Light & Wonder Reports Q1 Revenue of $790 Million

(AsiaGameHub) –   Light & Wonder reported mixed results in Q1 2026, with revenue and EBITDA growth tempered by legal reserve costs from older cases.

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Key Facts

• Revenue grew 2.1% year-on-year to $790 million.
• Net income declined 36.6% to $52 million.
• iGaming revenue rose 18.2%, while SciPlay revenue dropped 7.4%.

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Legal Expenses Drag Down Strong Quarter

Light & Wonder experienced increased activity in gaming operations and iGaming during Q1, but elevated legal costs significantly reduced profitability compared to the prior year.

The casino equipment and online games provider recorded $790 million in revenue for the three months ending March 31, reflecting a 2.1% increase from the same period last year. Adjusted EBITDA climbed 5.1% to $327 million, with all three core business segments showing improvements in both adjusted EBITDA and margins.

Net income fell to $52 million from $82 million. The company attributed approximately $50 million of this decline to legal reserve provisions related to historical legal matters.

This legal expense follows the Aristocrat Leisure litigation, which resulted in a $128 million settlement charge in Q4 2025. In January, Light & Wonder announced it would pay Aristocrat $127.5 million over claims involving alleged trade secret infringement connected to the Dragon Train product.

Despite these challenges, the quarter showed several areas of growth. Gaming operations revenue surged 38.2% to $239 million, and table products revenue increased 23.5% to $63 million. Total gaming revenue reached $512 million, up 3.4%.

In contrast, machine sales declined. Revenue decreased 25% to $156 million, primarily due to stronger international and North America video lottery terminal shipments in the previous year. Light & Wonder shipped 7,200 new gaming machines globally, down from 9,770. International shipments—including those in Asia Pacific—dropped to 2,176 from 4,001, though average selling price remained steady at around $19,700.

Digital performance was mixed. iGaming revenue increased 18.2% to $91 million, while SciPlay revenue fell 7.4% to $187 million.

CEO Matt Wilson noted that Light & Wonder was “seeing the benefits” of its ongoing investments in studios and content. He also highlighted the company’s 23rd consecutive quarter of growth in the North American premium installed base and the entry into Indiana with Grover, following the acquisition of Grover Charitable Gaming assets for $850 million last year.

As of March, Light & Wonder had net debt of $5.2 billion. Now solely listed on the Australian Stock Exchange, the company forecasts full-year 2026 adjusted EBITDA growth in the mid- to high-single-digit range, with stronger earnings expected in the second half.

CFO Oliver Chow stated:

“Our first-quarter results demonstrate continued margin expansion across our businesses and growing cash flow, enhancing the improving cash conversion profile of our operations, as we make strategic investments in artificial intelligence and infrastructure that we believe will deliver meaningful long-term value by supporting both growth and efficiency.”