Brightstar Lottery has been forced to change its guidance for the end of 2026 after a rough quarter which saw revenue and EBITDA fall while debt rose.
Q3 2026 saw the firm’s net debt increase 49% from €2.57bn to €3.84bn, while revenue was down 4% to €607m (Q3 2025: €629m) and adjusted EBITDA was down 2% to €289m (€294m).
The group attributed this in part to higher service revenue amortisation related to its lottery licence in Italy. The firm is the lead company in a consortium of four members running the Italian lottery under a nine-year licence.
Additional stress factors in Q3 included lower same-store sales, primarily in the US due to multi-state jackpot performances, the transition in its service contract with Allwyn UK and the National Lottery as the arrangement comes to a close, and general foreign currency translations.
This is not to say that the quarter was all bad. Brightstar listed off a few positives, including higher product sales, increased service revenue and profit from this, as well as better cost efficiencies and expense recoveries.
The company has also been successfully mopping up more and more deals post-Q3, with October seeing partnerships signed with New York Lottery, Ontario Lottery and Gaming Corporation (OLG), and Spain’s Organización Nacional de Ciegos Espanoles (ONCE).
Nonetheless, Q3 was clearly a challenging one from a financial standpoint, and follows a similarly frustrating first half of the year for the company. Year-to-date, revenue is down 4% to €1.78bn (€1.84bn), with the UK contract transition cited as a major drag.
Looking to the end of the year, Brightstar has lowered its revenue and EBITDA expectations to €2.435bn-$2.455bn and $1.14bn-$1.15bn respectively, down from prior expectations of between €2.50bn-€2.55bn and €1.16bn-€1.19bn.
“Our third quarter and year-to-date performance reflect the breadth of the products and services we provide around the world and the progress we are making against our strategic priorities,” said Vince Sadusky, Chief Executive Officer of Brightstar.
“Revenue and profit were in line with our expectations, even as we invest to strengthen our contract portfolio, expand our technology and service offerings, and accelerate game and product innovation.
“We remain confident in our ability to leverage our leading market positions, technology capabilities, and customer relationships to drive sustainable growth and shareholder value.”
