iGaming and lottery supplier Brightstar Lottery PLC has reported first quarter 2026 revenue of $587m, up 1% year-on-year, alongside adjusted EBITDA growth of 15% to $287m as the company maintained its full-year financial outlook.
The group stated that revenue growth during the quarter was supported by Italy same-store sales performance, a positive sales mix in the US and favourable foreign currency translation, partially offset by increased service revenue amortisation linked to the Italy Lotto licence and the ongoing transition of a UK service contract.
Income from continuing operations reached $63m for the quarter ended 31 March 2026, compared to $8m in the same period last year. Diluted earnings per share from continuing operations were $0.20, compared to a diluted loss per share of $0.11 in Q1 2025.
Adjusted EBITDA margin increased to 48.9% from 42.8% in the prior-year period. Brightstar attributed the improvement to higher Italy same-store sales growth, operational efficiencies delivered through its OPtiMa programme, reduced LMA shortfall and foreign exchange translation benefits. These gains were partially offset by investment into growth initiatives, UK transition costs, inflationary pressures and increased spending related to staffing and retention initiatives.
Cash and cash equivalents stood at $1.25bn as of 31 March 2026, compared to $631m a year earlier, while net debt totalled $2.75bn. Net debt leverage remained at 2.4x. Total liquidity was reported at $2.8bn, including $1.6bn in available borrowing capacity through undrawn credit facilities.
Operating cash flow for the quarter totalled $165m, down 10% year-on-year, while free cash flow declined to $55m from $109m in Q1 2025. The company noted that over $70m was returned to shareholders during the quarter.
Brightstar also confirmed that the final Italy Lotto licence payment of €1.43bn, equivalent to approximately $1.67bn, was completed in April 2026. During the same month, the company refinanced its revolving credit facility through to March 2031 with revised terms.
The Board of Directors declared a quarterly cash dividend of $0.23 per common share, payable on 11 June 2026 to shareholders of record as of 28 May 2026.
Looking ahead, Brightstar reaffirmed its FY26 outlook, projecting revenue between $2.50bn and $2.55bn and adjusted EBITDA of $1.16bn to $1.19bn. The guidance includes expectations of more than 5% organic growth, as well as the impact of approximately $175m in additional Italy Lotto-related service revenue amortisation.
The company also reiterated expectations for approximately $900m in net cash used in operating activities during FY26, reflecting the Italy Lotto payment, alongside planned capital expenditure of between $450m and $475m tied to recently secured contracts and extensions.
“We delivered a solid start to the year, with first-quarter results reflecting the strength of our global portfolio and disciplined execution against our strategic priorities,” said Vince Sadusky, CEO of Brightstar. “We are investing in exciting long-term growth initiatives and returned over $70 million to shareholders in the period, demonstrating the confidence we have in the durability of our cash flows. We’re on track with our multi-year goal of delivering accelerated sales and profit growth that we expect to create compelling, incremental value.”
“During the quarter, we continued to deliver OPtiMa cost savings while maintaining a disciplined approach to discretionary spend, carefully balancing cost control against strategic priorities, to sustain our profitable growth trajectory,” said Max Chiara, CFO of Brightstar. “Our balance sheet and credit profile are strong with historically low net debt leverage and manageable near-term debt maturities. The Company’s attractive margin structure and strong cash generation, coupled with access to significant liquidity, provide substantial support for our capital allocation plans.”
