The core lottery business shows stable same-store sales growth (+1.5% globally), but reported revenue is depressed by the accounting amortization of the new Italian Lotto license. The large cash outflow for the license is a one-time event, and liquidity remains adequate at $1.74B. Monitor the ramp of OPtiMa 3.3 cost savings and the trajectory of U.S. MSJP activity, which is a key driver of operating revenue.
Price Chart
Executive Summary
Brightstar Lottery PLC reported Q2 2026 results with total revenue of $584M, down 7% YoY from $631M, primarily due to increased amortization of the Italian Lotto license fee and the transition of the UK contract. Income from continuing operations swung to a profit of $56M from a loss of $60M in Q2 2025, driven by a $102M favorable FX swing, lower taxes, and restructuring cost reductions. The company paid the final $1.675B Italian Lotto license installment in April, causing a large operating cash outflow, and initiated a new restructuring phase (OPtiMa 3.3) expected to generate ~$20M in annual savings by 2028.
Key Facts
- Total revenue declined 7% YoY to $584M in Q2 2026 (from $631M in Q2 2025).
- Income from continuing operations was $56M, compared to a loss of $60M in Q2 2025.
- Diluted EPS from continuing operations was $0.18, vs. a loss of $0.47 in Q2 2025.
- Operating cash flow from continuing operations was negative $1.174B in H1 2026, driven by the $1.675B Italian Lotto license final installment payment.
- The company initiated OPtiMa 3.3 restructuring, expected to cost $15-20M and generate ~$20M in annual savings by 2028.
- A quarterly dividend of $0.23 per share was declared, payable Sept 1, 2026.
- The company had $186M remaining under its $500M share repurchase program as of June 30, 2026.
- Global same-store sales grew 1.5% in Q2 2026, with U.S. MSJP up 11.1% and Italy up 1.5%.
- Total liquidity was $1.742B at June 30, 2026, down from $3.036B at Dec 31, 2025.
- The effective tax rate was 11.5% in Q2 2026 vs. (482.6)% in Q2 2025, benefiting from a $17M Mexican tax settlement.
Financial Impact
Revenue declined $47M (-7%) YoY in Q2; operating cash flow negative $1.174B in H1 due to $1.675B license payment; income swing of +$116M from continuing operations.
Risk Factors
- Revenue decline of 7% YoY, partly structural from UK contract loss and license amortization.
- High debt load of $4.35B with ~40% floating-rate exposure; interest rate sensitivity.
- Restructuring execution risk for OPtiMa 3.3; expected savings may not materialize.
- Dependence on U.S. multi-state jackpot activity, which is volatile.
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 4 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 6-K Filing (Primary) | 0001628280-26-052565 |
| Document: 0001628280-26-052565-index-headers.html | 0001628280-26-052565 |
| Document: 0001628280-26-052565-index.html | 0001628280-26-052565 |
| Document: 0001628280-26-052565.txt | 0001628280-26-052565 |
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%) |
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