Brightstar Lottery Revenue Falls 4% to $607 Million in Third Quarter
Key Facts
Brightstar Lottery reported revenue of $607 million for the third quarter on November 10, 2026, down 4% from $629 million a year earlier, or 3% on a constant-currency basis. The company said revenue and earnings were in line with its expectations, while income from continuing operations was $45 million, compared with $95 million in the year-earlier period. It said the decline in income was primarily related to higher non-cash amortization of service revenue associated with the new Italy Lottery license. Adjusted EBITDA was $289 million, compared with $294 million a year earlier. The results showed a divergence between growth in product sales and pressure on service revenue, alongside a reduction in the full-year outlook.
Product sales rose to $60 million from $25 million in the third quarter of 2025, an annual increase of 137%. By contrast, service revenue fell to $547 million from $604 million, a decline of 9%. The company said growth drivers included higher global product sales, an improved margin mix, other service revenue and cost efficiencies. These were offset by weaker same-store sales, the U.K. contract transition, investments and currency effects. The divergence highlights that improved sales depended on products, while service revenue, the larger of the two categories, remained under year-over-year pressure.
The margin on income from continuing operations fell to 7.4% from 15.0% a year earlier, as the amount of income declined to $45 million from $95 million. The company attributed the drop primarily to higher service-revenue amortization related to the new Italy Lottery license, among other factors. On the other hand, the adjusted EBITDA margin rose to 47.5% from 46.7%, despite a decline in the amount to $289 million from $294 million. Chief Executive Vince Sadusky said revenue and earnings were "in line with our expectations." He added that the company continues to invest to strengthen its contract portfolio, expand its technology and service offerings, and accelerate innovation in games and products.
Brightstar cut its fiscal 2026 revenue forecast to a range of $2.435 billion to $2.455 billion, from its previous range of $2.50 billion to $2.55 billion. It also lowered its adjusted EBITDA forecast to $1.14–$1.16 billion, compared with $1.16–$1.19 billion previously. The revised full-year outlook came as the company said quarterly results were in line with expectations and after it recorded year-over-year declines in revenue and adjusted EBITDA. The published estimates for the year are now below the previous ranges for both revenue and adjusted EBITDA. The available information did not include a separate explanation for changing the two ranges beyond the performance drivers the company cited for the quarter.
The company left its fiscal 2026 operating cash forecast unchanged, with net cash use of about $900 million. The estimate includes a final payment of $1.67 billion for the Italy Lottery license, while the company expects about $750 million in cash from operations excluding that payment. This puts the license cost at the center of expected cash movement for the year, alongside its related revenue-amortization impact on income from continuing operations. In a separate decision announced on November 10, the board approved a quarterly cash dividend of $0.23 per share. The company set November 24, 2026, as the record date and December 8, 2026, as the payment date.
In the second quarter, the company reported revenue of $584 million and said sustained growth in global retail lottery sales was offset by higher service-revenue amortization and the U.K. contract transition. In the November 9 session, before the third-quarter results were announced, BRSL shares closed at $10.01, according to EL7 data. The company’s investor-relations calendar listed the third-quarter results webcast for November 10, 2026, at 8:00 a.m. Eastern Time. The third-quarter results combine the ongoing impact of the U.K. contract transition and weaker same-store sales with growth in global product sales and an improved margin mix. The announced cash dividend has a record date of November 24 and will be paid on December 8, 2026.