Brightstar Lottery (BRSL) Q2 2026 earnings summary

Executive summary

• Q2 profit exceeded expectations, driven by disciplined cost management, strategic investments in growth initiatives, and global same-store sales growth.

• Revenue reached $584 million, reflecting sustained global lottery same-store sales growth, offset by higher service revenue amortization and U.K. contract transition.

• Significant progress in digital expansion, contract renewals, and international market launches, including São Paulo.

• Strong cash flow in H1 funded the final Italy Lotto license payment; balance sheet and credit profile remain robust.

• Over $140 million returned to shareholders year-to-date through dividends and share repurchases.

Financial highlights

• Q2 revenue was $584 million, down 7% year-over-year due to UK transition and higher service revenue amortization, but supported by 1.5% global same-store sales growth.

• Adjusted EBITDA rose 4% to $286 million, with margin improving to 48.9% from 43.5% year-over-year.

• Income from operations was $56 million, a turnaround from a $60 million loss in Q2 last year.

• Diluted EPS from continuing operations was $0.18, compared to $(0.47) in Q2'25; adjusted EPS was $0.11, down from $0.12.

• Net debt leverage at 3.24x; total liquidity of $1.7 billion post Italy Lotto license payment.

Outlook and guidance

• FY'26 revenue guidance reaffirmed at $2.50–$2.55 billion, with over 5% organic growth expected.

• Adjusted EBITDA forecasted at $1.16–$1.19 billion, with OptiMa savings and revenue growth offsetting $50 million in growth investments.

• Annual free cash flow after CapEx cycle projected to exceed $400 million post-2025.

• Capital expenditures expected at $450–$475 million, reflecting recent contract obligations.

• Q3 organic revenue growth expected to double to ~4% year-over-year, with adjusted EBITDA in line with H1.