Brightstar Lottery Q1 2026 Earnings Recap

Shares plunged 14.1% following the earnings release, reflecting investor disappointment with soft same-store sales in the U.S. market and cautious commentary around growth sustainability despite margin improvements and underlying revenue gains.

Key Takeaways

• Reported revenue rose modestly by 1% to approximately $590 million; constant currency growth was 3%, or 5% excluding the impact of the U.K. transition.
• Adjusted EBITDA increased 15% on a reported basis and 5% in constant currency, driven by operational efficiency and cost discipline, supporting margin expansion.
• U.S. lottery same-store sales were flat and below expectations, weighed down by challenging comparisons in large markets like California despite growth in Florida, Indiana, and Michigan.
• Digital and iLottery platforms posted strong performance with global wagers up 30%, including a 36% increase in the U.S. and 27% in Italy, supported by new game launches and expanding distribution.
• The company maintained a disciplined capital allocation approach, returning over $70 million to shareholders through dividends and buybacks, signaling confidence in cash flow stability amid mixed operational signals.