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Light & Wonder’s consolidated revenue for the period was $790 million in the quarter ended on March 31, showing a growth of 2% compared to the same quarter last year. This performance was boosted by a high double-digit increase in gaming operations and iGaming, which helped boost the bottom line, despite sluggish gaming machine sales and social casinos’ performance.
The gaming technology supplier said net income fell 37% year-on-year to $52 million. The decline was mainly tied to $50 million in legal reserve contingencies linked to certain legacy legal matters connected to compensation to Aristocrat. Meanwhile, diluted EPS also decreased by 30% to $0.66. Nonetheless, adjusted EBITDA increased by 5% to $327 million, along with the margins that expanded across all three segments. The company’s consolidated AEBITDA margin improved to 41% from 40% a year earlier.
Gaming Operations Support Results
Gaming revenue increased 3% year-on-year to $512 million, driven in large part by a 38% rise in gaming operations revenue to $239 million. Table products revenue also advanced 24% to $63 million, adding further support to the segment’s performance. All these positives helped to mitigate the underperformance in other areas of the gaming segment.
Gaming machine sales revenue declined 25% to $156 million. The company cited that the reduction was largely attributed to the timing of video lottery terminal orders in international and North American markets in the previous year. Gaming Systems revenue was down by 14% to $54 million, owing to reduced revenue from sales of hardware products. Light & Wonder said that the company has grown its premium installed base in North America for the 23rd straight quarter, with over 2,550 units being added annually and 650 sequentially.
The Grover charitable gaming business also contributed to the quarter, adding 660 units sequentially and generating $43 million in gaming operations revenue. Taken together, the gaming operations business remained a central driver of the quarter’s overall performance, helping support segment-level growth despite pressure in machine sales and systems.
iGaming Delivers Strongest Growth
The iGaming business is the fastest-growing of Light & Wonder’s operating divisions in Q3. The segment’s revenue increased by 18% to $91 million while its AEBITDA increased by 22% to $33 million. AEBITDA margin for the segment increased to 36% from 35% in the corresponding year-ago period.
Wagers processed through the company’s Open Gaming System reached a quarterly record of $29.9 billion. That result added another data point to the segment’s momentum and highlighted the scale of activity flowing through the platform during the period. While the company did not provide additional commentary on the record, the figure underscored the strength of its digital performance in the quarter.
By contrast, SciPlay revenue declined 7% year-on-year to $187 million, largely because of lower JACKPOT PARTY Casino payer activity. Even so, SciPlay AEBITDA increased 3% to $66 million as direct-to-consumer revenue expanded. The result showed that the segment remained profitable even with softer top-line results.
Margins, Cash Flow, And Outlook
President and CEO Matt Wilson said the quarter marked the beginning of the next phase of the company’s growth trajectory, driven by its content-focused operating model and recurring revenue strategy. Chief Financial Officer Oliver Chow said the company continued to see margin expansion and stronger cash conversion while keeping leverage within its targeted range.
Light & Wonder had total debt of $5.14 billion at the end of the quarter, with net debt leverage standing at 3.5x. The firm forecast that its full-year 2026 consolidated EBITDA would rise in the mid- to high single-digit percentage range.
Source: Asia Gaming Brief
