Brightstar Lottery (NYSE: BRSL) boosts Q1 profit, trims net debt and maintains 2026 outlook
Filing Impact
Filing Sentiment
Form Type
6-K
Rhea-AI Filing Summary
Brightstar Lottery PLC reported a stronger first quarter of 2026 with higher profits, solid margins, and a new dividend. Revenue inched up to $587 million from $583 million, but income from continuing operations jumped to $63 million from $8 million, reflecting better performance in Italy and disciplined costs.
GAAP diluted earnings per share from continuing operations improved to $0.20 from a loss of $(0.11), while Adjusted EBITDA rose 15% to $287 million and the Adjusted EBITDA margin expanded to 48.9%. Free cash flow decreased to $55 million as capital expenditures increased and working capital swung negative.
The company deployed over $70 million to shareholders in the quarter, including $30 million of share repurchases and $42 million of dividends, and declared a quarterly dividend of $0.23 per share payable on June 11, 2026. Net debt fell to $2.75 billion, with a reported net debt leverage ratio of 2.4% and liquidity of about $1.8 billion pro forma for the final Italy Lotto license payment, while full-year 2026 revenue and profit guidance was reaffirmed.
Positive
- Stronger profitability and margins: Income from continuing operations rose to $63 million from $8 million, Adjusted EBITDA increased 15% to $287 million, and the Adjusted EBITDA margin widened to 48.9%, demonstrating effective cost discipline and profit flow-through on modest revenue growth.
- Improved balance sheet and reaffirmed outlook: Net debt declined to $2.75 billion from $5.05 billion, net debt leverage was 2.4x (about 3.5x pro forma for Lotto payment), liquidity was about $1.8 billion, and full-year 2026 revenue and profit guidance was reaffirmed.
Negative
- Weaker near-term cash flow and higher investment: Free cash flow fell to $55 million from $109 million as operating cash flow declined to $165 million and capital expenditures increased to $110 million, while large Italy Lotto license payments create significant 2026 cash outflows.
Insights
Profitability and balance sheet improved, but free cash flow is temporarily pressured by investment and Lotto payments.
Brightstar Lottery PLC showed stronger underlying profitability in Q1 2026. Revenue was broadly flat at $587 million, yet income from continuing operations increased to $63 million and Adjusted EBITDA rose 15% to $287 million, indicating better operating leverage and cost control despite the U.K. transition.
Cash generation was softer, with free cash flow down to $55 million as capital expenditures reached $110 million and working capital timing reduced operating cash flow to $165 million. Management highlighted these as timing and investment-related effects rather than structural deterioration, and reaffirmed full-year 2026 guidance for revenue of $2.50–$2.55 billion and Adjusted EBITDA of $1.16–$1.19 billion.
Leverage and liquidity metrics improved meaningfully. Net debt declined to $2.75 billion from $5.05 billion, and the net debt leverage ratio stood at 2.4x, or about 3.5x after the final Italy Lotto license payment. The company still expects substantial cash outflow for the Lotto license in 2026 but reports pro forma liquidity of roughly $1.8 billion, supporting ongoing dividends, share repurchases, and growth investments disclosed for the period ended March 31, 2026.
Key Figures
Revenue: $587 million
Income from continuing operations: $63 million
Diluted EPS from continuing operations: $0.20 per share
+5 more
8 metrics
Revenue
$587 million
Quarter ended March 31, 2026; up from $583 million
Income from continuing operations
$63 million
Q1 2026 vs $8 million in Q1 2025
Diluted EPS from continuing operations
$0.20 per share
Q1 2026 vs $(0.11) in Q1 2025
Adjusted EBITDA
$287 million
Q1 2026; up 15% from $250 million, 5% at constant currency
Free cash flow
$55 million
Q1 2026 vs $109 million in Q1 2025
Net debt
$2.75 billion
March 31, 2026 vs $5.05 billion at December 31, 2025
Quarterly dividend
$0.23 per share
Declared for holders of record May 28, 2026; payable June 11, 2026
FY 2026 revenue guidance
$2.50–$2.55 billion
Reaffirmed full-year 2026 outlook
Key Terms
Adjusted EBITDA, free cash flow, net debt, same-store sales, +2 more
6 terms
Adjusted EBITDA financial
"Adjusted EBITDA of $287 million rose 15%, or 5% at constant currency"
Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.
free cash flow financial
"Free cash flow 55 109 (49%)"
Free cash flow is the amount of money a company has left over after paying all its expenses and investing in its business, like buying equipment or updating facilities. It shows how much cash is available to reward shareholders, pay down debt, or save for future growth. This helps investors understand if a company is financially healthy and able to grow.
net debt financial
"Net debt 2,752 5,047 (45%)"
Net debt is the total amount a company owes after subtracting the cash and assets it has that can be used to pay off that debt. It shows how much debt is truly a burden, helping investors understand if a company is financially healthy or heavily borrowed. Think of it like calculating how much money you owe after using your savings to pay part of it.
same-store sales financial
"Same-store sales growth (%) at constant currency (wager-based growth)"
Same-store sales measure the revenue generated by stores that have been open for a certain period, typically a year, comparing their sales over different time frames. It helps assess whether a business is growing due to increased customer activity at existing locations rather than new stores. For investors, this figure indicates the health and performance of a company's core operations, independent of expansion efforts.
iLottery financial
"iLottery Expansion & Italy B2C Digital Execution Progressing Nicely"
iLottery is the sale and management of lottery tickets and related games through digital channels like websites and mobile apps, allowing people to buy entries, play instant-win games, and check results online. For investors, it matters because it can expand a lottery operator’s customer reach and recurring revenue in the same way a retail store adds an online shop — often increasing convenience, data-driven marketing, and steady digital income streams.
OPtiMa cost savings financial
"we continued to deliver OPtiMa cost savings while maintaining a disciplined approach to discretionary spend"
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 UNDER THE
SECURITIES EXCHANGE ACT OF 1934
For the month of May 2026
Commission File Number 001-36906
BRIGHTSTAR LOTTERY PLC
(Translation of registrant’s name into English)
2 and 3 Eldon Street, Fifth Floor
London EC2M 7LS
United Kingdom
(Address of principal executive offices)
| Indicate by checkmark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F: | |||||||||||
| Form 20-F | ☒ | Form 40-F | ☐ | ||||||||
First Quarter 2026 Results of Brightstar Lottery PLC
On May 12, 2026, Brightstar Lottery PLC (NYSE: BRSL) (the "Company") reported results for the quarter ended March 31, 2026.
On May 12, 2026, the Company also announced that the Board of Directors declared a quarterly cash dividend of $0.23 per share on its ordinary shares. The dividend is payable on June 11, 2026 to holders of record as of the close of business on May 28, 2026.
A copy of the news release relating to the above matters is set forth in Exhibit 99.1, which is being furnished herewith. In addition, a slide presentation relating to the results is set forth in Exhibit 99.2, which is being furnished herewith.
Exhibit Number | Description | |||||||
99.1 | News Release "Brightstar Lottery PLC Reports First Quarter 2026 Results" dated May 12, 2026 | |||||||
99.2 | Presentation "Brightstar Lottery PLC 2026 Q1 Earnings Report Period Ended March 31, 2026" dated May 12, 2026 | |||||||
2
EXHIBIT INDEX
Exhibit Number | Description | |||||||
99.1 | News Release "Brightstar Lottery PLC Reports First Quarter 2026 Results" dated May 12, 2026 | |||||||
99.2 | Presentation "Brightstar Lottery PLC 2026 Q1 Earnings Report Period Ended March 31, 2026" dated May 12, 2026 | |||||||
3
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| Date: May 12, 2026 | BRIGHTSTAR LOTTERY PLC | |||||||
| By: | /s/ Pierfrancesco Boccia | |||||||
| Pierfrancesco Boccia | ||||||||
| Corporate Secretary | ||||||||
4
NEWS RELEASE
BRIGHTSTAR LOTTERY PLC REPORTS
FIRST QUARTER 2026 RESULTS
•Revenue up on strong Italy performance, positive U.S. sales mix, and foreign currency translation, partially offset by increased service revenue amortization and U.K. transition
•Income from continuing operations of $63 million; Adjusted EBITDA of $287 million rose 15%, or 5% at constant currency, on profit flow-through of higher revenue and operational discipline
•Continued commitment to shareholder returns with over $70 million deployed in Q1'26
•Strong balance sheet and credit profile; reaffirming 2026 revenue and profit outlook
LONDON – May 12, 2026 – Brightstar Lottery PLC (NYSE:BRSL) (“Brightstar” or the "Company") today reported financial results for the first quarter ended March 31, 2026. Today, at 8:00 a.m. EDT, management will host a conference call and webcast to present the results; access details are provided below.
“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 $70 million to shareholders in the period, demonstrating the confidence we have in the durability of our cash flows. We’re on track with our multi-year goal of delivering accelerated sales and profit growth that we expect to create compelling, incremental value."
“During the quarter, we continued to deliver OPtiMa cost savings while maintaining a disciplined approach to discretionary spend, carefully balancing cost control against strategic priorities, to sustain our profitable growth trajectory,” said Max Chiara, CFO of Brightstar. “Our balance sheet and credit profile are strong with historically low net debt leverage and manageable near-term debt maturities. The Company’s attractive margin structure and strong cash generation, coupled with access to significant liquidity, provide substantial support for our capital allocation plans.”
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Overview of Consolidated First Quarter 2026 Results
| Quarter Ended | Y/Y Change | Constant Currency Change | |||||||||||||||
| All amounts from continuing operations | March 31, | ||||||||||||||||
| 2026 | 2025 | ||||||||||||||||
($ 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 | $0.20 | $(0.11) | 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 | $0.14 | $0.09 | 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 $587 million, up 1% from $583 million the prior year, primarily driven by:
•3.1% Italy same-store sales and positive mix in the U.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 $63 million compared to $8 million in the prior-year period, primarily resulting from:
•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 15% to $287 million versus $250 million in the prior-year period, mainly due to:
•Key drivers of growth include:
•Profit flow-through of higher Italy same-store sales growth
•OPtiMa cost efficiencies and General & administrative expense recoveries
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•Reduced LMA shortfall
•Benefit of foreign currency translation
•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 $0.20 compared to diluted loss per share from continuing operations of $0.11 in the prior year. Adjusted diluted earnings per share from continuing operations was $0.14 compared to adjusted diluted income per share from continuing operations of $0.09 in the prior year, primarily driven by higher income from continuing operations.
Net debt was $2.8 billion compared to $2.7 billion at December 31, 2025. Net debt leverage was 2.4x.
Cash and Liquidity Update
Total liquidity was $2.8 billion as of March 31, 2026 with $1.2 billion in unrestricted cash and $1.6 billion in additional borrowing capacity from undrawn credit facilities.
Other Developments
The Company's Board of Directors declared a quarterly cash dividend of $0.23 per common share, with a record date of May 28, 2026 and a payment date of June 11, 2026.
Final Italy Lotto license payment of €1.43 billion or $1.67 billion made in April 2026.
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 in incremental Italy Lotto-related service revenue amortization impacts reported growth
◦Adjusted EBITDA of $1.16 - $1.19 billion; revenue growth and OPtiMa savings more than offset approximately $50 million of investments in growth initiatives
•Net cash used in operating activities of approximately $900 million includes €1.43 billion or $1.67 billion related to final Italy Lotto license payment; approximately $750 million in cash from operations excluding Italy Lotto license payment
•Capital expenditures of approximately $450 million - $475 million reflects contractual obligations related to recent contract wins and extensions
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 U.S. GAAP, unless noted otherwise. Amounts reported in millions are computed based on amounts in thousands. As a result, the sum of the components may not equal the total amount reported in millions due to rounding. Certain columns and rows within tables may not add due to the use of rounded numbers. Percentages and earnings per share amounts presented are calculated from the underlying unrounded amounts.
About Brightstar Lottery PLC
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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 U.S. and eight of the world’s 10 largest lotteries. Brightstar has approximately 6,000 employees. For more information, please visit www.brightstarlottery.com.
Cautionary Statement Regarding Forward-Looking Statements
This release contains forward‑looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Forward‑looking statements include, but are not limited to, statements regarding Brightstar Lottery PLC’s (the “Company”) future financial and operating performance, strategic priorities and initiatives, business development, capital allocation, liquidity and leverage profile, contract opportunities, digital and iLottery expansion, product development, regulatory matters, and market opportunities. Forward‑looking statements include, without limitation, statements regarding expected or reaffirmed FY’26 revenue, Adjusted EBITDA, cash from operations, capital expenditures, organic growth expectations, as well as assumptions underlying such guidance, anticipated product sales trends, expected benefits from OPtiMa cost‑savings initiatives, anticipated investments in growth initiatives, expected timing and execution of launches and expansions (including the São Paulo launch), anticipated shareholder returns, refinancing activities, and pro forma leverage and liquidity metrics. Forward‑looking statements may be identified by words such as “expect,” “anticipate,” “intend,” “plan,” “believe,” “may,” “will,” “target,” “project,” “on track,” “reaffirm,” or similar expressions. These statements are based on current expectations and assumptions and are subject to risks and uncertainties that could cause actual results to differ materially. Such risks and uncertainties include, among others: changes in economic, competitive, regulatory, and political conditions; risks related to contract awards, renewals, and execution; reliance on regulatory approvals and timing; risks associated with digital execution, technology initiatives, and product development; inflationary pressures; interest rate and foreign exchange volatility; changes in consumer behavior; capital market conditions; and the risk factors described in the Company’s most recent Annual Report on Form 20‑F and other filings with the SEC. Forward‑looking statements speak only as of the date they are made. Except as required by law, the Company undertakes no obligation to update or revise any forward‑looking statements, whether as a result of new information, future events, or otherwise. Nothing in this release constitutes a profit forecast or should be relied upon as a guarantee of future performance.
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.
4
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.
5
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
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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% | —% | |||||||||||||||||||||||||
| U.S. multi-state jackpot wager-based revenue | 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 | %) | |||||||||||||||||||||||||
| U.S. multi-state jackpots | (0.9 | %) | (46.1 | %) | |||||||||||||||||||||||||
| Total | 1.1 | % | (3.8 | %) | |||||||||||||||||||||||||
| U.S. | |||||||||||||||||||||||||||||
| Instant ticket & draw games | — | % | (1.3 | %) | |||||||||||||||||||||||||
| U.S. multi-state jackpots | (0.9 | %) | (46.1 | %) | |||||||||||||||||||||||||
| Total | — | % | (6.9 | %) | |||||||||||||||||||||||||
| Italy | |||||||||||||||||||||||||||||
| 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 the same lottery jurisdictions and perimeter for comparisons between periods | |||||||||||||||||||||||||||||
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| 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%) | |||||||||||||||||||||||||||
| U.S. multi-state jackpots | 2.0% | (46.4%) | |||||||||||||||||||||||||||
| Total | 3.0% | (3.3%) | |||||||||||||||||||||||||||
| U.S. | |||||||||||||||||||||||||||||
| Instant ticket & draw games | 3.1% | (1.6%) | |||||||||||||||||||||||||||
| U.S. multi-state jackpots | 2.0% | (46.4%) | |||||||||||||||||||||||||||
| Total | 3.0% | (8.0%) | |||||||||||||||||||||||||||
| Italy | |||||||||||||||||||||||||||||
| Instant ticket & draw games | 2.9% | (1.0%) | |||||||||||||||||||||||||||
| Rest of world | |||||||||||||||||||||||||||||
| Instant ticket & draw games | 4.2% | 5.1% | |||||||||||||||||||||||||||
| Revenue (by geography) | |||||||||||||||||||||||||||||
| U.S. & Canada | 281 | 259 | 9% | 9% | |||||||||||||||||||||||||
| Italy | 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 | |||||||||||||||||||||||||||||
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| 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 PLC | 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 | |||||||||
9
| 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 | ||||||||||||
10
| 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 | |||||||||
11
| Brightstar Lottery PLC | |||||||||||
| Net Debt | |||||||||||
| ($ in millions) | |||||||||||
| Unaudited | |||||||||||
| March 31, | December 31, | ||||||||||
| 2026 | 2025 | ||||||||||
| 2.375% Senior Secured Euro Notes due April 2028 | 573 | 586 | |||||||||
| 5.250% Senior Secured U.S. Dollar Notes due January 2029 | 747 | 747 | |||||||||
| 4.250% Senior Secured Euro Notes due March 2030 | 569 | 581 | |||||||||
| 5.750% Senior Secured U.S. Dollar Notes due January 2033 | 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 | |||||||||||
12
Brightstar Lottery PLC
Reconciliation of Non-GAAP Financial Measures
(Unaudited, $ in millions)
| For the three months ended March 31, | ||||||||||||||
| 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 | ||||||||||||
13
Brightstar Lottery PLC
Reconciliation of Non-GAAP Financial Measures
(Unaudited)
| For the three months ended March 31, | |||||||||||||||||||||||||||||||||||||||||
| 2026 | 2025 | ||||||||||||||||||||||||||||||||||||||||
| Pre-Tax Impact | Tax Impact (1) | Net Impact | Pre-Tax Impact | Tax Impact (1) | Net Impact | ||||||||||||||||||||||||||||||||||||
| Reported EPS from continuing operations attributable to Brightstar Lottery PLC - diluted | 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 Brightstar Lottery PLC - diluted | 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 | |||||||||||||||||||||||||||||||||||||||||
14
Q1 Earnings Report 2026: PERIOD ENDED MARCH 31, 2026
2 Cautionary Statement Regarding Forward-Looking Statements This presentation contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements include, but are not limited to, statements regarding Brightstar Lottery PLC’s (the “Company”) future financial and operating performance, strategic priorities and initiatives, business development, capital allocation, liquidity and leverage profile, contract opportunities, digital and iLottery expansion, product development, regulatory matters, and market opportunities. Forward-looking statements include, without limitation, statements regarding expected or reaffirmed FY’26 revenue, Adjusted EBITDA, cash from operations, capital expenditures, organic growth expectations, as well as assumptions underlying such guidance, anticipated product sales trends, expected benefits from OPtiMa cost-savings initiatives, anticipated investments in growth initiatives, expected timing and execution of launches and expansions (including the São Paulo launch), anticipated shareholder returns, refinancing activities, and pro forma leverage and liquidity metrics. Forward-looking statements may be identified by words such as “expect,” “anticipate,” “intend,” “plan,” “believe,” “may,” “will,” “target,” “project,” “on track,” “reaffirm,” or similar expressions. These statements are based on current expectations and assumptions and are subject to risks and uncertainties that could cause actual results to differ materially. Such risks and uncertainties include, among others: changes in economic, competitive, regulatory, and political conditions; risks related to contract awards, renewals, and execution; reliance on regulatory approvals and timing; risks associated with digital execution, technology initiatives, and product development; inflationary pressures; interest rate and foreign exchange volatility; changes in consumer behavior; capital market conditions; and the risk factors described in the Company’s most recent Annual Report on Form 20-F and other filings with the SEC. Forward-looking statements speak only as of the date they are made. Except as required by law, the Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. Nothing in this presentation constitutes a profit forecast or should be relied upon as a guarantee of future performance. Comparability of Results All figures presented in this presentation are prepared under U.S. GAAP, unless noted otherwise. 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 held for sale. Cash and cash equivalents, including cash and cash equivalents classified as 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 the Company’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 the Company’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 the 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. Full Year 2026 Outlook 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 our 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 gain/loss, as such items have not yet occurred, are out of our control, or cannot be reasonably predicted. BRIGHTSTAR EARNINGS REPORT – Q1’26
Contents 03 Appendix04 01 Strategy Update 02 Financial Results Q&A BRIGHTSTAR EARNINGS REPORT – Q1’263
01 Strategy Update
01 STRATEGY UPDATE BRIGHTSTAR EARNINGS REPORT – Q1’265 Italy Performance & Operational Discipline Drive Q1’26 Profit Growth Revenue up low single digits Cost discipline while investing in growth Strong balance sheet & financial condition Returned over $70M to shareholders in Q1’26 Good progress on strategic initiatives
01 STRATEGY UPDATE Game Innovation & Portfolio Optimization Driving SSS Growth BRIGHTSTAR EARNINGS REPORT – Q1’266 SSS Q1’26 Italy U.S. Instants & Draw Multi-state Jackpots Rest of World Total Instants & Draw Multi-state Jackpots 3.1% - - (0.9%) 5.8% 1.1% 1.2% (0.9%)
1M MONTHLY USERS 01 STRATEGY UPDATE iLottery Expansion & Italy B2C Digital Execution Progressing Nicely BRIGHTSTAR EARNINGS REPORT – Q1’267 Q1'25 Q1'26 iLOTTERY WAGERS UP 30%
01 STRATEGY UPDATE Exciting Developments with Channel & POS Expansion, New Contracts BRIGHTSTAR EARNINGS REPORT – Q1’268 SÃO PAULO LAUNCH ON TRACK FOR H2’26 SIGNIFICANT NEW RETAILER OPPORTUNITY
02 Financial Results
02 FINANCIAL RESULTS Strong Italy Performance & LMA Dynamics Offset U.K. Transition 259 281 281 246 212 236 79 65 70 Q1’25 U.K. Transition Instant Ticket & Draw U.S. MSJP Other Service Product Sales Upfront License Fee Amortization (SRA) Excluding FX FX Q1’26 583 558 587 RoW Italy U.S. & Canada 14-12 212 29 Amounts in $ millions, unless otherwise noted Italy SSS growth Favorable U.S. mix -43 — Reduced LMA shortfall and higher pass-through revenue Q1’26 includes $10M LMA shortfall Total Instant Ticket & Draw Wager-based Revenue BRIGHTSTAR EARNINGS REPORT – Q1’2610 Revenue:
02 FINANCIAL RESULTS 11 Profit Up on Disciplined Execution Despite U.K. Transition & Inflationary Pressures BRIGHTSTAR EARNINGS REPORT – Q1’26 → Income from operations of $63M; Adjusted EBITDA* increased 15% to $287M, up 5% at constant currency 8 63 Q1’25 Operational Drivers(2) FX Tax Provision Other Q1’26 45 19 5 -12 250 263 287 Q1’25 U.K. Transition Service GM Product Sales GM Other(3) Excluding FX FX Q1’26 -1 16 24 (1) Does not impact adjusted EBITDA (2) Operational drivers includes gross profit, G&A, R&D, S&M & D&A (3) Other includes G&A, R&D & S&M *Non-GAAP measure; see disclaimer on page 2 and reconciliations to the most directly comparable GAAP measures in Appendix for further details Amounts in $ millions, unless otherwise noted -12 10 Total Service GM Income from Continuing Operations: Adjusted EBITDA: Growth drivers • Flow-through from Italy SSS growth • Reduced LMA shortfall • OPtiMa cost efficiencies & expense recoveries • Continued improvement in effective tax rate(1) Offsets to growth • U.K. transition • Investments in growth initiatives • Human capital investments tied to retention, execution & long-term value • Inflationary pressures on postage & freight and other costs SRA -53 AEBITDA +38 Other +3 Non-cash FX impact on debt balances at the Parent
02 FINANCIAL RESULTS 12 Q1’26 Cash Flows Reflect Investments in the Business & Shareholder Returns → Cash from operations reflects >$50M negative impact from timing of working capital items; FY’26 expectations reaffirmed • Continued commitment to shareholder returns in Q1’26 • $30M in share repurchases • $42M in cash dividends • Nearly 7% LTM quarterly dividend yield(1) → Total Lotto license fee €2.23B or $2.60B • €800M or $926M paid in FY’25; BRSL share €492M or $569M • €1.43B or $1.67B paid in April 2026; BRSL share €879M or $1.03B $165M Cash from Operations $72M Returned to Shareholders $110M CapEx BRIGHTSTAR EARNINGS REPORT – Q1’26 (1) Based on closing share price of $12.77 on May 11,2026; excludes special dividend paid in July 2025
13 Strong Balance Sheet & Credit Profile BRIGHTSTAR EARNINGS REPORT – Q1’26 02 FINANCIAL RESULTS - 230 230 230 460 230 575 750 575 750 2026 2027 2028 2029 2030 2031 2033 Bank Debt Bonds Q1’26 Net debt leverage* 2.4x; ~3.5x pro forma for final Lotto license payment Liquidity of $1.8B pro forma for final Lotto license payment (1) Refinancing of revolving credit facilities and full repayment of the €200 million outstanding principal amount under the Euro-denominated term loan due 2027; undrawn capacity of $1.6B *Non-GAAP measure; see disclaimer on page 2 and reconciliations to the most directly comparable GAAP measures in Appendix for further details Debt Maturity Profile As of March 31, 2026 (Pro forma for April 2026 actions(1)) Refinanced revolving credit facility to March 2031 with improved terms
14 Reaffirming FY’26 Revenue and Profit Outlook 02 FINANCIAL RESULTS BRIGHTSTAR EARNINGS REPORT – Q1’26 (1) Reflects100% consolidation of Italy joint venture; minority partner contributions representing their pro rata share are recorded in cash flows from financing activities Revenue $2.50B - $2.55B Adjusted EBITDA $1.16B - $1.19B Cash from Operations(1) including & excluding Lotto upfront license fee ~($900M)/$750M CapEx(1) ~$450M - $475M → Total revenue includes >5% organic growth • ~$175M in incremental Italy Lotto-related service revenue amortization impacts reported growth → Adjusted EBITDA up as revenue growth & OPtiMa savings more than offset $50M investment in growth initiatives → Cash from operations includes €1.43B (~$1.67B) related to final Lotto license payment → CapEx reflects contractual obligations related to recent contract wins & extensions
03 Q&A
04 Appendix
17 Note: EUR/USD FX daily average 1.17 in Q1’26 and 1.05 in Q1’25 Amounts in millions unless otherwise noted *Non-GAAP measure; see disclaimer on page 2 and reconciliations to the most directly comparable GAAP measures in Appendix for further details Summary of Q1’26 Financial Results BRIGHTSTAR EARNINGS REPORT – Q1’26 04 APPENDIX
04 APPENDIX FY’25 Revenue & Profit Profile 94% 6% Service Product Sales 47% 40% 13% U.S. & Canada Italy Rest of world 95% 5% Instant Ticket & Draw U.S. Multi-state Jackpots 5% 45% Income from continuing operations Adjusted EBITDA Revenue by Type Revenue by Geography Wager-based Revenue by Game Type Profit Margins BRIGHTSTAR EARNINGS REPORT – Q1’2618
Q1'26 Select Performance and KPI Data $ in millions except otherwise noted 04 APPENDIX BRIGHTSTAR EARNINGS REPORT – Q1’2619 For the three months ended March 31, Constant 2026 2025 Y/Y Change Currency Change Revenue Service Instant ticket & draw wager-based revenue 537 500 7% —% U.S. multi-state jackpot wager-based revenue 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 EBITDA 287 250 15% 5% For the three months ended March 31, Constant 2026 2025 Y/Y Change Currency Change Revenue (by geography) U.S. & Canada 281 259 9% 9% Italy 236 246 (4%) (14%) Rest of world 70 79 (11%) (18%) Total revenue 587 583 1% (4%)
Q1'26 Select Performance and KPI Data 04 APPENDIX BRIGHTSTAR EARNINGS REPORT – Q1’2620 (1) Same-store sales represent the change in wagers recorded in lottery jurisdictions where Brightstar is the operator or facilities management supplier, using the same lottery jurisdictions and perimeter for comparisons between periods (2) Instant ticket & draw game same-store sales normalized for a like number of Italy Lotto draws and sell-in days were 0.3% and 2.9% in Q4’25 and FY’25, respectively Same-store revenue growth (%) at constant currency (SSS growth plus impact of contract mix) (2) Same-store sales growth (%) at constant currency (wager-based growth) (1) Q1'26 Constant Q1'25 Constant Q1'26 Constant Q1'25 Constant Currency Change Currency Change Currency Change Currency Change Global Instant ticket & draw games 1.2% (0.1%) 3.0% (0.7%) U.S. multi-state jackpots (0.9%) (46.1%) 2.0% (46.4%) Total 1.1% (3.8%) 3.0% (3.3%) U.S. Instant ticket & draw games —% (1.3%) 3.1% (1.6%) U.S. multi-state jackpots (0.9%) (46.1%) 2.0% (46.4%) Total —% (6.9%) 3.0% (8.0%) Italy Instant ticket & draw games 3.1% (0.7%) 2.9% (1.0%) Rest of world Instant ticket & draw games 5.8% 5.2% 4.2% 5.1%
Summarized Income Statement $ in millions except otherwise noted 04 APPENDIX BRIGHTSTAR EARNINGS REPORT – Q1’2621 All amounts from continuing operations For the three months ended March 31, 2026 2025 Y/Y Change Service revenue (includes amortization of upfront license fees) 558 557 —% Product sales 29 26 12% Total revenue 587 583 1% 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 Less: Net income attributable to non-controlling interests from continuing operations 26 33 Net income attributable to Brightstar Lottery PLC 37 27 Net income (loss) from continuing operations attributable to Brightstar Lottery PLC - diluted $0.20 $(0.11) Adjusted EPS from continuing operations attributable to Brightstar Lottery PLC - diluted $0.14 $0.09
Summarized Cash Flow Statement $ in millions 04 APPENDIX BRIGHTSTAR EARNINGS REPORT – Q1’2622 For the three months ended March 31, 2026 2025 Net cash provided by operating activities from continuing operations 165 185 Capital expenditures (110) (76) Free Cash Flow 55 109 Cash flow provided by/(used in) discontinued operations 24 (116) Debt (repayment)/proceeds, net (117) 202 Repurchases of common stock (30) 0 Shareholder dividends paid (42) (40) Minority distributions, net (3) (11) Other, net (99) (115) Other Investing/Financing Activities (267) (80) Net Cash Flow (212) 29 Effect of exchange rates/other (14) 19 Net Change in Cash and Restricted Cash (226) 48
$ in millions (1) Includes amortization of upfront license fees Reconciliation of Non-GAAP Financial Measures 04 APPENDIX BRIGHTSTAR EARNINGS REPORT – Q1’2623 For the three months ended March 31, 2026 2025 Income 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 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 Cash flows from operating activities - continuing operations 165 185 Capital expenditures (110) (76) Free Cash Flow 55 109
Reconciliation of Non-GAAP Financial Measures - QTD All amounts presented are in $ (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 04 APPENDIX BRIGHTSTAR EARNINGS REPORT – Q1’2624 All amounts from continuing operations For the three months ended March 31, 2026 For the three months ended March 31, 2025 Pre-Tax Impact Tax Impact (1) Net Impact Pre-Tax Impact Tax Impact (1) Net Impact Reported EPS from continuing operations attributable to Brightstar Lottery PLC - diluted 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) 0.00 — 0.00 0.01 — 0.01 Net adjustments (0.06) 0.20 Adjusted EPS from continuing operations attributable to Brightstar Lottery PLC - diluted 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)
FAQ
How did Brightstar Lottery PLC (BRSL) perform financially in Q1 2026?
Brightstar Lottery PLC delivered higher profits in Q1 2026. Revenue was $587 million versus $583 million, while income from continuing operations rose to $63 million and Adjusted EBITDA increased 15% to $287 million, reflecting stronger margins despite only modest top-line growth.
What dividend did Brightstar Lottery PLC (BRSL) declare with its Q1 2026 results?
The company declared a quarterly cash dividend of $0.23 per ordinary share. It is payable on June 11, 2026 to shareholders of record as of the close of business on May 28, 2026, continuing Brightstar’s stated commitment to shareholder returns.
How strong is Brightstar Lottery PLC’s (BRSL) balance sheet and leverage after Q1 2026?
Net debt was $2.75 billion at March 31, 2026, down from $5.05 billion, with a net debt leverage ratio of 2.4x, or about 3.5x pro forma for the final Italy Lotto license payment. Pro forma liquidity was approximately $1.8 billion, including undrawn revolving capacity.
What cash flow and investment trends did Brightstar Lottery PLC (BRSL) show in Q1 2026?
Net cash from operating activities from continuing operations was $165 million, down from $185 million, and free cash flow declined to $55 million as capital expenditures increased to $110 million. Management attributed over $50 million of operating cash pressure to working capital timing effects.
What guidance did Brightstar Lottery PLC (BRSL) reaffirm for full-year 2026?
For 2026, Brightstar reaffirmed revenue guidance of $2.50–$2.55 billion and Adjusted EBITDA of $1.16–$1.19 billion. It expects cash from operations of roughly ($900 million)/$750 million including and excluding the Lotto license fee, and capital expenditures of about $450–$475 million.