Light & Wonder raises quarterly profit 17% and trims 2026 growth to the low end

Light & Wonder reported net income of $133 million in the third quarter, published 4 November 2026, a 17% increase year‑on‑year, while revenues fell 2% to $824 million. The company revised its 2026 outlook, anticipating Consolidated AEBITDA growth toward the low end of its mid‑to‑high single‑digit range because of weakness in social casino and delayed customer spend.

On the results day Light & Wonder also announced the appointment of Matthieu Labbat as chief executive officer of SciPlay, joining from Product Madness, a unit of Aristocrat, with immediate effect.

Third‑quarter breakdown

Quarterly revenues were $824 million, versus $841 million in the year‑ago period. Net income rose to $133 million from $114 million. Diluted earnings per share increased 28% to $1.72, supported by prior buybacks.

The company credits the profit improvement to a more favourable revenue mix and operational efficiencies. Consolidated AEBITDA rose 2% to $383 million and operating cash flow increased 28% to $236 million.

The 4 November presentation reaffirms 2028 targets of $2.0 billion in Consolidated AEBITDA and EPSa above $10.55, but places 2026 growth at the lower end of the current target range.

Performance by segment

Gaming

• Gaming revenues fell 1% to $554 million.

• Within Gaming, operations grew 3%, machine sales rose 5% and systems declined 24% due to lower hardware sales.

• The premium installed base in North America increased for the 25th consecutive quarter.

SciPlay

• SciPlay revenues decreased 12% to $173 million and are down 10% in the first nine months of 2026.

• Daily active users fell 10% to 1.8 million.

• Paying user revenue rose 5% and direct‑to‑consumer sales reached 31% of the total.

• The presentation says SciPlay is expected to lag the category, for which the Eilers Social Casino Gaming Tracker forecasts a 6% to 7% decline.

On 4 November Light & Wonder named Matthieu Labbat, previously senior vice president and head of Product Madness at Aristocrat, as CEO of SciPlay.

iGaming

• iGaming revenues rose 13% to $97 million and segment AEBITDA grew 9% to $37 million.

• The presentation states that Light & Wonder titles occupied eight of the top ten positions on its OpenGaming platform; Pirots 5 was the number‑one game.

• The trailing 12‑month new‑game GGR excluding Huff N' Puff rose 46%.

• The entire portfolio for Brazil has been disabled in compliance with the local ban and the April UK tax increase remains a headwind. Light & Wonder did not quantify the prior contribution from Brazil.

Debt, leverage and share repurchases

Principal debt decreased $153 million to $5.0 billion, and net leverage fell to 3.3 times from 3.4 times. The company targets getting close to 3.0 times by the end of 2026 and below that level in the first half of 2027.

No shares were repurchased under the programme in the quarter, although $30 million of CDIs were used to fund an employee share plan trust. Chief Financial Officer Oliver Chow said:

"As signaled last quarter, we prioritized deleveraging over share repurchases"

The quarter presentation and Form 10‑Q include a litigation note: under the joint statement of 12 January Light & Wonder agreed to pay $127.5 million for Dragon Train and Jewel of the Dragon. A shareholder class action relating to Dragon Train remains pending, 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. The 10‑Q also records a legal provision in the notes (Note 15) with accruals of approximately $54 million.

2028 target and outlook

Consolidated AEBITDA on a trailing twelve‑month basis was $1.50 billion at 30 September. Reaching $2.0 billion in 2028 would require roughly one‑third more, equivalent to about 15% per year through 2027 and 2028, versus 5% growth in the first nine months of 2026. Resetting the 2028 target while trimming 2026 guidance implies management is counting on new machines and content to accelerate growth rather than the current run rate.

SciPlay's continued weakness through 2026 — from 7% in Q1 to 12% in Q3 — prompted the hire from a direct rival. Matthieu Labbat's professional record emphasises direct‑to‑consumer growth and margin improvement; restoring the player base is the most difficult challenge.

Final observations

The quarter shows Light & Wonder converting cash efficiently while its growth drivers narrow. The company prioritises leverage reduction over buybacks and maintains a 2028 target that requires an acceleration not yet visible in the 2026 figures. For the iGaming segment, the company reported double-digit growth and highlighted presence on its OpenGaming platform, but regulatory factors such as the ban in Brazil and the UK tax increase continue to weigh on revenue, a point noted in the company's own 4 November presentation.

Author: Emilio Navarro, Corresponsal de tecnología del sector.