BRIGHTSTAR LOTTERY PLC REPORTS FIRST QUARTER 2026 RESULTS
Rhea-AI Summary
Brightstar Lottery (NYSE:BRSL) reported Q1 2026 revenue of $587 million, up 1% year-over-year, with income from continuing operations rising to $63 million and diluted EPS at $0.20.
Adjusted EBITDA increased 15% to $287 million, liquidity totaled $2.8 billion, a $0.23 dividend was declared, and 2026 revenue and profit guidance were reaffirmed.
AI-generated analysis. Not financial advice.
Positive
- Revenue up 1% year-over-year to $587 million
- Income from continuing operations increased to $63 million from $8 million
- Adjusted EBITDA rose 15% to $287 million with 48.9% margin
- Diluted EPS improved to $0.20 from $(0.11)
- Adjusted diluted EPS increased 57% to $0.14
- Cash and cash equivalents grew 98% year-over-year to $1.249 billion
- Net debt declined 45% year-over-year to $2.752 billion
- Over $70 million returned to shareholders in Q1 2026
- Total liquidity of $2.8 billion, including $1.6 billion of undrawn facilities
- Board declared a quarterly dividend of $0.23 per share
- Reaffirmed FY 2026 revenue guidance of $2.50–$2.55 billion
- Reaffirmed FY 2026 Adjusted EBITDA guidance of $1.16–$1.19 billion
Negative
- Revenue decreased 4% on a constant currency basis
- Net cash provided by operating activities declined 10% to $165 million
- Free cash flow decreased 49% year-over-year to $55 million
- FY 2026 net cash used in operating activities guided at about $900 million
- FY 2026 capital expenditures guided at $450–$475 million
- Net debt stood at $2.752 billion with net debt leverage of 2.4x
Key Figures
Market Reality Check
Peers on Argus
BRSL is down 2.15% while key peers are mixed: SBET (+5.29%), RSI (+1.59%), SGHC (+1.93%), CHDN (-2.39%), SGMS (flat). This points to a stock-specific reaction to earnings rather than a broad gambling-sector move.
Previous Earnings Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Feb 24 | Q4 & FY25 earnings | Positive | +5.1% | Q4 and FY25 beats with higher dividend and solid FY’26 guidance. |
| Nov 04 | Q3 2025 earnings | Positive | +0.4% | Q3 growth, $4B Gaming sale, strong liquidity, and major shareholder returns. |
| Jul 29 | Q2 2025 earnings | Positive | +7.6% | Q2 Adjusted EBITDA strength, Italy Lotto license, and robust liquidity. |
Recent earnings releases have typically been followed by positive share-price reactions, suggesting the current negative move is atypical versus past earnings days.
Across the last three earnings reports, Brightstar highlighted steady revenue in the $2.5B range and Adjusted EBITDA above $1.1B annually, alongside debt reduction and sizable shareholder returns. Q2 and Q3 2025 emphasized same-store sales growth and liquidity following the $4B Gaming sale. Q4 2025 reinforced this with net debt at $2.7B and an increased dividend. Today’s Q1’26 results, with higher Adjusted EBITDA and reaffirmed FY’26 guidance, continue that trajectory.
Historical Comparison
In the past three earnings releases, BRSL’s average 24h move was 4.39% to the upside. Today’s -2.15% reaction to Q1’26 results contrasts with that pattern and indicates a weaker-than-typical price response.
Earnings updates since mid‑2025 show Brightstar moving from post‑sale integration of its Gaming divestiture toward a focused lottery profile with recurring Adjusted EBITDA above $1.1B, steady revenue in the $2.5B range, and ongoing debt reduction and shareholder distributions. The Q1’26 report extends this path with higher Adjusted EBITDA, improved EPS versus prior-year losses, and reaffirmed FY’26 revenue and profit guidance.
Market Pulse Summary
This announcement delivered Q1’26 revenue of $587M, a 15% rise in Adjusted EBITDA to $287M, and EPS improving to $0.20 from a prior loss, while reaffirming FY’26 revenue guidance of $2.50–$2.55B. Management highlighted OPtiMa cost savings, strong liquidity of $1,249M in cash, and a $0.23 dividend. Investors may monitor execution on Italy-related amortization, capital expenditures of $450–$475M, and future earnings versus these targets.
Key Terms
adjusted ebitda financial
adjusted eps financial
free cash flow financial
net debt financial
net debt leverage financial
non-gaap financial
constant currency financial
form 20–f regulatory
AI-generated analysis. Not financial advice.
- Revenue up on strong
Italy performance, positiveU.S. sales mix, and foreign currency translation, partially offset by increased service revenue amortization andU.K. transition - Income from continuing operations of
$63 million $287 million 15% , or5% at constant currency, on profit flow-through of higher revenue and operational discipline - Continued commitment to shareholder returns with over
$70 million - Strong balance sheet and credit profile; reaffirming 2026 revenue and profit outlook
"We delivered a solid start to the year, with first-quarter results reflecting the strength of our global portfolio and disciplined execution against our strategic priorities," said Vince Sadusky, CEO of Brightstar. "We are investing in exciting long-term growth initiatives and returned over
"During the quarter, we continued to deliver OPtiMa cost savings while maintaining a disciplined approach to discretionary spend, carefully balancing cost control against strategic priorities, to sustain our profitable growth trajectory," said Max Chiara, CFO of Brightstar. "Our balance sheet and credit profile are strong with historically low net debt leverage and manageable near-term debt maturities. The Company's attractive margin structure and strong cash generation, coupled with access to significant liquidity, provide substantial support for our capital allocation plans."
Overview of Consolidated First Quarter 2026 Results
Quarter Ended | Y/Y | Constant | |||
All amounts from continuing operations | March 31, | ||||
2026 | 2025 | ||||
($ in millions, except per share data) | |||||
GAAP Financials: | |||||
Revenue | 587 | 583 | 1 % | (4 %) | |
Income from continuing operations | 63 | 8 | NM | ||
Income from continuing operations margin | 10.7 % | 1.4 % | |||
Earnings per share - diluted | NA | ||||
Net cash provided by operating activities | 165 | 185 | (10 %) | ||
Cash and cash equivalents | 1,249 | 631 | 98 % | ||
Non-GAAP Financial Measures: | |||||
Adjusted EBITDA | 287 | 250 | 15 % | 5 % | |
Adjusted EBITDA margin | 48.9 % | 42.8 % | |||
Adjusted earnings per share - diluted | 57 % | ||||
Free cash flow | 55 | 109 | (49 %) | ||
Net debt | 2,752 | 5,047 | (45 %) | ||
Note: Reconciliations of non-GAAP financial measures to the most directly comparable GAAP financial measures, and other disclosures regarding non-GAAP financial measures, are provided at the end of this news release |
Financial Highlights
Revenue of
3.1% Italy same-store sales and positive mix in theU.S. - Reduced LMA shortfall and higher pass-through revenue
- Benefit from foreign currency translation
- Higher service revenue amortization related to Italy Lotto license
U.K. service contract transition
Income from continuing operations was
- Items listed as drivers of change in Adjusted EBITDA below
- Non-cash impact of fluctuations in the EUR/USD exchange rate on debt balances at the Parent
- Reduced provision for income taxes
Adjusted EBITDA increased
- Key drivers of growth include:
- Profit flow-through of higher
Italy same-store sales growth - OPtiMa cost efficiencies and General & administrative expense recoveries
- Reduced LMA shortfall
- Benefit of foreign currency translation
- Profit flow-through of higher
- Partial offsets to growth include:
- Investments in growth initiatives
U.K. service contract transition- Human capital investments tied to retention, execution, and long-term value
- Inflationary pressures on postage & freight and other costs
Diluted income per share from continuing operations was
Net debt was
Cash and Liquidity Update
Total liquidity was
Other Developments
The Company's Board of Directors declared a quarterly cash dividend of
Final Italy Lotto license payment of
Successfully refinanced revolving credit facility to March 2031, with improved terms, in April 2026.
Financial Outlook
Reaffirming FY'26 revenue and profit outlook:
- Revenue of
$2.50 $2.55 billion - Includes more than five percent organic growth; approximately
$175 million
- Includes more than five percent organic growth; approximately
- Adjusted EBITDA of
$1.16 $1.19 billion $50 million - Net cash used in operating activities of approximately
$900 million €1.43 billion or$1.67 billion $750 million - Capital expenditures of approximately
$450 million $475 million
Earnings Conference Call and Webcast
May 12, 2026, at 8:00 a.m. EDT
To register to participate in the conference call, or to listen to the live audio webcast, please visit the "Events Calendar" on Brightstar's Investor Relations website at www.brightstarlottery.com. A replay will be available on the website following the live event.
Comparability of Results
All figures presented in this news release are prepared under
About Brightstar Lottery PLC
Brightstar Lottery PLC (NYSE: BRSL) is a global leader in lottery focused on innovation and forward-thinking strategies and solutions, building on our renowned expertise in delivering secure technology and producing reliable, comprehensive solutions for our customers. As a premier pure play global lottery company, our best-in-class lottery operations, retail and digital solutions, and award-winning lottery games enable our customers to achieve their goals, entertain players and distribute meaningful benefits to communities. Brightstar has a well-established local presence and is a trusted partner to governments and regulators around the world, creating value by adhering to the highest standards of service, integrity, and responsibility. Brightstar serves nearly 90 lottery customers and their players on six continents. It is the primary technology provider to 26 of the 46 lottery jurisdictions in the
Cautionary Statement Regarding Forward-Looking Statements
This release contains forward–looking statements within the meaning of the
Non-GAAP Financial Measures
Management supplements the reporting of financial information, determined under GAAP, with certain non-GAAP financial information. Management believes the non-GAAP information presented provides investors with additional useful information, but it is not intended to, nor should it be considered in isolation or as a substitute for the related GAAP measures. Moreover, other companies may define non-GAAP measures differently, which limits the usefulness of these measures for comparisons with such other companies. The Company encourages investors to review its financial statements and publicly filed reports in their entirety and not to rely on any single financial measure.
Adjusted EBIT represents net income (loss) from continuing operations (a GAAP measure) before income taxes, interest expense, net, foreign exchange gain (loss), net, other expenses (e.g., gains/losses on extinguishment and modifications of debt, etc.), net, impairment losses, restructuring expenses, stock-based compensation, litigation expense (income), and certain other non-recurring items. Other non-recurring items are infrequent in nature and are not reflective of ongoing operational activities. Management believes that Adjusted EBIT is useful in providing period-to-period comparisons of the results of the Company's ongoing operational performance.
Adjusted EBIT margin represents Adjusted EBIT divided by revenue.
Adjusted EBITDA represents net income (loss) from continuing operations (a GAAP measure) before income taxes, interest expense, net, foreign exchange gain (loss), net, other expenses (e.g., gains/losses on extinguishment and modifications of debt, etc.), net, depreciation, impairment losses, amortization (service revenue, purchase accounting, and non-purchase accounting), restructuring expenses, stock-based compensation, litigation expense (income), and certain other non-recurring items. Other non-recurring items are infrequent in nature and are not reflective of ongoing operational activities. Management believes that Adjusted EBITDA is useful in providing period-to-period comparisons of the results of the Company's ongoing operational performance.
Adjusted EBITDA margin represents Adjusted EBITDA divided by revenue.
Adjusted EPS represents diluted earnings per share (a GAAP measure), excluding the effects of foreign exchange, impairments, amortization from purchase accounting, discrete tax items, and other significant non-recurring adjustments that are not reflective of on-going operational activities (e.g., gains/losses on sale of business, gains/losses on extinguishment and modifications of debt, etc.). Adjusted EPS is calculated using diluted weighted-average number of shares outstanding, including the impact of any potentially dilutive common stock equivalents that are anti-dilutive to GAAP net income (loss) per share but dilutive to Adjusted EPS. Management believes that Adjusted EPS is useful in providing period-to-period comparisons of the results of the Company's ongoing operational performance.
Net debt is a non-GAAP financial measure that represents debt (a GAAP measure, calculated as long-term obligations plus short-term borrowings) minus capitalized debt issuance costs and cash and cash equivalents, including cash and cash equivalents classified as held for sale. Cash and cash equivalents, including cash and cash equivalents held for sale, are subtracted from the GAAP measure because they could be used to reduce the Company's debt obligations. Management believes that net debt is a useful measure to monitor leverage and evaluate the balance sheet.
Net debt leverage is a non-GAAP financial measure that represents the ratio of Net debt as of a particular balance sheet date to Adjusted EBITDA for the last twelve months prior to such date. Management believes that net debt leverage is a useful measure to assess Brightstar's financial strength and ability to incur incremental indebtedness when making key investment decisions.
Free cash flow is a non-GAAP financial measure that represents cash flow from operations (a GAAP measure) less capital expenditures. Management believes free cash flow is a useful measure of liquidity and an additional basis for assessing Brightstar's ability to fund its activities, including debt service and distribution of earnings to shareholders.
Constant currency is a non-GAAP adjustment to certain financial measures that expresses current financial data using the prior-year/period exchange rate (i.e., the exchange rate used in preparing the financial statements for the prior year). Management believes that constant currency is a useful measure to compare period-to-period results without regard to the impact of fluctuating foreign currency exchange rates.
A reconciliation of the non-GAAP measures to the corresponding amounts prepared in accordance with GAAP appears in the tables in this release. The tables provide additional information as to the items and amounts that have been excluded from the adjusted measures.
The Company provides guidance of select information related to its financial and operating performance, and such measures may differ from year to year. The guidance is only an estimate of what the Company believes is realizable as of the date of this release. Actual results may vary from the guidance and the variations may be material. The Company undertakes no intent or obligation to publicly update or revise any of these projections, whether as a result of new information, future events or otherwise, except as required by law.
A reconciliation of the Company's forward-looking non-GAAP financial measures to the most directly comparable GAAP financial measure cannot be provided without unreasonable effort. This is due to the inherent difficulty of accurately forecasting the occurrence and financial impact of the adjusting items necessary for such a reconciliation to be prepared, for example, the provision for income taxes or net foreign exchange gain/loss, as such items have not yet occurred, are out of the Company's control, or cannot be reasonably predicted.
Contact
Mike DeAngelis, Corporate Communications, +1 (401) 392-1000, mike.deangelis@brightstarlottery.com
Matteo Selva, Italian media inquiries, +39 366 6803635
James Hurley, Investor Relations, +1 (401) 392-7190
Select Performance and KPI data ($ in millions, unless otherwise noted) | |||||||||
Constant | |||||||||
Q1'26 | Q1'25 | Y/Y | Currency | ||||||
Revenue | Change | Change(1) | |||||||
Service | |||||||||
Instant ticket & draw wager-based revenue | 537 | 500 | 7 % | — % | |||||
| 17 | 17 | 2 % | 2 % | |||||
Upfront license fee amortization | (101) | (48) | 109 % | 88 % | |||||
Other | 106 | 89 | 19 % | 14 % | |||||
Total service revenue | 558 | 557 | — % | (5 %) | |||||
Product sales | 29 | 26 | 12 % | 9 % | |||||
Total revenue | 587 | 583 | 1 % | (4 %) | |||||
Income from continuing operations | 63 | 8 | NM | ||||||
Adjusted EBIT | 133 | 148 | (10 %) | (18 %) | |||||
Adjusted EBITDA(1) | 287 | 250 | 15 % | 5 % | |||||
Same-store sales growth (%) at constant currency (wager-based growth) (2) | |||||||||
Global | |||||||||
Instant ticket & draw games | 1.2 % | (0.1 %) | |||||||
(0.9 %) | (46.1 %) | ||||||||
Total | 1.1 % | (3.8 %) | |||||||
Instant ticket & draw games | — % | (1.3 %) | |||||||
(0.9 %) | (46.1 %) | ||||||||
Total | — % | (6.9 %) | |||||||
Instant ticket & draw games | 3.1 % | (0.7 %) | |||||||
Rest of world | |||||||||
Instant ticket & draw games | 5.8 % | 5.2 % | |||||||
(1) Non-GAAP measure; see disclaimer on page 4 and reconciliations to the most directly comparable GAAP measure in Appendix for further details | |||||||||
(2) Same-store sales represents the change in wagers recorded in lottery jurisdictions where Brightstar is the operator or facilities management supplier, using | |||||||||
Constant | |||||||||
Q1'26 | Q1'25 | Y/Y | Currency | ||||||
Change | Change(1) | ||||||||
Same-store revenue growth (%) at constant currency (Same-store sales inclusive of contract mix) (2) | |||||||||
Global | |||||||||
Instant ticket & draw games | 3.0 % | (0.7 %) | |||||||
2.0 % | (46.4 %) | ||||||||
Total | 3.0 % | (3.3 %) | |||||||
Instant ticket & draw games | 3.1 % | (1.6 %) | |||||||
2.0 % | (46.4 %) | ||||||||
Total | 3.0 % | (8.0 %) | |||||||
Instant ticket & draw games | 2.9 % | (1.0 %) | |||||||
Rest of world | |||||||||
Instant ticket & draw games | 4.2 % | 5.1 % | |||||||
Revenue (by geography) | |||||||||
281 | 259 | 9 % | 9 % | ||||||
236 | 246 | (4 %) | (14 %) | ||||||
Rest of world | 70 | 79 | (11 %) | (18 %) | |||||
Total revenue | 587 | 583 | 1 % | (4 %) | |||||
(1) Non-GAAP measure; see disclaimer on page 4 and reconciliations to the most directly comparable GAAP measure in Appendix for further details | |||||||||
(2) Same-store revenue represents the change in same-store sales net of contract mix | |||||||||
Brightstar Lottery PLC | |||
Condensed Consolidated Statements of Operations | |||
($ and shares in millions, except per share amounts) | |||
Unaudited | |||
For the three months ended | |||
March 31, | |||
2026 | 2025 | ||
Service revenue (includes amortization of upfront license fees) | 558 | 557 | |
Product sales | 29 | 26 | |
Total revenue | 587 | 583 | |
Cost of services (excluding Depreciation and amortization) | 290 | 264 | |
Cost of product sales (excluding Depreciation and amortization) | 23 | 20 | |
General and administrative | 46 | 61 | |
Research and development | 14 | 11 | |
Sales and marketing | 34 | 33 | |
Depreciation and amortization | 53 | 54 | |
Interest expense, net | 43 | 46 | |
Foreign exchange (gain) loss, net | (12) | 33 | |
Other expense (income), net | 4 | 6 | |
Income before provision for income taxes | 92 | 56 | |
Provision for income taxes | 29 | 48 | |
Income from continuing operations | 63 | 8 | |
Less: Net income attributable to non-controlling interests from continuing operations | 26 | 31 | |
Net income (loss) from continuing operations attributable to Brightstar Lottery PLC | 37 | (23) | |
Income from discontinued operations | — | 52 | |
Less: Net income attributable to non-controlling interests from discontinued operations | — | 2 | |
Net income from discontinued operations attributable to Brightstar Lottery PLC | — | 50 | |
Net income | 63 | 60 | |
Net income attributable to non-controlling interests | 26 | 33 | |
Net income attributable to Brightstar Lottery PLC | 37 | 27 | |
Per Share Data | |||
Basic: Net income (loss) from continuing operations attributable to Brightstar Lottery PLC | 0.20 | (0.11) | |
Diluted: Net income (loss) from continuing operations attributable to Brightstar Lottery | 0.20 | (0.11) | |
Basic: Net income attributable to Brightstar Lottery PLC | 0.20 | 0.13 | |
Diluted: Net income attributable to Brightstar Lottery PLC | 0.20 | 0.13 | |
Weighted-average Shares Outstanding | |||
Basic | 186 | 202 | |
Diluted | 187 | 202 | |
Brightstar Lottery PLC | ||||
Condensed Consolidated Balance Sheets | ||||
($ in millions) | ||||
Unaudited | ||||
March 31, | December 31, | |||
2026 | 2025 | |||
Assets | ||||
Current assets: | ||||
Cash and cash equivalents | 1,249 | 1,446 | ||
Restricted cash and cash equivalents | 25 | 54 | ||
Trade and other receivables, net | 561 | 526 | ||
Inventories, net | 125 | 116 | ||
Other current assets | 816 | 193 | ||
Total current assets | 2,776 | 2,336 | ||
Systems, equipment and other assets related to contracts, net | 707 | 678 | ||
Property, plant and equipment, net | 89 | 90 | ||
Operating lease right-of-use assets | 95 | 92 | ||
Goodwill | 2,696 | 2,707 | ||
Intangible assets, net | 124 | 125 | ||
Other non-current assets | 2,977 | 3,130 | ||
Total non-current assets | 6,688 | 6,822 | ||
Total assets | 9,464 | 9,158 | ||
Liabilities and shareholders' equity | ||||
Liabilities | ||||
Current liabilities: | ||||
Accounts payable | 730 | 766 | ||
Current portion of long-term debt | 229 | 118 | ||
Payable to ADM | 1,644 | 1,680 | ||
Other current liabilities | 544 | 508 | ||
Total current liabilities | 3,147 | 3,072 | ||
Long-term debt, less current portion | 3,778 | 4,060 | ||
Deferred income taxes | 197 | 208 | ||
Operating lease liabilities | 75 | 72 | ||
Other non-current liabilities | 158 | 156 | ||
Total non-current liabilities | 4,208 | 4,496 | ||
Total liabilities | 7,356 | 7,568 | ||
Shareholders' Equity | ||||
Brightstar Lottery PLC's shareholders' equity | 848 | 875 | ||
Non-controlling interests | 1,260 | 715 | ||
Total shareholders' equity | 2,108 | 1,590 | ||
Total liabilities and shareholders' equity | 9,464 | 9,158 | ||
Brightstar Lottery PLC | |||
Condensed Consolidated Statements of Cash Flows | |||
($ in millions) | |||
Unaudited | |||
For the three months ended | |||
March 31, | |||
2026 | 2025 | ||
Cash flows from operating activities | |||
Net income | 63 | 60 | |
Less: Income from discontinued operations, net of tax | — | 52 | |
Adjustments to reconcile net income to net cash provided by operating activities from continuing operations: | |||
Amortization of upfront license fees | 101 | 48 | |
Depreciation & amortization | 53 | 54 | |
Stock-based compensation | 7 | 7 | |
Deferred income taxes | (6) | (18) | |
Foreign exchange (gain) loss, net | (12) | 33 | |
Other non-cash items, net | 2 | 6 | |
Changes in operating assets and liabilities, excluding the effects of dispositions: | |||
Trade and other receivables | (43) | 51 | |
Inventories | (9) | 1 | |
Accounts payable | (5) | (39) | |
Accrued interest payable | (4) | (25) | |
Accrued income taxes | 30 | 56 | |
Other assets and liabilities | (11) | 2 | |
Net cash provided by operating activities from continuing operations | 165 | 185 | |
Net cash provided by operating activities from discontinued operations | — | 55 | |
Net cash provided by operating activities | 165 | 240 | |
Cash flows from investing activities | |||
Capital expenditures | (110) | (76) | |
Other | — | (2) | |
Net cash used in investing activities from continuing operations | (110) | (78) | |
Net cash provided by (used in) investing activities from discontinued operations | 24 | (39) | |
Net cash used in investing activities | (86) | (116) | |
Cash flows from financing activities | |||
Proceeds from long-term debt | — | 540 | |
Net repayments of Revolving Credit Facilities | — | (130) | |
Net payments on financial liabilities | (65) | (77) | |
Principal payments on long-term debt | (117) | (208) | |
Repurchases of common stock | (30) | — | |
Net (repayment of) funds payable and amounts due to others | (30) | (16) | |
Dividends paid | (42) | (40) | |
Dividends paid - non-controlling interests | — | (11) | |
Return of capital - non-controlling interests | (2) | — | |
Other | (4) | (19) | |
Net cash (used in) provided by financing activities from continuing operations | (292) | 38 | |
Net cash used in financing activities from discontinued operations | — | (133) | |
Net cash used in financing activities | (292) | (95) | |
Net (decrease) increase in cash and cash equivalents and restricted cash and cash equivalents | (212) | 29 | |
Effect of exchange rate changes on cash and cash equivalents and restricted cash and cash equivalents | (14) | 19 | |
Cash and cash equivalents and restricted cash and cash equivalents at the beginning of the period | 1,500 | 775 | |
Cash and cash equivalents and restricted cash and cash equivalents at the end of the period | 1,274 | 823 | |
Less: Cash and cash equivalents and restricted cash and cash equivalents of discontinued operations | — | 84 | |
Cash and cash equivalents and restricted cash and cash equivalents at the end of the period of continuing operations | 1,274 | 739 | |
Supplemental disclosures of cash flow information for continuing operations: | |||
Interest paid | 49 | 72 | |
Income taxes paid | 4 | 9 | |
Brightstar Lottery PLC | |||
Net Debt | |||
($ in millions) | |||
Unaudited | |||
March 31, | December 31, | ||
2026 | 2025 | ||
573 | 586 | ||
747 | 747 | ||
569 | 581 | ||
744 | 742 | ||
Senior Secured Notes | 2,634 | 2,657 | |
Euro Term Loan Facilities due January 2027 | — | 234 | |
Euro Term Loan Facilities due September 2030 | 1,145 | 1,169 | |
Revolving Credit Facility A due July 2027 | — | — | |
Revolving Credit Facility B due July 2027 | — | — | |
Long-term debt, less current portion | 3,778 | 4,060 | |
Euro Term Loan Facilities due January 2027 | 229 | 118 | |
Current portion of long-term debt | 229 | 118 | |
Total debt | 4,008 | 4,178 | |
Less: Cash and cash equivalents | 1,249 | 1,446 | |
Less: Debt issuance costs, net - Revolving Credit Facility A due July 2027 | 3 | 4 | |
Less: Debt issuance costs, net - Revolving Credit Facility B due July 2027 | 4 | 4 | |
Net debt | 2,752 | 2,723 | |
Note: Net debt is a non-GAAP financial measure | |||
Brightstar Lottery PLC Reconciliation of Non-GAAP Financial Measures (Unaudited, $ in millions) | ||||
For the three months ended | ||||
2026 | 2025 | |||
Income (loss) from continuing operations | 63 | 8 | ||
Provision for income taxes | 29 | 48 | ||
Interest expense, net | 43 | 46 | ||
Foreign exchange (gain) loss, net | (12) | 33 | ||
Stock-based compensation | 7 | 7 | ||
Other expense, net | 4 | 6 | ||
Adjusted EBIT | 133 | 148 | ||
Income (loss) from continuing operations | 63 | 8 | ||
Provision for income taxes | 29 | 48 | ||
Interest expense, net | 43 | 46 | ||
Foreign exchange (gain) loss, net | (12) | 33 | ||
Depreciation | 41 | 45 | ||
Amortization - service revenue (1) | 101 | 48 | ||
Amortization - non-purchase accounting | 10 | 7 | ||
Amortization - purchase accounting | 1 | 2 | ||
Stock-based compensation | 7 | 7 | ||
Other expense, net | 4 | 6 | ||
Adjusted EBITDA | 287 | 250 | ||
(1) Includes amortization of upfront license fees | ||||
Cash flows from operating activities - continuing operations | 165 | 185 | ||
Capital expenditures | (110) | (76) | ||
Free Cash Flow | 55 | 109 | ||
Brightstar Lottery PLC Reconciliation of Non-GAAP Financial Measures (Unaudited) | |||||||||||||
For the three months ended March 31, | |||||||||||||
2026 | 2025 | ||||||||||||
Pre- | Tax | Net | Pre- | Tax | Net | ||||||||
Reported EPS from continuing operations attributable to Brightstar | 0.20 | (0.11) | |||||||||||
Adjustments: | |||||||||||||
Foreign exchange (gain) loss, net | (0.07) | — | (0.07) | 0.16 | (0.02) | 0.18 | |||||||
Amortization - purchase accounting | 0.01 | — | 0.01 | 0.01 | — | 0.01 | |||||||
Other (non-recurring adjustments) | — | — | — | 0.01 | — | 0.01 | |||||||
Net adjustments | (0.06) | 0.20 | |||||||||||
Adjusted EPS from continuing operations attributable to | 0.14 | 0.09 | |||||||||||
Reported effective tax rate | 31.2 % | 85.3 % | |||||||||||
Adjusted effective tax rate | 36.4 % | 47.8 % | |||||||||||
Adjusted EPS weighted average shares outstanding (in millions) | 187 | (2) | 204 | (2) | |||||||||
(1) Calculated based on nature of item, including any realizable deductions, and statutory tax rate in effect for the relevant jurisdiction | |||||||||||||
(2) Includes the dilutive impact of share-based payment awards | |||||||||||||
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SOURCE Brightstar Lottery PLC