Brightstar Lottery Swings to Profit in Q2 Despite 7 Percent Revenue Decline and Italy License Payment
TL;DR — Brightstar Lottery posted Q2 revenue of $584 million, down 7% YoY, due to the Italy Lotto license payment. Profit swung to $64.51 million from a loss, with adjusted EBITDA up 4% to $286 million. The company maintained full-year guidance and highlighted its São Paulo expansion.
SCCG Take — Margin gains amid one-time costs show disciplined execution can offset license investments. Operators must weigh rising net debt against liquidity and new-jurisdiction upside in Brazil.
Brightstar Lottery reported $584 million in revenue for Q2 ending June 30, 2026. The total reflects a 7 percent year-on-year decline driven by the final EUR 1.43 billion ($1.65 billion) payment for the Italy Lotto license completed in April. Profitability metrics improved substantially over the same period.
CEO Vince Sadusky said: “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.” Digital activity in Italy contributed to double-digit iLottery wager growth across regions.
Profitability Surge Offsets Short-Term Challenges
Income from continuing operations reached EUR 56 million ($64.51 million), reversing a EUR 60 million ($69.12 million) loss last year. Adjusted EBITDA rose 4 percent to $286 million. Diluted earnings per share improved to $0.18 from a $0.47 loss.
Net debt increased to $3.8 billion from $2.7 billion at the end of 2025, primarily due to the Italy payment. Liquidity stood at $1.7 billion. The company returned $140 million to shareholders this year, including a quarterly dividend of $0.23 per share.
The Path Forward for Lottery Operators
Brightstar reaffirmed full-year revenue guidance between $2.50 billion and $2.55 billion with adjusted EBITDA up to $1.19 billion. The outlook factors in $50 million of additional investments and roughly $20 million in expected savings from the ongoing OPtiMa program. A new 15-year concession in São Paulo, secured in January through a partnership with Scientific Games, targets omnichannel retail and online experiences.
According to reporting by GamblingNews, these results reflect a balanced capital allocation strategy. One limitation is the elevated debt load, which could constrain flexibility if organic growth or cost savings fall short of projections. Operators in similar licensing cycles should track whether such one-time payments continue to pressure near-term leverage while new-market entry costs accumulate.
Reporting: GamblingNews
Margin discipline and digital momentum offset one-time license costs, but rising debt demands close watch on new-market execution.
We track how operators fund license expansion without mortgaging flexibility. Brightstar's $3.8 billion net debt and São Paulo bet show the tightrope: strong EBITDA growth buys runway, but margin missteps or slow rollouts can quickly narrow options in capital-intensive lottery markets.
- Q2 adjusted EBITDA up 4% to $286M; net income swung $64.5M positive YoY
- Net debt jumped to $3.8B from $2.7B after $1.65B Italy Lotto payment in April
- New 15-year São Paulo concession with Scientific Games targets omnichannel lottery
SCCG angle: SCCG works both sides of this equation. We connect lottery platform providers and payment partners to operators entering Latin America, and we advise private-equity backed operators on structuring partnerships that keep debt serviceable while new concessions ramp.