TLDR
- Light & Wonder posted second quarter revenue of $828 million, up 2% year over year, while net income rose 26% to $120 million.
- Gaming Operations revenue climbed 18% to $247 million, helped by the Grover charitable gaming business.
- SciPlay revenue fell 9% to $182 million as monthly active users dropped 12%.
- iGaming revenue grew 14% to $92 million, marking the company’s strongest performing segment by growth rate.
- Net debt leverage stood at 3.4 times, with the company aiming to reduce it below 3 times by early 2027.
Light & Wonder released its second quarter results this week, showing profit growth that outpaced revenue growth. The company’s revenue reached $828 million, up 2% from the same period last year.
Net income came in stronger. It rose 26% to $120 million for the quarter ending June 30.
Consolidated adjusted EBITDA climbed 9% to $383 million. The company’s adjusted EBITDA margin expanded by 200 basis points to 46%.
CEO Matt Wilson pointed to the company’s mix of businesses as a driver of the results. He said the company’s high margin, recurring revenue streams continued to perform well.
Gaming And iGaming Lead Growth
The Gaming segment remained the company’s largest business. Segment revenue rose 5% to $554 million during the quarter.
Within that segment, Gaming Operations revenue increased 18% to $247 million. The Grover charitable gaming business, acquired last year, contributed to that growth.
The company added 652 premium gaming units during the quarter. That marked the 24th straight quarter of premium installed base growth.
Gaming machine sales revenue fell 4% to $184 million. The company shipped 8,796 units globally, down from 9,039 units a year earlier.
Executives said the drop reflected timing. Several casino openings and expansions shifted from the second quarter into the second half of the year.
The company expects to ship between 8,500 and 9,000 units in the third quarter. Sales are expected to weigh more heavily toward the fourth quarter.
iGaming revenue grew 14% to $92 million. Adjusted EBITDA for the segment rose 18% to $33 million, even as a higher gambling duty took effect in the United Kingdom during the quarter.
SciPlay Continues To Struggle
SciPlay remained the weakest part of the business. Segment revenue declined 9% to $182 million.
Average monthly active users fell 12% to 4.6 million. Monthly paying users dropped 13% over the same period.
Still, some figures improved. Average monthly revenue per paying user rose 4% to $133.80, and direct to consumer revenue jumped 51% to a record $53 million.
CEO Matt Wilson acknowledged the segment’s ongoing weakness. He said the company takes accountability for SciPlay’s results and continues working to improve them.
Light & Wonder also addressed its debt position during the quarter. Net debt stood at $5.2 billion as of June 30, with a leverage ratio of 3.4 times.
The company repurchased $134 million in shares during the quarter, bringing first half buybacks to $156 million. Executives said repurchases will slow as debt reduction becomes the near term priority.
Management reiterated its goal of reducing leverage below 3 times during the first half of 2027. The company maintained its full year 2026 guidance, projecting mid to high single digit adjusted EBITDA growth.
In a Wednesday memo, JP Morgan Securities Australia said Light & Wonder’s revenue came in below its own estimates and market consensus, pointing to weaker North America outright machine sales. The bank also noted that the company’s adjusted EBITDA margin beat both its forecast and the broader market consensus by more than 200 basis points.
