Light & Wonder Reports Q3 Profit Growth Despite Lower Revenue in Q3 2026

Light & Wonder has reported a stronger net income for the third quarter of 2026, demonstrating improved profitability despite a decline in consolidated revenue. The gaming technology and entertainment company recorded net income of US$133 million for the three months ended September 30, representing an increase of approximately 16.7% compared with the US$114 million reported during the corresponding period in 2025.

However, revenue moved in the opposite direction. Consolidated revenue declined by 2% year-on-year to US$824 million, compared with US$841 million in the previous year's third quarter. The results, announced on November 4, 2026, reflected different performance trends across the company's principal business divisions.

Light & Wonder operates through three major segments: Gaming, SciPlay and iGaming. While its land-based gaming operations and online gaming business provided important contributions, continued weakness in social casino activities and lower gaming systems revenue affected the overall performance.

Despite the revenue reduction, the company maintained positive earnings momentum. Consolidated Adjusted EBITDA increased by 2% to US$383 million from US$375 million a year earlier. Adjusted net profit after tax and amortisation (Adjusted NPATA) also advanced by 7% to US$163 million.

Diluted earnings per share reached US$1.72, compared with US$1.34 in the third quarter of 2025. This represented an improvement of 28%, highlighting the difference between the movement in overall revenue and the company's earnings performance.

Gaming segment records mixed performance

Gaming continued to represent the largest business segment for Light & Wonder, generating US$554 million in third-quarter revenue. This was approximately 1% lower than the US$558 million recorded in the same period last year.

The segment's overall performance reflected contrasting developments across its individual revenue categories. Gaming machine sales and gaming operations delivered growth, while gaming systems and table products experienced declines.

Gaming machine sales revenue increased by 5% to US$199 million. The improvement was partly associated with more normalised shipment timing, with the company anticipating further shipment activity during the fourth quarter.

Gaming operations revenue also advanced by 3% to US$248 million. Light & Wonder attributed this performance to continued expansion of its installed base in North America and higher average daily revenue per unit.

In comparison, Gaming systems revenue decreased by 24% to US$55 million, primarily reflecting lower hardware sales. Table products revenue fell by 7% to US$52 million, with the company identifying the timing of utility sales as a contributing factor.

These differences demonstrate the importance of recurring gaming operations revenue alongside equipment sales. The growth in installed gaming machines provides an additional source of ongoing revenue and helps diversify the segment's performance.

Gaming machine shipments support installed base expansion

Light & Wonder shipped 8,906 new gaming machines globally during the third quarter. More than 5,800 of these units were delivered to customers in North America.

The company's premium gaming operations installed base in North America increased for the 25th consecutive quarter. It added 2,657 units year-on-year, extending a period of sustained expansion in this part of the business.

Grover Charitable Gaming also contributed to the recurring revenue strategy. Following the completion of Light & Wonder's acquisition of Grover Gaming‘s charitable gaming assets in May 2025, the business has become an additional component of its gaming operations.

The company reported that Grover added 1,487 units to its installed base on a year-on-year basis. Management also indicated that the operation continued expanding in existing and new markets.

The acquisition forms part of Light & Wonder's broader strategy to increase its presence in complementary gaming markets while developing revenue streams supported by an installed equipment base.

SciPlay faces market pressure while iGaming advances

The performance of Light & Wonder's digital businesses remained divided during the reporting period.

SciPlay continued to experience pressure from weakness in the broader free-to-play social casino market. Its third-quarter revenue declined by 12% year-on-year, making it one of the areas contributing to the group's lower consolidated revenue.

Nevertheless, certain operating indicators provided a more encouraging picture. Direct-to-consumer revenue increased as a proportion of SciPlay's overall business, reaching 31% of total segment revenue. Average monthly revenue per paying user also improved by 5% compared with the previous year.

These developments indicate that SciPlay continued to make progress in selected areas despite challenging market conditions. The balance between customer acquisition, player engagement and direct-to-consumer distribution will remain important to the segment's future financial performance.

iGaming delivered a stronger result. Revenue increased by 13% to US$97 million, compared with US$86 million in the corresponding quarter of 2025.

The company attributed the increase to continued momentum in North America, wider distribution of its first-party gaming content and growth in its commercial partner network.

The iGaming platform also processed wagers worth US$31.7 billion during the quarter, marking a new quarterly record. This development provided another indication of the scale of activity taking place across the company's online gaming operations.

The contrasting results from SciPlay and iGaming highlight the different market conditions affecting Light & Wonder's digital portfolio. While social casino revenue remained under pressure, the online gaming segment continued to deliver double-digit growth.

Cash flow improves as debt reduction remains a priority

Cash generation was another important component of the third-quarter results.

Net cash provided by operating activities reached US$236 million, increasing by 28% compared with US$184 million in the previous year's corresponding quarter. Adjusted free cash flow totalled US$181 million, representing a 21% year-on-year improvement.

For the first nine months of 2026, adjusted free cash flow reached US$545 million. This represented an increase of 49% compared with the same period in 2025 and was already in line with the level achieved throughout the full year of 2025.

Chief financial officer Oliver Chow highlighted the contribution of recurring revenue and margin discipline to the company's cash generation. Management also continued prioritising debt reduction as part of its capital allocation strategy.

The principal face value of outstanding debt declined to approximately US$5.0 billion at September 30, compared with US$5.2 billion at June 30. The net debt leverage ratio also improved to 3.3 times from 3.4 times in the previous quarter.

Light & Wonder has maintained a target of reducing its net debt leverage ratio towards 3.0 times by the end of 2026 and below that level during the first half of 2027.

Full-year guidance remains cautious

Despite the improvement in earnings and cash generation, Light & Wonder has adopted a cautious position regarding its full-year financial expectations.

The company continues to anticipate consolidated Adjusted EBITDA growth towards the lower end of its previously communicated mid-to-high single-digit range for 2026.

Management identified weakness in the social casino market and delays in customer investment decisions and capital expenditure as factors affecting the outlook.

These developments have been partly offset by growth in recurring revenue and expectations of a seasonally stronger fourth quarter.

The company's latest guidance indicates that management is balancing investment in new content and technology with operational efficiency and balance sheet improvements.

Positive customer feedback following industry exhibitions, alongside purchase intentions and recent industry information, has also contributed to management's assessment of future opportunities.

However, the final quarterly performance will remain important in determining how closely the company delivers against its full-year expectations.

Matthieu Labbat appointed CEO of SciPlay

Alongside its financial announcement, Light & Wonder confirmed the appointment of Matthieu Labbat as chief executive officer of SciPlay, effective November 4, 2026.

The appointment represents an important leadership development for the social casino business as the company seeks to expand the reach of its portfolio and strengthen its digital operations.

Labbat brings nearly 13 years of experience in building and developing mobile gaming businesses. He spent approximately seven and a half years in leadership positions at Product Madness, the social casino gaming business within Aristocrat Leisure.

Most recently, he served as senior vice president and head of Product Madness, with responsibility for the mobile gaming business's profit and loss performance.

During his time with the organisation, he contributed to its expansion and development across several areas, including commercial operations, direct-to-consumer distribution and product development.

Light & Wonder president and chief executive Matt Wilson identified Labbat's experience in building mobile gaming businesses, product expertise and team development capabilities as important factors behind the appointment.

Labbat takes over the leadership of SciPlay following a management transition that began with Josh Wilson's departure from the chief executive position on October 30, 2026. Light & Wonder CFO Oliver Chow provided interim executive oversight from November 1 until the new appointment.

The change comes at a particularly important time for SciPlay. The business continues to operate in a competitive social casino environment where the company has identified market softness as one of the factors influencing its financial outlook.

Labbat's background in mobile gaming provides relevant industry experience as SciPlay looks to develop its existing brands and explore opportunities to reach a broader audience.

The appointment also reflects the importance Light & Wonder places on management expertise and product development within its digital entertainment portfolio.

Conclusion

Light & Wonder's third-quarter 2026 performance presents a combination of stronger profitability, lower consolidated revenue and contrasting results across its business divisions. The increase in net income to US$133 million demonstrates that earnings can improve even when overall revenue experiences modest pressure.

Gaming operations and machine sales remained important contributors, supported by installed base expansion and additional activity from Grover Charitable Gaming. Meanwhile, iGaming maintained its double-digit growth trajectory, providing a positive counterbalance to the weaker performance reported by SciPlay and Gaming systems.

Cash generation also represented a significant development. Higher operating cash flow and adjusted free cash flow gave the company additional flexibility to support its financial priorities while continuing to reduce leverage.

The appointment of Matthieu Labbat as SciPlay CEO adds another important dimension to the company's strategy. His experience in mobile gaming leadership comes at a time when the social casino operation faces a challenging market environment and needs to maintain its position within an increasingly competitive digital entertainment sector.

Looking ahead, the fourth quarter will be an important period for Light & Wonder. The company must continue translating its installed base growth, product development initiatives and online gaming momentum into sustainable financial results.

Its ability to improve SciPlay's performance while maintaining growth in iGaming and gaming operations will be particularly relevant to its longer-term objectives. For now, the latest figures suggest that Light & Wonder remains focused on earnings quality, recurring revenue and debt reduction as it moves towards the end of 2026.

FAQs

How much net income did Light & Wonder report in Q3 2026?
Light & Wonder reported US$133 million in net income for the third quarter ended September 30, 2026. This represented an approximately 16.7% increase compared with US$114 million in the same period of 2025.

How much revenue did Light & Wonder generate in Q3 2026?
The company generated US$824 million in consolidated revenue, representing a 2% decline compared with US$841 million in the previous year's corresponding quarter.

How much did Light & Wonder's Adjusted EBITDA increase?
Consolidated Adjusted EBITDA increased by 2% year-on-year to US$383 million, compared with US$375 million in the third quarter of 2025.

Which is the largest business segment of Light & Wonder?
Gaming remained the company's largest business segment, generating US$554 million in third-quarter revenue.

How did SciPlay perform during Q3 2026?
SciPlay revenue declined by 12% due to continued weakness in the broader free-to-play social casino market. However, direct-to-consumer revenue reached 31% of the segment's total revenue.

How did iGaming perform during the quarter?
iGaming revenue increased by 13% to US$97 million. The platform also processed US$31.7 billion in wagers during the quarter, establishing a new quarterly record.

Who has been appointed CEO of SciPlay?
Matthieu Labbat was appointed chief executive officer of SciPlay on November 4, 2026. He previously served as senior vice president and head of Product Madness.

What is Matthieu Labbat's professional background?
Labbat has nearly 13 years of experience in mobile gaming, including approximately seven and a half years in leadership positions at Product Madness, where he was responsible for its mobile gaming business.

What is Light & Wonder's debt reduction target?
Light & Wonder is targeting a net debt leverage ratio below 3.0 times during the first half of 2027, following a reduction to 3.3 times at the end of September 2026.

What is Light & Wonder's financial outlook for 2026?
The company expects consolidated Adjusted EBITDA growth towards the lower end of its previously announced mid-to-high single-digit range. Its outlook reflects social casino market weakness and delayed customer investment decisions.