Brightstar Lottery trims debt as Italy sales and US mix drive Q1 profit

Brightstar Lottery (NYSE:BRSL) reported first-quarter revenue of $587 million, a 1% increase year-over-year.

The growth was primarily anchored by a 3.1% same-store sales increase in Italy and a favorable sales mix within the United States.

These gains were partially offset by higher service revenue amortization linked to the Italy Lotto license and the transition of the U.K. service contract.

Income from continuing operations saw a sharp rise to $63 million, up from $8 million in the prior-year period.

The company’s adjusted EBITDA grew 15% to $287 million, reflecting strong profit flow-through from Italian operations and efficiencies gained through the company’s "OPtiMa" cost-saving initiative.

On a per-share basis, adjusted diluted EPS reached $0.14.

While the figures fell just short of the consensus revenue estimate of $608 million, the company demonstrated robust cash generation, ending the quarter with $2.8 billion in total liquidity and a reduced net debt position of $2.75 billion.

Following its formal separation and rebranding from IGT’s gaming and digital business in mid-2025, Brightstar is focusing exclusively on its role as a global lottery operator and technology provider.

The company is currently investing in long-term growth initiatives, including a significant B2C digital expansion in Italy and the launch of a large-scale lottery joint venture in São Paulo, Brazil.

Elsewhere, the board declared a quarterly dividend of $0.23 per share, returning over $70 million to shareholders during the period.

Backed by its first-quarter performance, Brightstar reaffirmed its full-year 2026 financial outlook.

While revenue is expected to range from $2.50 billion to $2.55 billion adjusted EBITDA is projected to reach $1.16 billion to $1.19 billion.