Brightstar Lottery reported higher first-quarter earnings. Growth in Italy and a stronger U.S. sales mix helped offset pressure from U.K. contract transition costs.
Revenue rose 1% year-on-year to $587 million for the quarter ended March 31, 2026. Income from ongoing business reached $63 million, compared with $8 million in the same period last year.
Earnings increased 15%
Adjusted EBITDA increased 15% to $287 million from $250 million last year. On a constant-currency basis, adjusted EBITDA rose 5%. Italy same-store sales growth, a stronger U.S. sales mix, a lower LMA shortfall and foreign currency translation helped revenue. Those gains were partly reduced by higher service revenue costs linked to the Italy Lotto licence and the U.K. service contract transition.
Adjusted EBITDA margin improved to 48.9%, up from 42.8% last year. Adjusted diluted earnings per share rose to $0.14 from $0.09.
Cash flow fell after higher spending
Net cash from operating activities fell 10% to $165 million. Free cash flow dropped 49% to $55 million, mainly as capital expenditure rose to $110 million from $76 million.
Brightstar ended March with $1.25 billion in cash and cash equivalents. Total liquidity was $2.8 billion, including $1.6 billion in available borrowing capacity. Net debt was $2.75 billion at the end of the quarter, down 45% from $5.05 billion a year earlier. The company also returned more than $70 million to shareholders in Q1.
Italy licence payment followed the quarter
Brightstar made the final Italy Lotto licence payment of €1.43 billion, or $1.67 billion, in April. The payment came after the end of the first quarter and relates to one of the group’s key lottery contracts.
The company’s board also declared a quarterly cash dividend of $0.23 per common share. The dividend has a record date of May 28 and is scheduled for payment on June 11.
Brightstar kept its 2026 outlook unchanged. The company still expects full-year revenue and profit to stay within its previously issued range, while capital expenditure is expected to be about $450 million to $475 million.
