Brightstar Lottery Trims 2026 Outlook As Q3 Revenue Slips 4% To $607M
Brightstar Lottery PLC reported third-quarter 2026 revenue of $607 million, down 4% from $629 million a year earlier, and lowered its full-year revenue and Adjusted EBITDA guidance.
The company said operational growth drivers accelerated, expanding 4% in the quarter, led by global product sales and other service revenue, according to its results release on November 10, 2026.
The headline decline reflects an accounting effect rather than weaker trading alone. Brightstar pointed to higher non-cash service revenue amortisation tied to its new Italy Lotto licence as the main drag on reported revenue.
For readers tracking the wider gaming industry, the results show how a lottery operator is carrying the cost of its largest licence win while it builds digital and retail products around it.
The Third-Quarter Numbers
Income from continuing operations was $45 million, down from $95 million a year earlier, and diluted earnings per share were $0.12, down from $0.29.
Adjusted EBITDA came in at $289 million, down 2% from $294 million, with the margin improving to 47.5% from 46.7%. Adjusted EPS was $0.10 against $0.36.
The company said the earnings per share comparison includes $43 million, or $0.23 per share, of its share of service revenue amortisation, compared with $23 million, or $0.12 per share, in the same quarter of 2025.
Year to date, revenue was $1.78 billion, down 4% from $1.84 billion, while Adjusted EBITDA rose 5% to $861 million from $818 million.
What Moved Revenue
Brightstar listed product sales of retail hardware, software and instant tickets as a key growth driver, along with higher other service revenue from software services for new contracts and extensions outside the United States and Italy. Italy B2C expansion also helped.
Offsets included the higher amortisation from the Italy Lotto licence, lower same-store sales primarily due to the performance of US multi-state jackpots, the transition of its UK service contract and foreign currency translation.
Chief executive Vince Sadusky said revenue and profit were in line with expectations "even as we invest to strengthen our contract portfolio, expand our technology and service offerings, and accelerate game and product innovation."
Outlook And Balance Sheet
Brightstar now expects 2026 revenue of $2.435 billion to $2.455 billion, against a prior range of $2.50 billion to $2.55 billion. It cited updated second-half same-store sales expectations, the timing of certain Italy B2C expansion efforts and currency effects.
Adjusted EBITDA guidance is $1.14 billion to $1.16 billion, down from $1.16 billion to $1.19 billion, which the company attributed primarily to updated exchange rates.
Expected cash from operations was maintained. Net debt stood at $3.8 billion, with net debt leverage of 3.30x, after the final Italy Lotto payment made earlier this year.
In September, the company issued €500 million of 4.875% senior secured notes due September 2032 and used the proceeds to repurchase €342 million of its 2.375% notes due April 2028 and repay €155 million of revolving credit utilisation.
Returns To Shareholders
Brightstar has deployed more than $200 million on dividends and share repurchases year-to-date through November 9.
Its board declared a quarterly cash dividend of $0.23 per share, payable on December 8, 2026, to holders of record on November 24, 2026.
Chief financial officer Max Chiara said profitability remains "strong and resilient" and that leverage is within the targeted range.
Our US gambling news hub will track how the second-half guidance holds up when the company reports fourth-quarter results.
Refer to Cashback Terms & Conditions for full program terms.
