Brightstar Lottery has reaffirmed its full-year financial outlook after reporting stronger-than-expected Q2 profitability, supported by same-store lottery sales growth and continued operational cost savings.
For the three months ended 30 June 2026, the company generated revenue of $584m, down 7% year-on-year from $631m. Brightstar said the decline reflected higher service revenue amortisation linked to its Italy Lotto licence, the ongoing transition of its UK service contract and lower product sales.
Despite lower revenue, income from continuing operations improved to $56m, compared with a loss of $60m in the same period last year. Adjusted EBITDA increased 4% year-on-year to $286m, with the company attributing the improvement to global same-store sales growth, positive product mix in the US and efficiencies delivered through its OPtiMa cost-saving programme.
CEO Vince Sadusky said the quarter benefited from disciplined operational management while the business continued investing in long-term growth initiatives. He also highlighted progress in the company's Italy B2C expansion and noted that global iLottery wagers continued to grow at a double-digit rate.
During the quarter, Brightstar completed the final €1.43bn ($1.65bn) payment for its Italy Lotto licence, contributing to higher net debt of $3.8bn. However, the company reported total liquidity of $1.7bn, including approximately $558m in unrestricted cash and access to additional undrawn credit facilities.
Brightstar also announced the launch of OPtiMa 3.3, the latest phase of its efficiency programme, which is expected to deliver an additional $20m in annualised savings. The broader OPtiMa initiative is now targeting $100m in cost savings by 2028, an increase from previous guidance.
Looking ahead, Brightstar reaffirmed its 2026 outlook, maintaining revenue guidance of $2.50bn-$2.55bn and adjusted EBITDA expectations of $1.16bn-$1.19bn. The company's board also declared a quarterly dividend of $0.23 per share, payable on 1 September.
The results follow a period of expansion and leadership change at Brightstar. The company recently secured a technology contract extension with Washington's Lottery running through 2036, part of a wider pattern of long-term US retail modernization deals following a similar extension with Oregon Lottery.
Brightstar has also refreshed its senior leadership, with Marco Tasso succeeding Renato Ascoli as Global Lottery COO, and strengthened its compliance function with the appointment of former FanDuel executive Allie Frank as Director of Compliance Operations.
Brightstar said global iLottery wagers continued to grow at a double-digit rate during the second quarter, supported by ongoing investment in digital lottery operations
