Brightstar Lottery Lowers 2026 Guidance After Q3 Revenue Drop and Rising Debt

Brightstar Lottery has lowered its full-year 2026 revenue and EBITDA forecasts after posting declines across key metrics in the third quarter. Net debt rose 49% from €2.57bn to €3.84bn. Revenue fell 4% to €607m from €629m in the prior year, while adjusted EBITDA declined 2% to €289m from €294m.

The company pointed to higher service revenue amortisation linked to its role leading a four-member consortium on the nine-year Italian lottery licence. Lower same-store sales, driven by multi-state jackpot performance in the US, added pressure. The transition of its service contract with Allwyn UK and the National Lottery, plus foreign currency effects, compounded the impact.

Performance Details and Offsetting Gains

Not all developments in Q3 were negative. Higher product sales, increased service revenue and associated profit, plus improved cost efficiencies and expense recoveries, provided some balance. Year-to-date through the first nine months, revenue stands 4% lower at €1.78bn compared with €1.84bn in the same period last year, with the UK contract change identified as a primary drag.

According to reporting by Lottery Daily, Brightstar signed new partnerships in October with the New York Lottery, Ontario Lottery and Gaming Corporation (OLG), and Spain’s Organización Nacional de Ciegos Espanoles (ONCE). These agreements expand the contract portfolio after the quarter closed.

Guidance Revision and Outlook Limits

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. The revisions follow a similarly difficult first half and reflect ongoing pressures from licence costs and market variability.

Vince Sadusky, Chief Executive Officer of Brightstar, said: “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. 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.”

The latest downward adjustment underscores the tangible financial cost of contract transitions and amortisation schedules. While new deals signal commercial momentum, the frequency of guidance cuts points to execution risks that operators in multi-jurisdictional lottery services must price carefully heading into 2027.