Earnings release
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NEWS RELEASE BRIGHTSTAR LOTTERY PLC REPORTS SECONDQUARTER 2026 RESULTS 2026-08-04 Revenue of $584 million re ects sustained growth in global lottery same-store sales o set by higher service revenue amortization and U.K. contract transition Income from continuing operations of $56 million; better-than-expected Adjusted EBITDA of $286 million rose 4% on same-store sales ow through and disciplined operational management, including OPtiMa savings, which are upgraded to $100 million by 2028 Signi cant cash ow generation in the rst half helped fund nal Italy Lotto license payment; Company maintains strong balance sheet and credit pro le Continued commitment to shareholder returns with over $140 million deployed year-to-date Rea rming 2026 revenue, pro t, and cash ow outlook LONDON, Aug. 4, 2026 /PRNewswire/ -- Brightstar Lottery PLC (NYSE: BRSL) ("Brightstar" or the "Company") today reported nancial results for the second quarter ended June 30, 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. "Better-than-expected second quarter pro ts were driven by global same-store sales expansion and disciplined operational management, even as we invest in long-term growth initiatives," said Vince Sadusky, CEO of Brightstar. "We achieved several important milestones with our Italy B2C expansion e orts, and global iLottery wagers continue to grow at a double-digit pace. With the nal Italy Lotto license payment behind us, revenue, pro t, and cash ow are poised to in ect." "Cash generation was strong in the rst half of the year, funding important investments in the business," said Max Chiara, CFO of Brightstar. "We're increasing our OPtiMa cost savings target to $100 million by 2028 as we further optimize our organization and operations. The strength of our balance sheet and nancial condition supports our balanced approach to capital allocation, which included returning $140 million to shareholders in the year-to-date period." Overview of Consolidated Second Quarter 2026 Results Quarter Ended Y/Y Change Constant Currency ChangeAll amounts from continuing operations June 30, 2026 2025($ in millions, except per share data) GAAP Financials: Revenue 584 631 (7) % (8) % 1
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Income (loss) from continuing operations 56 (60) NM Income (loss) from continuing operations margin9.6 % (9.5) % Earnings per share - diluted $0.18 $(0.47)NM Net cash (used in) provided by operating activities(1,340) 288 NM Cash and cash equivalents 558 1,309(57) % Non-GAAP Financial Measures: Adjusted EBITDA 286 274 4 % 3 %Adjusted EBITDA margin 48.9 % 43.5 % Adjusted earnings per share - diluted $0.11 $0.12(8) % Free cash flow (1,461) 190 NM Net debt 3,791 5,240(28) % 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 $584 million, down 7% from $631 million in the prior year Key drivers of growth include: 1.5% global same-store sales growth and positive mix in the U.S. Italy B2C digital growth O sets to growth include: Higher service revenue amortization related to Italy Lotto license U.K. service contract transition Lower product sales Income from continuing operations was $56 million compared to a loss of $60 million in the prior-year period, primarily resulting from: Items listed as drivers of growth and o sets to growth in Adjusted EBITDA below Lower restructuring charges than the prior year Non-cash impact of uctuations in the EUR/USD exchange rate on Parent company debt balances Reduced provision for income taxes, primarily attributable to lower valuation allowances and bene t of a discrete tax item Adjusted EBITDA increased 4% to $286 million versus $274 million in the prior-year period Key drivers of growth include: Pro t ow-through of same-store sales growth OPtiMa cost e ciencies and General & administrative expense recoveries Partial o sets to growth include: Investments in growth initiatives U.K. service contract transition Diluted income per share from continuing operations was $0.18 compared to diluted loss per share from continuing operations of $0.47 in the prior year. Adjusted diluted earnings per share from continuing operations was $0.11 compared to adjusted diluted income per share from continuing operations of $0.12 in the prior year. 2
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Adjusted diluted earnings per share from continuing operations includes $43 million ($0.23 per share) of Brightstar's portion, net of tax, of service revenue amortization compared to $23 million ($0.11 per share) in 2025. Net debt was $3.8 billion compared to $2.7 billion at December 31, 2025, re ecting the nal Italy Lotto payment. Net debt leverage was 3.24x. Cash and Liquidity Update Total liquidity was $1.7 billion as of June 30, 2026, including approximately $0.6 billion in unrestricted cash and $1.2 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 August 18, 2026 and a payment date of September 1, 2026. The Company has initiated a third phase of OPtiMa 3.0, a multi-year program ("OPtiMa 3.3"). OPtiMa 3.3 is focused on changes to the management structure, including a reduction in executive and other senior leadership layers, the consolidation of similar functions, the ceasing of certain consulting arrangements, and the optimization of the global real estate footprint. The plan is expected to be substantially complete within one year. Total restructuring costs associated with OPtiMa 3.3 are expected to be $15-$20 million, including $8 million recorded in the second quarter. OPtiMa 3.3 is expected to generate annualized cost savings of approximately $20 million upon completion. The nal Italy Lotto license payment of €1.43 billion or $1.67 billion was made in April 2026. Financial Outlook Rea rming FY'26 revenue, pro t, and cash ow outlook, including the below expectations: Revenue of $2.50 - $2.55 billion Includes more than ve 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 expected to more than o set 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 nal Italy Lotto license payment; approximately $750 million in cash from operations excluding Italy Lotto license payment Capital expenditures of approximately $450 million - $475 million re ects contractual obligations related to recent contract wins and extensions Earnings Conference Call and Webcast August 4, 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 gures 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 3
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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 bene ts 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 with central systems. 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 nancial and operating performance, strategic priorities and initiatives, business development, capital allocation, liquidity and leverage pro le, contract opportunities, digital and iLottery expansion, product development, regulatory matters, and market opportunities. Forward ‑ looking statements include, without limitation, statements regarding expected or rea rmed FY'26 revenue, Adjusted EBITDA, cash from operations, net cash used in operating activities, capital expenditures, organic growth expectations, as well as assumptions underlying such guidance, anticipated product sales trends, expected bene ts from OPtiMa cost ‑ savings initiatives, anticipated investments in growth initiatives, expected timing and execution of launches and expansions, anticipated shareholder returns, re nancing activities, and pro forma leverage and liquidity metrics. Forward ‑ looking statements may be identi ed by words such as "expect," "anticipate," "intend," "plan," "believe," "may," "will," "target," "project," "on track," "rea rm," 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 di er 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; in ationary 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 lings 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 should be relied upon as a guarantee of future performance. Non-GAAP Financial Measures Management supplements the reporting of nancial information, determined under GAAP, with certain non-GAAP nancial 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 de ne non-GAAP measures di erently, which limits the usefulness of these measures for comparisons with such other companies. The Company encourages investors to review its nancial statements and publicly led reports in their entirety and not to rely on any single nancial 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 modi cations of debt, etc.), net, impairment losses, restructuring expenses, stock-based compensation, litigation 4
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expense (income), and certain other non-recurring items. Other non-recurring items are infrequent in nature and are not re ective 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 modi cations 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 re ective 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 e ects of foreign exchange, impairments, amortization from purchase accounting, discrete tax items, and other signi cant non-recurring adjustments that are not re ective of on-going operational activities (e.g., gains/losses on sale of business, gains/losses on extinguishment and modi cations 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 nancial 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 classi ed 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 nancial 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 nancial strength and ability to incur incremental indebtedness when making key investment decisions. Free cash ow is a non-GAAP nancial measure that represents cash ow from operations (a GAAP measure) less capital expenditures. Management believes free cash ow 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 nancial measures that expresses current nancial data using the prior-year/period exchange rate (i.e., the exchange rate used in preparing the nancial 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 uctuating 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. 5
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The Company provides guidance of select information related to its nancial and operating performance, and such measures may di er 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 nancial measures to the most directly comparable GAAP nancial measure cannot be provided without unreasonable e ort. This is due to the inherent di culty of accurately forecasting the occurrence and nancial 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 Select Performance and KPI data ($ in millions, unless otherwise noted) Constant Q2'26 Q2'25 Y/Y Currency Revenue Change Change Service Instant ticket & draw wager-based revenue 517 516 — % (1) % U.S. multi-state jackpot wager-based revenue 17 15 14 % 14 % Upfront license fee amortization (100) (53) NM NM Other 116 110 5 % 5 % Total service revenue 550 588 (6) % (7) % Product sales 34 42 (20) % (20) % Total revenue 584 631 (7) % (8) % Income (loss) from continuing operations 56 (60) NM Adjusted EBIT 128 168 (24) % (25) % Adjusted EBITDA 286 274 4 % 3 % Same-store sales growth (%) at constant currency (wager-based growth) Global Instant ticket & draw games 1.1 % 2.6 % U.S. multi-state jackpots 11.1 % (34.5) % Total 1.5 % 0.3 % U.S. Instant ticket & draw games 0.4 % 0.6 % U.S. multi-state jackpots 11.1 % (34.5) % Total 1.1 % (2.7) % Italy Instant ticket & draw games 1.5 % 3.7 % Rest of world Instant ticket & draw games 5.2 % 8.4 % Non-GAAP measure; see disclaimer on page 4 and reconciliations to the most directly comparable GAAP measure in Appendix for furtherdetailsSame-store sales represents the change in wagers recorded in lottery jurisdictions where Brightstar is the operator or facilities managementsupplier, using the same lottery jurisdictions and perimeter for comparisons between periods Constant Q2'26 Q2'25 Y/Y Currency Change Change Same-store revenue growth (%) at constant currency (Same-store sales inclusive of contract mix) Global Instant ticket & draw games 2.2 % 2.5 % U.S. multi-state jackpots 13.9 % (34.9) % Total 2.6 % 0.9 % U.S. Instant ticket & draw games 4.0 % (0.6) % U.S. multi-state jackpots 13.9 % (34.9) % Total 4.7 % (4.3) % Italy Instant ticket & draw games 1.0 % 3.6 % Rest of world Instant ticket & draw games 2.5 % 9.1 % (1) (1)(1) (2) (1) (2) (1) (2) 6
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Revenue (by geography) U.S. & Canada 286 293 (2) % (2) % Italy 221 259 (15) % (15) % Rest of world 77 79 (2) % (4) % Total revenue 584 631 (7) % (8) % Non-GAAP measure; see disclaimer on page 4 and reconciliations to the most directly comparable GAAP measure in Appendix for furtherdetailsSame-store revenue represents the change in same-store sales net of contract mix Brightstar Lottery PLCCondensed Consolidated Statements of Operations($ and shares in millions, except per share amounts)Unaudited For the three months ended For the six months ended June 30, June 30, 2026 2025 2026 2025Service revenue (includes amortization of upfront license fees) 550 588 1,108 1,146Product sales 34 42 63 68Total revenue 584 631 1,171 1,214 Cost of services (excluding Depreciation and amortization) 285 279 576 543Cost of product sales (excluding Depreciation and amortization) 25 34 48 54General and administrative 49 58 94 120Research and development 14 12 29 22Sales and marketing 32 30 66 63Depreciation and amortization 58 54 111 108Restructuring 6 21 6 21Interest expense, net 49 49 92 94Foreign exchange (gain) loss, net (4) 99 (16) 131Other expense, net 6 5 10 11Income (loss) before provision for income taxes63 (10) 155 46Provision for income taxes 7 50 36 97Income (loss) from continuing operations 56 (60) 119 (52)Less: Net income attributable to non-controlling interests from continuing operations 23 36 49 67Net income (loss) from continuing operations attributable to Brightstar Lottery PLC 33 (96) 70 (119) Income from discontinued operations — 40 — 92Less: Net income attributable to non-controlling interests from discontinued operations — 2 — 4Net income from discontinued operations attributable to— 38 — 88 Net income (loss) 56 (20) 119 40Net income attributable to non-controlling interests 23 38 49 71Net income (loss) attributable to Brightstar Lottery PLC33 (58) 70 (31) Per Share Data Basic: Net income (loss) from continuing operations attributable to Brightstar Lottery PLC 0.18 (0.47) 0.38 (0.59)Diluted: Net income (loss) from continuing operations attributable to Brightstar Lottery PLC 0.18 (0.47) 0.37 (0.59) Basic: Net income (loss) attributable to Brightstar Lottery PLC0.18 (0.29) 0.38 (0.15)Diluted: Net income (loss) attributable to Brightstar Lottery PLC0.18 (0.29) 0.37 (0.15) Weighted-average Shares Outstanding Basic 185 203 185 203Diluted 186 203 187 203 Brightstar Lottery PLCCondensed Consolidated Balance Sheets($ in millions)Unaudited June 30, December 31, 2026 2025Assets Current assets: Cash and cash equivalents 558 1,446Restricted cash and cash equivalents 21 54Trade and other receivables, net 466 526Inventories, net 132 116Other current assets 186 193Total current assets 1,363 2,336Systems, equipment and other assets related to contracts, net 755 678 (1) (2) 7
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Property, plant and equipment, net 92 90Operating lease right-of-use assets 92 92Goodwill 2,692 2,707Intangible assets, net 127 125Other non-current assets 2,915 3,130Total non-current assets 6,672 6,822Total assets 8,035 9,158 Liabilities and shareholders' equity Liabilities Current liabilities: Accounts payable 687 766Current portion of long-term debt — 118Payable to ADM — 1,680Other current liabilities 550 508Total current liabilities 1,237 3,072Long-term debt, less current portion 4,354 4,060Deferred income taxes 192 208Operating lease liabilities 71 72Other non-current liabilities 161 156Total non-current liabilities 4,778 4,496Total liabilities 6,015 7,568 Shareholders' Equity Brightstar Lottery PLC's shareholders' equity 846 875Non-controlling interests 1,173 715Total shareholders' equity 2,020 1,590Total liabilities and shareholders' equity 8,035 9,158 Brightstar Lottery PLCCondensed Consolidated Statements of Cash Flows($ in millions)Unaudited For the three months ended For the six months ended June 30, June 30, 2026 2025 2026 2025Cash flows from operating activities Net income (loss) 56 (20) 119 40Less: Income from discontinued operations, net of tax — 40 — 92Adjustments to reconcile net income (loss) to net cash (used in) provided by operating activities from continuing operations: Amortization of upfront license fees 100 53 201 101Depreciation & amortization 58 54 111 108Stock-based compensation 7 5 14 12Foreign exchange (gain) loss, net (4) 99 (16) 131Deferred income taxes (5) (6) (11) (24)Other non-cash items, net 3 10 5 16Changes in operating assets and liabilities, excluding the effects of dispositions: Trade and other receivables 91 27 48 78Inventories (7) (8) (16) (6)Accounts payable (29) 1 (34) (38)Accrued interest payable 31 32 28 7Accrued income taxes 1 33 31 89Italian Lotto License payment (1,675) — (1,675) —Other assets and liabilities 32 48 21 50Net cash (used in) provided by operating activities from continuing operations(1,340) 288 (1,174) 473Net cash provided by operating activities from discontinued operations— 45 — 101Net cash (used in) provided by operating activities(1,340) 334 (1,174) 574 Cash flows from investing activities Capital expenditures (121) (98) (232) (174)Other (2) 1 (2) (1)Net cash (used in) investing activities from continuing operations(123) (97) (233) (175)Net cash (used in) provided by investing activities from discontinued operations— (46) 24 (85)Net cash (used in) investing activities (123) (143) (209) (260) Cash flows from financing activities Net proceeds from (repayments of) Revolving Credit Facilities 623 24 623 (105)Proceeds from long-term debt — 572 — 1,112Net payments on financial liabilities (4) (3) (69) (81)Principal payments on long-term debt (233) — (350) (208)Repurchases of common stock (14) — (45) —Net (repayment of) funds payable and amounts due to others (4) (24) (34) (40)Dividends paid (43) (41) (85) (81)Dividends paid - non-controlling interests (163) (152) (163) (163)Return of capital - non-controlling interests (28) (47) (31) (47)Capital increase - non-controlling interests 650 176 650 178Other (20) (2) (24) (23)Net cash provided by financing activities from continuing operations764 503 472 541Net cash (used in) financing activities from discontinued operations— (10) — (143)Net cash provided by financing activities 764 493 472 398 Net (decrease) increase in cash and cash equivalents and restricted cash and cash equivalents (699) 684 (911) 712Effect of exchange rate changes on cash and cash equivalents and restricted cash and cash equivalents 4 39 (10) 58Cash and cash equivalents and restricted cash and cash equivalents at the beginning of the period 1,274 823 1,500 775Cash and cash equivalents and restricted cash and cash equivalents at the end of the period 579 1,546 579 1,546Less: Cash and cash equivalents and restricted cash and cash equivalents of discontinued operations — 144 — 144Cash and cash equivalents and restricted cash and cash equivalents at the end of the period of continuing operations 579 1,401 579 1,401 8
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Supplemental disclosures of cash flow information for continuing operations: Interest paid 18 17 68 89Income taxes paid 11 22 16 32 Brightstar Lottery PLCNet Debt($ in millions)Unaudited June 30, December 31, 2026 20252.375% Senior Secured Euro Notes due April 2028 568 5865.250% Senior Secured U.S. Dollar Notes due January 2029 747 7474.250% Senior Secured Euro Notes due March 2030 564 5815.750% Senior Secured U.S. Dollar Notes due January 2033 743 742Senior Secured Notes 2,623 2,657 Euro Term Loan Facilities due January 2027 — 234Euro Term Loan Facilities due September 2030 1,135 1,169Revolving Credit Facility A due March 2031 — —Revolving Credit Facility B due March 2031 597 —Long-term debt, less current portion 4,354 4,060 Euro Term Loan Facilities due January 2027 — 118Current portion of long-term debt — 118 Total debt 4,354 4,178 Less: Cash and cash equivalents 558 1,446Less: Debt issuance costs, net - Revolving Credit Facility A due July 2027 6 4Less: Debt issuance costs, net - Revolving Credit Facility B due July 2027 — 4Net debt 3,791 2,723 Note: Net debt is a non-GAAP financial measure Brightstar Lottery PLCReconciliation of Non-GAAP Financial Measures(Unaudited, $ in millions) For the three months ended June 30, For the six months ended June 30, 2026 2025 2026 2025Income (loss) from continuing operations 56 (60) 119 (52)Provision for income taxes 7 50 36 97Interest expense, net 49 49 92 94Foreign exchange (gain) loss, net (4) 99 (16) 131Restructuring 6 21 6 21Stock-based compensation 7 5 14 12Other expense, net 6 5 10 11Adjusted EBIT 128 168 261 315Depreciation 41 45 82 90Amortization - service revenue 100 53 201 101Amortization - non-purchase accounting 16 7 26 14Amortization - purchase accounting 1 2 3 4Adjusted EBITDA 286 274 573 524 Cash flows from operating activities - continuing operations (1,340) 288 (1,174) 473Capital expenditures (121) (98) (232) (174)Free Cash Flow (1,461) 190 (1,406) 299 Includes amortization of upfront license fees Brightstar Lottery PLCReconciliation of Non-GAAP Financial Measures(Unaudited) (1) (1) 9
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For the three months ended June 30, For the six months ended June 30, 2026 2025 2026 2025 Pre- Tax Impact Tax Impact Net Impact Pre- Tax Impact Tax Impact Net Impact Pre- Tax Impact Tax Impact Net Impact Pre- Tax Impact Tax Impact Net Impact Reported EPS from continuing operations attributable to Brightstar Lottery PLC - diluted 0.18 (0.47) 0.37 (0.59) Adjustments: Foreign exchange (gain) loss, net (0.02) — (0.02) 0.48 (0.01) 0.49 (0.09) — (0.09) 0.64 (0.03) 0.68 Amortization - purchase accounting 0.01 — 0.01 0.01 — 0.01 0.01 — 0.01 0.02 — 0.02 Loss on the extinguishment of debt 0.01 — 0.01 — — — 0.01 — 0.01 — — — Discrete tax items — 0.09 (0.09) — — — — 0.09 (0.09) — — — Restructuring 0.03 0.01 0.02 0.10 0.03 0.07 0.03 0.01 0.02 0.10 0.03 0.07 Other non-recurring adjustments — — — 0.01 — 0.01 0.01 — — 0.03 0.01 0.02 Net adjustments (0.07) 0.59 (0.13) 0.79 Adjusted EPS from continuing operations attributable to Brightstar Lottery PLC - diluted 0.11 0.12 0.24 0.20 Reported effective tax rate 11.5 % (482.6) % 23.2 % 212.9 % Adjusted effective tax rate 38.3 % 47.5 % 37.3 % 47.6 % Adjusted EPS weighted average shares outstanding (in millions) 186 204 187 204 Calculated based on nature of item, including any realizable deductions, and statutory tax rate in effect for the relevant jurisdiction Includes the dilutive impact of share-based payment awards View original content to download multimedia:https://www.prnewswire.com/news-releases/brightstar-lottery- plc-reports-second-quarter-2026-results-302841695.html SOURCE Brightstar Lottery PLC (1) (1) (1) (1) (2) (2) (2) (2) (1)(2) 10