Brightstar Lottery Stock Down 26% as Investor Sells $10 Million in Shares Amid $629 Million Quarter

On February 17, 2026, Solel Partners disclosed in a U.S. Securities and Exchange Commission (SEC) filing that it sold 624,800 shares of Brightstar Lottery (NYSE:BRSL) in the fourth quarter, an estimated $10.18 million transaction based on quarterly average pricing.

What happened

According to a February 17, 2026, SEC filing, Solel Partners LP reduced its stake in Brightstar Lottery (NYSE:BRSL) by 624,800 shares during the fourth quarter. The estimated transaction value was $10.18 million, calculated using the average closing price from October 1 to December 31, 2025. At quarter-end, the remaining position was valued at $43.27 million, a $15.73 million decrease from the prior period, reflecting both the share sale and changes in market price.

What else to know

• The sale reduced the position to approximately 7% of Solel’s 13F reportable assets under management.
• Top five holdings after the filing:
  • NYSE: UNH: $68.18 million (11.0% of AUM)
  • NYSE: SYF: $61.65 million (10.0% of AUM)
  • NYSE: CVS: $47.12 million (7.6% of AUM)
  • NASDAQ: BRZE: $43.62 million (7.1% of AUM)
  • NYSE: BRSL: $43.27 million (7.0% of AUM)
• As of February 17, 2026, BRSL shares were priced at $13.42, down 26% over the past year and significantly underperforming the S&P 500’s roughly 13% gain in the same period.

Company overview

Metric	Value
Market Capitalization	$2.54 billion
Revenue (TTM)	$2.49 billion
Net Income (TTM)	$304.00 million

Company snapshot

• Brightstar Lottery provides technology and services for regulated lotteries as a pure-play global lottery operator.
• The company previously included gaming and iGaming operations, which have been divested to focus on its core lottery business.
• Brightstar Lottery serves government and licensed lottery customers across multiple jurisdictions, leveraging proprietary technology and a large workforce.

Brightstar Lottery is a leading global lottery technology and services provider. The company’s strategic focus on regulated lottery markets and divestiture of non-core gaming assets positions it as a specialized operator with strong recurring revenue streams. Its expertise and proprietary technology underpin a competitive advantage in serving government and licensed lottery customers across multiple jurisdictions.

What this transaction means for investors

Brightstar just posted a solid third quarter, with revenue up 7% to $629 million and adjusted EBITDA climbing 11% to $294 million, fueled by 7.9% same-store sales growth and jackpot strength. Meanwhile, income from continuing operations swung to $95 million from a loss a year ago, and net debt leverage sits at a manageable 2.3x.

Nevertheless, the stock is down 26% over the past year, and Solel just reduced its position to roughly 7% of assets. That trim is notable, but context matters. This portfolio still leans heavily into healthcare and financial names like UNH, SYF, and CVS, with Brightstar sitting alongside digital marketing exposure in BRZE. In other words, this is not a wholesale rejection of the lottery thesis, just resizing within a diversified book.

Brightstar’s $4 billion IGT Gaming divestiture, $978 million returned to shareholders year to date, and new 2028 targets of $2.75 billion in revenue and $1.3 billion in EBITDA point to a refocused, cash-generative pure play. Long-term investors should focus on recurring lottery cash flows, disciplined leverage, and execution against those medium term targets rather than short term trading signals.

Synchrony Financial is an advertising partner of Motley Fool Money. Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Braze. The Motley Fool recommends CVS Health and UnitedHealth Group. The Motley Fool has a disclosure policy.