Brightstar Lottery Shares Fall Nearly 11% as FY2026 Revenue Guidance Cut Despite Q3 Earnings Beat

Brightstar Lottery PLC (NYSE:BRSL) reported third-quarter 2026 adjusted earnings of $0.10 per share, exceeding analysts’ expectations of $0.06, while revenue declined 4% year-on-year to $607 million, below the consensus estimate of $612.23 million. Shares of the lottery technology provider fell 10.83% in premarket trading on Tuesday after the company reduced its full-year revenue and adjusted EBITDA forecasts.

Revenue decreased from $629 million in the corresponding period of 2025, with the company citing higher non-cash service revenue amortisation associated with its new Italy Lotto licence.

Revenue Declines as Adjusted EBITDA Margin Improves

Brightstar reported adjusted EBITDA of $289 million, down 2% from $294 million a year earlier and in line with expectations.

Despite the decline, the adjusted EBITDA margin increased to 47.5% from 46.7%, supported by changes in product sales mix and cost efficiencies.

Product sales rose 137% year-on-year to $60 million, while operational growth drivers increased 4%, led by global product sales and other service revenue.

Non-cash service revenue amortisation related to the Italy Lotto licence totalled $99 million during the quarter, compared with $53 million in the prior-year period.

Chief Executive Officer Vince Sadusky commented:

“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.”

Brightstar Lowers Full-Year Revenue and EBITDA Forecasts

Brightstar reduced its fiscal 2026 revenue guidance to between $2.43 billion and $2.45 billion, compared with its previous forecast of $2.50 billion to $2.55 billion.

The revised midpoint of $2.44 billion is below analysts’ consensus estimate of $2.48 billion.

The company also lowered its adjusted EBITDA outlook to $1.14 billion–$1.16 billion from the previous range of $1.16 billion–$1.19 billion, primarily reflecting updated foreign exchange assumptions.

The revised forecasts indicate lower expected revenue and adjusted EBITDA for the full year than previously projected.

Operating Cash Flow Outlook Maintained

Brightstar maintained its full-year cash from operations forecast of approximately $750 million, excluding the $1.67 billion payment associated with the Italy Lotto licence.

The company reported net debt of $3.84 billion and a leverage ratio of 3.30 times.

The third-quarter results showed adjusted earnings above market expectations and an improved EBITDA margin, alongside lower revenue and reduced full-year guidance. The revised outlook coincided with a 10.83% decline in Brightstar shares during premarket trading.

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