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NEWS RELEASE

BRIGHTSTAR LOTTERY PLC REPORTS
FIRST QUARTER 2026 RESULTS


•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 – 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.”
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Overview of Consolidated First Quarter 2026 Results

Quarter EndedY/Y Change Constant Currency Change
All amounts from continuing operationsMarch 31,
20262025
($ in millions, except per share data)
GAAP Financials:
Revenue5875831%(4%)
Income from continuing operations638NM
Income from continuing operations margin10.7%1.4%
Earnings per share - diluted$0.20$(0.11)NA
Net cash provided by operating activities165185(10%)
Cash and cash equivalents1,24963198%
Non-GAAP Financial Measures:
Adjusted EBITDA28725015%5%
Adjusted EBITDA margin48.9%42.8%
Adjusted earnings per share - diluted$0.14$0.0957%
Free cash flow55109(49%)
Net debt2,7525,047(45%)
Note: Reconciliations of non-GAAP financial measures to the most directly comparable GAAP financial measures, and other disclosures
regarding non-GAAP financial measures, are provided at the end of this news release

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
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•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
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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.

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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.

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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, mike.deangelis@brightstarlottery.com
Matteo Selva, Italian media inquiries, +39 366 6803635
James Hurley, Investor Relations, +1 (401) 392-7190
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Select Performance and KPI data ($ in millions, unless otherwise noted)
Constant
Q1'26Q1'25Y/YCurrency
RevenueChange
Change(1)
Service
Instant ticket & draw wager-based revenue5375007%—%
U.S. multi-state jackpot wager-based revenue17172%2%
Upfront license fee amortization(101)(48)109%88%
Other1068919%14%
Total service revenue558557—%(5%)
Product sales292612%9%
Total revenue5875831%(4%)
Income from continuing operations638NM
Adjusted EBIT133148(10%)(18%)
Adjusted EBITDA(1)
28725015%5%
Same-store sales growth (%) at constant currency (wager-based growth) (2)
Global
Instant ticket & draw games1.2%(0.1%)
U.S. multi-state jackpots(0.9%)(46.1%)
Total 1.1%(3.8%)
U.S.
Instant ticket & draw games—%(1.3%)
U.S. multi-state jackpots(0.9%)(46.1%)
Total —%(6.9%)
Italy
Instant ticket & draw games3.1%(0.7%)
Rest of world
Instant ticket & draw games5.8%5.2%
(1) Non-GAAP measure; see disclaimer on page 4 and reconciliations to the most directly comparable GAAP measure in Appendix for further details
(2) Same-store sales represents the change in wagers recorded in lottery jurisdictions where Brightstar is the operator or facilities management supplier, using the same lottery jurisdictions and perimeter for comparisons between periods


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Constant
Q1'26Q1'25Y/YCurrency
Change
Change(1)
Same-store revenue growth (%) at constant currency (Same-store sales inclusive of contract mix) (2)
Global
Instant ticket & draw games3.0%(0.7%)
U.S. multi-state jackpots2.0%(46.4%)
Total3.0%(3.3%)
U.S.
Instant ticket & draw games3.1%(1.6%)
U.S. multi-state jackpots2.0%(46.4%)
Total3.0%(8.0%)
Italy
Instant ticket & draw games2.9%(1.0%)
Rest of world
Instant ticket & draw games4.2%5.1%
Revenue (by geography)
U.S. & Canada2812599%9%
Italy236246(4%)(14%)
Rest of world7079(11%)(18%)
Total revenue5875831%(4%)
(1) Non-GAAP measure; see disclaimer on page 4 and reconciliations to the most directly comparable GAAP measure in Appendix for further details
(2) Same-store revenue represents the change in same-store sales net of contract mix

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Brightstar Lottery PLC
Condensed Consolidated Statements of Operations
($ and shares in millions, except per share amounts)
Unaudited
For the three months ended
March 31,
20262025
Service revenue (includes amortization of upfront license fees)558 557 
Product sales29 26 
Total revenue587 583 
Cost of services (excluding Depreciation and amortization)290 264 
Cost of product sales (excluding Depreciation and amortization)23 20 
General and administrative46 61 
Research and development14 11 
Sales and marketing34 33 
Depreciation and amortization53 54 
Interest expense, net43 46 
Foreign exchange (gain) loss, net(12)33 
Other expense (income), net4 6 
Income before provision for income taxes92 56 
Provision for income taxes29 48 
Income from continuing operations63 8 
Less: Net income attributable to non-controlling interests from continuing operations26 31 
Net income (loss) from continuing operations attributable to Brightstar Lottery PLC37 (23)
Income from discontinued operations— 52 
Less: Net income attributable to non-controlling interests from discontinued operations— 2 
Net income from discontinued operations attributable to Brightstar Lottery PLC— 50 
Net income63 60 
Net income attributable to non-controlling interests26 33 
Net income attributable to Brightstar Lottery PLC37 27 
Per Share Data
Basic: Net income (loss) from continuing operations attributable to Brightstar Lottery PLC0.20 (0.11)
Diluted: Net income (loss) from continuing operations attributable to Brightstar Lottery PLC0.20 (0.11)
Basic: Net income attributable to Brightstar Lottery PLC0.20 0.13 
Diluted: Net income attributable to Brightstar Lottery PLC0.20 0.13 
Weighted-average Shares Outstanding
Basic186 202 
Diluted187 202 

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Brightstar Lottery PLC
Condensed Consolidated Balance Sheets
($ in millions)
Unaudited
March 31,December 31,
20262025
Assets
Current assets:
Cash and cash equivalents1,249 1,446 
Restricted cash and cash equivalents25 54 
Trade and other receivables, net561 526 
Inventories, net125 116 
Other current assets816 193 
Total current assets2,776 2,336 
Systems, equipment and other assets related to contracts, net707 678 
Property, plant and equipment, net89 90 
Operating lease right-of-use assets95 92 
Goodwill2,696 2,707 
Intangible assets, net124 125 
Other non-current assets2,977 3,130 
Total non-current assets6,688 6,822 
Total assets9,464 9,158 
Liabilities and shareholders' equity
Liabilities
Current liabilities:
Accounts payable730 766 
Current portion of long-term debt229 118 
Payable to ADM1,644 1,680 
Other current liabilities544 508 
Total current liabilities3,147 3,072 
Long-term debt, less current portion3,778 4,060 
Deferred income taxes197 208 
Operating lease liabilities75 72 
Other non-current liabilities158 156 
Total non-current liabilities4,208 4,496 
Total liabilities7,356 7,568 
Shareholders' Equity
Brightstar Lottery PLC’s shareholders’ equity848 875 
Non-controlling interests1,260 715 
Total shareholders’ equity2,108 1,590 
Total liabilities and shareholders’ equity9,464 9,158 
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Brightstar Lottery PLC
Condensed Consolidated Statements of Cash Flows
($ in millions)
Unaudited
For the three months ended
March 31,
20262025
Cash flows from operating activities
Net income6360
Less: Income from discontinued operations, net of tax—52
Adjustments to reconcile net income to net cash provided by operating activities from continuing operations:
Amortization of upfront license fees10148
Depreciation & amortization5354
Stock-based compensation77
Deferred income taxes(6)(18)
Foreign exchange (gain) loss, net(12)33
Other non-cash items, net26
Changes in operating assets and liabilities, excluding the effects of dispositions:
Trade and other receivables(43)51
Inventories(9)1
Accounts payable(5)(39)
Accrued interest payable(4)(25)
Accrued income taxes3056
Other assets and liabilities(11)2
Net cash provided by operating activities from continuing operations165185
Net cash provided by operating activities from discontinued operations—55
Net cash provided by operating activities165240
Cash flows from investing activities
Capital expenditures(110)(76)
Other—(2)
Net cash used in investing activities from continuing operations(110)(78)
Net cash provided by (used in) investing activities from discontinued operations24(39)
Net cash used in investing activities(86)(116)
Cash flows from financing activities
Proceeds from long-term debt—540
Net repayments of Revolving Credit Facilities—(130)
Net payments on financial liabilities(65)(77)
Principal payments on long-term debt(117)(208)
Repurchases of common stock(30)—
Net (repayment of) funds payable and amounts due to others(30)(16)
Dividends paid(42)(40)
Dividends paid - non-controlling interests—(11)
Return of capital - non-controlling interests(2)—
Other(4)(19)
Net cash (used in) provided by financing activities from continuing operations(292)38
Net cash used in financing activities from discontinued operations—(133)
Net cash used in financing activities(292)(95)
Net (decrease) increase in cash and cash equivalents and restricted cash and cash equivalents(212)29
Effect of exchange rate changes on cash and cash equivalents and restricted cash and cash equivalents(14)19
Cash and cash equivalents and restricted cash and cash equivalents at the beginning of the period1,500775
Cash and cash equivalents and restricted cash and cash equivalents at the end of the period1,274823
Less: Cash and cash equivalents and restricted cash and cash equivalents of discontinued operations—84
Cash and cash equivalents and restricted cash and cash equivalents at the end of the period of continuing operations1,274739
Supplemental disclosures of cash flow information for continuing operations:
Interest paid4972
Income taxes paid49
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Brightstar Lottery PLC
Net Debt
($ in millions)
Unaudited
March 31,December 31,
20262025
2.375% Senior Secured Euro Notes due April 2028573 586 
5.250% Senior Secured U.S. Dollar Notes due January 2029747 747 
4.250% Senior Secured Euro Notes due March 2030569 581 
5.750% Senior Secured U.S. Dollar Notes due January 2033744 742 
Senior Secured Notes2,634 2,657 
Euro Term Loan Facilities due January 2027— 234 
Euro Term Loan Facilities due September 20301,145 1,169 
Revolving Credit Facility A due July 2027— — 
Revolving Credit Facility B due July 2027— — 
Long-term debt, less current portion3,778 4,060 
Euro Term Loan Facilities due January 2027229 118 
Current portion of long-term debt229 118 
Total debt4,008 4,178 
Less: Cash and cash equivalents1,249 1,446 
Less: Debt issuance costs, net - Revolving Credit Facility A due July 20273 4 
Less: Debt issuance costs, net - Revolving Credit Facility B due July 20274 4 
Net debt2,752 2,723 
Note: Net debt is a non-GAAP financial measure
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Brightstar Lottery PLC
Reconciliation of Non-GAAP Financial Measures
(Unaudited, $ in millions)



For the three months ended March 31,
20262025
Income (loss) from continuing operations63 8 
Provision for income taxes29 48 
Interest expense, net43 46 
Foreign exchange (gain) loss, net(12)33 
Stock-based compensation7 7 
Other expense, net4 6 
Adjusted EBIT133 148 
Income (loss) from continuing operations63 8 
Provision for income taxes29 48 
Interest expense, net43 46 
Foreign exchange (gain) loss, net(12)33 
Depreciation41 45 
Amortization - service revenue (1)
101 48 
Amortization - non-purchase accounting10 7 
Amortization - purchase accounting1 2 
Stock-based compensation7 7 
Other expense, net4 6 
Adjusted EBITDA287 250 
(1) Includes amortization of upfront license fees
Cash flows from operating activities - continuing operations165 185 
Capital expenditures(110)(76)
Free Cash Flow55 109 

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Brightstar Lottery PLC
Reconciliation of Non-GAAP Financial Measures
(Unaudited)



For the three months ended March 31,
20262025
Pre-Tax Impact
Tax Impact (1)
Net ImpactPre-Tax Impact
Tax Impact (1)
Net Impact
Reported EPS from continuing operations attributable to Brightstar Lottery PLC - diluted 0.20(0.11)
Adjustments:
Foreign exchange (gain) loss, net(0.07)— (0.07)0.16 (0.02)0.18
Amortization - purchase accounting0.01 — 0.010.01 — 0.01
Other (non-recurring adjustments)— — —0.01 — 0.01
Net adjustments(0.06)0.20
Adjusted EPS from continuing operations attributable to Brightstar Lottery PLC - diluted0.140.09
Reported effective tax rate31.2 %85.3 %
Adjusted effective tax rate36.4 %47.8 %
Adjusted EPS weighted average shares outstanding (in millions)
187
(2)
204
(2)
(1) Calculated based on nature of item, including any realizable deductions, and statutory tax rate in effect for the relevant jurisdiction
(2) Includes the dilutive impact of share-based payment awards
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