announced a 10% increase in the Q4 2025 dividend to $0.22 per share [4][11] Market and Operational Highlights - Instant ticket and draw same-store sales grew by 3.9%, with notable increases in Italy (6.1%) and the U.S. (1.6%) [7][34] - The U.S. multi-state jackpot revenue surged by 74% due to a $1.8 billion Powerball jackpot [7] - The company is focused on enhancing its operational efficiency through the OPtiMa plan, which has contributed to cost reductions and improved profit margins [7][8]