Brightstar Lottery Reports Solid First Quarter Performance and Positive Outlook for 2026
Brightstar Lottery Begins 2026 with Strong Financial Results
Brightstar Lottery has unveiled its financial performance for the first quarter of 2026, showcasing stable revenues and promising projections for the year ahead. The company anticipates an increase in adjusted EBITDA as part of its full-year forecast.
Q1 2026 Financial Highlights
In the first three months ending March 31, Brightstar Lottery recorded $587 million in revenue, marking a modest 1% growth compared to the same period last year. This improvement was driven by a 3.1% sales increase at existing stores in Italy and beneficial factors in the US market mix.
The company also decreased its lottery marketing allowance (LMA) shortfall, benefited from favorable currency exchange impacts, and reported higher revenue recognition from services associated with its Italy Lotto license.
Income from continuing operations rose sharply to $63 million in Q1 2026, up from $8 million in Q1 2025. This growth was supported by various factors, including lower income tax provisions.
Adjusted EBITDA showed a significant 15% rise to $287 million, reflecting organic growth in Italy, cost efficiencies from the OPtiMA program, reduced LMA shortfalls, and positive currency effects. However, gains were partly moderated by strategic investments, increased spending on personnel, transitions in UK service contracts, and inflationary pressures on postage and freight costs.
On a per-share basis, Brightstar reported a diluted earnings of $0.20, a notable improvement from a diluted loss per share of $0.11 in the previous year’s first quarter. Adjusted diluted earnings per share from ongoing operations were $0.14, compared to $0.09 a year earlier.
As of March 31, the company held a net debt of $2.8 billion, with a net leverage ratio of 2.4 times. It maintained total liquidity of $2.8 billion—comprised of $1.2 billion in unrestricted cash and $1.6 billion available through additional borrowing capacity.
Optimistic 2026 Forecasts and Business Developments
Brightstar announced a quarterly dividend of $0.23 per share, scheduled for payment on June 11. The company completed its final payment for the Italy Lotto license, amounting to $1.67 billion, and successfully refinanced its revolving credit facility with extended terms until March 2031.
Looking ahead, revenue for the full year 2026 is expected to range between $2.5 billion and $2.55 billion, while adjusted EBITDA is forecasted to reach between $1.16 billion and $1.19 billion.
Leadership Perspectives on Progress and Strategy
CEO Vince Sadusky described the results as a strong foundation for 2026, remarking on the effective execution of the company’s strategic priorities. He emphasized how ongoing investments in long-term growth initiatives are creating substantial value for shareholders.
“We’re on track with our multi-year goal of delivering accelerated sales and profit growth that we expect to create compelling, incremental value,” said Sadusky.
Chief Financial Officer Max Chiara also highlighted key achievements, including the savings realized through the OPtiMA program and a balanced approach to cost management aligned with strategic goals. Chiara noted that Brightstar’s robust margin profile, strong cash flows, and ample liquidity provide strong support for its capital allocation strategy.
