Brightstar posts Q1 2026 as EBITDA climbs 15% and income surges

Brightstar Lottery reported a mixed but generally positive start to 2026, with the lottery supplier posting higher revenue and significantly improved earnings during the first quarter of the year.

The company recorded revenue of $587m for Q1 2026, representing a 1% year-on-year increase from $583m in the same period last year. 

While overall growth remained relatively modest, Brightstar said performance was supported by stronger same-store sales in Italy, a positive sales mix in the US market and favourable foreign currency movements.

Italy remained a major contributor to the quarter’s performance. Same-store sales growth in the country reached 3.1%, helping offset softer results in some other international markets and the impact of the ongoing UK service contract transition. 

Across the wider business, global same-store sales growth for instant ticket and draw games reached 1.2%.

Adjusted EBITDA rose by 15% year-on-year to $287m, up from $250m in Q1 2025. On a constant currency basis, EBITDA growth was 5%.

The company attributed the increase to stronger operational flow-through from revenue growth, reduced shortfalls linked to lottery management agreements and continued cost efficiencies delivered through its OPtiMa programme.

Income from continuing operations improved substantially to $63m, compared with $8m in the prior-year quarter. 

Diluted earnings per share from continuing operations also moved into positive territory at $0.20, compared with a diluted loss per share of $0.11 in Q1 2025.

Despite the improved profitability, free cash flow declined to $55m from $109m in the previous year. Capital expenditure increased during the quarter as Brightstar continued to invest in contract obligations and expansion initiatives. 

The company said planned investments in growth projects, together with inflationary pressures and staff retention costs, partially offset operational gains.

Brightstar also continued to return capital to shareholders during the quarter, deploying more than $70m through dividends and share repurchases. The board declared a quarterly cash dividend of $0.23 per common share, payable in June.

The company highlighted its liquidity position as a key strength. As of 31 March 2026, Brightstar reported total liquidity of $2.8bn, including $1.2bn in unrestricted cash and access to an additional $1.6bn through undrawn credit facilities. 

Net debt stood at approximately $2.75bn, while net debt leverage remained at 2.4x.

During April, Brightstar completed the final payment connected to its Italy Lotto licence, amounting to €1.43bn ($1.67bn). The company also refinanced its revolving credit facility through to March 2031 under improved terms.

Looking ahead, Brightstar reaffirmed its full-year 2026 guidance. The company continues to expect annual revenue between $2.50bn and $2.55bn, alongside adjusted EBITDA of between $1.16bn and $1.19bn.

Commenting on the results, CEO Vince Sadusky stated: “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 $70m 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."

The Q1 results build on a period of broader activity for Brightstar. The company's full-year 2025 results, reported in February, showed flat revenue of $2.51bn alongside a 43% reduction in net debt, largely driven by the sale of IGT Gaming. 

Beyond its financial performance, Brightstar has also been active on the sustainability front, recording a score of 56 in the 2025 S&P Global Corporate Sustainability Assessment – nearly double the industry average of 31 – and securing a place in the 2026 S&P Global Sustainability Yearbook.