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Brightstar Lottery (BRSL)
NYSE:BRSL
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Brightstar Lottery
(NYSE:BRSL)
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Rating:66Neutral
Price Target:
$18.00
▲(8.76% Upside)
Brightstar Lottery's overall stock score is driven by strong earnings call results and a high dividend yield, indicating potential undervaluation. However, financial performance challenges, including declining profitability and high leverage, weigh on the score. Technical indicators suggest a neutral trend, adding moderate influence.
Positive Factors
Strong Same-Store Sales Growth
The robust growth in same-store sales and jackpot sales indicates strong consumer demand and effective sales strategies, supporting long-term revenue growth.
Improved Financial Position
Reduced net debt and strong liquidity enhance financial stability and flexibility, allowing for strategic investments and shareholder returns.
Successful Transition to Lottery Pure-Play
Focusing solely on lottery operations can streamline operations and enhance core competencies, potentially increasing market share and profitability.
Negative Factors
High Leverage
High leverage can pose financial risks and limit the company's ability to invest in growth opportunities, impacting long-term financial health.
Declining Profitability
Decreased profitability suggests operational inefficiencies, which could hinder the company's ability to generate sustainable profits over time.
Revenue Growth Challenges
Stagnant revenue growth may indicate market saturation or competitive pressures, limiting the company's ability to expand and capture new markets.
Brightstar Lottery (BRSL) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.16B
Dividend Yield22.77%
Average Volume (3M)1.56M
Price to Earnings (P/E)14.9
Beta (1Y)0.87
Revenue Growth-34.93%
EPS Growth83.72%
CountryUS
Employees11,000
SectorConsumer Cyclical
Sector Strength84
IndustryGambling, Resorts & Casinos
Share Statistics
EPS (TTM)0.36
Shares Outstanding189,426,970
10 Day Avg. Volume1,771,587
30 Day Avg. Volume1,562,942
Financial Highlights & Ratios
PEG Ratio0.08
Price to Book (P/B)2.16
Price to Sales (P/S)1.42
P/FCF Ratio4.05
Enterprise Value/Market Cap2.05
Enterprise Value/Revenue2.60
Enterprise Value/Gross Profit5.69
Enterprise Value/Ebitda6.84
Forecast
1Y Price Target
$20.00Price Target Upside20.85% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Brightstar Lottery Business Overview & Revenue Model
Company DescriptionA pure‑play global lottery operator - providing technology and services for regulated lotteries. Previously included gaming and iGaming operations, which were divested.
How the Company Makes MoneyBrightstar Lottery generates revenue primarily through the sale of lottery tickets and online game entries. The company's revenue model is built on a percentage of ticket sales, which is divided among prize payouts, operational costs, and profit margins. Key revenue streams include direct sales from online platforms, retail partnerships for ticket distribution, and commissions from third-party lottery operators. Additionally, BRSL may engage in strategic partnerships with state governments and charitable organizations, which can enhance its offerings and expand its customer base, further contributing to its earnings.
Brightstar Lottery Earnings Call Summary
Earnings Call Date:Nov 04, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Mar 03, 2026
Earnings Call Sentiment Positive
The earnings call revealed strong financial results, with better-than-expected Q3 revenue and profit driven by robust same-store sales growth and significant shareholder returns. The company successfully transitioned to a lottery pure-play business and reduced net debt. However, challenges such as the U.K. contract transition and increased revenue amortization were noted.Q3-2025 Updates
Positive Updates
Record Q3 Revenue and Profit
Brightstar Lottery reported better-than-expected Q3 revenue and profit results, driven by significant global same-store sales acceleration. Year-to-date revenue reached $1.8 billion.
Successful Sale of IGT Gaming
Closed the sale of IGT Gaming for $4 billion in cash, refocusing the company as a lottery pure-play business.
Significant Shareholder Returns
Returned nearly $1 billion to shareholders through dividends and share repurchases, including a 10% increase in the cash dividend per share.
Strong Same-Store Sales Growth
Same-store sales rose 8% in Q3, with multi-state jackpot sales up 70%.
Global iLottery Sales Growth
Global iLottery sales increased over 30%, with notable growth in Italy and the U.S.
Improved Financial Position
Net debt reduced to $2.6 billion, with total liquidity of $3.2 billion and a leverage ratio of 2.3x.
Negative Updates
U.K. Contract Transition Impact
The transition of the U.K. contract negatively impacted Q3 revenue by around $6 million and is expected to cause a $14 million headwind to revenue and EBITDA in Q4.
Negative Impact of Lotto License Fee
Cash flow from operations and free cash flow were negatively impacted by the first installment of the Lotto license fee.
Increased Revenue Amortization
Increased revenue amortization associated with the new Lotto concession will weigh on reported revenue growth.
Company Guidance
During the Brightstar Lottery Third Quarter 2025 Earnings Conference Call, the company provided detailed guidance and updates on its financial performance and strategic initiatives. For the third quarter, Brightstar reported a revenue of $629 million, marking a 7% increase from the prior year, driven by a significant 8% rise in global same-store sales. In the U.S., same-store sales were up 8%, with multi-state jackpot sales growing by 70%, fueled by a $1.8 billion Powerball jackpot. Italy also saw mid-single-digit growth in same-store sales. Brightstar's adjusted EBITDA rose by 11% to $294 million, and adjusted EPS improved from a $0.02 loss in the prior year to $0.36 in the current quarter. The company reaffirmed its full-year 2025 revenue and adjusted EBITDA outlook of approximately $2.5 billion and $1.1 billion, respectively. With a focus on shareholder returns, Brightstar announced a 10% increase in its quarterly dividend to $0.22 per share. The company is also investing in AI and digital initiatives, with global iLottery sales increasing over 30% during the period. Brightstar anticipates continued growth, targeting a revenue of approximately $2.75 billion and adjusted EBITDA of $1.3 billion by 2028.Brightstar Lottery Financial Statement Overview
Summary
Brightstar Lottery's financial performance is challenged by declining profitability and high leverage. The gross profit margin is solid, but the net profit margin and revenue growth have decreased, indicating operational inefficiencies. High debt levels pose financial risks, and cash flow generation has weakened significantly.Income Statement
Brightstar Lottery's income statement shows moderate performance. The TTM Gross Profit Margin is 43.98%, indicating a solid ability to generate profit from revenue. However, the Net Profit Margin has decreased to 7.92% from 13.85% in the previous year, reflecting reduced profitability. Revenue growth is minimal at 1.75% TTM, suggesting stagnation. The EBIT and EBITDA margins have also declined, indicating potential operational inefficiencies.65
Positive
Balance Sheet
The balance sheet reveals a high Debt-to-Equity Ratio of 4.33 TTM, indicating significant leverage and potential financial risk. Return on Equity has decreased to 12.30% TTM from 21.07% in the previous year, reflecting reduced efficiency in generating returns on equity. The Equity Ratio stands at 9.38%, suggesting limited equity financing relative to total assets.55
Neutral
Cash Flow
Cash flow analysis shows challenges with a significant decline in Free Cash Flow Growth at -88.10% TTM. The Operating Cash Flow to Net Income Ratio is 0.27, indicating moderate cash generation relative to net income. The Free Cash Flow to Net Income Ratio is 0.77, suggesting some ability to convert net income into free cash flow, albeit reduced from previous levels.50
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.49B | 2.51B | 2.53B | 2.60B | 4.09B | 3.12B |
| Gross Profit | 1.14B | 1.17B | 1.21B | 1.20B | 1.96B | 1.14B |
| EBITDA | 946.00M | 1.14B | 1.12B | 1.42B | 1.41B | 136.36M |
| Net Income | 304.00M | 348.00M | 156.00M | 275.00M | 482.00M | -897.89M |
Balance Sheet | ||||||
| Total Assets | 9.29B | 10.28B | 10.46B | 10.43B | 11.32B | 12.99B |
| Cash, Cash Equivalents and Short-Term Investments | 1.70B | 584.00M | 508.00M | 590.00M | 591.00M | 1.11B |
| Total Debt | 4.26B | 5.47B | 5.78B | 6.03B | 6.87B | 8.60B |
| Total Liabilities | 7.93B | 8.22B | 8.51B | 8.45B | 9.35B | 11.43B |
| Stockholders Equity | 871.00M | 1.65B | 1.44B | 1.43B | 1.28B | 776.74M |
Cash Flow | ||||||
| Free Cash Flow | 89.16M | 881.00M | 893.00M | 737.00M | 740.00M | 610.94M |
| Operating Cash Flow | 377.44M | 1.03B | 1.04B | 899.00M | 978.00M | 865.63M |
| Investing Cash Flow | 3.71B | -357.00M | -467.00M | 168.00M | 636.00M | -292.77M |
| Financing Cash Flow | -3.05B | -586.00M | -564.00M | -1.06B | -1.90B | -413.66M |
Brightstar Lottery Technical Analysis
Negative
16.55
Price Trends
16.88
Negative
15.72
Positive
14.52
Positive
Market Momentum
-0.07
Positive
44.72
Neutral
48.19
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BRSL, the sentiment is Negative. The current price of 16.55 is below the 20-day moving average (MA) of 16.73, below the 50-day MA of 16.88, and above the 200-day MA of 14.52, indicating a neutral trend. The MACD of -0.07 indicates Positive momentum. The RSI at 44.72 is Neutral, neither overbought nor oversold. The STOCH value of 48.19 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BRSL.
Brightstar Lottery Risk Analysis
Brightstar Lottery disclosed 41 risk factors in its most recent earnings report. Brightstar Lottery reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Brightstar Lottery Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
67 Neutral | $1.69B | 16.72 | 19.40% | 1.29% | 4.61% | 22.90% | |
67 Neutral | $3.80B | 68.82 | 29.67% | ― | 23.15% | ― | |
66 Neutral | $3.16B | 14.94 | 1.61% | 22.77% | -34.93% | 83.72% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
54 Neutral | $840.98M | ― | -113.09% | ― | -1.10% | -1.69% | |
45 Neutral | $1.93B | ― | -35.97% | ― | 8.24% | -77.54% | |
40 Underperform | $2.35B | -1.02 | -46.60% | ― | ― | ― |
* Consumer Cyclical Sector Average
BRSL
Brightstar Lottery
16.55
-0.47
-2.76%
SBET
SharpLink Gaming
11.96
4.04
51.01%
MCRI
Monarch Casino & Resort
92.65
10.30
12.51%
PENN
PENN Entertainment
14.54
-5.92
-28.93%
RSI
Rush Street Interactive
17.24
5.65
48.75%
BALY
Bally's Corporation
18.56
-3.51
-15.90%
Brightstar Lottery Corporate Events
Brightstar Lottery PLC Reports Strong Financial Position as of September 2025
Nov 4, 2025
Brightstar Lottery PLC has released its financial information for the period ending September 30, 2025, showing significant changes in its financial position compared to December 31, 2024. The company’s cash and cash equivalents increased from $584 million to $1,599 million, indicating a strong liquidity position. This financial update provides insights into the company’s operational efficiency and market positioning, which could have implications for stakeholders and investors.
Brightstar Lottery Reports Strong Q3 2025 Results and Announces Dividend
Nov 4, 2025
On November 4, 2025, Brightstar Lottery PLC announced its third-quarter results for 2025, reporting a 7% increase in revenue to $629 million, driven by strong same-store sales growth. The company declared a quarterly cash dividend of $0.22 per share, payable on December 2, 2025. Brightstar completed the sale of IGT Gaming for $4 billion, refocusing as a lottery pure play, and introduced medium-term financial targets, aiming for $2.75 billion in revenue by 2028. The company is well-positioned with $1.6 billion in cash and plans to return $1.7 billion to shareholders by 2028, reflecting a robust growth strategy.
Brightstar Lottery PLC Completes Significant Share Repurchase
Aug 21, 2025
On August 6, 2025, Brightstar Lottery PLC repurchased 13,573,035 of its ordinary shares as part of a $250 million accelerated share repurchase (ASR) program announced on July 29, 2025. This strategic move is expected to strengthen the company’s financial positioning by holding the repurchased shares in treasury, potentially impacting shareholder value and market perception positively.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.