BRIGHTSTAR LOTTERY PLC REPORTS THIRD QUARTER 2025 RESULTS

LONDON, Nov. 4, 2025 /PRNewswire/ -- Brightstar Lottery PLC (NYSE: BRSL) ("Brightstar" or the "Company") today reported financial results for the third quarter ended September 30, 2025. Today, at 8:00 a.m. EST, management will host a conference call and webcast to present the results; access details are provided below.

"We achieved many milestones in Q3: closing the IGT Gaming sale for $4 billion in cash, executing our shareholder return plans, and completing the refocusing of the Company as a lottery pure play," said Vince Sadusky, CEO of Brightstar. "The better-than-expected Q3 revenue and profit results reflect a significant acceleration of same-store sales across all geographies. For nearly 50 years, our innovative products and services have helped our customers excel. The 2028 financial targets we are introducing today reflect a stronger organic growth profile that we believe will drive compelling, incremental value over the next few years."

"With $1.6 billion of cash and cash equivalents and net debt leverage of 2.3x at the end of Q3, we are well-positioned to execute on our strategic objectives," said Max Chiara, CFO of Brightstar. "As we released our mid-term targets, we expect to generate over $7 billion in gross cash in the 2025-2028 period, mostly allocated to funding organic growth, with $1.7 billion expected to be returned to shareholders over the same timeframe."

Overview of Consolidated Third Quarter 2025 Results

Quarter Ended

Y/Y

Change

Constant

Currency

Change

All amounts from continuing operations

September 30,

2025

2024

($ in millions, except per share data)

GAAP Financials:

Revenue

629

587

7 %

5 %

Income (loss) from continuing operations

(46)

Income (loss) from continuing operations margin

15.0 %

(7.8) %

Earnings per share - diluted

$0.29

$(0.39)

Net cash (used in) provided by operating activities

(439)

173

Q3'25 cash from operations of $140M net of Italy Lotto upfront license fee

Cash and cash equivalents

1,599

501

219 %

Non-GAAP Financial Measures:

Adjusted EBIT

185

162

14 %

10 %

Adjusted EBIT margin

29.5 %

27.7 %

Adjusted EBITDA

294

264

11 %

7 %

Adjusted EBITDA margin

46.7 %

44.9 %

Adjusted earnings per share - diluted

$0.36

$(0.02)

Free cash flow

(504)

144

Net debt

2,572

5,156

(50) %

Note: Reconciliations of non-GAAP financial measures to the most directly comparable GAAP financial measures, and other disclosures

regarding non-GAAP financial measures, are provided at the end of this news release

Third Quarter 2025 Financial Highlights

Third quarter revenue of $629 million, up 7% from $587 million in the prior year, primarily driven by:

Income from continuing operations was $95 million compared to loss from continuing operations of $46 million in the prior-year period, primarily resulting from:

Adjusted EBITDA increased 11% to $294 million versus $264 million in the prior-year period, mainly due to:

Diluted income per share from continuing operations was $0.29 compared to diluted loss per share from continuing operations of $0.39 in the prior year. Adjusted diluted earnings per share from continuing operations was $0.36 compared to adjusted diluted loss per share from continuing operations of $0.02 in the prior year, primarily driven by higher income from continuing operations.

YTD 2025 Financial Highlights

Year-to-date revenue of $1.84 billion versus $1.86 billion in the prior-year period, primarily due to increased instant ticket and draw same-store sales, which were more than offset by higher LMA incentives in the prior year.

Income from continuing operations was $43 million compared to $154 million in the prior year period, primarily driven by:

Adjusted EBITDA of $818 million compares to $880 million in the prior year, primarily resulting from:

Diluted loss per share from continuing operations was $0.31 compared to diluted earnings per share from continuing operations of $0.17 in the prior year. Adjusted diluted earnings per share from continuing operations of $0.55 compared to $0.46 in the prior year primarily driven by reductions in net interest, income tax, and general & administrative expenses, partially offset by higher gross profit in the prior year.

Net debt was $2.6 billion compared to $4.8 billion at December 31, 2024. The decrease was primarily driven by approximately $2 billion in proceeds from the sale of IGT Gaming allocated to debt reduction. Net debt leverage was 2.3x.

Cash and Liquidity Update

Total liquidity was $3.2 billion as of September 30, 2025 with $1.6 billion in unrestricted cash and $1.6 billion in additional borrowing capacity from undrawn credit facilities; ample liquidity in advance of upcoming Italy Lotto upfront license fee payments.

Other Developments

On July 1, 2025, completed sale of IGT Gaming business for approximately $4 billion of net cash proceeds.

The Company's Board of Directors declared a quarterly cash dividend of $0.22 per common share, representing a 10% increase over historical levels, with a record date of November 18, 2025 and a payment date of December 2, 2025.

For U.S. income tax purposes, dividends paid in 2025 are expected to be classified as a non-taxable return of capital to the extent of a shareholder's basis in its shares, and thereafter as capital gain. For further information, see the Form 6-K which will be filed later today with the SEC, which is available on the SEC's website at www. se c.gov and on the investor relations section of the Company's website at www.brightstarlottery.com.

Financial Outlook

Reaffirming FY'25 revenue and profit outlook:

Introducing medium-term targets:

Earnings Conference Call and Webcast

November 4, 2025, at 8:00 a.m. EST

To register to participate in the conference call, or to listen to the live audio webcast, please visit the "Events Calendar" on Brightstar's Investor Relations website at www.brightstarlottery.com. A replay will be available on the website following the live event.

Comparability of Results

All figures presented in this news release are prepared under U.S. GAAP, unless noted otherwise. Amounts reported in millions are computed based on amounts in thousands. As a result, the sum of the components may not equal the total amount reported in millions due to rounding. Certain columns and rows within tables may not add due to the use of rounded numbers. Percentages and earnings per share amounts presented are calculated from the underlying unrounded amounts.

About Brightstar Lottery PLC

Brightstar Lottery PLC (NYSE: BRSL) is an innovative, forward-thinking global leader in lottery that builds on our renowned expertise in delivering secure technology and producing reliable, comprehensive solutions for our customers. As a premier pure play global lottery company, our best-in-class lottery operations, retail and digital solutions, and award-winning lottery games enable our customers to achieve their goals, entertain players, and distribute meaningful benefits to communities. Brightstar has a well-established local presence and is a trusted partner to governments and regulators around the world, creating value by adhering to the highest standards of service, integrity, and responsibility. Brightstar has approximately 6,000 employees. For more information, please visit www.brightstarlottery.com.

Cautionary Statement Regarding Forward-Looking Statements

This news release and the Company's earnings call include forward-looking statements (including within the meaning of the Private Securities Litigation Reform Act of 1995) concerning the Company and other matters. These statements may discuss goals, intentions, and expectations as to future plans and strategies, expected growth, transactions, trends, events, products and services, dividends and their classification for U.S. income tax purposes, results of operations, and/or financial condition or measures, including our expectations on future revenue, income from continuing operations, Adjusted EBITDA, cash from and used in operations, capital expenditures, cash to be returned to shareholders, FY'25 EUR/USD assumption, share repurchases, and any other future financial and operational performance, including 2028 revenue, profit, free cash flow and capital expenditure targets, based on current beliefs of the management of the Company as well as assumptions made by, and information currently available to, such management. Forward-looking statements may be accompanied by words such as "aim," "anticipate," "believe," "plan," "could," "would," "should," "shall," "continue," "estimate," "expect," "forecast," "future," "guidance," "intend," "may," "will," "outlook," "possible," "potential," "predict," "project," "target" or the negative or other variations of them. These forward-looking statements speak only as of the date on which such statements are made and are subject to various risks and uncertainties, many of which are outside the Company's control. Should one or more of these risks or uncertainties materialize, or should any of the underlying assumptions prove incorrect, actual results may differ materially from those predicted in the forward-looking statements and from past results, performance, or achievements. Therefore, you should not place undue reliance on such statements. Factors that could cause actual results to differ materially from those in the forward-looking statements include (but are not limited to) macroeconomic, regulatory and political uncertainty, including as a result of new or increased tariffs, trade wars, and other restrictions on trade between or among countries in which the Company operates, and related changes in discretionary consumer spending and behavior, fluctuations in foreign currency exchange rates, changes in prevailing interest rates, changing inflation rates, impacts from increased U.S. national deficits, financial market volatility and the other factors and risks described in the Company's annual report on Form 20-F for the financial year ended December 31, 2024 and other documents filed or furnished from time to time with the SEC, which are available on the SEC's website at www.sec.gov and on the investor relations section of the Company's website at www.brightstarlottery.com. Except as required under applicable law, the Company does not assume any obligation to update these forward-looking statements. You should carefully consider these factors and other risks and uncertainties that may affect the Company's business, including management's discussion and analysis of potential or actual impacts to operations and financial performance. Nothing in this news release is intended, or is to be construed, as a profit forecast or to be interpreted to mean that the financial performance of Brightstar Lottery PLC for the current or any future financial years will necessarily match or exceed the historical published financial performance of Brightstar Lottery PLC, as applicable. All forward-looking statements contained in this news release are qualified in their entirety by this cautionary statement. All subsequent written or oral forward-looking statements attributable to Brightstar Lottery PLC, or persons acting on its behalf, are expressly qualified in their entirety by this cautionary statement.

Non-GAAP Financial Measures

Management supplements the reporting of financial information, determined under GAAP, with certain non-GAAP financial information. Management believes the non-GAAP information presented provides investors with additional useful information, but it is not intended to, nor should it be considered in isolation or as a substitute for the related GAAP measures. Moreover, other companies may define non-GAAP measures differently, which limits the usefulness of these measures for comparisons with such other companies. The Company encourages investors to review its financial statements and publicly filed reports in their entirety and not to rely on any single financial measure.

Adjusted EBIT represents net income (loss) from continuing operations (a GAAP measure) before income taxes, interest expense, net, foreign exchange gain (loss), net, other expenses (e.g., gains/losses on extinguishment and modifications of debt, etc.), net, impairment losses, restructuring expenses, stock-based compensation, litigation expense (income), and certain other non-recurring items. Other non-recurring items are infrequent in nature and are not reflective of ongoing operational activities. Management believes that Adjusted EBIT is useful in providing period-to-period comparisons of the results of the Company's ongoing operational performance.

Adjusted EBIT margin represents Adjusted EBIT divided by revenue.

Adjusted EBITDA represents net income (loss) from continuing operations (a GAAP measure) before income taxes, interest expense, net, foreign exchange gain (loss), net, other expenses (e.g., gains/losses on extinguishment and modifications of debt, etc.), net, depreciation, impairment losses, amortization (service revenue, purchase accounting, and non-purchase accounting), restructuring expenses, stock-based compensation, litigation expense (income), and certain other non-recurring items. Other non-recurring items are infrequent in nature and are not reflective of ongoing operational activities. Management believes that Adjusted EBITDA is useful in providing period-to-period comparisons of the results of the Company's ongoing operational performance.

Adjusted EBITDA margin represents Adjusted EBITDA divided by revenue.

Adjusted EPS represents diluted earnings per share (a GAAP measure), excluding the effects of foreign exchange, impairments, amortization from purchase accounting, discrete tax items, and other significant non-recurring adjustments that are not reflective of on-going operational activities (e.g., gains/losses on sale of business, gains/losses on extinguishment and modifications of debt, etc.). Adjusted EPS is calculated using diluted weighted-average number of shares outstanding, including the impact of any potentially dilutive common stock equivalents that are anti-dilutive to GAAP net income (loss) per share but dilutive to Adjusted EPS. Management believes that Adjusted EPS is useful in providing period-to-period comparisons of the results of the Company's ongoing operational performance.

Net debt is a non-GAAP financial measure that represents debt (a GAAP measure, calculated as long-term obligations plus short-term borrowings) minus capitalized debt issuance costs and cash and cash equivalents, including cash and cash equivalents classified as held for sale. Cash and cash equivalents, including cash and cash equivalents held for sale, are subtracted from the GAAP measure because they could be used to reduce the Company's debt obligations. Management believes that net debt is a useful measure to monitor leverage and evaluate the balance sheet.

Net debt leverage is a non-GAAP financial measure that represents the ratio of Net debt as of a particular balance sheet date to Adjusted EBITDA for the last twelve months prior to such date. Management believes that net debt leverage is a useful measure to assess Brightstar's financial strength and ability to incur incremental indebtedness when making key investment decisions.

Free cash flow is a non-GAAP financial measure that represents cash flow from operations (a GAAP measure) less capital expenditures. Management believes free cash flow is a useful measure of liquidity and an additional basis for assessing Brightstar's ability to fund its activities, including debt service and distribution of earnings to shareholders.

Constant currency is a non-GAAP adjustment to certain financial measures that expresses current financial data using the prior-year/period exchange rate (i.e., the exchange rate used in preparing the financial statements for the prior year). Management believes that constant currency is a useful measure to compare period-to-period results without regard to the impact of fluctuating foreign currency exchange rates.

A reconciliation of the non-GAAP measures to the corresponding amounts prepared in accordance with GAAP appears in the tables in this release. The tables provide additional information as to the items and amounts that have been excluded from the adjusted measures.

The Company provides guidance of select information related to its financial and operating performance, and such measures may differ from year to year. The guidance is only an estimate of what the Company believes is realizable as of the date of this release. Actual results may vary from the guidance and the variations may be material. The Company undertakes no intent or obligation to publicly update or revise any of these projections, whether as a result of new information, future events or otherwise, except as required by law.

A reconciliation of the Company's forward-looking non-GAAP financial measures to the most directly comparable GAAP financial measure cannot be provided without unreasonable effort. This is due to the inherent difficulty of accurately forecasting the occurrence and financial impact of the adjusting items necessary for such a reconciliation to be prepared, for example, the provision for income taxes or net foreign exchange gain/loss, as such items have not yet occurred, are out of the Company's control, or cannot be reasonably predicted.

Contact

Mike DeAngelis, Corporate Communications, +1 (401) 392-1000, mike.deangelis@brightstarlottery.com

Matteo Selva, Italian media inquiries, +39 366 6803635

James Hurley, Investor Relations, +1 (401) 392-7190

Select Performance and KPI data ($ in millions, unless otherwise noted)

Constant

Q3'25

Q3'24

Y/Y

Currency

Revenue

Change

Change (1)

Service

Instant ticket & draw wager-based revenue

512

477

7 %

4 %

U.S. multi-state jackpot wager-based revenue

74 %

Upfront license fee amortization

(53)

(51)

(5) %

— %

Other

109

119

(8) %

(9) %

Total service revenue

604

566

7 %

4 %

Product sales

24 %

22 %

Total revenue

629

587

7 %

5 %

Income (loss) from continuing operations

(46)

Adjusted EBITDA (1)

294

264

11 %

7 %

Same-store sales growth (%) at constant currency (wager-based growth) (2)

Global

Instant ticket & draw games

3.9 %

(3)

1.0 %

U.S. multi-state jackpots

69.2 %

(55.2 %)

Total

7.9 %

(5.8 %)

U.S.

Instant ticket & draw games

1.6 %

0.2 %

U.S. multi-state jackpots

69.2 %

(55.2 %)

Total

7.7 %

(9.8 %)

Italy

Instant ticket & draw games

6.1 %

(3)

2.7 %

Rest of world

Instant ticket & draw games

14.3 %

1.9 %

(1) Non-GAAP measure; see disclaimer on page 6 and reconciliations to the most directly comparable GAAP measure in Appendix for further details

(2) Same-store sales represents the change in wagers recorded in lottery jurisdictions where Brightstar is the operator or facilities management supplier, using

the same lottery jurisdictions and perimeter for comparisons between periods

(3) Instant ticket & draw game same-store sales normalized for a like number of Italy Lotto draws were 3.7% on a global basis and 5.3% in Italy

Constant

Q3'25

Q3'24

Y/Y

Currency

Change

Change (1)

Same-store revenue growth (%) at constant currency (Same-store sales inclusive of contract mix) (2)

Global

Instant ticket & draw games

5.6 %

0.6 %

U.S. multi-state jackpots

73.6 %

(56.2) %

Total

8.5 %

(4.6) %

U.S.

Instant ticket & draw games

3.5 %

(0.6) %

U.S. multi-state jackpots

73.6 %

(56.2) %

Total

10.7 %

(12.1) %

Italy

Instant ticket & draw games

5.9 %

1.7 %

Rest of world

Instant ticket & draw games

14.1 %

(0.6) %

Revenue (by geography)

U.S. & Canada

304

284

7 %

Italy

257

228

12 %

7 %

Rest of world

(7) %

(10) %

Total revenue

629

587

7 %

5 %

(1) Non-GAAP measure; see disclaimer on page 6 and reconciliations to the most directly comparable GAAP measure in Appendix for further details

(2) Same-store revenue represents the change in same-store sales net of contract mix

Brightstar Lottery PLC

Condensed Consolidated Statements of Operations

($ and shares in millions, except per share amounts)

Unaudited

For the three months ended

For the nine months ended

September 30,

2025

2024

2025

2024

Service revenue (includes amortization of upfront license fees)

604

566

1,750

1,771

Product sales

Total revenue

629

587

1,843

1,861

Cost of services (excluding Depreciation and amortization)

276

261

819

795

Cost of product sales (excluding Depreciation and amortization)

General and administrative

164

178

Research and development

Sales and marketing

Depreciation and amortization

163

151

Restructuring

—

Interest expense, net

130

160

Foreign exchange loss, net

132

Other expense, net

Income from continuing operations before provision for

income taxes

134

180

315

Provision for income taxes

137

161

Income (loss) from continuing operations

(46)

154

(Loss) income from discontinued operations, net of tax

(16)

101

Gain on sale of discontinued operations, net of tax

—

Income from discontinued operations

152

101

Net income

155

195

256

Less: Net income attributable to non-controlling interests from

continuing operations

105

120

Less: Net income attributable to non-controlling interests from

discontinued operations

—

Net income attributable to Brightstar Lottery PLC

117

130

Net income (loss) from continuing operations attributable to

Brightstar Lottery PLC per common share - basic

0.29

(0.39)

(0.31)

0.17

Net income (loss) from continuing operations attributable to

Brightstar Lottery PLC per common share - diluted

0.29

(0.39)

(0.31)

0.17

Net income attributable to Brightstar Lottery PLC per

common share - basic

0.60

0.04

0.43

0.65

Net income attributable to Brightstar Lottery PLC per

common share - diluted

0.60

0.04

0.43

0.64

Weighted-average shares - basic

195

202

200

201

Weighted-average shares - diluted

196

202

200

203

Brightstar Lottery PLC

Condensed Consolidated Balance Sheets

($ in millions)

Unaudited

September 30,

December 31,

2025

2024

Assets

Current assets:

Cash and cash equivalents

1,599

584

Restricted cash and cash equivalents

120

Trade and other receivables, net

514

468

Inventories, net

115

113

Other current assets

191

114

Assets held for sale

—

4,765

Total current assets

2,516

6,165

Systems, equipment and other assets related to contracts, net

636

581

Property, plant and equipment, net

Operating lease right-of-use assets

102

Goodwill

2,707

2,650

Intangible assets, net

104

Other non-current assets

3,142

606

Total non-current assets

6,771

4,113

Total assets

9,288

10,278

Liabilities and shareholders' equity

Liabilities

Current liabilities:

Accounts payable

758

718

Current portion of long-term debt

117

208

Payable to ADM

2,031

—

Other current liabilities

514

619

Liabilities held for sale

—

1,142

Total current liabilities

3,420

2,687

Long-term debt, less current portion

4,064

5,153

Deferred income taxes

232

170

Operating lease liabilities

Other non-current liabilities

143

125

Total non-current liabilities

4,513

5,530

Total liabilities

7,934

8,217

Shareholders' Equity

Brightstar Lottery PLC's shareholders' equity

871

1,652

Non-controlling interests

483

409

Total shareholders' equity

1,354

2,061

Total liabilities and shareholders' equity

9,288

10,278

Brightstar Lottery PLC

Condensed Consolidated Statements of Cash Flows

($ in millions)

Unaudited

For the three months ended

For the nine months ended

September 30,

2025

2024

2025

2024

Cash flows from operating activities

Net income

155

195

256

Less: Income from discontinued operations, net of tax

152

101

Adjustments to reconcile net income to net cash (used in) provided by operating activities

from continuing operations:

Amortization of upfront license fees

154

150

Depreciation

135

127

Amortization

Stock-based compensation

Foreign exchange loss, net

132

Other non-cash items, net

(19)

(3)

Changes in operating assets and liabilities, excluding the effects of dispositions:

Trade and other receivables

(82)

(8)

(4)

Inventories

(6)

(4)

(12)

Accounts payable

Accrued interest payable

(32)

(34)

(25)

(44)

Accrued income taxes

(80)

(6)

Italian Lotto License payment

(579)

—

(579)

—

Other assets and liabilities

(2)

Net cash (used in) provided by operating activities from continuing operations

(439)

173

(6)

489

Net cash (used in) provided by operating activities from discontinued operations

(7)

235

Net cash (used in) provided by operating activities

(446)

260

724

Cash flows from investing activities

Capital expenditures

(65)

(30)

(239)

(104)

Other

—

Net cash used in investing activities from continuing operations

(64)

(27)

(240)

(103)

Net cash provided by (used in) investing activities from discontinued operations

3,953

(62)

3,868

(166)

Net cash provided by (used in) investing activities

3,889

(90)

3,629

(270)

Cash flows from financing activities

Proceeds from long-term debt

—

556

1,112

556

Net (payments on) receipts from financial liabilities

(1)

(82)

(52)

Payments of debt issuance costs

(2)

(11)

(3)

Net repayments of Revolving Credit Facilities

(410)

(82)

(515)

(119)

Principal payments on long-term debt

(1,978)

(500)

(2,186)

(500)

Repurchases of common stock

(251)

—

(251)

—

Dividends paid

(647)

(40)

(728)

(121)

Dividends paid - non-controlling interests

—

(163)

(159)

Return of capital - non-controlling interests

(10)

(57)

(55)

Capital increase - non-controlling interests

—

178

Other

(16)

Net cash used in financing activities from continuing operations

(3,268)

(54)

(2,686)

(467)

Net cash used in financing activities from discontinued operations

—

(19)

(143)

(39)

Net cash used in financing activities

(3,268)

(73)

(2,829)

(505)

Net increase (decrease) in cash and cash equivalents and restricted cash and cash

equivalents

175

888

(51)

Effect of exchange rate changes on cash and cash equivalents and restricted cash and cash

equivalents

(25)

(14)

Cash and cash equivalents and restricted cash and cash equivalents at the beginning of the

period

1,546

559

775

739

Cash and cash equivalents and restricted cash and cash equivalents at the end of the period

1,696

674

1,696

674

Less: Cash and cash equivalents and restricted cash and cash equivalents of discontinued

operations

—

Cash and cash equivalents and restricted cash and cash equivalents at the end of the period

of continuing operations

1,696

604

1,696

604

Supplemental disclosures of cash flow information for continuing operations:

Interest paid

171

204

Income taxes paid

119

169

Brightstar Lottery PLC

Net Debt

($ in millions)

Unaudited

September 30,

December 31,

2025

2024

4.125% Senior Secured U.S. Dollar Notes due April 2026

—

748

3.500% Senior Secured Euro Notes due June 2026

—

777

6.250% Senior Secured U.S. Dollar Notes due January 2027

749

748

2.375% Senior Secured Euro Notes due April 2028

585

517

5.250% Senior Secured U.S. Dollar Notes due January 2029

747

746

4.250% Senior Secured Euro Notes due March 2030

581

513

Senior Secured Notes

2,661

4,050

Euro Term Loan Facilities due January 2027

234

619

Euro Term Loan Facilities due September 2030

1,168

—

Revolving Credit Facility A due July 2027

—

157

Revolving Credit Facility B due July 2027

—

328

Long-term debt, less current portion

4,064

5,153

Euro Term Loan Facilities due January 2027

117

208

Current portion of long-term debt

117

208

Total debt

4,181

5,361

Less: Cash and cash equivalents

1,599

584

Less: Debt issuance costs, net - Revolving Credit Facility A due July 2027

—

Less: Debt issuance costs, net - Revolving Credit Facility B due July 2027

—

Net debt

2,572

4,777

Note: Net debt is a non-GAAP financial measure

Brightstar Lottery PLC

Reconciliation of Non-GAAP Financial Measures

(Unaudited, $ in millions)

For the three months ended

September 30,

For the nine months ended

September 30,

2025

2024

2025

2024

Income (loss) from continuing operations

(46)

154

Provision for income taxes

137

161

Interest expense, net

130

160

Foreign exchange loss, net

132

Restructuring

—

Stock-based compensation

Other expense, net

Adjusted EBIT

185

162

500

580

Income (loss) from continuing operations

(46)

154

Provision for income taxes

137

161

Interest expense, net

130

160

Foreign exchange loss, net

132

Depreciation

135

127

Amortization - service revenue (1)

154

150

Amortization - non-purchase accounting

Amortization - purchase accounting

Restructuring

—

Stock-based compensation

Other expense, net

Adjusted EBITDA

294

264

818

880

(1) Includes amortization of upfront license fees

Cash flows from operating activities - continuing operations

(439)

173

(6)

489

Capital expenditures

(65)

(30)

(239)

(104)

Free Cash Flow

(504)

144

(245)

385

Brightstar Lottery PLC

Reconciliation of Non-GAAP Financial Measures

(Unaudited)

For the three months ended September 30,

For the nine months ended September 30,

2025

2024

2025

2024

Pre-

Tax

Impact

Tax

Impact

(1)

Net

Impact

Pre-

Tax

Impact

Tax

Impact

(1)

Net

Impact

Pre-

Tax

Impact

Tax

Impact

(1)

Net

Impact

Pre-

Tax

Impact

Tax

Impact

(1)

Net

Impact

Reported EPS from continuing operations

attributable to Brightstar Lottery PLC - diluted

0.29

(0.39)

(0.31)

0.17

Adjustments:

Foreign exchange loss, net

—

0.01

0.19

(0.03)

0.22

0.66

(0.03)

0.69

0.11

—

0.11

Amortization - purchase accounting

0.01

—

0.01

—

0.01

0.03

—

0.03

0.01

0.03

Loss on extinguishment and modifications of debt,

net

0.04

—

0.04

—

0.04

—

0.04

—

Restructuring

—

0.19

0.06

0.13

0.10

0.03

0.08

0.19

0.06

0.13

Other (non-recurring adjustments)

0.01

—

0.01

—

0.01

0.04

0.01

0.03

0.02

—

0.02

Net adjustments

0.07

0.38

0.86

0.29

Adjusted EPS from continuing operations

attributable to Brightstar Lottery PLC - diluted

0.36

(0.02)

0.55

0.46

Reported effective tax rate

29.6 %

394.3 %

76.1 %

51.0 %

Adjusted effective tax rate

26.7 %

68.9 %

38.9 %

45.1 %

Adjusted EPS weighted average shares outstanding (in millions)

196

(2)

202

(3)

201

(2)

203

(2)

(1) Calculated based on nature of item, including any realizable deductions, and statutory tax rate in effect for the relevant jurisdiction

(2) Includes the dilutive impact of share-based payment awards

(3) Excludes the anti-dilutive impact of share-based payment awards

Recast Historical Financial Information

Recast data reflects the streamlined presentation of Brightstar's condensed consolidated statements of operations with no effect on previously reported total revenues, income from continuing operations, or net income.

Brightstar Lottery PLC

Condensed Consolidated Statements of Operations

($ and shares in millions, except per share amounts)

Unaudited

For the three months ended

For the year ended

2025

2024

2023

June 30,

March 31,

December 31,

September 30,

June 30,

March 31,

December 31,

Service revenue (includes amortization of upfront license fees)

588

557

591

566

586

619

2,358

Product sales

171

Total revenue

631

583

651

587

613

661

2,529

Cost of services (excluding Depreciation and amortization)

279

262

273

261

265

269

1,048

Cost of product sales (excluding Depreciation and amortization)

105

General and administrative

252

Research and development

Sales and marketing

107

Depreciation and amortization

215

Restructuring

—

Interest expense, net

207

Foreign exchange (gain) loss, net

(75)

(4)

(11)

Other expense, net

(Loss) income from continuing operations before provision for income taxes

(10)

206

127

173

488

Provision for income taxes

223

(Loss) income from continuing operations

(60)

116

(46)

116

265

Income from discontinued operations, net of tax

136

—

Net (loss) income

(20)

253

128

307

Less: Net income attributable to non-controlling interests from continuing operations

149

Less: Net income attributable to non-controlling interests from discontinued

operations

Net (loss) income attributable to Brightstar Lottery PLC

(58)

217

156

Net (loss) income from continuing operations attributable to Brightstar

Lottery PLC per common share - basic

(0.47)

(0.11)

0.41

(0.39)

0.21

0.35

0.58

Net (loss) income from continuing operations attributable to Brightstar

Lottery PLC per common share - diluted

(0.47)

(0.11)

0.40

(0.39)

0.21

0.35

0.57

Net (loss) income attributable to Brightstar Lottery PLC per common share -

basic

(0.29)

0.13

1.08

0.04

0.21

0.41

0.78

Net (loss) income attributable to Brightstar Lottery PLC per common share -

diluted

(0.29)

0.13

1.07

0.04

0.21

0.40

0.77

Weighted-average shares - basic

203

202

201

200

Weighted-average shares - diluted

203

202

204

202

203

SOURCE Brightstar Lottery PLC