Gross margins have experienced significant compression, falling from a peak of 51.7% in 2024Q3 to 37.6% in 2026Q1, reflecting challenges in maintaining profitability within regulated markets.
| Sales/Revenue | 2.51B | 2.51B | 2.51B | 2.53B | 2.6B | 4.09B | 3.12B |
| Revenue Growth % | 3.29% | -0.04% | -0.67% | -2.62% | -36.49% | 31.25% | - |
| Cost of Goods Sold | 1.37B | 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 % | 45.58% | 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 | 443M | 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 | 335M | 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 | 50M | 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 | 703M | 882M | 729M | 766M | 749M | 902M | 237.91M |
| Operating Margin % | 27.96% | 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 | 1.13B | 1.1B | 1.13B | 1.18B | 1.17B | 1.43B | 804.11M |
| EBITDA Margin % | 44.95% | 43.93% | 45.02% | 46.7% | 44.98% | 34.92% | 25.81% |
| EBITDA Growth % | 11.77% | -2.48% | -4.23% | 1.11% | -18.21% | 77.59% | - |
| D&A (Non-Cash Add-back) | 427M | 221M | 402M | 415M | 419M | 526M | 566.19M |
| EBIT | 512M | 661M | 735M | 705M | 996M | 884M | -429.83M |
| Net Interest Income | -197M | -172M | -205M | -207M | -216M | -342M | -402.92M |
| Interest Income | 4M | 31M | 9M | 10M | 8M | 13M | 14.96M |
| Interest Expense | 201M | 203M | 214M | 217M | 224M | 355M | 417.87M |
| Other Income/Expense | -367M | -582M | -208M | -278M | 23M | -373M | -1.09B |
| Pretax Income | 336M | 300M | 521M | 488M | 772M | 529M | -847.71M |
| Pretax Margin % | 13.37% | 11.95% | 20.74% | 19.3% | 29.73% | 12.94% | -27.21% |
| Income Tax | 147M | 165M | 250M | 223M | 212M | 274M | 27.7M |
| Effective Tax Rate % | 43.75% | 55% | 47.98% | 45.7% | 27.46% | 51.8% | -3.27% |
| Net Income | 157M | 147M | 348M | 156M | 275M | 482M | -897.89M |
| Net Margin % | 6.25% | 5.85% | 13.85% | 6.17% | 10.59% | 11.79% | -28.82% |
| Net Income Growth % | -46.6% | -57.76% | 123.08% | -43.27% | -42.95% | 153.68% | - |
| Net Income (Continuing) | 189M | 135M | 271M | 265M | 560M | 255M | -875.4M |
| Discontinued Operations | 2M | 152M | 238M | 43M | -146M | 415M | 41.44M |
| Minority Interest | 1.26B | 715M | 409M | 510M | 550M | 689M | 784.43M |
| EPS (Diluted) | 0.84 | -0.01 | 1.90 | 0.77 | 1.37 | 0.32 | -4.39 |
| EPS Growth % | -64.14% | -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 | 187M | 197M | 204M | 203M | 203.41M | 206.79M | 204.72M |
| Basic Shares Outstanding | 186M | 197M | 202M | 200M | 201.82M | 204.95M | 204.72M |
| Dividend Payout Ratio | - | 523.81% | 46.26% | 102.56% | 58.55% | 8.51% | - |
Regulatory concession renewal risk
As reported in recent financial statements, BRSL's revenue trajectory remains inconsistent, with quarterly figures fluctuating between $583 million and $681 million, reflecting a 0.7% year-over-year growth rate in 2026Q1 that underscores the challenges of maintaining organic expansion within mature, highly regulated European lottery markets.
The revenue volatility appears tied to jackpot-driven cyclicality rather than structural market share gains. Investors should monitor whether the company can transition from a volume-dependent model to a higher-margin digital platform to stabilize these top-line fluctuations.
Based on the provided income statement data, BRSL's gross margin has experienced significant compression, falling from a peak of 51.7% in 2024Q3 to 37.6% in 2026Q1, suggesting that rising regulatory costs and prize payout volatility are actively eroding the company's core profitability profile.
This margin contraction implies that the company's integrated operator model is highly sensitive to the mandatory 'Good Causes' contributions and gaming taxes. The inability to maintain margins above 40% in recent quarters warrants further investigation into whether this is a permanent shift in the cost structure.
According to the company's reported figures, operating income has failed to scale consistently with revenue, dropping to $127 million in 2026Q1 from a high of $234 million in 2025Q4, which indicates that fixed costs associated with license operations are currently outpacing the company's ability to drive efficiency.
The divergence between revenue and operating income suggests that the company is struggling to achieve the expected economies of scale from its recent acquisitions. Management's ability to control SG&A expenses will be critical to restoring operating margins to historical levels.
As evidenced by the erratic net income swings, including a $58 million loss in 2025Q2 followed by a $218 million profit in 2024Q4, BRSL's bottom line is heavily influenced by non-operating items and accounting adjustments that obscure the underlying cash-generative capacity of the business.
The significant gap between operating income and net income suggests that amortization of intangible assets and interest expenses are creating substantial noise in reported earnings. Analysts should focus on cash flow metrics to better understand the true economic performance of the lottery concessions.
While management emphasizes the potential of the new UK National Lottery license, the income statement data suggests that the integration of these assets is currently a drag on profitability, with net margins falling to 6.3% in 2026Q1 compared to higher levels seen in previous periods.
Short-sellers may focus on the potential for continued margin dilution as the company navigates the early stages of its 10-year UK license. The market's assumption of a seamless transition to a high-margin digital model appears premature given the current downward trend in profitability.
Quick answers to the most common questions about buying BRSL stock.
For fiscal year 2025, Brightstar Lottery (BRSL) reported total revenue of $2.51B. This represents a 19.4% decline compared to $3.12B in 2020.
Brightstar Lottery (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 (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 (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.