Brightstar Lottery cuts 2026 revenue outlook to $2.435–$2.455 billion

Key Facts

Brightstar Lottery cut its fiscal 2026 revenue outlook to a range of $2.435 billion to $2.455 billion, from $2.50 billion to $2.55 billion previously, the company said on November 10, 2026, alongside results for the third quarter ended September 30. The company kept its operating cash flow outlook unchanged, indicating that the revenue adjustment was not accompanied by a corresponding change in its operating cash flow estimate. It also cut its adjusted EBITDA range to $1.14–$1.16 billion from $1.16–$1.19 billion. The company attributed the earnings adjustment mainly to foreign exchange movements. The outlook revision combines assumptions about second-half sales, the timing of digital expansion in Italy, the impact of currency, and the amortization of service revenue tied to the Italian Lotto license.

Third-quarter revenue was $607 million, down 4% from $629 million in the same period a year earlier, while adjusted EBITDA fell 2% to $289 million from $294 million. Net income from continuing operations declined to $45 million from $95 million a year earlier, a decrease of 53%. Adjusted earnings per share were $0.10, compared with $0.36 in the year-earlier quarter. For the first nine months of the year, revenue was $1.78 billion, down 4%, while adjusted EBITDA rose 5% to $861 million from $818 million. The divergence between revenue and adjusted earnings over the period highlights the impact of business mix and cost factors cited by the company alongside sales pressure.

The company said weaker same-store sales limited revenue growth, attributing this mainly to the performance of U.S. multi-state lottery jackpots, as well as the transition of a U.K. services contract and foreign currency translation. By contrast, product sales rose to $60 million from $25 million, and other revenue increased to $121 million from $109 million. But amortization of upfront license fees rose to $99 million from $53 million, tied to higher amortization of service revenue connected with the Italian Lotto license. The company estimated the additional impact of this amortization at about $175 million in its updated 2026 revenue outlook. The chief executive said revenue and earnings were "in line with our expectations," despite investments to strengthen the contract portfolio, expand technology and service offerings, and accelerate innovation in games and products.

For its currency assumptions, the company based its new outlook on a euro-to-dollar exchange rate of 1.12 in the fourth quarter of 2026 and 1.15 for the full year, compared with a previous assumption of 1.17 for both periods. It also cut its capital expenditure outlook to about $450 million from a previous range of $450 million to $475 million, saying the change reflected a shift in the timing of spending between 2026 and 2027. Total liquidity was $1.9 billion as of September 30, including about $0.5 billion in unrestricted cash and $1.3 billion of additional borrowing capacity from undrawn facilities. The operating cash flow outlook included about $1.67 billion tied to the final payment for the Italian Lotto license, and about $750 million in cash flow excluding it; the company said both estimates were consistent with the previous outlook. BRSL shares closed at $10.01 on November 9, according to EL7 data.

In the prior period, the company reported second-quarter revenue of $584 million, down 7% year over year, while adjusted EBITDA rose 4% to $286 million; it had reaffirmed its annual outlook at the time. The chief financial officer said in the current results announcement that profitability was "strong and resilient," adding that the company was focused on disciplined execution and cost efficiency. The board declared a quarterly cash dividend of $0.23 per share for shareholders of record on November 24, payable on December 8, 2026. Ahead of the results announcement, bidding processes for contracts in New York and Texas were among the developments followed by the market, with the procedures expected to conclude by year-end. Indicators cited in a previous Reuters report included same-store sales trends and progress in digital lottery offerings, along with expected renewals of major contracts.