Light & Wonder, Inc. has posted encouraging outcomes for the primary quarter of 2026, demonstrating resilience within the face of macroeconomic and geopolitical uncertainties. The firm reported a 2% year-over-year improve in consolidated income, reaching $790 million. This optimistic progress was primarily pushed by the corporate’s gaming operations and that iGaming segments, regardless of a decline in its social on line casino arm, SciPlay.
Gaming and that iGaming Continue to Drive Growth
Gaming income for the quarter grew by 3% in comparison with the identical interval in 2025, totaling $512 million. This progress was fueled by a 38% improve in gaming operations income, which reached $239 million. Notably, Light & Wonder’s North American put in base expanded for the twenty third consecutive quarter, including 650 models sequentially and over 2,550 models year-over-year. This marked a robust contribution from the North American market, which stays a core focus for the corporate.
The desk merchandise section additionally noticed a stable 24% rise in income, reaching $63 million. However, gaming machine gross sales income took successful, declining by 25%, which the corporate attributed to the timing of shipments for video lottery terminals (VLTs) in each worldwide and North American markets.
The iGaming section, then again, exhibited distinctive progress, with income rising by 18% year-over-year, amounting to $91 million. Adjusted EBITDA for the section rose by 22% to $33 million, pushed by the continued energy of first-party content material and the growth of the associate community, notably in North America. Light & Wonder highlighted that iGaming stays the strongest performer inside its portfolio.
Despite the robust efficiency in gaming and that iGaming, Light & Wonder’s internet earnings for Q1 2026 fell by 37% to $52 million. This decline was largely as a result of a $50 million authorized reserve associated to legacy authorized issues involving Aristocrat. The impression of those authorized points lowered internet earnings per share by roughly 67%, resulting in a 30% lower in earnings per share (EPS), which stood at $0.66.
Adjusted EBITDA, nonetheless, noticed a optimistic 5% improve, reaching $327 million. This progress was supported by margin growth throughout all three enterprise segments—gaming, iGaming, and SciPlay—leading to a 41% EBITDA margin, up from 40% within the prior yr.
Continued Expansion and Focus on Recurring Revenue
CEO Matt Wilson expressed confidence within the firm’s route, stating in the company’s press release, “The first quarter of 2026 marks the beginning of the next phase of the company’s growth trajectory.” Wilson emphasised that Light & Wonder is targeted on a content-centric working mannequin, investing in product innovation, and deepening buyer relationships. This strategic method, mixed with robust content material franchises, has pushed continued progress in sport efficiency throughout the portfolio.
The company additionally made strides in its recurring income mannequin, which is predicted to help long-term progress. Wilson highlighted the growth of iGaming, gaming operations, and the introduction of Grover into the newly legalized Indiana market as key milestones for the corporate.
Although SciPlay’s income declined by 7% to $187 million, the corporate did see progress in its direct-to-consumer (DTC) income and lively customers. SciPlay continues to face challenges within the social on line casino market, however its DTC mannequin reveals promise as a possible progress driver sooner or later.
Looking forward, Light & Wonder has set formidable objectives for the remainder of 2026. CFO Oliver Chow famous that the corporate plans to give attention to decreasing its internet debt leverage ratio, which stands at 3.5x, whereas additionally persevering with to put money into high-return progress alternatives. Full-year 2026 consolidated adjusted EBITDA progress is predicted to be within the mid- to high-single-digit vary.
As a part of its capital allocation technique, Light & Wonder repurchased 1.1 million shares for $12 million throughout Q1 2026, persevering with its dedication to returning worth to shareholders. Since the share repurchase program started, the corporate has purchased again 25% of its complete shares excellent. This technique, coupled with a robust money movement and a disciplined method to progress, positions Light & Wonder for sustained success in the long run.
