Light & Wonder Q3: Revenue down 2% as iGaming rises and SciPlay slips

Light & Wonder reported third-quarter results showing revenue of $824 million, down 2% year‑on‑year, while net income rose 17% to $133 million and consolidated adjusted EBITDA increased 2% to $383 million. The company released the figures on Wednesday and reiterated full‑year guidance for consolidated adjusted EBITDA growth "toward the lower end of our previously announced range of mid‑to‑high single digits."

Group-level results and outlook

Light & Wonder said the full‑year outlook reflects ongoing weakness in the social casino market and some delayed timing of customer investments and capital expenditures, partially offset by recurring revenue growth and an expected seasonally strong fourth quarter. The company made no share repurchases under its repurchase programme during the quarter and reduced the principal face value of its debt by $153 million, bringing outstanding principal to $5.0 billion.

The company reported revenue of $824 million in the quarter versus $841 million in the prior‑year period. Consolidated adjusted EBITDA was $383 million, up 2% year‑on‑year, and net income came in at $133 million, up 17%.

"We're encouraged by the momentum heading into the fourth quarter, with positive feedback from customers post trade shows, customer purchase intentions and recent industry data," CEO Matt Wilson said.

Segment performance

Gaming revenue fell 1% to $554 million. Within that segment:

• Gaming operations revenue, including Grover charitable gaming, rose 3% to $248 million.

• Machine sales increased 5% to $199 million.

• Gaming systems revenue declined 24% to $55 million.

The North American premium installed base grew for a 25th consecutive quarter, adding 2,657 units year‑over‑year.

iGaming revenue climbed 13% to $97 million, driven by momentum in North America, first‑party content and partner network expansion. Wagers processed through Light & Wonder's iGaming platform reached a quarterly record of $31.7 billion.

SciPlay, Light & Wonder's social casino unit where players access free‑to‑play titles and may make in‑game purchases, saw revenue decline 12% to $173 million, which the company attributed to "ongoing softness" in the broader social casino free‑to‑play market. SciPlay's direct‑to‑consumer revenue was $53 million, representing 31% of SciPlay revenue, and average monthly paying users fell to 426,000 from 514,000 a year earlier.

Cashless tech and commercial signals

Light & Wonder debuted its RapidPlay cashless system at a Nevada casino during the quarter. The company highlighted post‑trade show customer feedback and customer purchase intentions as positive indicators heading into Q4, but it also flagged delayed customer investments and capital expenditures as a drag on near‑term results.

By the numbers

1. Revenue: $824 million, down 2% from $841 million a year earlier

2. Consolidated adjusted EBITDA: $383 million, up 2%

3. Net income: $133 million, up 17%

4. iGaming revenue: $97 million, up 13%

5. Wagers processed: $31.7 billion (quarterly record)

6. SciPlay revenue: $173 million, down 12%

7. SciPlay monthly paying users: 426,000, down from 514,000

8. Gaming revenue: $554 million, down 1%

9. Gaming operations revenue: $248 million, up 3%

10. Machine sales: $199 million, up 5%

11. Gaming systems revenue: $55 million, down 24%

12. North American premium installed base: added 2,657 units YoY for the 25th straight quarter

13. Debt principal reduction: $153 million to a principal balance of $5.0 billion

Management comment and capital allocation

CEO Matt Wilson framed the quarter as a mix of product momentum and market softness. The company did not execute buybacks in the period and reduced its debt load by $153 million. Management expects consolidated adjusted EBITDA growth to sit toward the lower end of its previously announced mid‑to‑high single‑digit range for the full year, citing SciPlay softness and timing of customer spend as primary headwinds, and recurring revenue plus seasonal strength in Q4 as offsets.

No further financial detail on share repurchases, specific customer contracts, or timing of RapidPlay roll‑outs was provided in the earnings release.

What the numbers show

iGaming was the clearest growth pocket in Q3, with revenue up 13% and platform wagers hitting a record $31.7 billion. The social casino business remains the principal weakness, with SciPlay revenue down 12% and paying users declining by roughly 88,000 month‑over‑month compared with the prior year. The installed base expansion in North America continued to be a steady source of machine and operations revenue, with machine sales and operations both growing in the quarter even as systems revenue contracted sharply.