The revenue decline is largely structural (non-cash SRA amortization and U.K. contract transition), while underlying same-store sales and EBITDA are growing. With the final Italy Lotto payment behind, cash flow should inflect in H2. Monitor the pace of OPtiMa savings realization and any updates on the U.K. contract transition timeline.
Price Chart
Executive Summary
Brightstar Lottery PLC reported Q2 2026 results with revenue of $584M (down 7% YoY) but income from continuing operations swung to a $56M profit from a $60M loss last year. Adjusted EBITDA rose 4% to $286M, driven by same-store sales growth and OPtiMa cost savings. The company reaffirmed FY26 guidance and raised its OPtiMa cost savings target to $100M by 2028, while the final Italy Lotto license payment of $1.67B was made in April, positioning the company for cash flow inflection.
Key Facts
- Revenue declined 7% YoY to $584M from $631M, primarily due to higher service revenue amortization and the U.K. contract transition.
- Income from continuing operations was $56M, compared to a loss of $60M in Q2 2025, driven by lower restructuring charges and favorable FX impacts.
- Adjusted EBITDA increased 4% to $286M (up 3% at constant currency), with margin expanding to 48.9% from 43.5%.
- Adjusted diluted EPS fell 8% to $0.11 from $0.12, impacted by $0.23/share of service revenue amortization.
- FY26 guidance reaffirmed: revenue $2.50-$2.55B, Adjusted EBITDA $1.16-$1.19B, CapEx ~$450-$475M.
- OPtiMa cost savings target upgraded to ~$100M by 2028, with a new Phase 3.3 expected to generate ~$20M in annual savings.
- Final Italy Lotto license payment of $1.67B made in April 2026; net debt rose to $3.79B from $2.72B at year-end 2025.
- Quarterly dividend of $0.23/share declared; $140M returned to shareholders YTD via dividends and buybacks.
- Global same-store sales grew 1.5% at constant currency, with U.S. multi-state jackpots up 11.1% and iLottery wagers up 22% in H1.
Financial Impact
Revenue down $47M YoY (-7%), but Adjusted EBITDA up $12M (+4%). Income swung positive by $116M vs a loss last year. Net debt increased $1.07B due to the Lotto license payment.
Risk Factors
- Higher-than-expected service revenue amortization continuing to suppress reported revenue growth.
- Execution risk on OPtiMa 3.3 restructuring and achieving the upgraded $100M savings target by 2028.
- Elevated net debt leverage at 3.24x post-Lotto payment could limit financial flexibility if growth initiatives underperform.
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 6-K Filing (Primary) | 0001628280-26-052120 |
| Document: q226earningsslidedeck-fi.htm | 0001628280-26-052120 |
| Document: a6-kx2q26earningsrelease.htm | 0001628280-26-052120 |
| Document: 0001628280-26-052120-index-headers.html | 0001628280-26-052120 |
| Document: 0001628280-26-052120-index.html | 0001628280-26-052120 |
| Document: 0001628280-26-052120.txt | 0001628280-26-052120 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 22, 2026 4d ago | 6-K | $9.48 | awaiting T+20 | — | $9.50 (+0.21%) |
Oct 22, 2026 5d ago | Press Release | $9.56 | awaiting T+20 | — | $9.50 (−0.63%) |
Oct 20, 2026 6d ago | 6-K | $9.23 | awaiting T+20 | — | $9.50 (+2.93%) |
Oct 19, 2026 8d ago | Press Release | $9.43 | awaiting T+20 | — | $9.50 (+0.74%) |
Sep 16, 2026 5w ago | 6-K | $10.53 $9.56 | ▼ −9.21% | ▼ −11.27% | $9.50 (−9.78%) |
Sep 16, 2026 5w ago | Press Release | $10.53 $9.56 | ▼ −9.21% | ▼ −11.27% | $9.50 (−9.78%) |
Aug 4, 2026 11w ago | 6-K | $11.30 $11.17 | ▼ −1.15% | ▼ −0.55% | $9.50 (−15.93%) |
Aug 4, 2026 12w ago | 6-K | $11.30 $11.17 | ▼ −1.15% | ▲ +0.09% | $9.50 (−15.93%) |
Jul 15, 2026 14w ago | Press Release | $10.73 $11.31 | ▲ +5.41% | ▲ +3.06% | $9.50 (−11.46%) |
Jul 13, 2026 15w ago | Press Release | $10.82 $11.00 | ▲ +1.66% | ▼ −1.52% | $9.50 (−12.20%) |
US Market Status
Subscribe to SecBot
Get Real-Time SEC Filing Intelligence
Comprehensive SEC filing analysis delivered the moment filings hit EDGAR. Sentiment scoring, impact analysis, and actionable insights for every material event.
Create a free account Live analysis, Telegram alerts, watchlists and the MCP server for subscribers