Capital intensity has trended upward, with the CapEx/Revenue ratio reaching 18.7% in 2026Q1, complicating the company's ability to maintain consistent free cash flow.
| Cash from Operations | -161.11M | -99M | 1.03B | 1.04B | 899M | 978M | 865.63M |
| Operating CF Margin % | - | -3.94% | 41% | 41.12% | 34.62% | 23.92% | 27.79% |
| Operating CF Growth % | -470.63% | -109.61% | -0.96% | 15.68% | -8.08% | 12.98% | - |
| Net Income | 157M | 147M | 270M | 116M | 560M | 1.08B | -939.33M |
| Depreciation & Amortization | 498M | 444M | 402M | 415M | 419M | 526M | 566.19M |
| Stock-Based Compensation | 0 | 0 | 38M | 0 | 34M | 35M | 0 |
| Deferred Taxes | -34.41M | 0 | -36M | -36M | -42M | 38M | -78.21M |
| Other Non-Cash Items | 320.55M | 213M | 306M | 365M | -79M | -603M | 1.19B |
| Working Capital Changes | -1B | -903M | 50M | 180M | 7M | -103M | 125.88M |
| Change in Receivables | -108.44M | -14M | -85M | -55M | 114M | -95M | 73.58M |
| Change in Inventory | -8.97M | 1M | -5M | -21M | -17M | -13M | 16.63M |
| Change in Payables | 140.79M | 89M | 88M | 82M | -60M | -36M | 4.59M |
| Cash from Investing | 3.97B | 3.82B | -357M | -467M | 168M | 636M | -292.77M |
| Capital Expenditures | -359.88M | -316M | -149M | -147M | -162M | -238M | -254.69M |
| CapEx % of Revenue | 14.32% | 12.58% | 5.93% | 5.81% | 6.24% | 5.82% | 8.18% |
| Acquisitions | 324.92M | 0 | 0 | -74M | 476M | 0 | -14.95M |
| Investments | - | - | - | - | - | - | - |
| Other Investing | 4.06B | 4.13B | -208M | -246M | -146M | 874M | -23.13M |
| Cash from Financing | -3.34B | -3.03B | -586M | -564M | -1.06B | -1.9B | -413.66M |
| Debt Issued (Net) | -1.9B | -1.6B | -135M | -181M | -576M | -1.52B | -224.96M |
| Equity Issued (Net) | -309.47M | -271M | 0 | 0 | -115M | -41M | 0 |
| Dividends Paid | -796.07M | -770M | -161M | -160M | -161M | -41M | -40.89M |
| Share Repurchases | -309.47M | -271M | 0 | 0 | -115M | -41M | 0 |
| Other Financing | -338.16M | -392M | -290M | -223M | -213M | -292M | -147.81M |
| Net Change in Cash | 535M | 796M | 36M | -86M | -68M | -321M | 230.67M |
| Free Cash Flow | -520.99M | -415M | 881M | 893M | 737M | 740M | 610.94M |
| FCF Margin % | -20.72% | -16.53% | 35.07% | 35.31% | 28.38% | 18.1% | 19.61% |
| FCF Growth % | -155.19% | -147.11% | -1.34% | 21.17% | -0.41% | 21.12% | - |
| FCF per Share | -2.79 | -2.11 | 4.32 | 4.40 | 3.62 | 3.58 | 2.98 |
| FCF Conversion (FCF/Net Income) | -3.32x | -0.67x | 2.96x | 6.67x | 3.27x | 2.03x | -0.96x |
| Interest Paid | 42M | 0 | 221M | 0 | 228M | 369M | 0 |
| Taxes Paid | 101M | 0 | 241M | 0 | 283M | 188M | 0 |
Regulatory concession renewal risk
As reported in recent financial statements, BRSL exhibits extreme volatility in its cash conversion, with the OCF/NI ratio swinging from a negative 5.70 in 2025Q2 to a positive 4.46 in 2026Q1, highlighting a persistent disconnect between accounting net income and actual cash generation capabilities.
The wide variance between net income and operating cash flow suggests that non-cash charges and accruals are significantly distorting the reported profitability. Investors should monitor whether this divergence is a byproduct of complex license amortization or indicative of underlying issues in revenue recognition.
Based on the company's quarterly filings, FCF margins have demonstrated erratic behavior, plummeting to negative 84.6% in 2025Q3 before recovering to 9.4% in 2026Q1, which underscores the difficulty in maintaining consistent cash flow generation amidst the ongoing integration of new, capital-intensive lottery concession licenses.
The sharp fluctuations in free cash flow suggest that the business is highly sensitive to timing differences in working capital and large, lumpy capital expenditures. This lack of predictability complicates the assessment of the company's ability to sustain dividend payments and debt service requirements.
According to the provided data, BRSL's capital intensity has trended upward, with CapEx/Revenue ratios reaching 18.7% in 2026Q1, a significant increase from the 5.1% observed in 2024Q3, suggesting that the company is currently in a heavy investment phase to support its expanded lottery infrastructure.
The elevated capital expenditure levels appear to be driven by the requirements of the new UK National Lottery license, which necessitates substantial technology and retail network upgrades. This shift toward higher capital intensity may permanently lower the company's free cash flow conversion profile compared to historical levels.
As evidenced by the quarterly cash flow statements, working capital changes have been highly erratic, including a massive outflow of $715.5 million in 2025Q3, which suggests that the company's cash cycle is currently subject to significant, unpredictable swings that impair short-term liquidity management.
The frequent and large swings in working capital indicate potential inefficiencies in managing collections or regulatory payout obligations. Such volatility warrants further investigation into whether these movements are seasonal or reflective of structural challenges in the company's cash conversion cycle.
Based on reported figures, BRSL has continued to prioritize shareholder returns, including $677.4 million in dividends and $262.5 million in buybacks during 2025Q3, even as operating cash flows turned deeply negative, raising questions about the sustainability of this capital allocation strategy in the current environment.
The decision to return significant capital to shareholders during periods of negative free cash flow suggests a management focus on maintaining market sentiment that may be at odds with the company's immediate cash requirements. This approach appears to place additional strain on the balance sheet.
Quick answers to the most common questions about buying BRSL stock.
Brightstar Lottery (BRSL) generated $-99.0M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Brightstar Lottery (BRSL) reported negative free cash flow of $415.0M in 2025, indicating capital requirements exceeded cash from operations.
Brightstar Lottery (BRSL) spent $316.0M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Brightstar Lottery (BRSL) returned $770.0M to shareholders via cash dividends and spent $271.0M on share repurchases. This shows the company's commitment to returning capital to its equity investors.