Brightstar Lottery Stock Earnings Reports

Brightstar delivered a solid start to 2026 with revenue of ~$590 million (up 1% reported; ~3% constant currency excluding service revenue amortization) and adjusted EBITDA of $287 million (up 15% reported; ~5% constant currency). Growth was driven by strong game innovation and mix in Italy, continued momentum in iLottery (global wagers +30%; U.S. wagers +36%), and expansion of digital and retail initiatives (self-service vending, new retail partnerships, rollout of upgraded terminals in Italy, Sao Paulo buildout). Profitability expanded due to Optima cost-saving benefits, favorable FX on debt, and a lower tax provision; adjusted EBITDA margin was nearly 49% (artificially boosted by license fee amortization). Balance sheet remains strong: net debt leverage was 2.4x at quarter end, expected to peak around ~3.5x midyear after the final Italy lotto payment and then decline. Management returned >$70 million to shareholders in Q1 (dividend + buybacks) and reaffirmed full-year 2026 revenue, profit and cash flow guidance while noting Q2 headwinds from higher service revenue amortization, the UK transition, and an anticipated New Jersey LMA shortfall (~$20 million for H1). Key near-term growth drivers include additional iLottery deployments, full mobile wagering functionality in Italy later this quarter, vending-machine expansion and new national retail distribution; management expects more pronounced acceleration in the second half of the year. Main risks called out: multistate jackpot volatility (notably New Jersey LMA sensitivity), UK transition impact, and modest inflationary cost pressures (postage/freight).