Brightstar Lottery Posts $584M Q2 Revenue, Sees 7% Decline Year-on-Year

Brightstar Lottery reported second quarter revenue of $584 million, a drop of 7% compared with the same period in 2025. The company said the headline decline masks steady growth in its core lottery operations, where global same‑store sales continued to rise. 

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The quarter also carried heavier non‑cash charges tied to the Italy Lotto license and changes in the U.K. business, which weighed on reported revenue. 

Even so, Brightstar moved back into the black on continuing operations, posting income of $56 million versus a loss a year earlier. Management framed the results as proof that the business can absorb major contract transitions while still growing its underlying lottery wagers and keeping margins strong.

Chief executive Vince Sadusky said “better-than-expected second quarter profits were driven by global same-store sales expansion and disciplined operational management, even as we invest in long-term growth initiatives.” 

Same-store growth supports profits as Italy and UK weigh on revenue

The revenue line fell from $631 million to $584 million year-on-year, but Brightstar’s core lottery engine kept moving forward. 

Instant ticket and draw wager-based revenue held steady at $517 million, while U.S. multi‑state jackpot wager-based revenue rose to $17 million, up 14% at constant currency. Global same‑store sales for instant ticket and draw games grew 1.1%, and total global same‑store sales, including jackpots, increased 1.5%.

In the US, same‑store sales for instant and draw games edged up, and multi‑state jackpots rebounded sharply from last year’s weaker comparison.

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The main drag on reported revenue came from higher amortization of upfront license fees related to the Italy Lotto contract and the transition of a UK service agreement.

Upfront license fee amortization almost doubled, moving from $53 million to $100 million in the quarter. At the same time, product sales fell from $42 million to $34 million. These items pushed total service revenue down 6% and overall revenue down 7%, even though underlying wager-based activity grew. 

Cash flow shaped by Italy Lotto payment and capital returns

The Italy Lotto license payment dominated Brightstar’s cash flow picture. The company completed its final payment of €1.43 billion ($1.67 billion) in April, which pushed operating cash flow into negative territory for the quarter. 

Free cash flow also reflected this one‑off outflow. Even so, Brightstar ended the quarter with $1.7 billion in total liquidity, including $0.6 billion in unrestricted cash and $1.2 billion in available credit. 

Brightstar continued returning capital to shareholders, deploying more than $140 million year‑to‑date. The Board declared a quarterly dividend of $0.23 per share, payable September 1, 2026.

The company also reaffirmed its full‑year 2026 guidance, projecting revenue between $2.50 billion and $2.55 billion, with more than 5% organic growth. Adjusted EBITDA is expected to reach $1.16 billion to $1.19 billion, with OPtiMa savings helping offset roughly $50 million in growth investments.

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