Brightstar Lottery Posts Q2 Revenue Decline but Expands EBITDA Margin and Raises OPtiMa Target
TL;DR — Brightstar Lottery reported Q2 revenue of $584m, down 7% YoY, with product sales down 20% and Italy revenue down 15%. Adjusted EBITDA rose 4% to $286m, margin 48.9%. The company raised its OPtiMa savings target to $100m by 2028 and guided FY26 revenue to $2.5-2.55bn.
SCCG Take — Cost optimisation and EBITDA margin expansion allow absorption of the $1.67bn licence payment. Lottery operators facing regional revenue softness must replicate this discipline to protect balance sheets and fund organic growth.
Brightstar Lottery recorded $584m in revenue for the quarter ending 30 June, a 7% decline from $631m in the prior corresponding period. Product sales decreased 20% from $42m to $34m. Geo-locked revenue in the US and Canada fell 2% to $286m, rest of world revenue dropped 2% to $77m, and Italy revenue declined 15% to $221m.
A final $1.67bn licence payment for the Italy Lotto concession in April produced negative free cash flow of $1.46bn, against positive $190m a year earlier. Net debt stood at $3.8bn, 28% lower than $5.2bn in Q2 2025 yet above the $2.7bn recorded at 31 December 2025. Adjusted EBITDA rose 4% to $286m, lifting the margin to 48.9% from 43.5%.
Operational Drivers and Management Response
Vince Sadusky, Chief Executive Officer of Brightstar, commented: “Better-than-expected second quarter profits were driven by global same-store sales expansion and disciplined operational management, even as we invest in long-term growth initiatives.” Leadership cited higher global iLottery wagers and B2C expansion in Italy as offsets to the product sales drop. Brightstar holds a 61.5% stake in the LottoItalia consortium.
FY26 Guidance and Cost Optimisation Push
Management lifted its OPtiMa cost savings target to $100m by 2028. Full-year revenue guidance is set between $2.5bn and $2.55bn, incorporating more than 5% organic growth and around $175m in incremental LottoItalia-related revenue. Adjusted EBITDA is projected at $1.16bn to $1.19bn, with OPtiMa savings set to offset around $50m of investments in growth initiatives.
Max Chiara, Brightstar’s Chief Financial Officer, commented: “Cash generation was strong in the first half of the year, funding important investments in the business. We’re increasing our OPtiMa cost savings target to $100m by 2028 as we further optimize our organization and operations. The strength of our balance sheet and financial condition supports our balanced approach to capital allocation, which included returning $140m to shareholders in the year-to-date period.”
The earnings underscore the role of cost discipline and licence-related cash management in sustaining profitability, as reported by Lottery Daily. The mechanism is clear: amortisation from the April payment compressed cash flow while same-store sales and operational controls protected EBITDA.
Reporting: Lottery Daily
When revenue softens, margin expansion and cost rigor protect the balance sheet — Brightstar shows operators how to fund growth despite headwinds.
We track lottery operators globally, and Brightstar's playbook — raising EBITDA margin 540 basis points while revenue falls — is exactly what land-based and digital operators need in maturing markets. The $100m OPtiMa target proves cost discipline buys runway. SCCG helps clients replicate this balance-sheet protection while deploying capital into growth channels that deliver.
- Q2 revenue $584m, down 7% YoY; Italy down 15%, product sales down 20%
- Adjusted EBITDA up 4% to $286m, margin 48.9% vs. 43.5% prior year
- OPtiMa cost savings target raised to $100m by 2028; FY26 revenue guided $2.5–2.55bn
SCCG angle: SCCG advises lottery and iGaming operators on cost optimization, margin management, and balance-sheet strategy. We connect clients to technology partners, B2C expansion advisors, and capital sources that fund organic growth without bleeding cash — the same discipline Brightstar is executing.