Brightstar Lottery reports strong Q1 2026 growth and EBITDA rise

Brightstar Lottery PLC reported steady financial performance during the first quarter of 2026 as the company continued to benefit from operational efficiencies, strong lottery sales in Italy and disciplined cost management across its international business portfolio.

The group announced revenue of $587 million for the quarter ended March 31, 2026, representing a 1% increase compared with $583 million during the same period in 2025. The company also recorded a significant increase in income from continuing operations, which reached $63 million compared with $8 million in the prior-year quarter.

Management reaffirmed its full-year financial guidance and highlighted continued investment in long-term growth initiatives alongside shareholder returns and balance sheet stability.

Strong operational performance supports earnings growth

Brightstar Lottery stated that adjusted EBITDA for the quarter rose 15% year-on-year to $287 million from $250 million in the corresponding period last year. On a constant currency basis, adjusted EBITDA increased by 5%.

The company said improved operational performance was driven by a combination of favorable factors including same-store sales growth in Italy, a stronger product mix in the United States market, reduced shortfalls linked to lottery management agreements and higher pass-through revenue.

Italy continued to play a central role in the group’s performance during the quarter. Brightstar reported 3.1% same-store sales growth within its Italian lottery operations, helping offset pressures related to contract transitions in the United Kingdom and foreign exchange movements.

Adjusted EBITDA margin improved significantly to 48.9% compared with 42.8% in the first quarter of 2025. The increase reflected the company’s continued focus on operational efficiency and profitability management.

Diluted earnings per share from continuing operations rose to $0.20 compared with a diluted loss per share of $0.11 during the same quarter a year earlier. Adjusted diluted earnings per share also improved to $0.14 from $0.09.

Vince Sadusky, Chief Executive Officer of Brightstar Lottery, commented on the company’s quarterly performance and strategic direction.

“We delivered a solid start to the year, with first-quarter results reflecting the strength of our global portfolio and disciplined execution against our strategic priorities. We are investing in exciting long-term growth initiatives and returned over $70 million to shareholders in the period, demonstrating the confidence we have in the durability of our cash flows. We’re on track with our multi-year goal of delivering accelerated sales and profit growth that we expect to create compelling, incremental value.”

Focus on efficiency and disciplined spending

Brightstar Lottery said cost management initiatives continued to contribute positively to profitability during the quarter.

The company highlighted progress under its OPtiMa cost savings program while maintaining what management described as a disciplined approach toward discretionary spending. According to the company, this strategy is intended to balance operational efficiency with long-term investment priorities.

Chief Financial Officer Max Chiara said the company remained focused on sustaining profitable growth while protecting its financial flexibility.

“During the quarter, we continued to deliver OPtiMa cost savings while maintaining a disciplined approach to discretionary spend, carefully balancing cost control against strategic priorities, to sustain our profitable growth trajectory. Our balance sheet and credit profile are strong with historically low net debt leverage and manageable near-term debt maturities. The Company’s attractive margin structure and strong cash generation, coupled with access to significant liquidity, provide substantial support for our capital allocation plans.”

The company’s operating cash flow totaled $165 million during the quarter compared with $185 million during the prior-year period. Free cash flow declined to $55 million from $109 million, reflecting timing impacts and capital allocation activity.

Despite the lower free cash flow result, Brightstar maintained that its overall liquidity position remains strong.

Balance sheet remains stable after Italy Lotto payment

Brightstar Lottery reported cash and cash equivalents of $1.249 billion at the end of the quarter. Total available liquidity stood at approximately $2.8 billion, including $1.6 billion in unused borrowing capacity under existing credit facilities.

Net debt at the end of the reporting period totaled $2.752 billion while net debt leverage was reported at 2.4x. The company described its leverage profile as historically low and manageable.

A major financial development during the quarter involved the company’s Italy Lotto license obligations. Brightstar confirmed that it completed its final Italy Lotto license payment in April 2026, totaling €1.43 billion, equivalent to approximately $1.67 billion.

The company also refinanced its revolving credit facility during April 2026, extending the maturity date to March 2031. Management indicated that the refinancing strengthens the company’s long-term liquidity profile and provides additional financial flexibility.

Industry observers continue to view the Italian lottery market as one of the most significant contributors to Brightstar’s global operations. The stability of that business segment remains an important factor in the company’s broader financial outlook.

Shareholder returns remain a priority

Brightstar Lottery continued its shareholder return strategy during the first quarter by distributing more than $70 million to shareholders.

The company also declared a quarterly cash dividend of $0.23 per common share. According to the announcement, shareholders on record as of May 28, 2026, will receive payment on June 11, 2026.

Management stated that the company’s capital allocation framework continues to prioritize shareholder returns while maintaining investment in operational growth initiatives and balance sheet stability.

The group noted that strong margins and recurring cash generation support its ability to continue balancing debt management, shareholder distributions and strategic investment.

Company maintains FY2026 financial guidance

Brightstar Lottery reaffirmed its full-year 2026 guidance, signaling confidence in ongoing operational performance despite broader macroeconomic uncertainties and foreign exchange fluctuations.

The company expects full-year revenue to range between $2.50 billion and $2.55 billion. Adjusted EBITDA is projected to fall between $1.16 billion and $1.19 billion.

Capital expenditure guidance for the year remains unchanged at approximately $450 million to $475 million.

Management said the guidance reflects expectations for continued operational execution across its global lottery and gaming operations along with ongoing contributions from strategic efficiency programs.

The reaffirmation of guidance may provide reassurance to investors monitoring the company’s transition efforts, contract developments and debt management strategy.

Outlook supported by recurring lottery demand

Brightstar Lottery continues to position itself as a major participant within the global lottery and gaming technology sector. The company’s first-quarter results suggest that recurring consumer demand for lottery products remains relatively stable across key regulated markets.

While certain operational headwinds such as foreign exchange movements and contract transitions affected reported figures, the broader performance demonstrated resilience in core business segments.

The company’s improved profitability margins, continued liquidity strength and commitment to shareholder returns are likely to remain important themes throughout the remainder of 2026.

At the same time, analysts and market participants are expected to monitor developments related to capital expenditure levels, debt management and future contract opportunities across international lottery markets.

Conclusion

Brightstar Lottery entered 2026 with stronger profitability, improved earnings performance and a stable financial outlook. The company’s first-quarter results reflected steady operational execution supported by growth in Italy, disciplined spending controls and ongoing efficiency initiatives.

Although free cash flow declined compared with the previous year, Brightstar maintained a substantial liquidity position and continued returning capital to shareholders through dividends and broader shareholder distributions.

The completion of the Italy Lotto license payment and refinancing of the revolving credit facility also marked important financial milestones during the quarter, helping reinforce the company’s long-term balance sheet strategy.

By reaffirming its full-year guidance, Brightstar Lottery signaled confidence in its ability to sustain growth momentum while navigating market challenges and maintaining investment in future development opportunities. As the year progresses, the company’s performance in key international markets and its ability to preserve operational efficiency are likely to remain closely watched by investors and industry stakeholders.

FAQs

What revenue did Brightstar Lottery report in Q1 2026?
Brightstar Lottery reported first-quarter 2026 revenue of $587 million, representing a 1% increase from the same period in 2025.

How much adjusted EBITDA did the company generate?
The company generated adjusted EBITDA of $287 million during the quarter, reflecting a 15% year-on-year increase.

What contributed to Brightstar’s improved financial performance?
The company cited strong Italy same-store sales growth, a favorable U.S. sales mix, lower LMA shortfall and operational efficiency measures as key contributors.

Who is the CEO of Brightstar Lottery?
Vince Sadusky serves as the Chief Executive Officer of Brightstar Lottery PLC.

Did Brightstar Lottery maintain its full-year guidance?
Yes, the company reaffirmed its FY2026 outlook for revenue, adjusted EBITDA and capital expenditure.

What is Brightstar’s projected revenue for FY2026?
Brightstar expects full-year 2026 revenue to range between $2.50 billion and $2.55 billion.

How strong is the company’s liquidity position?
Brightstar reported total liquidity of approximately $2.8 billion including available borrowing capacity under existing credit facilities.

What dividend did the company declare?
The company declared a quarterly cash dividend of $0.23 per common share.

What was the significance of the Italy Lotto payment?
Brightstar completed its final Italy Lotto license payment of approximately €1.43 billion in April 2026, representing a major contractual milestone.

What was Brightstar’s net debt leverage at the end of the quarter?
The company reported net debt leverage of 2.4x at the end of the first quarter of 2026.