Brightstar Lottery Q4 2025 Earnings Call Summary

3 weeks ago 18

Moby Intelligence

Tue, February 24, 2026 astatine 11:33 AM CST 4 min read

Performance was supported by the resilience of the planetary lottery portfolio; however, portion same-store income grew astir 4% for the quarter, normalized maturation of 0.5% was much than offset by headwinds from the UK exertion declaration transition.
Management attributed the second-half acceleration successful North America to improved multistate jackpot enactment and palmy crippled launches successful Indiana and New Jersey.
The OPTIMA programme successfully delivered outgo reductions, allowing absorption to reallocate superior toward high-growth integer and exertion initiatives.
Securing the nine-year Italy Lotto licence is viewed arsenic a foundational catalyst, enabling a large B2C integer enlargement crossed iLottery, iCasino, and sports betting.
The Sao Paulo greenfield accidental represents a uncommon large-market launch, utilizing a 50/50 associated task to minimize hazard portion gathering a scalable retail and integer ecosystem.
Management highlighted a important valuation disconnect, noting the institution trades astatine a discount to peers contempt having much unchangeable currency flows and higher margins than adjacent gaming sectors.

The 2026 gross guidance of $2,500,000,000 to $2,550,000,000 assumes a 5% integrated maturation rate, led by halfway concern enlargement and Italy B2C integer efforts.
Adjusted EBITDA is projected betwixt $1,160,000,000 and $1,190,000,000, factoring successful $50,000,000 of incremental investments successful R&D and declaration renewals.
Net indebtedness leverage is expected to highest astatine astir 3.5x successful Q2 2026 pursuing the last Lotto licence outgo earlier declining toward a mid-cycle people of 3.0x oregon below.
Capital expenditures are expected to mean importantly to $200,000,000–$225,000,000 annually aft the existent 2025–2028 highest concern cycle.
Management projects the concern volition make an mean of $800,000,000 successful yearly currency from operations during the 2027–2028 period, excluding licence payments.

The caller Italy Lotto licence introduces astir $175,000,000 successful incremental yearly amortization, which is treated arsenic contra-revenue nether US GAAP.
The last installment for the Italy Lotto licence successful 2026 is astir $1,680,000,000, with Brightstar's proportionate stock being astir $1,000,000,000.
The UK exertion declaration modulation remains a headwind for top-line gross pursuing its commencement successful August.
CFO Max Chiara is stepping down from the Board to absorption connected strategical M&A and the separation of absorption enactment from non-executive oversight.