Sofia Marchetti
Brightstar Lottery PLC posted third-quarter 2026 revenue of $607 million, a 4% drop from $629 million a year ago, and cut its full-year revenue and Adjusted EBITDA guidance.
Strip out the accounting noise and the underlying business grew. Brightstar said its operational growth drivers picked up pace, rising 4% in the quarter on the back of global product sales and other service revenue, according to the results release published November 10, 2026.
So why the headline decline? Mostly accounting. Brightstar blamed higher non-cash amortization of service revenue linked to its new Italy Lotto license for the reported fall.
For anyone following the broader gaming sector, the numbers show what it costs a lottery operator to carry its biggest license win while building digital and retail products on top of it.
The Third-Quarter Numbers
Income from continuing operations fell to $45 million from $95 million a year earlier. Diluted earnings per share came in at $0.12, down from $0.29.
Adjusted EBITDA was $289 million, down 2% from $294 million, though the margin widened to 47.5% from 46.7%. Adjusted EPS was $0.10, against $0.36.
The EPS comparison carries $43 million, or $0.23 per share, of Brightstar's share of service revenue amortization. In the same quarter of 2025 that figure was $23 million, or $0.12 per share.
For the year to date, revenue reached $1.78 billion, down 4% from $1.84 billion, while Adjusted EBITDA climbed 5% to $861 million from $818 million.
What Moved Revenue
Brightstar credited product sales — retail hardware, software and instant tickets — as a main growth driver. Higher other service revenue also helped, driven by software services for new contracts and extensions outside the US and Italy. Expansion of its Italy B2C business added to the gains.
Several factors pulled the other way: heavier amortization from the Italy Lotto license, weaker same-store sales (largely US multi-state jackpot performance), the transition of its UK service contract, and foreign currency translation.
Chief executive Vince Sadusky said revenue and profit landed in line with expectations "even as we invest to strengthen our contract portfolio, expand our technology and service offerings, and accelerate game and product innovation."
Outlook And Balance Sheet
Full-year 2026 revenue is now expected at $2.435 billion to $2.455 billion, down from a previous range of $2.50 billion to $2.55 billion. The company pointed to revised second-half same-store sales expectations, the timing of some B2C expansion work in Italy, and currency effects.
Adjusted EBITDA guidance moved to $1.14 billion to $1.16 billion from $1.16 billion to $1.19 billion. Brightstar pinned most of that change on updated exchange rates.
Expected cash from operations was left unchanged. Net debt stood at $3.8 billion, with net debt leverage of 3.30x, following the final Italy Lotto payment made earlier in the year.
In September the company issued €500 million of 4.875% senior secured notes due September 2032. Proceeds went toward repurchasing €342 million of its 2.375% notes due April 2028 and repaying €155 million of revolving credit utilization.
Returns To Shareholders
Through November 9, Brightstar had put more than $200 million into dividends and share repurchases this year.
The board declared a quarterly cash dividend of $0.23 per share, payable December 8, 2026, to holders of record on November 24, 2026.
Chief financial officer Max Chiara described profitability as "strong and resilient" and said leverage sits within the targeted range.
Our US gambling news hub will track how the second-half guidance holds up when the company reports fourth-quarter results.
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Source: gambling.com
