Light & Wonder reported third-quarter revenue of $824m on 4 November, down 2% from $841m, as a sharp decline in its SciPlay social casino business outweighed growth in land-based gaming operations and iGaming. Profit still rose: net income was $133m, up 17%, and diluted earnings per share climbed 28% to $1.72.
Segment results
- Gaming: revenue of $554m, down 1%, with adjusted EBITDA up 2% to $312m. Gaming operations rose 3% to $248m and machine sales 5% to $199m, while systems fell 24% and table products 7%.
- SciPlay: revenue of $173m, down 12%, with adjusted EBITDA down 6% to $67m. Direct-to-consumer sales made up 31% of SciPlay revenue.
- iGaming: revenue of $97m, up 13%, on record wagers of $31.7bn.
Consolidated adjusted EBITDA rose 2% to $383m, a 46% margin, and adjusted free cash flow grew 21% to $181m. Shipments totalled 8,906 units, and the North American premium installed base grew for a 25th quarter in a row.
Debt before buybacks
The company cut debt principal by $153m to $5.0bn and made no share repurchases in the quarter. Net debt leverage fell to 3.3x from 3.4x. CFO Oliver Chow said:
“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 now expects 2026 consolidated adjusted EBITDA growth to come in toward the lower end of its previous mid-to-high single-digit range.
Matt Wilson, President and CEO, 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.”
