Brightstar Reports Q1 2026 EBITDA Growth
iGaming and lottery supplier Brightstar Lottery PLC reported first-quarter 2026 revenue of $587m, representing a 1% increase year-on-year, while adjusted EBITDA rose 15% to $287m as the company maintained its full-year guidance.
The company said quarterly revenue growth was driven by strong same-store sales in Italy, a favourable sales mix in the US and positive foreign exchange movements. These gains were partly offset by higher service revenue amortisation related to the Italy Lotto licence and the continued transition of a UK service contract.
Income from continuing operations reached $63m in the quarter ended 31 March 2026, compared with $8m during the same period in 2025. Diluted earnings per share from continuing operations came to $0.20, improving from a diluted loss per share of $0.11 a year earlier.
Adjusted EBITDA margin increased to 48.9%, up from 42.8% in Q1 2025. Brightstar said the improvement reflected Italy same-store sales growth, operational efficiencies from its OPtiMa programme, lower LMA shortfall and favourable currency translation. These benefits were partially balanced by investments in growth initiatives, UK transition-related expenses, inflationary pressures and higher staffing and retention costs.
Cash and cash equivalents totalled $1.25bn at 31 March 2026, compared to $631m a year earlier, while net debt stood at $2.75bn. Net debt leverage remained unchanged at 2.4x. Total liquidity reached $2.8bn, including $1.6bn available through undrawn credit facilities.
Operating cash flow for the quarter was $165m, down 10% year-on-year, while free cash flow declined from $109m in Q1 2025 to $55m. The company stated that more than $70m was returned to shareholders during the quarter.
Brightstar also confirmed that the final €1.43bn payment for the Italy Lotto licence, equivalent to around $1.67bn, was completed in April 2026. During the same month, the company refinanced its revolving credit facility through to March 2031 under updated terms.
The Board of Directors declared a quarterly cash dividend of $0.23 per common share, payable on 11 June 2026 to shareholders on record as of 28 May 2026.
For FY26, Brightstar reaffirmed its outlook, forecasting revenue between $2.50bn and $2.55bn and adjusted EBITDA ranging from $1.16bn to $1.19bn. The guidance includes expectations of more than 5% organic growth and approximately $175m in additional service revenue amortisation linked to the Italy Lotto licence.
The company also maintained expectations of roughly $900m in net cash used in operating activities during FY26, reflecting the Italy Lotto payment, alongside planned capital expenditure between $450m and $475m connected 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.
“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” added Max Chiara.
