Brightstar Lottery (NYSE:BRSL) Issues Earnings Results

Brightstar Lottery (NYSE:BRSL) released its quarterly earnings results on Tuesday. The company reported $0.11 EPS for the quarter, topping the consensus estimate of ($0.01) by $0.12, FiscalAI reports. Brightstar Lottery had a return on equity of 10.58% and a net margin of 6.24%.The business had revenue of $584.00 million during the quarter.

Here are the key takeaways from Brightstar Lottery’s conference call:

• Second-quarter profitability exceeded expectations: adjusted EBITDA rose 4% to $286 million, supported by 1.5% global same-store sales growth, favorable U.S. mix, cost savings, and expense recoveries.
• Brightstar reaffirmed its 2026 outlook and expects organic revenue growth to accelerate to approximately 4% in the third quarter, aided by product sales, the Italy B2C launch, and easier comparisons following the U.K. transition.
• Digital growth remains a major catalyst: iLottery wagers increased 22% in the first half, while the enhanced Italy MyLotteries PLAY app, upgraded terminals at more than 33,000 locations, and 23,000 recruited retailers are intended to drive further customer adoption. São Paulo’s digital lottery is also live, with retail operations planned for later this year.
• Cash generation and capital allocation improved after the final $1.7 billion Italy Lotto license payment; leverage was 3.24 times at quarter-end, $140 million had been returned to shareholders year to date, and management cited potential for more than $400 million in annual free cash flow after the current peak CapEx cycle.
• Management expects third-quarter adjusted EBITDA to be roughly in line with the first two quarters and slightly below the prior year, reflecting continued growth investments and difficult comparisons against a $1.8 billion Powerball jackpot in the year-ago period. Mega Millions sales also remain below historical levels following its move to a $5 ticket price.

Brightstar Lottery Trading Up 11.9%

NYSE:BRSL opened at $11.31 on Wednesday. The stock has a market capitalization of $2.11 billion, a price-to-earnings ratio of 13.63 and a beta of 1.03. The company has a fifty day moving average of $11.00. Brightstar Lottery has a 12-month low of $9.90 and a 12-month high of $18.57. The company has a debt-to-equity ratio of 1.79, a quick ratio of 0.84 and a current ratio of 0.88.

Brightstar Lottery Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Tuesday, September 1st. Investors of record on Tuesday, August 18th will be issued a $0.23 dividend. The ex-dividend date is Tuesday, August 18th. This represents a $0.92 dividend on an annualized basis and a yield of 8.1%. Brightstar Lottery’s dividend payout ratio (DPR) is 110.84%.

Analyst Ratings Changes

Several equities analysts recently issued reports on BRSL shares. Stifel Nicolaus reissued a “buy” rating and set a $19.00 target price (down from $20.00) on shares of Brightstar Lottery in a research note on Wednesday, May 13th. Zacks Research raised Brightstar Lottery from a “strong sell” rating to a “hold” rating in a research report on Monday, July 13th. Argus lowered shares of Brightstar Lottery from a “buy” rating to a “hold” rating in a research note on Monday, June 29th. Truist Financial reduced their price target on shares of Brightstar Lottery from $14.00 to $13.00 and set a “hold” rating on the stock in a research report on Monday, July 20th. Finally, Weiss Ratings reissued a “sell (d+)” rating on shares of Brightstar Lottery in a research note on Friday, July 10th. Three investment analysts have rated the stock with a Buy rating, five have issued a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, Brightstar Lottery currently has a consensus rating of “Hold” and a consensus target price of $14.77.

Key Headlines Impacting Brightstar Lottery

Here are the key news stories impacting Brightstar Lottery this week:

• Positive Sentiment: Q2 earnings beat expectations: Brightstar reported adjusted earnings of $0.11 per share versus the consensus estimate of a $0.01 loss. Revenue was $584 million, while income from continuing operations reached $56 million. Brightstar Lottery PLC Reports Second Quarter 2026 Results
• Positive Sentiment: Profitability and cost savings improved: Adjusted EBITDA rose 4% to $286 million, helped by global lottery same-store sales growth and operational discipline. Management increased its OPtiMa cost-savings target to $100 million by 2028, potentially supporting future margins. Brightstar Lottery Posts Q2 Profit, Raises Cost-Savings Target and Declares Dividend
• Positive Sentiment: Outlook was reaffirmed: The company maintained its 2026 revenue guidance of $2.5 billion to $2.6 billion, along with its profit and cash-flow outlook. Sustained same-store sales growth remains a key operating driver.
• Positive Sentiment: Dividend supports the investment case: Brightstar declared a quarterly dividend of $0.23 per share, payable September 1 to shareholders of record August 18. Based on the supplied price information, the annualized dividend yield is approximately 8.1%. The company also said it had deployed more than $140 million toward shareholder returns year to date.
• Neutral Sentiment: Cash generation and balance sheet: First-half cash flow helped fund the final Italy Lotto license payment, while management described its balance sheet and credit profile as strong. However, the company continues to carry meaningful leverage, with a debt-to-equity ratio of 1.79.
• Neutral Sentiment: Regulatory filing and earnings-call details: Brightstar filed unaudited mid-year results and risk disclosures, and its earnings call provided additional context on the outlook. Investors should monitor service-revenue amortization and the U.K. contract transition, which offset part of the quarter’s underlying sales growth. Brightstar Lottery Q2 2026 Earnings Call Transcript

Institutional Investors Weigh In On Brightstar Lottery

Several large investors have recently bought and sold shares of BRSL. Nomura Asset Management Co. Ltd. purchased a new position in shares of Brightstar Lottery in the 4th quarter valued at about $31,000. Knott David M Jr purchased a new stake in shares of Brightstar Lottery during the first quarter worth approximately $32,000. NewEdge Advisors LLC acquired a new stake in Brightstar Lottery in the fourth quarter valued at approximately $32,000. Rockefeller Capital Management L.P. purchased a new position in Brightstar Lottery in the fourth quarter worth approximately $52,000. Finally, Empowered Funds LLC acquired a new position in Brightstar Lottery during the 4th quarter worth approximately $57,000. Hedge funds and other institutional investors own 44.33% of the company’s stock.

About Brightstar Lottery

International Game Technology PLC operates and provides gaming technology products and services in North America, Europe, the Middle East, Africa, Asia-Pacific, Latin America, and the Caribbean. It operates in three segments: Global Lottery, Global Gaming, and Digital & Betting. The company designs, sells, operates, and leases a suite of point-of-sale machines that reconciles lottery funds between the retailer and lottery authority; provides online lottery transaction processing systems; produces instant ticket games; and offers printing services, such as instant ticket marketing plans and graphic design, programming, packaging, shipping, and delivery services.