Revenue has stagnated at $584M in 2026Q2, down 7.3% sequentially, while gross margin improved to 46.9% but remains below the prior year average of 50.5%, indicating structural cost pressures.
Brightstar Lottery PLC (BRSL) annual income statement — 6-year revenue, gross profit & net income history
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 |
|---|
| Sales/Revenue | 2.47B | 2.51B | 2.51B | 2.53B | 2.6B | 4.09B | 3.12B |
| Revenue Growth % | 0.69% | -0.04% | -0.67% | -2.62% | -36.49% | 31.25% | - |
| Cost of Goods Sold | 1.32B | 1.24B | 1.18B | 1.16B | 1.4B | 2.13B | 1.98B |
| COGS % of Revenue | - | 49.54% | 46.93% | 45.75% | 53.91% | 52.12% | 63.54% |
| Gross Profit | 1.15B | 1.27B | 1.33B | 1.37B | 1.2B | 1.96B | 1.14B |
| Gross Margin % | 46.43% | 50.46% | 53.07% | 54.25% | 46.09% | 47.88% | 36.46% |
| Gross Profit Growth % | - | -4.95% | -2.84% | 14.62% | -38.87% | 72.4% | - |
| Operating Expenses | 481M | 385M | 604M | 606M | 448M | 1.06B | 897.84M |
| OpEx % of Revenue | - | 15.33% | 24.04% | 23.96% | 17.25% | 25.83% | 28.82% |
| Selling, General & Admin | 316M | 338M | 357M | 355M | 400M | 810M | 706.89M |
| SG&A % of Revenue | - | 13.46% | 14.21% | 14.04% | 15.4% | 19.81% | 22.69% |
| Research & Development | 52M | 47M | 43M | 36M | 45M | 238M | 190.95M |
| R&D % of Revenue | - | 1.87% | 1.71% | 1.42% | 1.73% | 5.82% | 6.13% |
| Other Operating Expenses | 2M | 0 | 204M | 215M | 3M | 8M | 0 |
| Operating Income | 665M | 882M | 729M | 766M | 749M | 902M | 237.91M |
| Operating Margin % | 26.94% | 35.13% | 29.02% | 30.29% | 28.84% | 22.06% | 7.64% |
| Operating Income Growth % | - | 20.99% | -4.83% | 2.27% | -16.96% | 279.13% | - |
| EBITDA | 1.14B | 1.1B | 1.13B | 1.18B | 1.17B | 1.43B | 804.11M |
| EBITDA Margin % | 46.31% | 43.93% | 45.02% | 46.7% | 44.98% | 34.92% | 25.81% |
| EBITDA Growth % | 14.53% | -2.48% | -4.23% | 1.11% | -18.21% | 77.59% | - |
| D&A (Non-Cash Add-back) | 478M | 221M | 402M | 415M | 419M | 526M | 566.19M |
| EBIT | 595M | 661M | 735M | 705M | 996M | 884M | -429.83M |
| Net Interest Income | -201M | -172M | -205M | -207M | -216M | -342M | -402.92M |
| Interest Income | 2M | 31M | 9M | 10M | 8M | 13M | 14.96M |
| Interest Expense | 203M | 203M | 214M | 217M | 224M | 355M | 417.87M |
| Other Income/Expense | -256M | -582M | -208M | -278M | 23M | -373M | -1.09B |
| Pretax Income | 409M | 300M | 521M | 488M | 772M | 529M | -847.71M |
| Pretax Margin % | 16.57% | 11.95% | 20.74% | 19.3% | 29.73% | 12.94% | -27.21% |
| Income Tax | 104M | 165M | 250M | 223M | 212M | 274M | 27.7M |
| Effective Tax Rate % | 25.43% | 55% | 47.98% | 45.7% | 27.46% | 51.8% | -3.27% |
| Net Income | 248M | 147M | 348M | 156M | 275M | 482M | -897.89M |
| Net Margin % | 10.05% | 5.85% | 13.85% | 6.17% | 10.59% | 11.79% | -28.82% |
| Net Income Growth % | 27.84% | -57.76% | 123.08% | -43.27% | -42.95% | 153.68% | - |
| Net Income (Continuing) | 305M | 135M | 271M | 265M | 560M | 255M | -875.4M |
| Discontinued Operations | 1000K | 152M | 238M | 43M | -146M | 415M | 41.44M |
| Minority Interest | 1.17B | 715M | 409M | 510M | 550M | 689M | 784.43M |
| EPS (Diluted) | 1.33 | -0.01 | 1.90 | 0.77 | 1.37 | 0.32 | -4.39 |
| EPS Growth % | 4.21% | -100.53% | 146.75% | -43.8% | 328.13% | 107.29% | - |
| EPS (Basic) | - | -0.01 | 1.92 | 0.78 | 1.38 | 2.35 | -4.39 |
| Diluted Shares Outstanding | 186M | 197M | 204M | 203M | 203.41M | 206.79M | 204.72M |
| Basic Shares Outstanding | 185M | 197M | 202M | 200M | 201.82M | 204.95M | 204.72M |
| Dividend Payout Ratio | - | 523.81% | 46.26% | 102.56% | 58.55% | 8.51% | - |
Quick answers to the most common questions about buying BRSL stock.
For fiscal year 2025, Brightstar Lottery PLC (BRSL) reported total revenue of $2.51B. This represents a 19.4% decline compared to $3.12B in 2020.
Brightstar Lottery PLC (BRSL) is profitable, generating $147.0M in net income for the fiscal year ending 2025 with a net profit margin of 5.9%.
Brightstar Lottery PLC (BRSL) reported an operating income of $882.0M, resulting in an operating profit margin of 35.1%. This margin reflects the operational efficiency of the business before interest and taxes.
Brightstar Lottery PLC (BRSL) generated $1.27B in gross profit for the year, representing a gross profit margin of 50.5%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Concession renewal and integration
Flat Revenue Amid License Ramp
Revenue growth has stalled at 0.0% year-over-year in the latest quarter, despite the UK license commencement, suggesting the anticipated step-change has yet to materialize. According to the income statement data, 2026Q2 revenue of $584M is down 7.3% sequentially.
The flat top-line trend across the last four quarters (2025Q3 through 2026Q2) indicates that the UK license ramp may be offsetting declines elsewhere, or that the integration is not yet driving incremental sales. The sequential decline from $668M in 2025Q4 to $584M in 2026Q2 suggests a seasonal or transitional slowdown. Investors should monitor whether the UK license can generate sustained growth beyond the initial launch period, as the current data does not show acceleration.
Gross Margin Volatility Signals Structural Cap
Gross margin swung from 51.2% in 2025Q3 to 37.6% in 2026Q1, reflecting prize payout variability and regulatory costs. As reported in the financial statements, the latest quarter's 46.9% gross margin is below the 50.5% average of the prior year.
The wide range in gross margins (37.6% to 51.7%) underscores the impact of jackpot cycles and prize payout ratios, which are largely outside management's control. The structural cap imposed by mandatory contributions to Good Causes and gaming taxes means that margin expansion must come from digital sales mix shift, which is not yet evident in the data. The recent improvement to 46.9% from 37.6% may indicate normalization, but the sustainability is uncertain given the historical volatility.
Operating Leverage Emerging but Inconsistent
Operating income scaled to $234M in 2025Q4, a 35.0% operating margin, but fell to $121M in 2026Q2, a 20.7% margin, indicating that fixed costs are not being leveraged consistently. Based on the quarterly data, SG&A has remained relatively stable, while revenue fluctuates.
The operating margin trajectory shows a peak in 2025Q4 followed by a sharp decline, suggesting that the cost base is not fully variable. SG&A expenses have ranged from $73M to $104M without a clear correlation to revenue, implying that overhead is sticky. The recent quarters' operating margins (20.7% and 21.6%) are below the 35.1% reported in the annual data, which may reflect integration costs or one-time items. If revenue growth remains flat, operating leverage will be limited, and margin recovery will depend on cost discipline.
Net Income Distorted by Non-Operating Items
Net margin swung from -9.2% in 2025Q2 to 18.6% in 2025Q3, with EPS ranging from -$0.29 to $1.07, indicating significant non-operating volatility. According to the income statement, net income in 2024Q4 included a $218M gain, likely non-recurring.
The extreme variability in net income and EPS suggests that reported earnings are heavily influenced by one-time items, such as gains on license revaluation or impairment charges. The negative net income in 2025Q2 and the large positive in 2024Q4 are not reflective of underlying operational performance. Investors should adjust for these items to assess the true earnings power, as the current figures may mislead on the company's profitability.
COGS and SG&A Drive Margin Swings
COGS as a percentage of revenue ranged from 48.8% to 62.4% over the last ten quarters, while SG&A remained between $73M and $104M, indicating that prize payouts are the primary cost driver. As per the income statement data, the latest quarter's COGS of $310M is 53.1% of revenue.
The cost structure is dominated by COGS, which includes prize payouts and gaming taxes, and is inherently variable with jackpot cycles. SG&A has been relatively stable, suggesting that management is controlling overhead, but the high fixed cost base means that revenue declines directly pressure operating margins. The recent increase in COGS in 2026Q1 (62.4% of revenue) was a major drag, and the subsequent improvement in 2026Q2 indicates a return to more normal payout levels. However, the lack of clear cost discipline in SG&A during revenue downturns warrants monitoring.
2025Q4 Peak Marks Operational High
The quarter ending 2025Q4 stands out with revenue of $668M, operating income of $234M, and a 35.0% operating margin, the highest in the series. According to the income statement data, this period likely benefited from favorable jackpot activity and the initial UK license ramp.
The 2025Q4 results represent a clear inflection point, with gross margin at 49.3% and operating margin at 35.0%, well above the surrounding quarters. This suggests that the company can achieve strong profitability when revenue is elevated, but the subsequent quarters show a reversion to lower margins. The lasting impact is that the company's earnings power is highly sensitive to revenue levels, and the market should not extrapolate the 2025Q4 performance as a run-rate. The challenge is to sustain such margins through cost efficiencies rather than relying on jackpot-driven spikes.
Flat Growth and Leverage Concerns
Despite the UK license, revenue growth is flat, and the reported debt-to-equity of 2.67% contradicts industry norms, raising questions about off-balance-sheet financing. As per the financial data, ROE is only 8.1%, which is modest for the risk profile.
Short-sellers would argue that the company is not delivering on the growth promised by the UK license, and the flat revenue trend suggests that the integration is not yielding synergies. The low debt-to-equity ratio is suspicious given the capital-intensive nature of lottery concessions, and if there are undisclosed liabilities, the cost of capital could be higher than perceived. The modest ROE of 8.1% indicates that the company is not generating exceptional returns on equity, which may justify a discount to peers. Investors should scrutinize the sustainability of margins and the true leverage position before assuming value creation.