Brightstar Lottery Lowers Full-Year Guidance as Q3 Revenues Decline

Brightstar Lottery PLC reported third-quarter 2026 revenue of $607 million, a 4% decline from $629 million in the prior-year period, and reduced its full-year revenue outlook, citing the absence of elevated multi-state jackpot activity and unfavorable currency movements.

Third-Quarter Performance in Detail

Revenue for the quarter came in below consensus estimates, missing projections of approximately $623 million. Despite the top-line shortfall, the company’s adjusted earnings per share of $0.10 outperformed expectations of roughly $0.06, although that figure represents a 73% decline from $0.36 in the third quarter of 2025.

Adjusted EBITDA margin improved to 47.5% from 46.7% in the prior-year quarter, indicating that cost discipline and margin management partially offset the revenue pressure. Income metrics for the year-to-date period showed year-over-year improvement, with diluted net income per share from continuing operations reaching $0.49, compared with a loss of $0.31 in the same period of 2025.

Year-to-date revenue stood at $1.78 billion, down 4% from $1.84 billion in 2025, as gains in product sales and other revenue lines were insufficient to counter weakness in core draw-based lottery sales.

Guidance Reduction

The company lowered its full-year 2026 revenue outlook to a range of $2.435 billion to $2.455 billion, down from its previous expectation of $2.50 billion to $2.55 billion. The reduction at the midpoint totals approximately $80 million. Adjusted EBITDA guidance was similarly revised, moving to a range of $1.14 billion to $1.16 billion from the prior forecast of $1.16 billion to $1.19 billion.

Two primary factors drove the revision, according to the company’s reporting:

• Jackpot dynamics. Draw sales in the lottery sector are highly sensitive to jackpot size. When multi-state games such as Powerball and Mega Millions lack extended rollover runs and the outsized jackpots they generate, ticket volumes can fall meaningfully below trend. The current period has not produced the jackpot escalation that historically lifts quarterly revenue for lottery operators and suppliers.
• Currency headwinds. Movements in the euro against the U.S. dollar affected reported results, given the company’s substantial Italian operations.

The market reaction was pronounced, with shares falling roughly 11% in trading following the release, as investors weighed the guidance reduction against the quarter’s earnings beat.