Brightstar Lottery has reported its latest financial results from the third quarter of 2026, highlighting a year-over-year revenue reduction of 4% to $607m.
Indeed, revenue, adjusted EBITDA and income all declined for the lottery operator in comparison to results from the prior year, with net debt increasing significantly.
Brightstar's Q3 at a glance
Brightstar's 4% decline in revenue year-over-year was largely driven by higher service revenue amortization relating to its Italian lottery license, combined with contract transition costs in the UK and poor multi-state jackpot performance in the US – according to the company. Regarding adjusted EBITDA – which fell 2% to $289m – was also affected by "one-time expense recoveries recognized in the prior year."
More alarmingly, though, Brightstar's income from continuing operations declined by 53% year-over-year to $45m, with income margin declining from 15% in Q3 2025 to 7.4% in this latest quarter. Nevertheless, the operator reported growth in retail hardware, software and instant ticket sales, alongside positive signs in its Italian B2C segment.
In comparison to results from the second quarter of this year, Brightstar's Q3 revenue is also up 3.9%, with adjusted EBITDA up 1% but income down 19%. Regarding year-to-date figures, revenue remains down 4% once again, settling at $1.78bn. Year-to-date adjusted EBITDA, however, is up 5% year-over-year to $861m. Over the course of the quarter, Brightstar also signed a new technology deal with the Washington Lottery until 2036.
Net debt rises as FY outlook is reduced
Regarding Brightstar's net debt increase, a 49% expansion to $3.84bn year-over-year makes for poor reading. Yet, between the second and third quarters of 2025, the operator managed to reduce its net debt from $5.24bn (Q2 2025) to $2.57bn (Q3 2025). As such, if Q3 2026 was compared to Q2 2025, net debt would have fallen by 26.7%.
Brightstar Lottery net debt fluctuation ($bn)
Still, having reduced over half of its net debt last year, a 49% increase year-over-year (and a 1.3% increase quarter-over-quarter) in this latest quarter is far from ideal.
As part of these latest results, Brightstar has confirmed a reduction in full-year expectations, with its specified revenue outlook for 2026 now settling at between $2.44bn and $2.46bn, down from previous estimates of between $2.5bn and $2.55bn. Further, adjusted EBITDA expectations have also been reduced to between $1.14bn and $1.16bn, down from between $1.16bn and $1.19bn.
Comments from the boardroom
Speaking on these latest results, Brightstar CEO Vince Sadusky stated: “Our third quarter and year-to-date performance reflect the breadth of the products and services we provide around the world and the progress we are making against our strategic priorities.
"Revenue and profit were in line with our expectations, even as we invest to strengthen our contract portfolio, expand our technology and service offerings, and accelerate game and product innovation. We remain confident in our ability to leverage our leading market positions, technology capabilities, and customer relationships to drive sustainable growth and shareholder value."
Building on these comments was Brightstar CFO, Max Chiara, who said: “Operational growth drivers are contributing at an accelerated pace, reinforcing our medium-term growth outlook. Our profitability is strong and resilient as we remain focused on disciplined execution and cost efficiencies. Leverage is within our targeted range and we are committed to returning capital to shareholders."
Brightstar Lottery was founded in 1976 and is responsible for the invention of the "Quick Pick" feature, the now-ubiquitous button that lets lottery computers randomly generate numbers for players who don't want to choose their own
