Brightstar Lottery (BRSL) Q1 2026 earnings summary

Executive summary

• Revenue increased 1% year-over-year to $587–590 million, driven by strong Italy performance, positive U.S. sales mix, and operational discipline, with growth partially offset by the U.K. transition.

• Adjusted EBITDA rose 15% to $287 million, up 5% at constant currency, reflecting operating discipline and benefits from efficiency programs.

• Net income from continuing operations was $63 million, up from $8 million in the prior year.

• Strategic priorities include game innovation, digital expansion, and retail channel enhancements, with significant progress in Italy, the U.S., and new markets like São Paulo.

• Over $70 million was returned to shareholders in Q1 2026 through dividends and share repurchases.

Financial highlights

• Revenue: $587–590 million, up 1% year-over-year; service revenue $558 million, product sales up 12% to $29 million.

• Adjusted EBITDA: $287 million, up 15% year-over-year, 5% at constant currency; margin 48.9%.

• Diluted EPS from continuing operations: $0.20 (vs. $(0.11) prior year); adjusted EPS: $0.14 (up from $0.09).

• Cash from operations: $165 million; capital expenditures: $110 million; free cash flow: $55 million.

• Returned over $70 million to shareholders via dividends and buybacks.

Outlook and guidance

• FY 2026 revenue guidance reaffirmed at $2.50–$2.55 billion, with adjusted EBITDA expected at $1.16–$1.19 billion.

• Second quarter revenue and adjusted EBITDA expected to be below prior year due to higher service revenue amortization, U.K. transition, and New Jersey LMA shortfall.

• Net cash used in operating activities expected at ~$900 million, including $1.67 billion Italy Lotto license payment.

• Capital expenditures projected at $450–$475 million.

• Effective tax rate for 2026 expected in the high 30% range, trending toward mid-to-low 30s longer term.