Light & Wonder Reports Q3 2026 Net Income of $133m as iGaming Revenue Climbs 13% to $97m
Light & Wonder reported its results for the third quarter of 2026 on 4 November 2026, covering the quarter ended 30 September 2026, posting net income of $133m, up 17% year on year, even as consolidated revenue slipped 2% to $824m. The figures point to a business where recurring, content-led revenue is carrying earnings while hardware-linked lines soften.
Diluted earnings per share rose 28% to $1.72, and Consolidated AEBITDA grew 2% to $383m at a 46% margin. Adjusted NPATA increased 7% to $163m, with EPSa up 17% to $2.12. On a nine-month basis, revenue was $2,440m, up 1%, and net income was $305m. The clearest growth engines in the quarter were iGaming and gaming operations, both of which the company ties to its recurring-revenue strategy.
How Light & Wonder’s recurring revenue lifted net income 17% to $133m
The top-line dip tells only part of the story. Gaming operations revenue, which is recurring, rose 3% to $248m, and iGaming grew 13% to $97m. Gaming machine sales revenue rose 5% to $199m as unit shipment timing normalised. Those gains offset lower gaming systems and table products revenue, down 24% to $55m and down 7% to $52m respectively, and a 12% decline at social casino arm SciPlay. Gaming segment AEBITDA was $312m, up 2%, with the Gaming margin expanding one percentage point to 56%.
Net cash provided by operating activities rose 28% to $236m, and Adjusted free cash flow increased 21% to $181m. The company attributes the improvement to earnings strength, favourable timing of collections and lower interest payments. Capital expenditures were $90m, up from $79m, driven predominantly by investments supporting gaming operations growth, including Grover.
Light & Wonder iGaming revenue up 13% to $97m with record $31.7bn in wagers
iGaming delivered another double-digit quarter, with revenue up 13% to $97m, driven by first-party content and partner network growth in North America. Wagers processed through the company’s Open Gaming System reached a quarterly record of $31.7bn, up from $28.0bn a year earlier.
Segment AEBITDA for iGaming rose 9% to $37m, with the segment margin at 38%, which the company links to revenue mix changes and growth investment costs.
Light & Wonder marks 25th consecutive quarter of premium installed base growth, adding 2,657 units
North American gaming operations extended their premium installed base growth streak to a 25th consecutive quarter, adding 2,657 units year on year and 571 units sequentially. Premium units now represent 58% of the total North American installed base mix.
President and Chief Executive Officer Matt Wilson said: “Our content-centric operating model is enhancing our recurring revenue business, as evidenced in the results. Sustained investment in studios and content is driving strong franchise performance across the portfolio, and our roadmap was well received at both the AGE and G2E, which builds our confidence heading into the fourth quarter and 2027. Gaming momentum continues, evidenced by our North American premium installed base growing for the 25th consecutive quarter.”
Grover charitable gaming expanded by 1,487 units year on year and finished the period with over 12,750 units installed. Gaming machine sales totalled 8,906 new units shipped globally, including more than 5,800 in North America, which the company placed at the high end of its prior guidance range.
Light & Wonder cuts net debt leverage ratio to 3.3x and returns $156m to shareholders year to date
Light & Wonder reduced the principal face value of its debt by $153m during the quarter to $5.0bn, bringing its net debt leverage ratio down to 3.3x from 3.4x at 30 June 2026. The company returned $156m of capital to shareholders year to date and reaffirmed a target of reducing net leverage toward 3.0x by the end of FY2026 and below 3.0x during the first half of 2027.
Chief Financial Officer Oliver Chow said: “Our recurring revenue base and margin discipline delivered strong cash generation, with year-to-date Adjusted free cash flow of $545 million, up 49% year-over-year and in line with our full-year 2025 level. As signaled last quarter, we prioritized deleveraging over share repurchases, reducing our net debt leverage ratio by approximately 0.1x sequentially, keeping us on track to fall below 3.0x during the first half of 2027.”
Light & Wonder SciPlay revenue of $173m with direct-to-consumer at 31% of the mix
SciPlay revenue was $173m, down 12% year on year, which the company attributes to continued softness in the broader social casino free-to-play market. Within that segment, direct-to-consumer revenue grew to $53m, or 31% of SciPlay revenue, and average monthly revenue per paying user rose 5% to $132.80.
The company said its full-year Consolidated AEBITDA growth is now expected toward the lower end of its previously announced mid-to-high single-digit range, citing social casino conditions and some delayed customer investment timing.
What does Light & Wonder’s Q3 2026 performance mean for gaming suppliers?
The quarter sets out a clear pattern for the wider supplier market. When hardware and systems sales move on timing, a deep recurring-revenue base from gaming operations and iGaming can keep net income and cash flow climbing. For operators choosing content and platform partners, Light & Wonder’s record iGaming quarter and steady installed-base growth are the numbers worth tracking into Q4 and 2027, alongside how social casino demand develops.
Source: Light & Wonder, Inc.
