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what it is
Brightstar Lottery runs lottery programs, sells tickets, and supplies the software and machines that keep those games running.
how it gets paid
Last year Brightstar Lottery made $2.5B in revenue. U.S. lotteries was the main engine at $1.2B, or 48% of sales.
growth snapshot
Revenue was roughly flat last year at $2.5B. Q4 revenue came in at $668M, and full-year 2025 revenue was $2.51B.
what just happened
Brightstar beat estimates as Q4 EPS hit $0.36 on $668M of revenue.
At a glance
B balance sheet — gets the job done, barely
20/100 earnings predictability — expect surprises
18.7x trailing p/e — priced about right
5.9% dividend yield — cash in your pocket every quarter
6.0% return on capital — nothing to write home about
xvary composite: 38/100 — weak
What they do
Brightstar Lottery runs lottery programs, sells tickets, and supplies the software and machines that keep those games running.
Brightstar lives inside 5-7 year exclusive contracts, plus regulatory barriers that keep rivals out. If you run a lottery, that is a long leash for Brightstar and a long wait for everyone else. The business also gets 48% of revenue from the U.S. and 39% from Italy, so two markets do most of the work.
How they make money
$2.5B
annual revenue · their business grew -0.0% last year
U.S. lotteries
$1.2B
Italy lotteries
$1.0B
Rest of world
$0.3B
The products that matter
runs lottery operations
Lottery management
part of a $2.5B revenue base
This is the operating core of the business. It sits inside the company's $2.5B revenue base, but this page does not break out segment dollars. That means you can identify the business model, not the exact earnings engine.
core contract work
lottery systems and tech
Lottery technology
~27% consolidated operating margin
Consolidated operating margin here is about 27.3% — do not read a 40.5% stub as whole-company math; without a clean segment bridge, treat high-margin tech lines as n/m until filings break them out.
high-margin mix
digital lottery channel
Online
growth data not broken out
Online is the part you would want to be accelerating. Instead, you only know total revenue stayed around $2.5B. If digital is growing, the page data does not show by how much. That makes the upside case harder to underwrite.
missing disclosure
Key numbers
5.9%
dividend yield
You get 5.9% cash while waiting, but the company still owes $4.1B.
$4.1B
long-term debt
That is 59% of capital. Heavy debt leaves less room for a miss.
27.3%
operating margin
The business keeps 27.3 cents from each sales dollar before interest and taxes.
18.7x
trailing p/e
You are paying 18.7 times last year's earnings for a company with -5.0% projected sales growth.
Financial health
B
strength
- balance sheet grade B — adequate — nothing special
- risk rank 4 — safer than 20% of stocks
- price stability 25 / 100
- long-term debt $4.1B (59% of capital)
- net profit margin 13.0% — keeps 13 cents of every dollar in revenue
- return on equity 14% — $0.14 profit for every $1 investors have put in
B — functional but not a standout on the balance sheet.
Total return vs. market
You invested $10,000 in BRSL 3 years ago → it's now worth $8,280.
The index would have given you $14,770.
source: institutional data · total return
What just happened
beat estimates
Brightstar beat estimates as Q4 EPS hit $0.36 on $668M of revenue.
Q4 revenue came in at $668M, and full-year 2025 revenue was $2.51B. The company also said it returned over $1B to shareholders through dividends and buybacks in FY25.
$668M
Q4 revenue
$0.36
eps (Q)
41.49%
gross margin (Q4)
the number that mattered
EPS of $0.36 beat the $0.30 estimate by 20%, which matters more than flat sales when the market is paying 18.7x earnings.
-
the past year was a one for brightstar lottery.after selling its casino slot machine business and digital gaming platform to private equity giant apollo global management, the company changed its name from international game technology to brightstar lottery. the $4 billion of proceeds were used to fund a special dividend of $3.00 in july, buyback more than 10 million shares of stock, and reduce debt by over $1 billion so far. the remaining core business operates some of the largest lotteries around the globe as well as many instant ticket games.
-
in addition, cost cutting and restructuring programs are expected to save $50 million in the year ahead, which would add about $0.20 per share to the bottom line.
-
the company is well positioned as lotteries and games move online.with over 50 years of providing secure technology to countries and states on a global basis, the company has already begun to add online offerings. today most products are scratch off tickets and lottery tickets bought from secure kiosks, but over the next several years we think a portion of the business will move to online-based products.
-
this would both increase the convenience and delivery of offerings, while lowering production and distribution costs at the same time.there are risks that brightstar could be open to more competition, but with its long relationships and the existing legacy business, we think brightstar will be a beneficiary as more games move on line.
-
recent results were healthy.
source: company earnings report, 2026
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What could go wrong
the top risk here is too much leverage for a low-growth income stock.
med
$4.1B of long-term debt limits flexibility
Long-term debt equals 59% of capital while the equity market values the whole company at roughly $3B. That is a lot of balance-sheet weight for a business with flat revenue.
If operating momentum slips, the dividend and valuation multiple both lose their cushion at the same time.
med
flat revenue leaves little room for mistakes
Revenue held around $2.5B compared to last year. For a company with a 5.9% yield, investors can tolerate slow growth. They usually do not tolerate no growth forever.
The bull case needs that path to $3B in fiscal 2028 to start looking real, not theoretical.
med
20/100 predictability means earnings can wobble
This stock does not score well on earnings consistency. In plain English: the market has less confidence in what the next few reports will look like.
That matters because a low-volatility income thesis breaks down quickly when the actual earnings line starts surprising people.
Taken together, the risk picture is straightforward: $2.5B of flat revenue and $4.1B of debt leave less margin for error than the 5.9% yield makes it seem.
source: institutional data · regulatory filings · risk analysis
Pay attention to
earnings
the next report needs to show more than stability
With predictability at 20/100 and revenue stuck at $2.5B, the next print matters more than usual. You want evidence that earnings are holding and the flat top line is starting to bend up.
balance sheet
watch debt as closely as the dividend
The 5.9% yield gets the attention. The $4.1B in long-term debt deserves equal billing because it shapes what management can do next.
growth
see if the path from $2.5B to $3B starts showing up
The fiscal 2028 revenue estimate implies growth, but this page still shows a flat current business. You want to see that bridge getting built one quarter at a time.
sentiment
valuation debate is replacing growth excitement
When outside coverage starts asking if the stock is priced right after regulatory scrutiny, it usually means investors are arguing about downside protection first and upside second.
Analyst rankings
earnings predictability
20 / 100
Only 20 out of 100. In human-speak, analysts do not trust the earnings line to arrive smoothly.
balance sheet grade
B
A B grade means the balance sheet works, but it does not give you much extra comfort with $4.1B of long-term debt.
risk rank
4
This is a lower-safety profile. You're not buying a bunker stock. You're buying a regulated operator that still needs execution.
source: institutional data
Institutional activity
institutions have been net buying for 2 consecutive quarters — 109 buyers vs. 99 sellers in 3q2025. total institutional holdings: 89.3M shares. net buying for 2 quarters.
source: institutional data
Price targets
3-5 year target range
$12
$26
$15
current price
$19
target midpoint · +27% from current · 3-5yr high: $45 (+200% · 34% ann'l return)
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