Brightstar Lottery PLC lowered its 2026 revenue and Adjusted EBITDA forecasts after third-quarter revenue fell 4%, while amortization tied to its new Italy Lotto license weighed on reported service revenue.
The company now projects full-year revenue of $2.435 billion to $2.455 billion, below its previous range of $2.50 billion to $2.55 billion. Its new Adjusted EBITDA range is $1.14 billion to $1.16 billion, down from $1.16 billion to $1.19 billion. Brightstar said updated foreign-exchange assumptions were the main reason for the EBITDA revision. Its revenue outlook also reflects second-half same-store sales expectations, the timing of expansion in its Italy consumer business and currency effects.
Revenue for the quarter ended Sept. 30 was $607 million, compared with $629 million a year earlier. The company reported a 3% decline on a constant-currency basis. Product sales climbed to $60 million from $25 million, while amortization of the upfront Italy license fee reduced service revenue by $99 million; the comparable figure a year earlier was $53 million. Brightstar said about $175 million in additional Italy Lotto-related service revenue amortization will affect reported growth this year.
Profit from continuing operations was $45 million, down from $95 million, and diluted earnings per share fell to $0.12 from $0.29. Adjusted EBITDA, which the company reports as a non-GAAP measure, was $289 million versus $294 million. Its margin rose to 47.5% from 46.7%.
Brightstar cited product sales, higher other service revenue and growth in its Italian consumer business as sources of growth. Brightstar attributed the increase in other service revenue mainly to software services tied to new contracts and extensions in markets outside the U.S. and Italy. Offsetting factors included weaker same-store sales, the U.K. service contract transition and currency translation. The company’s wager-based measure showed U.S. multi-state jackpot wagers down 30.6% in the quarter, after 69.2% growth a year earlier.
Brightstar CEO Vince Sadusky said, “Revenue and profit were in line with our expectations.”
The company maintained its cash outlook, forecasting about $900 million in net cash used in operating activities, including the $1.67 billion final Italy Lotto license payment. Separately, it expects about $750 million in cash from operations excluding that payment. The board declared a $0.23-per-share dividend payable Dec. 8, 2026, to shareholders of record Nov. 24. Brightstar said it had deployed more than $200 million on dividends and share repurchases through Nov. 9.
Brightstar scheduled a results call for 8 a.m. ET Tuesday.
