Press Release · Brightstar Lottery PLC
BRIGHTSTAR LOTTERY PLC REPORTS THIRD QUARTER 2026 RESULTS
Distributed by Endless Tech · Originally issued via PR Newswire
- Third quarter revenue of $607 million impacted by higher non-cash service revenue amortization
- Operational growth drivers accelerated, driving 4% expansion, led by global product sales and other service revenue
- Income from continuing operations of $45 million; Adjusted EBITDA of $289 million in line with expectations bolstered by improved product sales mix and cost efficiencies
- Over $200 million deployed for cash dividends and share repurchases year-to-date through November 9
- Updating revenue and Adjusted EBITDA outlook for the year; maintaining cash from operations outlook
LONDON, Nov. 10, 2026 — Brightstar Lottery PLC (NYSE:BRSL) ("Brightstar" or the "Company") today reported financial results for the third quarter ended September 30, 2026. Today, at 8:00 a.m. EST, management will host a conference call and webcast to present the results; access details are provided below.
"Our third quarter and year-to-date performance reflect the breadth of the products and services we provide around the world and the progress we are making against our strategic priorities," said Vince Sadusky, CEO of Brightstar. "Revenue and profit were in line with our expectations, even as we invest to strengthen our contract portfolio, expand our technology and service offerings, and accelerate game and product innovation. We remain confident in our ability to leverage our leading market positions, technology capabilities, and customer relationships to drive sustainable growth and shareholder value."
"Operational growth drivers are contributing at an accelerated pace, reinforcing our medium-term growth outlook," said Max Chiara, CFO of Brightstar. "Our profitability is strong and resilient as we remain focused on disciplined execution and cost efficiencies. Leverage is within our targeted range and we are committed to returning capital to shareholders."
Overview of Consolidated Third Quarter 2026 Results
Quarter Ended | Y/Y | Constant | |||
All amounts from continuing operations | September 30, | ||||
2026 | 2025 | ||||
($ in millions, except per share data) | |||||
GAAP Financials: | |||||
Revenue | 607 | 629 | (4) % | (3) % | |
Income from continuing operations | 45 | 95 | (53) % | ||
Income (loss) from continuing operations margin | 7.4 % | 15.0 % | |||
Earnings per share - diluted | $0.12 | $0.29 | (60) % | ||
Net cash provided by (used for) operating activities | 73 | (445) | NM | ||
Cash and cash equivalents | 538 | 1,599 | (66) % | ||
Non-GAAP Financial Measures: | |||||
Adjusted EBITDA | 289 | 294 | (2) % | (1) % | |
Adjusted EBITDA margin | 47.5 % | 46.7 % | |||
Adjusted EPS | $0.10 | $0.36 | (73) % | ||
Free cash flow | (8) | (509) | 98 % | ||
Net debt | 3,842 | 2,572 | 49 % | ||
Note: Reconciliations of non-GAAP financial measures to the most directly comparable GAAP financial measures, and other disclosures regarding non-GAAP financial measures, are provided at the end of this news release |
Financial Highlights
Revenue of $607 million, down 4% from $629 million in the prior year
- Key drivers of growth include:
- Product sales of retail hardware, software, and instant tickets
- Higher other service revenue, primarily from software services for new contracts and extensions outside the U.S. and Italy
- Italy B2C expansion
- Offsets to growth include:
- Higher service revenue amortization related to the new Italy Lotto license
- Lower same-store sales, primarily due to U.S. multi-state jackpot performance
- U.K. service contract transition
- Foreign currency translation
Revenue was $1.78 billion in the year-to-date period of 2026, down 4% versus $1.84 billion in 2025 as increases in product sales and other service revenue were more than offset by increased service revenue amortization and the transition of the UK contract.
Income from continuing operations was $45 million compared to $95 million in the prior-year period, primarily resulting from:
- Higher service revenue amortization related to the new Italy Lotto license
- Items listed as drivers of growth and offsets to growth in Adjusted EBITDA below
- Increased net interest expense, primarily due to lower interest income
- Year-over-year decrease was partially offset by a reduced provision for income taxes
Income from continuing operations for the year-to-date 2026 period was $164 million versus $43 million in 2025 primarily driven by:
- Non-cash impact of fluctuations in the EUR/USD FX rate on the Company's debt balances
- Improvement in the effective tax rate and benefit of a discrete tax item in the second quarter of 2026
- Key drivers of and offsets to year-over-year AEBITDA increase described below
Adjusted EBITDA of $289 million versus $294 million in the prior-year period
- Key drivers of growth include:
- Higher global product sales and improved margin mix
- Profit flow-through from other service revenue
- Cost efficiencies
- Offsets to growth include:
- Lower same-store sales, primarily due to U.S. multi-state jackpot performance
- Investments in growth initiatives
- U.K. service contract transition
- One-time expense recoveries recognized in prior year
- Foreign currency translation
Adjusted EBITDA was $861 million in the year-to-date period of 2026, up 5% versus $818 million in 2025 due to:
- Higher product sales and improved margin mix on sales
- Increased other service revenue and associated profit flow-through
- OPtiMa-driven cost efficiencies & expense recoveries
- Partial offsets to growth include the UK contract transition and investments in growth initiatives
Diluted net income per share from continuing operations for the third quarter was $0.12 compared to $0.29 in the prior year due to drivers of the year-over-year change in income from continuing operations described above. Adjusted EPS from continuing operations for the third quarter was $0.10 compared to $0.36 in the prior year, primarily driven by the non-cash impact of higher service revenue amortization.
- Diluted net income per share and Adjusted EPS from continuing operations include $43 million ($0.23 per share) of Brightstar's portion, net of tax, of service revenue amortization compared to $23 million ($0.12 per share) in 2025.
Diluted net income per share from continuing operations for the year-to-date period of 2026 was $0.49 versus a loss of $0.31 in the same period of 2025 due to drivers of year-over-year improvement in income from continuing operations described above as well as net income attributable to non-controlling interests. Adjusted EPS from continuing operations for the year-to-date period of 2026 was $0.34 versus $0.55 for 2025 primarily due to the non-cash impact of higher service revenue amortization.
- Diluted net income per share and Adjusted EPS from continuing operations for the year-to-date-period include $130 million ($0.70 per share) of Brightstar's portion, net of tax, of service revenue amortization compared to $68 million ($0.34 per share) in 2025.
Net debt was $3.8 billion compared to $2.7 billion at December 31, 2025, reflecting the final Italy Lotto payment made earlier this year. Net debt leverage was 3.30x.
Cash and Liquidity Update
Total liquidity was $1.9 billion as of September 30, 2026, including approximately $0.5 billion in unrestricted cash and $1.3 billion in additional borrowing capacity from undrawn credit facilities.
Other Developments
The Company's Board of Directors declared a quarterly cash dividend of $0.23 per common share, with a record date of November 24, 2026 and a payment date of December 8, 2026.
In September 2026, the Company issued €500 million of 4.875% Senior Secured Notes due September 2032. The Company used proceeds from the sale of the Notes to (i) repurchase €342 million ($393 million) of its outstanding €500 million 2.375% Senior Secured Notes due April 2028, (ii) pay certain debt issuance costs incurred in connection with the transaction described above and (iii) repay €155 million ($176 million) of utilizations under its revolving credit facilities.
Financial Outlook
Updating FY'26 revenue and Adjusted EBITDA; reaffirming cash from operations outlook.
Current outlook includes the below expectations:
- Revenue of $2.435 - $2.455 billion vs. prior expectation of $2.50 - $2.55 billion:
- Includes mid-single digit increase from operational growth drivers in the second half of the year
- Reflects updated second half same-store sales expectations, timing of certain Italy B2C expansion efforts, and FX impact
- Approximately $175 million in incremental Italy Lotto-related service revenue amortization impacts reported growth
- Adjusted EBITDA of $1.14 - $1.16 billion vs. prior expectations of $1.16 - $1.19 billion, primarily on updated FX
- Net cash used in operating activities of approximately $900 million includes €1.43 billion or $1.67 billion related to final Italy Lotto license payment; approximately $750 million in cash from operations excluding Italy Lotto license payment; these are consistent with prior expectations
- Capital expenditures of approximately $450 million vs. prior expectation of approximately $450 - $475 million
- Current outlook assumes a EUR/USD rate of 1.12 in the fourth quarter of 2026 and 1.15 for the full year 2026; prior outlook assumed a EUR/USD rate of 1.17 for the fourth quarter and full year
Earnings Conference Call and Webcast
November 10, 2026, at 8:00 a.m. EST
To register to participate in the conference call, or to listen to the live audio webcast, please visit the "Events Calendar" on Brightstar's Investor Relations website at www.brightstarlottery.com. A replay will be available on the website following the live event.
Comparability of Results
All figures presented in this news release are prepared under U.S. GAAP, unless noted otherwise. Amounts reported in millions are computed based on amounts in thousands. As a result, the sum of the components may not equal the total amount reported in millions due to rounding. Certain columns and rows within tables may not add due to the use of rounded numbers. Percentages and earnings per share amounts presented are calculated from the underlying unrounded amounts.
About Brightstar Lottery PLC
Brightstar Lottery PLC (NYSE: BRSL) is a global leader in lottery focused on innovation and forward-thinking strategies, building on our renowned expertise in delivering secure technology and producing reliable, comprehensive solutions for our customers. As a premier pure play global lottery company, our best-in-class lottery operations, retail and digital solutions, and award-winning lottery games enable our customers to achieve their goals, entertain players and distribute meaningful benefits to communities. Brightstar has a well-established local presence and is a trusted partner to governments and regulators around the world, creating value by adhering to the highest standards of service, integrity, and responsibility. Brightstar serves nearly 90 lottery customers and their players on six continents. It is the primary technology provider to 26 of the 46 lottery jurisdictions in the U.S. and eight of the world's 10 largest lotteries with central systems. Brightstar has approximately 6,000 employees. For more information, please visit www.brightstarlottery.com.
Cautionary Statement Regarding Forward-Looking Statements
This release contains forward‑looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Forward‑looking statements include, but are not limited to, statements regarding Brightstar Lottery PLC's (the "Company") future financial and operating performance, medium-term growth outlook, planned investments in growth initiatives, the expansion of digital and consumer offerings in Italy, and the Company's ability to leverage its market positions, technology capabilities and customer relationships to drive sustainable growth and shareholder value, and the Company's expectation of maintaining leverage within its targeted range. Forward‑looking statements include, without limitation, statements regarding expected or reaffirmed FY'26 revenue, Adjusted EBITDA, cash from operations, net cash used in operating activities, capital expenditures, operational growth driver contribution, as well as assumptions underlying such guidance, including EUR/USD exchange-rate assumptions, expected benefits from cost efficiencies, and anticipated shareholder returns, including the expected payment of the declared quarterly dividend and any future share repurchases. Forward‑looking statements may be identified by words such as "expect," "anticipate," "believe," "may," "will," "target," "reaffirm," "outlook," "guidance," "refine," or similar expressions. These statements are based on current expectations and assumptions and are subject to risks and uncertainties that could cause actual results to differ materially. Such risks and uncertainties include, among others: changes in economic, competitive, regulatory, and political conditions; risks related to contract awards, renewals, transitions, launches, and execution; reliance on regulatory approvals and timing; risks associated with digital execution, technology initiatives, and product development; inflationary pressures; interest rate and foreign exchange volatility, including changes in EUR/USD rates from the assumptions used in the Company's FY'26 outlook; changes in consumer behavior, including lottery wager levels, same-store sales, jackpot activity, and game performance; capital market conditions, including credit ratings, refinancing availability, revolving credit facility availability, and the cost of debt; and the risk factors described in the Company's most recent Annual Report on Form 20‑F and other filings with the SEC. Forward‑looking statements speak only as of the date they are made. Except as required by law, the Company undertakes no obligation to update or revise any forward‑looking statements, whether as a result of new information, future events, or otherwise. Nothing in this release should be relied upon as a guarantee of future performance. Investors should not place undue reliance on guidance, outlook, targets, assumptions, or other forward-looking statements.
Non-GAAP Financial Measures
Management supplements the reporting of financial information, determined under GAAP, with certain non-GAAP financial information. Management believes the non-GAAP information presented provides investors with additional useful information, but it is not intended to, nor should it be considered in isolation or as a substitute for the related GAAP measures. Moreover, other companies may define non-GAAP measures differently, which limits the usefulness of these measures for comparisons with such other companies. The Company encourages investors to review its financial statements and publicly filed reports in their entirety and not to rely on any single financial measure.
Adjusted EBIT represents net income (loss) from continuing operations (a GAAP measure) before income taxes, interest expense, net, foreign exchange gain (loss), net, other expenses (e.g., gains/losses on extinguishment and modifications of debt, etc.), net, impairment losses, restructuring expenses, transformation costs, stock-based compensation, litigation expense (income), and certain other non-recurring items. Other non-recurring items are infrequent in nature and are not reflective of ongoing operational activities. Management believes that Adjusted EBIT is useful in providing period-to-period comparisons of the results of the Company's ongoing operational performance.
Adjusted EBIT margin represents Adjusted EBIT divided by revenue.
Adjusted EBITDA represents net income (loss) from continuing operations (a GAAP measure) before income taxes, interest expense, net, foreign exchange gain (loss), net, other expenses (e.g., gains/losses on extinguishment and modifications of debt, etc.), net, depreciation, impairment losses, amortization (service revenue, purchase accounting, and non-purchase accounting), restructuring expenses, transformation costs, stock-based compensation, litigation expense (income), and certain other non-recurring items. Other non-recurring items are infrequent in nature and are not reflective of ongoing operational activities. Management believes that Adjusted EBITDA is useful in providing period-to-period comparisons of the results of the Company's ongoing operational performance.
Adjusted EBITDA margin represents Adjusted EBITDA divided by revenue.
Adjusted EPS represents diluted earnings per share (a GAAP measure), excluding the effects of foreign exchange, impairments, amortization from purchase accounting, discrete tax items, and other significant non-recurring adjustments that are not reflective of on-going operational activities (e.g., gains/losses on sale of business, gains/losses on extinguishment and modifications of debt, etc.). Adjusted EPS is calculated using diluted weighted-average number of shares outstanding, including the impact of any potentially dilutive common stock equivalents that are anti-dilutive to GAAP net income (loss) per share but dilutive to Adjusted EPS. Management believes that Adjusted EPS is useful in providing period-to-period comparisons of the results of the Company's ongoing operational performance.
Net debt is a non-GAAP financial measure that represents debt (a GAAP measure, calculated as long-term obligations plus short-term borrowings) minus capitalized debt issuance costs and cash and cash equivalents, including cash and cash equivalents classified as held for sale. Cash and cash equivalents, including cash and cash equivalents held for sale, are subtracted from the GAAP measure because they could be used to reduce the Company's debt obligations. Management believes that net debt is a useful measure to monitor leverage and evaluate the balance sheet.
Net debt leverage is a non-GAAP financial measure that represents the ratio of Net debt as of a particular balance sheet date to Adjusted EBITDA for the last twelve months prior to such date. Management believes that net debt leverage is a useful measure to assess Brightstar's financial strength and ability to incur incremental indebtedness when making key investment decisions.
Free cash flow is a non-GAAP financial measure that represents cash flow from operations (a GAAP measure) less capital expenditures. Management believes free cash flow is a useful measure of liquidity and an additional basis for assessing Brightstar's ability to fund its activities, including debt service and distribution of earnings to shareholders.
Constant currency is a non-GAAP adjustment to certain financial measures that expresses current financial data using the prior-year/period exchange rate (i.e., the exchange rate used in preparing the financial statements for the prior year). Management believes that constant currency is a useful measure to compare period-to-period results without regard to the impact of fluctuating foreign currency exchange rates.
A reconciliation of the non-GAAP measures to the corresponding amounts prepared in accordance with GAAP appears in the tables in this release. The tables provide additional information as to the items and amounts that have been excluded from the adjusted measures.
The Company provides guidance of select information related to its financial and operating performance, and such measures may differ from year to year. The guidance is only an estimate of what the Company believes is realizable as of the date of this release. Actual results may vary from the guidance and the variations may be material. The Company undertakes no intent or obligation to publicly update or revise any of these projections, whether as a result of new information, future events or otherwise, except as required by law.
A reconciliation of the Company's forward-looking non-GAAP financial measures to the most directly comparable GAAP financial measure cannot be provided without unreasonable effort. This is due to the inherent difficulty of accurately forecasting the occurrence and financial impact of the adjusting items necessary for such a reconciliation to be prepared, for example, the provision for income taxes or net foreign exchange gain/loss, as such items have not yet occurred, are out of the Company's control, or cannot be reasonably predicted.
Contact
Mike DeAngelis, Corporate Communications, +1 (401) 392-1000, [email protected]
Matteo Selva, Italian media inquiries, +39 366 6803635
James Hurley, Investor Relations, +1 (401) 392-7190
Select Performance and KPI data ($ in millions, unless otherwise noted) | |||||||||
Constant | |||||||||
Q3'26 | Q3'25 | Y/Y | Currency | ||||||
Revenue | Change | Change(1) | |||||||
Service | |||||||||
Instant ticket & draw wager-based revenue | 500 | 512 | (2) % | (2) % | |||||
U.S. multi-state jackpot wager-based revenue | 25 | 36 | (30) % | (30) % | |||||
Upfront license fee amortization | (99) | (53) | NM | NM | |||||
Other | 121 | 109 | 11 % | 11 % | |||||
Total service revenue | 547 | 604 | (9) % | (9) % | |||||
Product sales | 60 | 25 | 137 % | 142 % | |||||
Total revenue | 607 | 629 | (4) % | (3) % | |||||
Income (loss) from continuing operations | 45 | 95 | (53) % | ||||||
Adjusted EBIT(1) | 130 | 185 | (30) % | (29) % | |||||
Adjusted EBITDA(1) | 289 | 294 | (2) % | (1) % | |||||
Same-store sales growth (%) at constant currency (wager-based growth) (2) | |||||||||
Global | |||||||||
Instant ticket & draw games | (1.0 %) | 3.9 % | |||||||
U.S. multi-state jackpots | (30.6 %) | 69.2 % | |||||||
Total | (3.9 %) | 7.9 % | |||||||
U.S. | |||||||||
Instant ticket & draw games | (1.4 %) | 1.6 % | |||||||
U.S. multi-state jackpots | (30.6 %) | 69.2 % | |||||||
Total | (5.5 %) | 7.7 % | |||||||
Italy | |||||||||
Instant ticket & draw games | (1.2 %) | 6.1 % | |||||||
Rest of world | |||||||||
Instant ticket & draw games | 3.3 % | 14.3 % | |||||||
(1) Non-GAAP measure; see disclaimer on page 4 and reconciliations to the most directly comparable GAAP | |||||||||
(2) Same-store sales represents the change in wagers recorded in lottery jurisdictions where Brightstar | |||||||||
Constant | |||||||||
Q3'26 | Q3'25 | Y/Y | Currency | ||||||
Change | Change(1) | ||||||||
Same-store revenue growth (%) at constant currency (Same-store sales inclusive of contract mix) (2) | |||||||||
Global | |||||||||
Instant ticket & draw games | (0.5) % | 5.6 % | |||||||
U.S. multi-state jackpots | (29.9) % | 73.6 % | |||||||
Total | (2.5) % | 8.5 % | |||||||
U.S. | |||||||||
Instant ticket & draw games | 0.3 % | 3.5 % | |||||||
U.S. multi-state jackpots | (29.9) % | 73.6 % | |||||||
Total | (4.6) % | 10.7 % | |||||||
Italy | |||||||||
Instant ticket & draw games | (1.4) % | 5.9 % | |||||||
Rest of world | |||||||||
Instant ticket & draw games | 1.8 % | 14.1 % | |||||||
Revenue (by geography) | |||||||||
U.S. & Canada | 301 | 304 | (1) % | (1) % | |||||
Italy | 208 | 257 | (19) % | (18) % | |||||
Rest of world | 98 | 69 | 42 % | 43 % | |||||
Total revenue | 607 | 629 | (4) % | (3) % | |||||
(1) Non-GAAP measure; see disclaimer on page 4 and reconciliations to the most directly comparable GAAP | |||||||||
(2) Same-store revenue represents the change in same-store sales net of contract mix | |||||||||
Brightstar Lottery PLC | |||||||
Condensed Consolidated Statements of Operations | |||||||
($ and shares in millions, except per share amounts) | |||||||
Unaudited | |||||||
For the three months ended | For the nine months ended | ||||||
September 30, | September 30, | ||||||
2026 | 2025 | 2026 | 2025 | ||||
Service revenue (includes amortization of upfront license fees) | 547 | 604 | 1,655 | 1,750 | |||
Product sales | 60 | 25 | 123 | 93 | |||
Total revenue | 607 | 629 | 1,778 | 1,843 | |||
Cost of services (excluding Depreciation and amortization) | 285 | 276 | 861 | 819 | |||
Cost of product sales (excluding Depreciation and amortization) | 45 | 31 | 94 | 86 | |||
General and administrative | 49 | 44 | 143 | 164 | |||
Research and development | 15 | 11 | 43 | 33 | |||
Sales and marketing | 31 | 29 | 97 | 92 | |||
Depreciation and amortization | 59 | 55 | 170 | 163 | |||
Restructuring | — | — | 6 | 21 | |||
Interest expense, net | 50 | 36 | 143 | 130 | |||
Foreign exchange (gain) loss, net | (1) | 1 | (17) | 132 | |||
Other expense, net | 4 | 12 | 14 | 23 | |||
Income before provision for income taxes | 70 | 134 | 225 | 180 | |||
Provision for income taxes | 25 | 40 | 61 | 137 | |||
Income from continuing operations | 45 | 95 | 164 | 43 | |||
Less: Net income attributable to non-controlling interests from | 23 | 38 | 72 | 105 | |||
Net Income (loss) from continuing operations attributable to | 22 | 57 | 91 | (62) | |||
(Loss) income from discontinued operations, net of tax | — | (16) | — | 75 | |||
Gain on sale of discontinued operations, net of tax | — | 77 | — | 77 | |||
Income from discontinued operations | — | 60 | — | 152 | |||
Less: Net income attributable to non-controlling interests from | — | — | — | 4 | |||
Net income from discontinued operations attributable to | — | 60 | — | 148 | |||
Net income | 45 | 155 | 164 | 195 | |||
Net income attributable to non-controlling interests | 23 | 38 | 72 | 109 | |||
Net income attributable to Brightstar Lottery PLC | 22 | 117 | 91 | 86 | |||
Per Share Data | |||||||
Basic: Net income (loss) from continuing operations | 0.12 | 0.29 | 0.49 | (0.31) | |||
Diluted: Net income (loss) from continuing operations | 0.12 | 0.29 | 0.49 | (0.31) | |||
Basic: Net income attributable to Brightstar Lottery PLC | 0.12 | 0.60 | 0.49 | 0.43 | |||
Diluted: Net income attributable to Brightstar Lottery PLC | 0.12 | 0.60 | 0.49 | 0.43 | |||
Weighted-average Shares Outstanding | |||||||
Basic | 184 | 195 | 185 | 200 | |||
Diluted | 185 | 196 | 186 | 200 | |||
Brightstar Lottery PLC | ||||
Condensed Consolidated Balance Sheets | ||||
($ in millions) | ||||
Unaudited | ||||
September 30, | December 31, | |||
2026 | 2025 | |||
Assets | ||||
Current assets: | ||||
Cash and cash equivalents | 538 | 1,446 | ||
Restricted cash and cash equivalents | 19 | 54 | ||
Trade and other receivables, net | 468 | 526 | ||
Inventories, net | 124 | 116 | ||
Other current assets | 194 | 193 | ||
Total current assets | 1,343 | 2,336 | ||
Systems, equipment and other assets related to contracts, net | 763 | 678 | ||
Property, plant and equipment, net | 93 | 90 | ||
Operating lease right-of-use assets | 88 | 92 | ||
Goodwill | 2,691 | 2,707 | ||
Intangible assets, net | 132 | 125 | ||
Other non-current assets | 2,817 | 3,130 | ||
Total non-current assets | 6,582 | 6,822 | ||
Total assets | 7,925 | 9,158 | ||
Liabilities and shareholders' equity | ||||
Liabilities | ||||
Current liabilities: | ||||
Accounts payable | 661 | 766 | ||
Current portion of long-term debt | 227 | 118 | ||
Payable to ADM | — | 1,680 | ||
Other current liabilities | 540 | 508 | ||
Total current liabilities | 1,428 | 3,072 | ||
Long-term debt, less current portion | 4,158 | 4,060 | ||
Deferred income taxes | 182 | 208 | ||
Operating lease liabilities | 68 | 72 | ||
Other non-current liabilities | 146 | 156 | ||
Total non-current liabilities | 4,555 | 4,496 | ||
Total liabilities | 5,983 | 7,568 | ||
Shareholders' Equity | ||||
Brightstar Lottery PLC's shareholders' equity | 809 | 875 | ||
Non-controlling interests | 1,133 | 715 | ||
Total shareholders' equity | 1,942 | 1,590 | ||
Total liabilities and shareholders' equity | 7,925 | 9,158 | ||
Brightstar Lottery PLC | |||||||
Condensed Consolidated Statements of Cash Flows | |||||||
($ in millions) | |||||||
Unaudited | |||||||
For the three months ended | For the nine months ended | ||||||
September 30, | September 30, | ||||||
2026 | 2025 | 2026 | 2025 | ||||
Cash flows from operating activities | |||||||
Net income | 45 | 155 | 164 | 195 | |||
Less: Income from discontinued operations, net of tax | — | 60 | — | 152 | |||
Adjustments to reconcile net income to net cash provided by (used for) operating activities | |||||||
Amortization of upfront license fees | 99 | 53 | 300 | 154 | |||
Depreciation and amortization | 59 | 55 | 170 | 163 | |||
Stock-based compensation | 7 | 3 | 20 | 15 | |||
Foreign exchange (gain) loss, net | (1) | 1 | (17) | 132 | |||
Deferred income taxes | (9) | 33 | (20) | 9 | |||
Other non-cash items, net | — | 8 | 5 | 24 | |||
Changes in operating assets and liabilities, excluding the effects of dispositions: | |||||||
Trade and other receivables | (2) | (82) | 46 | (4) | |||
Inventories | 8 | 2 | (8) | (4) | |||
Accounts payable | (14) | 82 | (48) | 44 | |||
Accrued interest payable | (37) | (32) | (9) | (25) | |||
Accrued income taxes | (29) | (80) | 2 | 9 | |||
Italian Lotto license payment | — | (579) | (1,675) | (579) | |||
Other assets and liabilities | (53) | (2) | (32) | 48 | |||
Net cash provided by (used for) operating activities from continuing operations | 73 | (445) | (1,101) | 29 | |||
Net cash provided by (used in) operating activities from discontinued operations | — | (7) | — | 94 | |||
Net cash provided by (used for) operating activities | 73 | (452) | (1,101) | 122 | |||
Cash flows from investing activities | |||||||
Capital expenditures | (81) | (65) | (313) | (239) | |||
Other | (2) | — | (4) | — | |||
Net cash (used in) investing activities from continuing operations | (83) | (64) | (316) | (240) | |||
Net cash provided by investing activities from discontinued operations | 10 | 3,953 | 34 | 3,868 | |||
Net cash (used in) provided by investing activities | (73) | 3,889 | (282) | 3,629 | |||
Cash flows from financing activities | |||||||
Proceeds from long-term debt | 574 | — | 574 | 1,112 | |||
Net receipts from (payments on) financial liabilities | 63 | (1) | (7) | (82) | |||
Payments of debt issuance costs | (5) | (2) | (17) | (11) | |||
Net (repayments of) proceeds from Revolving Credit Facilities | (131) | (410) | 491 | (515) | |||
Principal payments on long-term debt | (393) | (1,978) | (743) | (2,186) | |||
Repurchases of common stock | (18) | (251) | (62) | (251) | |||
Net (repayments of) funds payable and amounts due to others | — | 6 | (33) | (34) | |||
Dividends paid | (42) | (647) | (127) | (728) | |||
Dividends paid - non-controlling interests | — | — | (163) | (163) | |||
Return of capital - non-controlling interests | (66) | (10) | (96) | (57) | |||
Capital increase - non-controlling interests | 6 | — | 656 | 178 | |||
Other | (7) | 33 | (20) | 18 | |||
Net cash (used in) provided by financing activities from continuing operations | (19) | (3,262) | 453 | (2,720) | |||
Net cash (used in) financing activities from discontinued operations | — | — | — | (143) | |||
Net cash (used in) provided by financing activities | (19) | (3,262) | 453 | (2,863) | |||
Net (decrease) increase in cash and cash equivalents and restricted cash and cash | (19) | 175 | (930) | 888 | |||
Effect of exchange rate changes on cash and cash equivalents and restricted cash and cash | (3) | (25) | (14) | 33 | |||
Cash and cash equivalents and restricted cash and cash equivalents at the beginning of the | 579 | 1,546 | 1,500 | 775 | |||
Cash and cash equivalents and restricted cash and cash equivalents at the end of the period | 557 | 1,696 | 557 | 1,696 | |||
Supplemental disclosures of cash flow information for continuing operations: | |||||||
Interest paid | 87 | 82 | 155 | 171 | |||
Income taxes paid | 63 | 87 | 79 | 119 | |||
Brightstar Lottery PLC | |||
Net Debt | |||
($ in millions) | |||
Unaudited | |||
September 30, | December 31, | ||
2026 | 2025 | ||
2.375% Senior Secured Euro Notes due April 2028 | 179 | 586 | |
5.250% Senior Secured U.S. dollar Notes due January 2029 | 748 | 747 | |
4.250% Senior Secured Euro Notes due March 2030 | 563 | 581 | |
4.875% Senior Secured Euro Notes due September 2032 | 559 | — | |
5.750% Senior Secured U.S. dollar Notes due January 2033 | 743 | 742 | |
Senior Secured Notes | 2,791 | 2,657 | |
Euro Term Loan Facilities due January 2027 | — | 234 | |
Euro Term Loan Facilities due September 2030 | 904 | 1,169 | |
Revolving Credit Facility A due March 2031 | — | — | |
Revolving Credit Facility B due March 2031 | 463 | — | |
Long-term debt, less current portion | 4,158 | 4,060 | |
Euro Term Loan Facilities due January 2027 | — | 118 | |
Euro Term Loan Facilities due September 2030 | 227 | — | |
Current portion of long-term debt | 227 | 118 | |
Total debt | 4,385 | 4,178 | |
Less: Cash and cash equivalents | 538 | 1,446 | |
Less: Debt issuance costs, net - Revolving Credit Facility A due March 2031 | 5 | 4 | |
Less: Debt issuance costs, net - Revolving Credit Facility B due March 2031 | — | 4 | |
Net debt | 3,842 | 2,723 | |
Note: Net debt is a non-GAAP financial measure | |||
Brightstar Lottery PLC | ||||||||
Reconciliation of Non-GAAP Financial Measures | ||||||||
(Unaudited, $ in millions) | ||||||||
For the three months ended | For the nine months ended | |||||||
2026 | 2025 | 2026 | 2025 | |||||
Income from continuing operations | 45 | 95 | 164 | 43 | ||||
Provision for income taxes | 25 | 40 | 61 | 137 | ||||
Interest expense, net | 50 | 36 | 143 | 130 | ||||
Foreign exchange (gain) loss, net | (1) | 1 | (17) | 132 | ||||
Restructuring | — | — | 6 | 21 | ||||
Stock-based compensation | 8 | 3 | 22 | 15 | ||||
Other expense, net | 4 | 12 | 14 | 23 | ||||
Adjusted EBIT | 130 | 185 | 391 | 500 | ||||
Depreciation | 44 | 45 | 126 | 135 | ||||
Amortization - service revenue (1) | 99 | 53 | 300 | 154 | ||||
Amortization - non-purchase accounting | 14 | 8 | 40 | 21 | ||||
Amortization - purchase accounting | 1 | 2 | 4 | 7 | ||||
Adjusted EBITDA | 289 | 294 | 861 | 818 | ||||
Cash flows from operating activities - continuing operations | 73 | (445) | (1,101) | 29 | ||||
Capital expenditures | (81) | (65) | (313) | (239) | ||||
Free Cash Flow | (8) | (509) | (1,414) | (211) | ||||
(1) Includes amortization of upfront license fees | ||||||||
Brightstar Lottery PLC | |||||||||||||||||||||||||
Reconciliation of Non-GAAP Financial Measures | |||||||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||||||
For the three months ended September 30, | For the nine months ended September 30, | ||||||||||||||||||||||||
2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||||
Pre- | Tax | Net | Pre- | Tax | Net | Pre- | Tax | Net | Pre- | Tax | Net | ||||||||||||||
Reported EPS from continuing operations | 0.12 | 0.29 | 0.49 | (0.31) | |||||||||||||||||||||
Adjustments: | |||||||||||||||||||||||||
Foreign exchange (gain) loss, net | (0.01) | — | (0.01) | — | — | 0.01 | (0.09) | 0.01 | (0.10) | 0.66 | (0.03) | 0.69 | |||||||||||||
Amortization - purchase accounting | 0.01 | — | — | 0.01 | — | 0.01 | 0.02 | 0.01 | 0.02 | 0.03 | — | 0.03 | |||||||||||||
(Gain) loss on the extinguishment of debt | (0.01) | — | (0.01) | 0.04 | — | 0.04 | — | — | — | 0.04 | — | 0.04 | |||||||||||||
Discrete tax items | — | — | — | — | — | — | — | 0.09 | (0.09) | — | — | — | |||||||||||||
Restructuring and transformation | — | — | — | — | — | — | 0.03 | 0.01 | 0.02 | 0.10 | 0.03 | 0.08 | |||||||||||||
Other non-recurring adjustments | — | — | — | 0.01 | — | 0.01 | 0.01 | — | — | 0.04 | 0.01 | 0.03 | |||||||||||||
Net adjustments | (0.02) | 0.07 | (0.15) | 0.86 | |||||||||||||||||||||
Adjusted EPS from continuing operations | 0.10 | 0.36 | 0.34 | 0.55 | |||||||||||||||||||||
Reported effective tax rate | 36.0 % | 29.6 % | 27.2 % | 76.1 % | |||||||||||||||||||||
Adjusted effective tax rate | 39.1 % | 26.7 % | 37.8 % | 38.9 % | |||||||||||||||||||||
Adjusted EPS weighted average shares outstanding (in millions) | 185 | (²) | 196 | (²) | 186 | (²) | 201 | (²) | |||||||||||||||||
(1) Calculated based on nature of item, including any realizable deductions, and statutory tax rate in effect for the relevant jurisdiction | |||||||||||||||||||||||||
(2) Includes the dilutive impact of share-based payment awards | |||||||||||||||||||||||||
SOURCE Brightstar Lottery PLC