Light & Wonder reported Q1 2026 revenue of $790 million, up 2% year-on-year, as strong performances in iGaming and gaming operations helped offset weaker gaming machine sales and continued softness in the social casino segment.
Net income for the quarter fell 37% to $52 million, largely due to $50 million in legal reserve contingencies tied to legacy legal matters involving compensation to Aristocrat. Diluted earnings per share declined 30% to $0.66.
The net income for Q4 fell 37%, or an approximate $52 million, due primarily to an increase of $50 million worth of legal reserve ebidges resulting from legacy legal issues regarding payments to Aristocrat’s predecessor.
The company also experienced a 30% decline in diluted EPS, falling to $0.66.
Adjusted EBITDA increased 5%, to $327 million, while EBITDA margin improved to 41%, from 40% a year ago.
Gaming revenues increased by 3% to $512 million, largely due to the increase in revenues from gaming operations by 38% to $239 million as well as from table products by 24% to $63 million.
The iGaming division was the company’s fastest growing business segment with revenue increasing by 18% to $91 million, while adjusted EBITDA increased by 22% to $33 million. Additionally, the iGaming division’s EBITDA margin increased to 36%.
In contrast, the company experienced a decline of 7%, or $187 Million, in revenues from SciPlay, mainly as a result of decreased JACKPOT PARTY casino player activity. Notwithstanding, EBITDA expanded by 3%, to $66 million, primarily due to increases from Direct-to-Consumer Revenue Growth.
President and CEO Matt Wilson said the quarter marked “the beginning of the next phase of the Company’s growth trajectory,” supported by its content strategy and recurring revenue model.
At quarter-end, the company had debt totalled $5.14 billion and net debt leverage ratio of 3.5x. The Company anticipates mid-to-high-single-digit full-year 2026 adjusted EBITDA growth.
