Light & Wonder Q3 net profit rises 17% despite revenue decline
The company generated US$181m in adjusted free cash flow and reduced its net debt leverage ratio to 3.3 times.
Key takeaways
- Light & Wonder’s net income increased 17 per cent year-on-year to US$133m in Q3 2026. The company’s iGaming revenue grew 13 per cent in the third quarter, while consolidated revenue declined 2 per cent to US$824m.
- Adjusted EBITDA rose 2 per cent to US$383m, with its margin improving to 46 per cent.
- The gaming supplier generated US$236m in operating cash flow, up 28 per cent year-on-year.
- The company expects 2026 adjusted EBITDA growth towards the lower end of its mid-to-high single-digit range.
Australia.- Light & Wonder has reported a 17 per cent year-on-year increase in net income to US$133m in the third quarter of 2026. In its financial results released on November 4, the ASX-listed casino gaming supplier attributed the increase primarily to higher consolidated adjusted EBITDA, improved margins and lower interest and share-based compensation expenses.
Diluted earnings per share increased 28 per cent to US$1.72 from US$1.34, while adjusted net profit after tax and amortisation (NPATA) rose 7 per cent to US$163m from US$153m. Adjusted NPATA per diluted share increased 17 per cent to US$2.12, compared with US$1.81 in the third quarter of 2025.
Consolidated adjusted EBITDA increased 2 per cent year-on-year to US$383m from US$375m. The adjusted EBITDA margin improved by one point to 46 per cent. Consolidated revenue declined 2 per cent to US$824m from US$841m in the corresponding period last year. The decrease resulted from lower revenue in Gaming Systems and SciPlay, which offset growth in gaming operations and igaming.
Online gaming operations deliver 13 per cent growth
Light & Wonder’s igaming business recorded 13 per cent year-on-year revenue growth, supported by the expansion of its first-party content portfolio and partner network in North America. Gaming operations revenue, including Grover, increased 3 per cent to US$248m.
SciPlay reported a 12 per cent year-on-year revenue decline as weakness persisted across the social casino free-to-play market. However, direct-to-consumer revenue increased, accounting for 31 per cent of the segment’s total revenue. Average monthly revenue per paying user also increased 5 per cent.
Gaming machine sales revenue rose 5 per cent to US$199m as unit shipment timing normalised. However, Gaming Systems revenue fell 24 per cent to US$55m, primarily due to lower hardware sales. Table products revenue also declined 7 per cent to US$52m, reflecting the timing of utility sales.
For the first nine months of 2026, Light & Wonder recorded a 1 per cent increase in consolidated revenue to US$2.44bn, compared with US$2.424bn in the corresponding period of 2025. Net income for the nine-month period rose 5 per cent to US$305m from US$291m.
For the 2026 financial year, Light & Wonder expects consolidated adjusted EBITDA growth towards the lower end of its previously announced mid-to-high single-digit range. It attributed the outlook to continued weakness in the social casino market and delays in some customer investments and capital expenditure. The company expects growth in recurring revenue and improved fourth-quarter performance to partly offset these pressures.
