Light & Wonder, Inc. Reports Second Quarter 2026 Results

Light & Wonder Reports Solid Second Quarter 2026 Results and Reiterates Full-Year 2026 Financial Outlook⁽¹⁾

Financial Highlights

• Net income increased 26% to $120 million, up 38% per share⁽²⁾, and Consolidated Adjusted EBITDA (“Consolidated AEBITDA”)⁽³⁾ increased to $383 million, up 9%, driving EPSa⁽²⁾⁽³⁾ growth of 26%.
• L&W delivering on strategy to scale high-quality recurring revenue⁽⁴⁾, driven by growth across Gaming operations and iGaming during the quarter. North American Gaming operations premium installed base increased by 652 units⁽⁵⁾ on a sequential basis (over 2,550 units⁽⁵⁾ on a year-over-year basis); and 277 Grover charitable gaming (“Grover”) units added sequentially (1,540+ units on a year-over-year basis), while iGaming continued to deliver strong 1PP content⁽⁶⁾ and double-digit year-over-year growth.
• Earnings discipline with continued segment AEBITDA margin (“margin”)⁽⁷⁾ expansion and cash flow generation reflect sustained focus on operational efficiency, product mix and cash management. Net cash provided by operating activities and Adjusted free cash flow⁽³⁾ increased 127% and 50%, respectively.
• Returned $134 million of capital to shareholders through the repurchase of approximately 1.6 million CHESS Depositary Interests (“CDIs”) during the quarter. The Company remains committed to reducing its net debt leverage ratio⁽³⁾ to below 3.0x⁽¹⁾ during 1H 2027 with the intention to move toward investment grade level leverage profile.

LAS VEGAS--(BUSINESS WIRE)--Light & Wonder, Inc. (ASX: LNW) (“Light & Wonder,” “L&W,” “we” or the “Company”) today reported results for the second quarter ended June 30, 2026.

Light & Wonder delivered another quarter of consolidated earnings growth and margin expansion across all business segments, underpinned by its highly diversified business model and disciplined capital allocation, with continued strong cash flow generation and momentum expected to build into the second half of the year.

Consolidated revenue grew 2% year-over-year to $828 million. We continue to enhance our quality of earnings through a deliberate strategy to improve revenue quality, focusing on growing recurring revenue⁽⁴⁾. Gaming operations, Grover and iGaming represented the primary growth drivers, each delivering double-digit year-over-year revenue increases, supported by continued operational momentum and content strength.

Net income was $120 million or $1.53 per share⁽²⁾, up 26% and 38% year-over-year, respectively. Net cash provided by operating activities was $241 million, a 127% increase as compared to the prior year period.

The second quarter once again demonstrated the performance of our game portfolio and focus on efficiency, with margin expansion across all three businesses. Consolidated AEBITDA⁽¹⁾ grew 9% to $383 million. Adjusted NPATA⁽¹⁾ increased by 16% to $156 million, or 26% growth on a per share basis (“EPSa”)⁽¹⁾⁽²⁾ to $1.99, as compared to the prior year period. Adjusted free cash flow⁽¹⁾ was $156 million, a 50% increase year-over-year, demonstrating strong underlying cash generation across the business.

Gaming revenue increased 5% year-over-year to $554 million, led by Gaming operations revenue (increased 18% to $247 million) and Table products (up 13% to $62 million). Gaming machine sales revenue decreased 4%, primarily reflecting lower unit shipments on fewer new openings and expansions and lower adjacencies, with steady average selling price per unit.

North American Gaming operations premium installed base extended its growth streak to a 24^th consecutive quarter, adding 652 units sequentially (over 2,550 on a year-over-year basis), with Grover further expanding its footprint by 277 units on a sequential basis. From a Gaming machine sales perspective, this quarter, 8,796 new units were shipped globally, including over 4,900 new units shipped in North America.

iGaming delivered another quarter of double-digit growth, with revenue and AEBITDA increasing 14% and 18%, respectively, on continuing momentum in North America. This was underpinned by first-party content proliferation and partner network growth, despite U.K. tax increases during the period. SciPlay continues to grow its direct-to-consumer (“DTC”) revenue while average revenue payer metrics improved on a sequential basis amid a mature social casino market.

We returned $156 million to shareholders through share repurchases in the first half of 2026, including an accelerated pace of repurchases in Q2 of $134 million, bringing cumulative repurchases since the current program’s inception to $1.3 billion, or in excess of $2.1 billion since buybacks were introduced in 2022 (or approximately 27% of total shares outstanding⁽³⁾), reflecting our disciplined capital allocation priorities.

Matt Wilson, President and Chief Executive Officer of Light & Wonder, said, “Our second quarter results reflect continued execution of our content-centric operating model, with broad-based growth, margin expansion and quality earnings across all three businesses. We continue to see the benefits of our sustained investment in studios and content, as our franchises drive strong game performance across the portfolio. Gaming momentum remained robust, with our North American premium installed base growing for the 24th consecutive quarter, and Grover continuing to scale across existing and new markets. iGaming once again delivered double-digit growth in both revenue and AEBITDA, reflecting the resilience of our North American momentum even as we navigate headwinds from increased U.K. gaming duties, while SciPlay continued to grow its direct-to-consumer revenue. As we look toward the second half of the year, we remain focused on disciplined execution, continued investment in product innovation and talent, and progressing towards both our 2026 and 2028 financial targets⁽⁴⁾.”

Oliver Chow, Chief Financial Officer of Light & Wonder, said, “The second quarter demonstrated continued scaling across the business, with margin expansion across all three businesses translating into strong underlying cash generation. As signaled last quarter, we accelerated our pace of share repurchases⁽³⁾, returning $134 million to shareholders in the second quarter alone, bringing first-half repurchases to $156 million and making tangible progress on our commitment to return meaningful capital to shareholders, while maintaining balance sheet flexibility. At the same time, we are continuing to invest deliberately in AI and infrastructure, work we believe will compound over time and support both growth and efficiency across the business. Going forward, our focus will be to pare back on share repurchases and rapidly de-lever our balance sheet to below 3.0x net debt leverage⁽⁴⁾ as we progress toward an investment grade level leverage profile.”

LEVERAGE, CAPITAL ALLOCATION AND BUSINESS UPDATE

• Principal face value of debt outstanding⁽¹⁾ was $5.2 billion, translating to a net debt leverage ratio⁽²⁾ of 3.4x as of June 30, 2026, remaining within our previously announced targeted net debt leverage ratio range⁽³⁾.
  The Company remains committed to reducing its net debt leverage ratio⁽²⁾ to below 3.0x during the first half of 2027⁽³⁾ with the intention to move toward investment-grade level leverage profile.
• Returned $134 million of capital to shareholders through the repurchase of approximately 1.6 million CDIs during the quarter and $156 million, or 1.8 million CDIs, during the first half of 2026.
  Since initiation of the prior share repurchase program in March of 2022, the Company has now returned $2.1 billion to shareholders through the repurchase of 26.2 million shares or CDIs. This represents 27% of total outstanding shares prior to the commencement of the programs. With approximately 88% of the current authorized share repurchase program now utilized, we have remaining capacity of approximately $180 million⁽⁴⁾.
• FY 2026 Financial outlook: The Company maintains its full-year 2026 financial outlook. We continue to expect a similar shape of earnings momentum to FY 2025, reflective of our growing recurring revenue⁽⁵⁾ base and timing of both investments and capital expenditures of our customer base. Full-year Consolidated AEBITDA⁽²⁾ growth is expected to be in the mid- to high-single digits⁽³⁾, as we continue to execute against our long-term strategy and 2028 financial targets⁽³⁾.

SUMMARY RESULTS

Second Quarter 2026 Financial Highlights

• Second quarter consolidated revenue increased to $828 million as compared to $809 million, a 2% increase versus the prior year period.
  • Gaming revenue grew 5%, benefiting from an increase in Gaming operations revenue inclusive of $45 million in Grover revenue, up $24 million year-over-year, reflective of both underlying growth and a partial prior-year contribution period.
    • Gaming machine sales decreased 4% to $184 million on lower unit shipments due to timing deferred into the second half of the year;
    • Table products revenue grew 13% to $62 million, driven by higher utility sales; and
    • Gaming systems revenue declined by 16% to $61 million, primarily due to lower hardware sales.
  • iGaming once again delivered double-digit quarterly revenue growth, increasing 14% compared to the prior year period, despite increased U.K. gambling duties going into effect on April 1, 2026.
  • SciPlay revenues decreased 9% against the backdrop of a softer social casino free-to-play market, while still reflecting resilient player monetization. DTC revenues expanded to 29% of the total SciPlay revenue.
• Net income was $120 million as compared to $95 million, a 26% increase from the prior year period, primarily driven by revenue growth from Gaming and iGaming and margin expansion across all businesses.
  Net income per share⁽¹⁾ was $1.53, compared to $1.11 in the prior year period, a 38% increase year-over-year.
  
• Consolidated AEBITDA⁽²⁾ was $383 million, compared to $352 million in the prior year period. The 9% increase was driven by modest revenue growth, favorable revenue mix shifts and ongoing operational efficiencies that led to margin expansion across all business segments. This was further complemented by lower corporate costs.
• Adjusted NPATA⁽²⁾ was $156 million, as compared to $135 million in the prior year period, increasing 16% and benefiting from Consolidated AEBITDA⁽²⁾ growth, partially offset by higher interest and depreciation expenses.
  Adjusted NPATA per share (EPSa)⁽¹⁾⁽²⁾ increased 26% to $1.99, compared to $1.58 in the prior year period.
  
• Net cash provided by operating activities increased 127% to $241 million, compared to $106 million in the prior year period, reflecting strong underlying earnings generation, favorable timing of receivable collections, expenditures, and lower income tax payments. The prior year period was impacted by $73 million related to certain legal settlement payments.
• Adjusted free cash flow⁽²⁾ was $156 million, compared to $104 million in the prior year period, a 50% increase. This reflects strong underlying earnings generation, the timing of receivables collections, expenditures, and lower income tax payments. The Company’s scaling cash conversion profile provides ongoing flexibility to support our capital allocation priorities, including share repurchases and our ongoing commitment to deleverage. Capital expenditures were $83 million, compared to $78 million in the prior year period, led predominantly by investments supporting Gaming operations growth, including Grover.

BUSINESS SEGMENT HIGHLIGHTS

FOR THE THREE MONTHS ENDED JUNE 30, 2026

Second Quarter 2026 Business Segments Key Highlights

• Gaming revenue was $554 million, up 5% compared to the prior year period.
  • Gaming operations grew $38 million, or 18%, benefiting from an increase in our North American installed base of 722 units⁽¹⁾, up 2% year-over-year to 36,068 units⁽¹⁾, including a more favorable mix of premium units.
  • Our North American premium installed base grew for the 24^th consecutive quarter and now represents 58% of our total North American installed base mix⁽¹⁾, with a unit increase of over 2,550 units on a year-over-year basis or 652 units⁽¹⁾ on a sequential quarter-over-quarter basis. Our diversified portfolio of successful game franchises and the continued proliferation of our COSMIC®, COSMIC UPRIGHT, LIGHTWAVE® and LIGHTWAVE SOLAR™ cabinets continued to drive growth and strong performance.
  • Grover contributed $45 million to Gaming operations revenue, up $24 million year-over-year. The growth was driven by a sequential increase of 277 units and a partial prior-year contribution period. At period end, Grover had over 12,550 installed base units.
  • Gaming machine sales revenue decreased by 4% on lower unit shipments due to timing deferred into the second half of the year.
  • Table products revenue increased 13% due to higher global utility sales.
  • Gaming systems revenue decreased by 16%, primarily due to lower hardware sales.
  • Gaming AEBITDA was $307 million, up 10% compared to the prior year period due to revenue growth, favorable revenue mix shifts, ongoing operational efficiencies and Grover contributions. Margin expanded 200 basis points to 55%.
• SciPlay revenue was $182 million, down 9% compared to the prior year period. This was largely driven by a softer social casino free-to-play market and a decline in our average monthly JACKPOT PARTY® Casino payers, partially offset by an increase in average monthly revenue per paying user.
  • Daily Active Users, or DAU, remained relatively flat sequentially, while monetization remains a key focus, as AMRPPU⁽²⁾ grew 4% year-over-year to $133.80.
  • AEBITDA decreased 3% to $72 million, and margin increased by 300 basis points, driven by margin enhancement initiatives, including the growth of the direct-to-consumer (“DTC”) platform.
  • DTC contributed $53 million in revenue, or 29% of SciPlay revenue for the quarter.
• iGaming revenue increased 14% to $92 million, representing another consecutive quarter of double-digit year-over-year growth in both revenue and AEBITDA. The strong performance was driven by continued momentum in North America, underpinned by first-party content proliferation and the expansion of our partner network. This performance was despite the increased U.K. gambling duties going into effect on April 1, 2026.
  • AEBITDA increased 18% to $33 million, with margin expanding around 100 basis points to 36%.
  • Wagers processed through our iGaming platform reached a quarterly record of $31.3 billion.

First Half 2026 Financial Highlights

• Consolidated revenue was $1.6 billion, a 2% increase compared to the prior year.
  • Gaming revenue increased 4%, primarily due to:
    • Gaming operations revenue growth of $104 million or 27%, courtesy of $37 million or a 10% increase supported by our diversified portfolio of high-performing game franchises, while Grover contributed $88 million in revenue, up $67 million year-over-year, reflective of both underlying growth and a partial prior-year contribution period;
    • Table products revenue grew 18% to $125 million primarily due to higher utility sales;
    • Gaming machine sales decreased 15% to $340 million, as the prior year period benefited from the timing of international and North America Video Lottery Terminal shipments; and
    • Gaming systems revenue declined by 15% to $115 million, primarily due to lower hardware sales.
  • iGaming revenue grew 16% primarily driven by North American 1PP content proliferation.
  • SciPlay revenue decreased 8%, largely impacted by a softer social casino free-to-play market, while still reflecting resilient player monetization.
• Net income was $172 million compared to $177 million in the prior year, a decrease of 3%. The decrease was primarily driven by higher D&A (including acquired Grover assets), higher restructuring and other costs (including $50 million in legal reserve contingencies associated with certain legal matters) and higher interest expense, partially offset by lower cost of revenue.
  Net income per share⁽¹⁾ increased by 7% to $2.19, compared to $2.05 in the prior year period.
  
• Consolidated AEBITDA⁽²⁾ was $710 million compared to $663 million in the prior year, a $47 million or 7% increase. The increase was driven by modest revenue growth, favorable revenue mix shifts, contributions from Grover (since its May 2025 acquisition), lower corporate costs and ongoing business operational efficiencies, leading to margin expansion across all our business segments.
• Adjusted NPATA⁽²⁾ increased 8% to $272 million as compared to $252 million in the prior year period. Growth was driven by the 7% increase in Consolidated AEBITDA⁽²⁾, partially offset by higher depreciation of Gaming operations units, and higher interest expense.
  Adjusted NPATA per share (EPSa)⁽¹⁾⁽²⁾ increased 18% to $3.45 versus $2.93 in the prior year period.
  
• Net cash provided by operating activities was $380 million compared to $291 million in the prior year, a 31% increase. The current year reflected strong earnings, lower cash income tax payments and favorable changes in working capital, partially offset by $65 million in higher legal settlement payments, and $15 million in professional fees, services, and other costs related to the Grover acquisition and completed Australian Securities Exchange (“ASX”) transition.
• Adjusted free cash flow⁽²⁾ was $363 million compared to $216 million in the prior year period, a 68% increase. The current year benefited from the same factors impacting net cash provided by operating activities (as described above), partially offset by increased capital expenditures made to support Gaming operations, including Grover installed base unit growth.

BUSINESS SEGMENT HIGHLIGHTS

FOR THE SIX MONTHS ENDED JUNE 30, 2026

Earnings Conference Call

As previously announced, Light & Wonder executive leadership will host a conference call on Tuesday, August 4, 2026 at 7:00 p.

COMPANY CONTACTS

Investor Relations
Rohan Gallagher
EVP, Global Chief Corporate Affairs Officer
ir@lnw.com

Media Relations
Randi Topham
SVP, Global Marketing and Communications
media@lnw.com