Light & Wonder reported first-quarter consolidated revenue of $790 million for the three months ended March 31st, 2026, up 2 percent year-over-year, as double-digit growth in gaming operations and iGaming helped offset softer gaming machine sales and continued weakness in the social casino market.
The gaming technology supplier said net income fell 37 percent year-over-year to $52 million, primarily reflecting $50 million in legal reserve contingencies linked to certain legacy legal matters related to compensation to Aristocrat. Diluted earnings per share declined 30 percent to $0.66.
Despite the decline in net income, consolidated Adjusted EBITDA (AEBITDA) increased 5 percent to $327 million, with margin expansion recorded across all three business segments. Consolidated AEBITDA margin improved to 41 percent from 40 percent a year earlier.
The company said results reflected “continued disciplined execution” and resilience despite macroeconomic and geopolitical uncertainty, including tariff-related pressures.
Gaming operations continue to drive growth
Gaming revenue rose 3 percent year-over-year to $512 million, supported by a 38 percent increase in gaming operations revenue to $239 million and a 24 percent rise in table products revenue to $63 million.
Gaming machine sales revenue, however, declined 25 percent to $156 million, which the company attributed primarily to the timing of international and North American video lottery terminal shipments in the prior-year period. Gaming systems revenue also fell 14 percent to $54 million due to lower hardware sales.
Light & Wonder said its North American premium installed base expanded for the 23rd consecutive quarter, adding more than 2,550 units year-over-year and 650 units sequentially. The Grover charitable gaming business added 660 units sequentially and contributed $43 million in gaming operations revenue during the quarter.
iGaming posts strongest segment growth
iGaming continued to deliver the strongest growth among the company’s operating segments, with revenue increasing 18 percent to $91 million and AEBITDA rising 22 percent to $33 million. iGaming AEBITDA margin improved to 36 percent from 35 percent a year earlier. Wagers processed through the company’s Open Gaming System reached a quarterly record of $29.9 billion.
SciPlay revenue declined 7 percent year-over-year to $187 million due to lower JACKPOT PARTY Casino payer activity, although AEBITDA for the segment increased 3 percent to $66 million as direct-to-consumer revenue expanded.
President and CEO Matt Wilson said the quarter marked “the beginning of the next phase of the Company’s growth trajectory,” driven by its content-focused operating model and recurring revenue strategy.
Chief Financial Officer Oliver Chow said the company continued to see margin expansion and stronger cash conversion while maintaining its targeted leverage range.
Light & Wonder ended the quarter with total debt of $5.14 billion and a net debt leverage ratio of 3.5x. The company said it expects full-year 2026 consolidated AEBITDA growth in the mid- to high-single-digit range.
