BRIGHTSTAR LOTTERY PLC REPORTS FIRST QUARTER 2026 RESULTS

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• Revenue up on strong Italy performance, positive U.S. sales mix, and foreign currency translation, partially offset by increased service revenue amortization and U.K. transition
• Income from continuing operations of $63 million; Adjusted EBITDA of $287 million rose 15%, or 5% at constant currency, on profit flow-through of higher revenue and operational discipline
• Continued commitment to shareholder returns with over $70 million deployed in Q1'26
• Strong balance sheet and credit profile; reaffirming 2026 revenue and profit outlook

LONDON, May 12, 2026 /PRNewswire/ -- Brightstar Lottery PLC (NYSE:BRSL) ("Brightstar" or the "Company") today reported financial results for the first quarter ended March 31, 2026. Today, at 8:00 a.m. EDT, management will host a conference call and webcast to present the results; access details are provided below.

"We delivered a solid start to the year, with first-quarter results reflecting the strength of our global portfolio and disciplined execution against our strategic priorities," said Vince Sadusky, CEO of Brightstar. "We are investing in exciting long-term growth initiatives and returned over $70 million to shareholders in the period, demonstrating the confidence we have in the durability of our cash flows. We're on track with our multi-year goal of delivering accelerated sales and profit growth that we expect to create compelling, incremental value."

"During the quarter, we continued to deliver OPtiMa cost savings while maintaining a disciplined approach to discretionary spend, carefully balancing cost control against strategic priorities, to sustain our profitable growth trajectory," said Max Chiara, CFO of Brightstar. "Our balance sheet and credit profile are strong with historically low net debt leverage and manageable near-term debt maturities. The Company's attractive margin structure and strong cash generation, coupled with access to significant liquidity, provide substantial support for our capital allocation plans."

Overview of Consolidated First Quarter 2026 Results

Financial Highlights
Revenue of $587 million, up 1% from $583 million the prior year, primarily driven by:

• 3.1% Italy same-store sales and positive mix in the U.S.
• Reduced LMA shortfall and higher pass-through revenue
• Benefit from foreign currency translation
• Higher service revenue amortization related to Italy Lotto license
• U.K. service contract transition

Income from continuing operations was $63 million compared to $8 million in the prior-year period, primarily resulting from:

• Items listed as drivers of change in Adjusted EBITDA below
• Non-cash impact of fluctuations in the EUR/USD exchange rate on debt balances at the Parent
• Reduced provision for income taxes

Adjusted EBITDA increased 15% to $287 million versus $250 million in the prior-year period, mainly due to:

• Key drivers of growth include:
  • Profit flow-through of higher Italy same-store sales growth
  • OPtiMa cost efficiencies and General & administrative expense recoveries
  • Reduced LMA shortfall
  • Benefit of foreign currency translation
• Partial offsets to growth include:
  • Investments in growth initiatives
  • U.K. service contract transition
  • Human capital investments tied to retention, execution, and long-term value
  • Inflationary pressures on postage & freight and other costs

Diluted income per share from continuing operations was $0.20 compared to diluted loss per share from continuing operations of $0.11 in the prior year. Adjusted diluted earnings per share from continuing operations was $0.14 compared to adjusted diluted income per share from continuing operations of $0.09 in the prior year, primarily driven by higher income from continuing operations.

Net debt was $2.8 billion compared to $2.7 billion at December 31, 2025. Net debt leverage was 2.4x.

Cash and Liquidity Update
Total liquidity was $2.8 billion as of March 31, 2026 with $1.2 billion in unrestricted cash and $1.6 billion in additional borrowing capacity from undrawn credit facilities.

Other Developments
The Company's Board of Directors declared a quarterly cash dividend of $0.23 per common share, with a record date of May 28, 2026 and a payment date of June 11, 2026.

Final Italy Lotto license payment of €1.43 billion or $1.67 billion made in April 2026.

Successfully refinanced revolving credit facility to March 2031, with improved terms, in April 2026.

Financial Outlook
Reaffirming FY'26 revenue and profit outlook:

• Revenue of $2.50 - $2.55 billion
  • Includes more than five percent organic growth; approximately $175 million in incremental Italy Lotto-related service revenue amortization impacts reported growth
• Adjusted EBITDA of $1.16 - $1.19 billion; revenue growth and OPtiMa savings more than offset approximately $50 million of investments in growth initiatives
• Net cash used in operating activities of approximately $900 million includes €1.43 billion or $1.67 billion related to final Italy Lotto license payment; approximately $750 million in cash from operations excluding Italy Lotto license payment
• Capital expenditures of approximately $450 million - $475 million reflects contractual obligations related to recent contract wins and extensions

Earnings Conference Call and Webcast 
May 12, 2026, at 8:00 a.m. EDT

To register to participate in the conference call, or to listen to the live audio webcast, please visit the "Events Calendar" on Brightstar's Investor Relations website at www.brightstarlottery.com. A replay will be available on the website following the live event.

Comparability of Results
All figures presented in this news release are prepared under U.S. GAAP, unless noted otherwise. Amounts reported in millions are computed based on amounts in thousands. As a result, the sum of the components may not equal the total amount reported in millions due to rounding. Certain columns and rows within tables may not add due to the use of rounded numbers. Percentages and earnings per share amounts presented are calculated from the underlying unrounded amounts.

About Brightstar Lottery PLC
Brightstar Lottery PLC (NYSE: BRSL) is a global leader in lottery focused on innovation and forward-thinking strategies and solutions, building on our renowned expertise in delivering secure technology and producing reliable, comprehensive solutions for our customers. As a premier pure play global lottery company, our best-in-class lottery operations, retail and digital solutions, and award-winning lottery games enable our customers to achieve their goals, entertain players and distribute meaningful benefits to communities. Brightstar has a well-established local presence and is a trusted partner to governments and regulators around the world, creating value by adhering to the highest standards of service, integrity, and responsibility. Brightstar serves nearly 90 lottery customers and their players on six continents. It is the primary technology provider to 26 of the 46 lottery jurisdictions in the U.S. and eight of the world's 10 largest lotteries. Brightstar has approximately 6,000 employees. For more information, please visit www.brightstarlottery.com. 

Cautionary Statement Regarding Forward-Looking Statements
This release contains forward–looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Forward–looking statements include, but are not limited to, statements regarding Brightstar Lottery PLC's (the "Company") future financial and operating performance, strategic priorities and initiatives, business development, capital allocation, liquidity and leverage profile, contract opportunities, digital and iLottery expansion, product development, regulatory matters, and market opportunities. Forward–looking statements include, without limitation, statements regarding expected or reaffirmed FY'26 revenue, Adjusted EBITDA, cash from operations, capital expenditures, organic growth expectations, as well as assumptions underlying such guidance, anticipated product sales trends, expected benefits from OPtiMa cost–savings initiatives, anticipated investments in growth initiatives, expected timing and execution of launches and expansions (including the São Paulo launch), anticipated shareholder returns, refinancing activities, and pro forma leverage and liquidity metrics. Forward–looking statements may be identified by words such as "expect," "anticipate," "intend," "plan," "believe," "may," "will," "target," "project," "on track," "reaffirm," or similar expressions. These statements are based on current expectations and assumptions and are subject to risks and uncertainties that could cause actual results to differ materially. Such risks and uncertainties include, among others: changes in economic, competitive, regulatory, and political conditions; risks related to contract awards, renewals, and execution; reliance on regulatory approvals and timing; risks associated with digital execution, technology initiatives, and product development; inflationary pressures; interest rate and foreign exchange volatility; changes in consumer behavior; capital market conditions; and the risk factors described in the Company's most recent Annual Report on Form 20–F and other filings with the SEC. Forward–looking statements speak only as of the date they are made. Except as required by law, the Company undertakes no obligation to update or revise any forward–looking statements, whether as a result of new information, future events, or otherwise. Nothing in this release constitutes a profit forecast or should be relied upon as a guarantee of future performance.

Non-GAAP Financial Measures
Management supplements the reporting of financial information, determined under GAAP, with certain non-GAAP financial information. Management believes the non-GAAP information presented provides investors with additional useful information, but it is not intended to, nor should it be considered in isolation or as a substitute for the related GAAP measures. Moreover, other companies may define non-GAAP measures differently, which limits the usefulness of these measures for comparisons with such other companies. The Company encourages investors to review its financial statements and publicly filed reports in their entirety and not to rely on any single financial measure.

Adjusted EBIT represents net income (loss) from continuing operations (a GAAP measure) before income taxes, interest expense, net, foreign exchange gain (loss), net, other expenses (e.g., gains/losses on extinguishment and modifications of debt, etc.), net, impairment losses, restructuring expenses, stock-based compensation, litigation expense (income), and certain other non-recurring items. Other non-recurring items are infrequent in nature and are not reflective of ongoing operational activities. Management believes that Adjusted EBIT is useful in providing period-to-period comparisons of the results of the Company's ongoing operational performance.

Adjusted EBIT margin represents Adjusted EBIT divided by revenue.

Adjusted EBITDA represents net income (loss) from continuing operations (a GAAP measure) before income taxes, interest expense, net, foreign exchange gain (loss), net, other expenses (e.g., gains/losses on extinguishment and modifications of debt, etc.), net, depreciation, impairment losses, amortization (service revenue, purchase accounting, and non-purchase accounting), restructuring expenses, stock-based compensation, litigation expense (income), and certain other non-recurring items. Other non-recurring items are infrequent in nature and are not reflective of ongoing operational activities. Management believes that Adjusted EBITDA is useful in providing period-to-period comparisons of the results of the Company's ongoing operational performance.

Adjusted EBITDA margin represents Adjusted EBITDA divided by revenue.

Adjusted EPS represents diluted earnings per share (a GAAP measure), excluding the effects of foreign exchange, impairments, amortization from purchase accounting, discrete tax items, and other significant non-recurring adjustments that are not reflective of on-going operational activities (e.g., gains/losses on sale of business, gains/losses on extinguishment and modifications of debt, etc.). Adjusted EPS is calculated using diluted weighted-average number of shares outstanding, including the impact of any potentially dilutive common stock equivalents that are anti-dilutive to GAAP net income (loss) per share but dilutive to Adjusted EPS. Management believes that Adjusted EPS is useful in providing period-to-period comparisons of the results of the Company's ongoing operational performance.

Net debt is a non-GAAP financial measure that represents debt (a GAAP measure, calculated as long-term obligations plus short-term borrowings) minus capitalized debt issuance costs and cash and cash equivalents, including cash and cash equivalents classified as held for sale. Cash and cash equivalents, including cash and cash equivalents held for sale, are subtracted from the GAAP measure because they could be used to reduce the Company's debt obligations. Management believes that net debt is a useful measure to monitor leverage and evaluate the balance sheet.

Net debt leverage is a non-GAAP financial measure that represents the ratio of Net debt as of a particular balance sheet date to Adjusted EBITDA for the last twelve months prior to such date. Management believes that net debt leverage is a useful measure to assess Brightstar's financial strength and ability to incur incremental indebtedness when making key investment decisions.

Free cash flow is a non-GAAP financial measure that represents cash flow from operations (a GAAP measure) less capital expenditures. Management believes free cash flow is a useful measure of liquidity and an additional basis for assessing Brightstar's ability to fund its activities, including debt service and distribution of earnings to shareholders.

Constant currency is a non-GAAP adjustment to certain financial measures that expresses current financial data using the prior-year/period exchange rate (i.e., the exchange rate used in preparing the financial statements for the prior year). Management believes that constant currency is a useful measure to compare period-to-period results without regard to the impact of fluctuating foreign currency exchange rates.

A reconciliation of the non-GAAP measures to the corresponding amounts prepared in accordance with GAAP appears in the tables in this release. The tables provide additional information as to the items and amounts that have been excluded from the adjusted measures.

The Company provides guidance of select information related to its financial and operating performance, and such measures may differ from year to year. The guidance is only an estimate of what the Company believes is realizable as of the date of this release. Actual results may vary from the guidance and the variations may be material. The Company undertakes no intent or obligation to publicly update or revise any of these projections, whether as a result of new information, future events or otherwise, except as required by law.

A reconciliation of the Company's forward-looking non-GAAP financial measures to the most directly comparable GAAP financial measure cannot be provided without unreasonable effort. This is due to the inherent difficulty of accurately forecasting the occurrence and financial impact of the adjusting items necessary for such a reconciliation to be prepared, for example, the provision for income taxes or net foreign exchange gain/loss, as such items have not yet occurred, are out of the Company's control, or cannot be reasonably predicted.

Contact
Mike DeAngelis, Corporate Communications, +1 (401) 392-1000, This email address is being protected from spambots. You need JavaScript enabled to view it.
Matteo Selva, Italian media inquiries, +39 366 6803635
James Hurley, Investor Relations, +1 (401) 392-7190 

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