Brightstar sees transformative costs amount to $193m, as the leadership duo states that investors come first in its new lottery-only era.

Brightstar Plc has pledged to return to organic growth in 2026, having completed all technical objectives to transform its business as a standalone NYSE lottery group.

2025 concludes a transformative year for Brightstar, which as of June completed the sale of its IGT Interactive and Gaming units to PE fund Apollo Global for $4.1bn. The transaction saw a newly formed Brightstar reward its investors with a $1bn cash dividend to close year accounts.

Publishing its FY2025 accounts, Brightstar revenues stood flat at $2.5bn, as corporate performance was impaired to settle the final proceedings of the sale of IGT assets – a deal initiated by Apollo as of July 2024.

Revenue results are better than anticipated, due to Brightstar’s lottery unit being impacted by tender costs of the renewed Lotto Italia contract and ‘transition effects’ of closing its partnership with Camelot Group the former steward of the National Lottery.

Booked on FY2025 accounts, Brightstar has reserved costs of $926m to pay for the exclusive licence fee of its Lotto Italia contract, extended to 2034 by Italy’s ADM.

Italian costs weigh on Brightstar earnings results as FY25 EBITDA drops by 4% to $1.12bn as group accounts detail that income from continued operations was halved to $135m.

Tender and transitional costs are displayed on Brightstar’s corporate cashflow, which indexed an operating loss of $193m versus its FY2024 status of $709m.

However, year accounts are closed by Brightstar fulfilling its NYSE pledge to significantly reduce its net-debt post IGT divestments to $2.7bn (FY2024: $4.8bn). 

“Our balanced approach to capital allocation was on display in 2025 with over $2bn in debt reduction, bringing leverage to historic lows; over $1bn returned to shareholders; and investments in key initiatives,” said Max Chiara, Brightstar’s Chief Financial Officer. 

“We enter 2026 well-positioned to fund contractual obligations that put us on the path to achieving our 2028 financial targets.”

Brightstar makes progress on new profile

Q4 trading provided what management described as the first clear signal of the “new Brightstar profile.” Q4 revenues rose 3% to $668m, driven by 3.5% same-store sales growth led by elevated U.S. multi-state jackpot activity and iLottery expansion. 

Adjusted EBITDA increased 5% to $304m, with margins improving to 45.5%, demonstrating strong operational flow-through despite Italy amortisation and UK transition headwinds.

Vince Sadusky, Chief Executive Officer, positioned the quarter as a turning point: “Better-than-expected fourth quarter revenue and profit growth reflect the value of our diverse portfolio across geographies and games. 2025 was a transformational year for us.

“We executed major strategic priorities, including selling IGT Gaming and strengthening our balance sheet. We now enter 2026 as a focused global lottery company with clear line of sight to sustainable organic growth.”

Looking ahead, Brightstar’s FY2026 guidance signals acceleration. Management forecasts revenues of $2.50–$2.55bn, including more than 5% organic growth, and Adjusted EBITDA of $1.16–$1.19bn. 

While 2026 cash flow will reflect the final €1.43bn installment of the Italy Lotto licence fee, the group expects approximately $750m in underlying operating cash generation excluding the payment.

Sadusky emphasised that 2026 marks the beginning of the group’s next phase: “This is an important year of investment in high-ROI growth initiatives, including Italy B2C digital expansion and the launch of a new lottery in São Paulo. These initiatives position us to deliver accelerated sales and profit growth through 2028.”

2028 vision is led by the  medium-term targets of sustained organic revenue growth at margin above 45%, with leadership prioritising capital returns to investors where possible and a sustainable balance sheet to support the new ‘pure play lottery era’.