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.

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

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

• Strategic priorities advanced, including game innovation, digital expansion, and new contract wins in Italy, the U.S., and São Paulo.

• Over $70 million 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 (flat), product sales up 12% to $29 million.

• Adjusted EBITDA: $287 million, up 15% year-over-year, margin 48.9% (up from 42.8%).

• 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, with free cash flow at $55 million; CapEx at $110 million, mainly for Italy terminals.

• Returned over $70 million to shareholders via dividends and buybacks; LTM dividend yield nearly 7%.

Outlook and guidance

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

• Cash from operations projected at $(900M)/$750M, reflecting Italy Lotto license payment; CapEx guidance $450–$475 million.

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

• Anticipate stronger revenue and profit growth in the second half, driven by product launches, retail initiatives, and digital expansion.

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