Brightstar Lottery’s second-quarter report shows how the company is attempting to balance financial discipline with ongoing investments. So far, the strategy appears to be successful, as Brightstar reported $584 million in revenue for the three months ending June 30, 2026. While these results mark a 7% year-on-year drop, the details behind this figure point to a business that is reinventing itself.
Profitability Surged Despite Challenges
Brightstar CEO Vince Sadusky stressed that performance was better than expected, driven by global lottery same-store sales and tighter cost control. These gains helped offset some short-term challenges such as the final payment for the Italy Lotto license and the transition to a UK service contract. The company’s management remained confident that short-term setbacks would not hinder long-term growth.
Italy remains one of Brightstar’s core markets. Digital, direct-to-consumer activity in the country grew in Q2, contributing to the double-digit increase in iLottery wagers across all operating regions. The last EUR 1.43 billion ($1.65 billion) payment for the Italy Lotto license, completed in April, has impacted reported revenue. With that burden now gone, future results in the region should be even more impressive.
Better-than-expected second quarter profits were driven by global same-store sales expansion and disciplined operational management, even as we invest in long-term growth initiatives.
Vince Sadusky, Brightstar CEO
Profitability remained a standout metric. Income from continuing operations was EUR 56 million ($64.51 million), a stark difference from last year’s EUR 60 million ($69.12 million) loss. Adjusted EBITDA increased 4% to $286 million, reflecting incremental revenue and cost efficiencies. On a diluted basis, Brightstar earned $0.18 per share from continuing operations, from a loss of $0.47 last year.
Long-Term Growth Is a Priority
Cash flow remains central to Brightstar’s strategy. The company had liquidity of $1.7 billion at the end of Q2. Net debt rose to $3.8 billion from $2.7 billion at the end of 2025, primarily due to the payment in Italy. However, management appears content, underscoring continued cash generation and a balanced approach to capital allocation. Brightstar has so far returned $140 million to shareholders this year with a quarterly dividend of $0.23 per share.
Looking ahead, Brightstar reaffirmed its full-year outlook, expecting revenue between $2.50 billion and $2.55 billion and adjusted EBITDA up to $1.19 billion. This guidance reflects continued organic growth and the impact of cost savings, despite the company’s planned $50 million in additional investments. The OPtiMa cost savings program remains ongoing and is expected to save roughly $20 million by its conclusion.
Recent developments also point toward future expansion. In January, Brightstar secured a foothold in one of Brazil’s largest markets thanks to a new 15-year lottery concession in São Paulo. The company, through its partnership with Scientific Games, aims to develop integrated, omnichannel experiences both retail and online. Success here could pave the way for further growth in Brazil and beyond.