Light & Wonder, Inc. has posted encouraging results for the first quarter of 2026, demonstrating resilience in the face of macroeconomic and geopolitical uncertainties. The company reported a 2% year-over-year increase in consolidated revenue, reaching $790 million. This positive growth was primarily driven by the company’s gaming operations and iGaming segments, despite a decline in its social casino arm, SciPlay.

Gaming and iGaming Continue to Drive Growth

Gaming revenue for the quarter grew by 3% compared to the same period in 2025, totaling $512 million. This growth was fueled by a 38% increase in gaming operations revenue, which reached $239 million. Notably, Light & Wonder’s North American installed base expanded for the 23rd consecutive quarter, adding 650 units sequentially and over 2,550 units year-over-year. This marked a strong contribution from the North American market, which remains a core focus for the company.

The table products segment also saw a solid 24% rise in revenue, reaching $63 million. However, gaming machine sales revenue took a hit, declining by 25%, which the company attributed to the timing of shipments for video lottery terminals (VLTs) in both international and North American markets.

The iGaming segment, on the other hand, exhibited exceptional growth, with revenue increasing by 18% year-over-year, amounting to $91 million. Adjusted EBITDA for the segment rose by 22% to $33 million, driven by the continued strength of first-party content and the expansion of the partner network, particularly in North America. Light & Wonder highlighted that iGaming remains the strongest performer within its portfolio.

Despite the strong performance in gaming and iGaming, Light & Wonder’s net income for Q1 2026 fell by 37% to $52 million. This decline was largely due to a $50 million legal reserve related to legacy legal matters involving Aristocrat. The impact of these legal issues reduced net income per share by approximately 67%, leading to a 30% decrease in earnings per share (EPS), which stood at $0.66.

Adjusted EBITDA, however, saw a positive 5% increase, reaching $327 million. This growth was supported by margin expansion across all three business segments—gaming, iGaming, and SciPlay—resulting in a 41% EBITDA margin, up from 40% in the prior year.

Continued Expansion and Focus on Recurring Revenue

CEO Matt Wilson expressed confidence in the company’s direction, 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 emphasized that Light & Wonder is focused on a content-centric operating model, investing in product innovation, and deepening customer relationships. This strategic approach, combined with strong content franchises, has driven continued growth in game performance across the portfolio.

The company also made strides in its recurring revenue model, which is expected to support long-term growth. Wilson highlighted the expansion of iGaming, gaming operations, and the introduction of Grover into the newly legalized Indiana market as key milestones for the company.

Although SciPlay’s revenue declined by 7% to $187 million, the company did see growth in its direct-to-consumer (DTC) revenue and active users. SciPlay continues to face challenges in the social casino market, but its DTC model shows promise as a potential growth driver in the future.

Looking ahead, Light & Wonder has set ambitious goals for the rest of 2026. CFO Oliver Chow noted that the company plans to focus on reducing its net debt leverage ratio, which stands at 3.5x, while also continuing to invest in high-return growth opportunities. Full-year 2026 consolidated adjusted EBITDA growth is expected to be in the mid- to high-single-digit range.

As part of its capital allocation strategy, Light & Wonder repurchased 1.1 million shares for $12 million during Q1 2026, continuing its commitment to returning value to shareholders. Since the share repurchase program began, the company has bought back 25% of its total shares outstanding. This strategy, coupled with a strong cash flow and a disciplined approach to growth, positions Light & Wonder for sustained success in the long term.