Brightstar Lottery Q3 Profit Rises After Shift to Lottery-Only Focus
Brightstar Lottery reported strong financial results for the third quarter (Q3) ended September 30, 2025. The company’s revenue increased by 7% year-over-year to $629 million. This growth was primarily driven by a 7.9% rise in same-store sales, showing strength across all game types and locations.
Critically, Q3 marked the completion of the sale of the IGT Gaming business for $4 billion, officially making Brightstar a “lottery pure play” focused solely on the lottery market.
Profitability improved significantly. Income from continuing operations was $95 million, a major shift from the $46 million loss recorded in Q3 2024. Adjusted EBITDA grew by 11% to $294 million, achieving a margin of 46.7%. This increase in efficiency was linked to the strong same-store sales growth and better cost recovery. Adjusted diluted EPS was $0.36, a rebound from a loss of $(0.02) in the year-ago period.
Capital Strategy and Shareholder Returns
Following the asset sale, Brightstar shifted its focus to capital returns for shareholders. On July 29, 2025, the company paid a special cash dividend of $3.00 per share.
Simultaneously, an Accelerated Share Repurchase (ASR) program valued at $250 million was initiated. Further demonstrating confidence, the board approved a 10% increase in the quarterly dividend to $0.22 per share.
CEO Vince Sadusky confirmed that closing the IGT Gaming sale and executing the shareholder return plans were key milestones for the quarter. The company ended Q3 2025 with strong liquidity, holding $1.6 billion in cash and cash equivalents. The net debt leverage ratio stood at a conservative 2.3x. CFO Max Chiara stated that this improved financial position is key to meeting strategic goals.
Commercial Momentum and Forward Targets
Operational results in the lottery segment were robust. The Global iLottery Wager Growth surged by 30.6% in Q3 2025, indicating strong player interest in digital lottery products.
Looking ahead, Brightstar introduced new mid-term financial targets for 2028. The company projects revenue of $2.75 billion and adjusted EBITDA of $1.3 billion by that year. These targets reflect an expectation of a stronger organic growth profile now that the business is purely focused on lotteries. Sadusky believes this shift will drive significant, added value in the coming years. The company anticipates generating over $7 billion in gross cash between 2025 and 2028, with about $1.7 billion planned for return to shareholders during the same period.
Recommended