Light & Wonder reported a 26 percent year-on-year increase in second-quarter net income to $120 million, as growth in higher-margin gaming operations and iGaming offset continued weakness at SciPlay.
Consolidated revenue rose 2 percent to $828 million, according to results released on Tuesday. Consolidated adjusted EBITDA increased 9 percent to $383 million, while the margin widened by 2 percentage points to 46 percent.
Gaming revenue grew 5 percent to $554 million, led by an 18 percent increase in gaming operations revenue to $247 million. Grover Charitable Gaming contributed $45 million, up $24 million from a year earlier, partly because the comparative period included only a partial contribution.
“We continue to see the benefits of our sustained investment in studios and content, as our franchises drive strong game performance across the portfolio,” said Light & Wonder President and CEO Matt Wilson.
Wilson added that the North American premium installed base had expanded for a 24th consecutive quarter, while Grover continued to scale across existing and new markets.
Gaming adjusted EBITDA increased 10 percent to $307 million, with its margin rising to 55 percent from 53 percent. However, gaming machine sales revenue fell 4 percent to $184 million, while gaming systems revenue declined 16 percent to $61 million.
Global gaming machine shipments decreased 3 percent to 8,796 units. International shipments rose 7 percent to 3,823 units, partly supported by the launch of the Cosmic Dual cabinet in Australia and New Zealand. The international installed base fell 6 percent to 18,408 units.
iGaming revenue increased 14 percent to $92 million, while adjusted EBITDA rose 18 percent to $33 million. Wagers processed through the company’s OpenGaming platform reached a quarterly record of $31.3 billion, up 18 percent.
SciPlay remained the main drag, with revenue falling 9 percent to $182 million. Light & Wonder attributed the decline to weakness in the social casino free-to-play market and fewer average monthly paying users for Jackpot Party Casino.
The decline was partly offset by a 4 percent increase in average monthly revenue per paying user to $133.80. SciPlay’s adjusted EBITDA fell 3 percent to $72 million, although its margin improved to 40 percent from 37 percent. Direct-to-consumer revenue accounted for 29 percent of the segment total.
Net cash provided by operating activities more than doubled to $241 million. Light & Wonder also spent $134 million repurchasing shares during the quarter, taking first-half repurchases to $156 million.
“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,” Chief Financial Officer Oliver Chow said.
Light & Wonder maintained its outlook for mid- to high-single-digit adjusted EBITDA growth in 2026, with earnings expected to be weighted towards the second half. The forecast incorporates an estimated $40 million adverse impact from US tariffs and higher UK iGaming taxes, alongside $20 million in strategic investments and approximately $10 million in costs related to legal matters.
