Light & Wonder reports Q2 2026 net income growth as revenue reaches €770m

Light & Wonder delivered solid financial results for the second quarter of 2026 as higher profitability and improved cash generation supported another period of steady business performance. The company reported higher revenue, stronger net income and continued growth across several of its core operating segments including gaming operations, charitable gaming and iGaming.

The quarter reflected continued demand for the company's gaming portfolio while recurring revenue streams remained an important contributor to overall performance. Despite softer conditions within its social casino business, Light & Wonder maintained its full-year financial outlook and continued returning capital to shareholders while also outlining plans to reduce leverage over time.

Revenue and profitability improve during the second quarter

Light & Wonder generated revenue of €770 million during the second quarter of 2026, representing a 2 percent increase compared with the same period last year. Net income rose significantly to €112 million, an increase of 26 percent year on year.

The company also reported consolidated adjusted EBITDA of €356 million, representing a 9 percent increase compared with the prior-year quarter. Adjusted EBITDA remains one of the primary financial measures used by Light & Wonder to evaluate operational performance alongside standard accounting metrics.

Management attributed the positive performance primarily to continued expansion in gaming operations, the contribution from its charitable gaming business Grover and ongoing growth within its iGaming division.

The company confirmed that its financial expectations for the full 2026 fiscal year remain unchanged.

Earnings and cash flow show significant improvement

Profitability improved across several key financial measures during the quarter.

Diluted earnings per share increased from €1.03 in the second quarter of 2025 to €1.42 this year. Adjusted Net Profit After Tax and Amortisation per share, commonly referred to as Adjusted NPATA per share, reached €1.85, representing annual growth of 26 percent.

Cash generation also strengthened considerably.

Operating cash flow increased from €99 million in the prior-year quarter to €224 million, more than doubling year on year.

Adjusted free cash flow rose by 50 percent to €145 million while capital expenditure increased modestly to €77 million from €73 million as the company continued investing in its business.

The stronger cash flow supports Light & Wonder's ability to invest in product development, expand its installed gaming footprint and continue balancing shareholder returns with debt reduction.

Gaming operations remain the largest growth driver

Gaming continued to represent the company's largest business segment during the quarter.

Revenue from gaming increased 5 percent to €515 million.

Gaming operations revenue rose 18 percent to €230 million, highlighting continued demand for recurring revenue products installed at customer locations.

Table products also performed well as revenue increased 13 percent to €58 million.

Gaming machine sales, however, declined by 4 percent to €171 million.

According to the company, lower machine shipments were mainly related to product delivery timing that shifted a portion of expected sales into the second half of 2026 rather than reflecting weaker market demand.

This timing difference is expected to normalize later in the year.

iGaming continues its upward momentum

The iGaming division remained another strong performer throughout the quarter.

Revenue increased by 14 percent to €86 million while adjusted EBITDA grew 18 percent to €31 million.

A key contributor to this performance was continued growth of the company's Open Gaming System, which connects regulated operators with a wide portfolio of digital casino content.

During the quarter, wagers processed through the platform reached a new quarterly record of €29.1 billion, reflecting increased player activity and expanding operator participation across regulated markets.

The continued expansion of digital gaming supports Light & Wonder's strategy of building recurring revenue through long-term partnerships with licensed operators worldwide.

SciPlay experiences softer market conditions

While several business units reported growth, SciPlay recorded lower revenue during the period.

Revenue declined 9 percent to €169 million as the broader social casino free-to-play market remained relatively soft.

Despite the decline, direct-to-consumer revenue remained resilient at €49 million, accounting for approximately 29 percent of SciPlay's quarterly revenue.

Direct-to-consumer sales continue to represent an important element of the business by providing stronger margins and reducing reliance on third-party mobile application platforms.

Management indicated that the company remains focused on maintaining player engagement while continuing to develop new content and monetisation opportunities within the social gaming market.

Installed gaming base continues expanding

Light & Wonder also continued growing its installed gaming footprint.

The company's North American premium gaming operations achieved a 24th consecutive quarter of installed base growth, demonstrating sustained customer demand across casino properties.

During the second quarter alone, the premium installed base expanded by 652 units compared with the previous quarter and increased by more than 2,550 units compared with the same period last year.

The continued expansion reflects customer interest in premium leased gaming products that generate recurring revenue over extended periods.

Grover delivers another strong contribution

Grover, the company's charitable gaming brand, continued to strengthen its contribution during the quarter.

The installed base increased by 277 units, bringing the total installed base to more than 12,550 units.

Grover generated €42 million in gaming operations revenue during the quarter, representing an increase of €22 million compared with the previous year.

The business has become an increasingly meaningful contributor to recurring revenue while supporting Light & Wonder's broader gaming operations strategy.

Global gaming machine shipments remain strong

Across all markets, Light & Wonder shipped 8,796 new gaming machines during the second quarter.

More than 4,900 units were delivered to customers across North America, reinforcing the company's position within one of the world's largest regulated gaming equipment markets.

Although overall machine sales declined slightly because of shipment timing, the volume of installations demonstrates continued customer investment in new gaming content and hardware.

Capital allocation remains balanced

During the quarter, Light & Wonder continued returning capital to shareholders through its share repurchase programme.

At the same time, management indicated that reducing leverage would become a higher priority going forward.

The company plans to moderate the pace of future share repurchases as it works toward lowering net debt leverage below three times adjusted EBITDA.

This balanced capital allocation strategy is designed to strengthen the company's financial position while preserving flexibility for future investment opportunities.

Management comments on quarterly performance

Matt Wilson, President and Chief Executive Officer of Light & Wonder, commented:

“Broad-based growth, margin expansion and quality earnings drove the quarter.”

Oliver Chow, Chief Financial Officer of Light & Wonder, commented:

“The quarter delivered margin expansion and strong cash generation. We returned €125 million to shareholders in Q2 and €145 million in the first half and will slow repurchases to prioritise de-levering toward below 3.0x net debt leverage.”

Outlook for the remainder of 2026

Light & Wonder maintained its previously announced financial outlook for the remainder of 2026.

The company expects recurring revenue businesses including gaming operations, charitable gaming and iGaming to remain central drivers of future performance. Continued investment in premium gaming products, digital gaming platforms and installed gaming operations is expected to support long-term growth while improved cash generation provides additional financial flexibility.

Management also expects the planned reduction in leverage to further strengthen the balance sheet without altering its commitment to disciplined investment and shareholder value creation.

Conclusion

Light & Wonder delivered a well-balanced set of second-quarter results that highlighted the strength of its diversified business model. Growth in gaming operations, charitable gaming and iGaming more than offset softer performance within the social casino segment while improved profitability and significantly stronger cash flow demonstrated continued operational discipline.

With a growing installed gaming base, record wagering activity through its Open Gaming System and a clear strategy focused on recurring revenue, the company enters the second half of 2026 from a position of financial stability. Its decision to balance shareholder returns with debt reduction also reflects a measured approach to long-term capital management while maintaining confidence in its full-year outlook.

FAQs

What were Light & Wonder's total revenues in the second quarter of 2026?
Light & Wonder reported revenue of €770 million during the second quarter of 2026 which represented a 2 percent increase compared with the same period in 2025.

How much net income did Light & Wonder report?
The company reported net income of €112 million for the second quarter of 2026 which was 26 percent higher than the previous year.

Which business segments contributed most to growth?
Gaming operations, the Grover charitable gaming business and the iGaming division were the primary contributors to the company's quarterly growth.

How did the iGaming business perform?
The iGaming segment generated €86 million in revenue while adjusted EBITDA increased to €31 million. The Open Gaming System also processed a record €29.1 billion in wagers during the quarter.

Why did gaming machine sales decline?
Light & Wonder stated that lower machine sales were mainly the result of shipment timing moving into the second half of 2026 rather than reduced customer demand.

How did SciPlay perform during the quarter?
SciPlay revenue declined 9 percent to €169 million due to softer conditions in the social casino free-to-play market although direct-to-consumer revenue remained strong.

What was the company's operating cash flow?
Operating cash flow increased to €224 million during the second quarter compared with €99 million in the same period last year.

How many gaming machines did Light & Wonder ship?
The company shipped 8,796 new gaming machines globally during the quarter including more than 4,900 units in North America.

What did management say about shareholder returns?
Management confirmed that the company returned capital through share repurchases during the quarter but plans to slow future buybacks while reducing leverage.

Did Light & Wonder change its full-year outlook?
No. The company maintained its financial outlook for the full 2026 fiscal year.