Brightstar Lottery reported a revenue of $584 million for the second quarter of 2026, reflecting a 7% decline from the $631 million logged in the same period last year. This drop was attributed to rising non-cash expenses relating to its Italy Lotto license and shifts in business within the UK. Despite this decline in revenue, the company returned to profitability from ongoing operations, achieving a net income of $56 million compared to a loss reported in the same quarter of the previous year.
CEO Vince Sadusky expressed satisfaction with the results, attributing the better-than-expected profits during this quarter to global same-store sales growth and disciplined operational management, all while continuing to invest in long-term initiatives.
Brightstar's core lottery operations remained robust, with $517 million in revenue from instant tickets and draw games, matching last year's figures. Additionally, revenue from the U.S. multi-state jackpot increased by 14% at constant currency, contributing $17 million to the total.
In terms of same-store sales, instant tickets and draw games experienced a growth of 1.1%, while total same-store sales increased by 1.5%. The surge in sales within the U.S. can be linked to the significant rise in multi-state jackpot sales compared to the prior year.
However, the overall revenues were impacted by a significant rise in amortization costs associated with the Italy Lotto license, which soared from $53 million to $100 million. Product sales also declined, falling from $42 million to $34 million.
The company’s cash flow was notably affected by a recent €1.43 billion ($1.67 billion) payment for the Italy Lotto license, finalized in April, which resulted in negative operating and free cash flow for the quarter.
Despite these challenges, Brightstar has continued to return capital to shareholders, distributing over $140 million so far this year. Looking ahead, the company anticipates its full-year 2026 revenue will fall between $2.50 billion and $2.55 billion, indicating more than 5% organic growth, with adjusted EBITDA projected at $1.16 billion to $1.19 billion.
