Brightstar 2025 Q3 Earnings Surging Net Income Grows 260.5%

Brightstar (BRSL) delivered a blockbuster third-quarter 2025 earnings report, with net income surging 260.5% year-over-year to $155 million and EPS jumping 1400% to $0.60. The company reaffirmed its 2025 revenue guidance and introduced ambitious 2028 targets, signaling confidence in its lottery-focused strategy despite recent stock volatility.

Revenue

Brightstar’s total revenue rose 7.2% year-over-year to $629 million, slightly below the $630.63 million estimate. Service revenue led the charge with $604 million, driven by robust demand in operating and facilities management contracts, which contributed $591 million. Product sales and systems/software segments added $25 million and $13 million respectively, reflecting diversified growth across its lottery and gaming operations.

Earnings/Net Income

Brightstar’s EPS soared 1400% to $0.60, far outpacing the $0.04 year-ago figure, while net income surged to $155 million, a 260.5% increase from $43 million. This exceptional performance underscores the company’s profitability, with the EPS result representing a 63.64% beat over estimates.

Price Action

Shares of Brightstar edged up 1.84% in a single trading day but fell 2.18% weekly and 9.18% month-to-date, reflecting mixed investor sentiment ahead of the earnings release.

Post Earnings Price Action Review

Despite a 0.26% revenue miss against estimates, Brightstar’s stock dipped 0.36% pre-market following the Q3 report. The EPS beat of 63.64% failed to offset concerns over $1.6 billion in Italy Lotto license fees, which raised liquidity risks. Historical backtests of buying BRSL after revenue beats (2023–2025) showed mixed results: no revenue beats in recent quarters and negative 30-day returns (-5.27% in 2023 Q3, -7.26% in 2024 Q3). The strategy’s failure highlights market skepticism about the company’s long-term growth prospects, despite strong short-term earnings.

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CEO Commentary

Vincent Sadusky, CEO:

“Q3 marked significant milestones: closing the $4 billion IGT Gaming sale, executing shareholder return plans, and refocusing as a lottery pure play. Accelerated same-store sales across all geographies drove better-than-expected results. Our 2028 targets reflect a stronger organic growth profile, with $2.75 billion revenue and $1.3 billion adjusted EBITDA.”

Guidance

Brightstar reaffirmed 2025 revenue of $2.5 billion and adjusted EBITDA of $1.1 billion, slightly below consensus. For 2028, it targets $2.75 billion revenue (5%+ CAGR) and $1.3 billion adjusted EBITDA (6%+ CAGR). The board also raised the Q4 dividend by 10% to $0.22 per share, returning $978 million to shareholders year-to-date.

Additional News

1. M&A Activity: Brightstar finalized the $4 billion IGT Gaming sale, strengthening liquidity and refocusing on its core lottery business.


2. Dividend/Buyback News: The 10% dividend increase to $0.22 per share and $978 million in shareholder returns underscore its commitment to rewarding investors.


3. Regulatory Risks: Upfront license fees for Italy Lotto ($1.6 billion) and regulatory uncertainties in key markets pose near-term challenges, prompting caution among analysts.

Brightstar’s Q3 results highlight a strong earnings beat but underscore structural risks. While the company’s long-term targets are ambitious, near-term liquidity concerns and regulatory headwinds warrant careful monitoring. Investors are advised to weigh the dividend yield against growth uncertainties before committing.