Brightstar Q2 Revenue Rises 3% to $631M, Profits Dip on Tough Comps and FX Impact

Revenue Growth Driven by Core Lottery Sales

The top-line growth was supported by sustained global demand for instant and draw-based lottery games. The company also saw a massive 59% surge in product sales, which includes lottery terminals and instant ticket printing services. Favorable foreign currency exchange rates also provided a tailwind to the revenue figures.

However, this growth was tempered by a difficult year-over-year comparison. The second quarter of 2024 saw exceptionally high multi-state jackpot activity in the U.S., which boosted sales and related service revenues at that time. The absence of a similar jackpot frenzy in Q2 2025 made for a tougher benchmark.

Profitability Squeezed by Comparisons and One-Off Costs

The 5% drop in Adjusted EBITDA to $274 million was a direct result of the high-profit flow-through from last year’s jackpots.

CFO Max Chiara noted the company is “investing in key initiatives to drive sustainable, long-term growth, while also delivering structural cost reductions” through its OPtiMa 3.0 program to offset some of these pressures.

The company posted a net loss from continuing operations of $60 million, a sharp reversal from an $84 million profit in the prior year.

This loss was primarily driven by two major factors: a $99 million non-cash loss from foreign currency translation on its debt and $21 million in restructuring charges tied to the OPtiMa 3.0 cost-saving plan.

Strategic Moves Shape Financial Future

While the quarterly profit figures were down, Brightstar made several key strategic moves that will significantly impact its financial future.

Just after the quarter ended on July 1, the company completed the $4 billion sale of its Gaming & Digital division, a move that provides a massive cash infusion and allows for a “singular focus on lottery.”

CEO Vince Sadusky said the deal will allow the company to “create value for all stakeholders.” The proceeds will be used to pay down $2 billion in debt, fund a partial payment for its newly secured Italy Lotto license, and return $1.1 billion to shareholders.

A Massive Return of Capital to Shareholders

In a sign of confidence, Brightstar’s board announced a significant capital return plan. This includes a special one-time cash dividend of $3.00 per share and a new two-year, $500 million share repurchase program. The company also plans to launch its largest-ever accelerated share repurchase (ASR) program, valued at $250 million.

Despite the quarterly profit dip, Brightstar’s underlying cash generation remains strong. Cash flow from operations increased 6% to $265 million. The company ended the quarter with a robust liquidity position of $2.9 billion, including $1.3 billion in unrestricted cash. This financial strength gives Brightstar the flexibility to execute its new lottery-focused strategy while rewarding its shareholders.