Light & Wonder posts 17% rise in Q3 profit but narrows 2026 growth outlook

Light & Wonder reported third-quarter net income of $133 million on 4 November, up 17% year‑on‑year, while revenue fell 2% to $824 million, the company said in its Q3 release. Management now expects 2026 Consolidated AEBITDA growth toward the lower end of its mid‑to‑high single‑digit guidance range, citing weakness in social casino and delayed customer spending.

Q3 results at a glance

The company's Q3 2026 figures show a smaller top line with improved profitability metrics. Revenue declined to $824 million from $841 million a year earlier. Net income increased to $133 million from $114 million, and diluted earnings per share rose 28% to $1.72, a lift the company attributes in part to earlier share buybacks. Consolidated AEBITDA increased 2% to $383 million, while operating cash flow rose 28% to $236 million.

Light & Wonder restated its 2028 targets of $2.0 billion in Consolidated AEBITDA and EPSa above $10.55, but said reaching the 2028 AEBITDA goal will require a material acceleration from current run rates. Trailing 12‑month Consolidated AEBITDA was $1.50 billion at 30 September, which the company says implies roughly a third more is needed — about 15% per year through 2027 and 2028 — versus 5% growth in the first nine months of 2026.

Segment performance: gaming, SciPlay and iGaming

Gaming revenue edged down 1% to $554 million. Within that mix, gaming operations rose 3% and machine sales increased 5%, while systems revenue fell 24% amid lower hardware sales. The North American premium installed base grew for a 25th consecutive quarter.

SciPlay revenue declined 12% to $173 million and is down 10% for the nine months to date. Daily active users fell 10% to 1.8 million, though revenue per paying user rose 5%, and direct‑to‑consumer sales reached 31% of SciPlay's total. The company said it expects SciPlay to trail the category; the Q3 presentation cites the Eilers Social Casino Gaming Tracker forecasting a 6%–7% decline for the category.

On 4 November Light & Wonder appointed Matthieu Labbat as chief executive of SciPlay with immediate effect; Labbat was previously senior vice president and head of Product Madness at Aristocrat Leisure. The hiring followed the departure of Josh Wilson.

iGaming revenue grew 13% to $97 million, with segment AEBITDA up 9% to $37 million. Light & Wonder said its titles occupied eight of the top 10 slots on the OpenGaming platform, with Pirots 5 the No.1 game. The presentation reported trailing 12‑month new‑game GGR excluding Huff N' Puff rose 46%. The company also said all Brazilian content has been disabled under Brazil's betting ban, and that April's UK duty increase remains a headwind.

Balance sheet, leverage and capital allocation

Principal debt outstanding fell by $153 million to $5.0 billion in the quarter, driving net debt leverage down to 3.3 times from 3.4. Management targets close to 3.0 times by the end of 2026 and below 3.0 in the first half of 2027. No shares were repurchased under the programme in Q3; the company did spend $30 million on CHESS Depository Interests bought for an employee equity plan trust.

Chief Financial Officer Oliver Chow explained the capital‑allocation stance:

"As signalled last quarter, we prioritized deleveraging over share repurchases," Chow said.

The company's 10‑Q discloses legal accruals of $54 million and references the earlier joint statement of 12 January under which Light & Wonder agreed to pay $127.5 million over Dragon Train and Jewel of the Dragon. A remaining matter in the 10‑Q is a shareholder class action filed by AztecGold Holdings in the Supreme Court of Victoria; Light & Wonder filed its defence on 18 September and says the claims are without merit.

What management is flagging for 2026 and beyond

The updated guidance narrows the expected range for 2026 Consolidated AEBITDA growth toward the lower end of the company's mid‑to‑high single‑digit target. Management cited two principal headwinds: continued weakness in the social casino segment and some delayed investment by casino customers. These are partly offset by recurring revenue and an expected seasonally strong fourth quarter.

The company is explicit that hitting the 2028 AEBITDA target requires a step change from the current performance, relying on new cabinets and content to drive acceleration rather than the Q3 run rate. iGaming represents 12% of group revenue and is the only segment growing at double digits; Light & Wonder has not quantified the revenue lost due to the Brazil content suspension.

The quarter shows a business converting cash from a softer revenue base while its growth drivers narrow. Management's stated path to investment‑grade leverage and the 2028 targets now depends on recovery in SciPlay and continued strength in gaming and iGaming.

Sources: Light & Wonder Q3 2026 release and presentation, Form 10‑Q filings, and company statements retained as of 7 November 2026.