Global gaming supplier Light & Wonder reported a 2% year-on-year increase in consolidated revenue to US$790 million in 1Q26, driven by growth across its gaming and iGaming segments although tempered by a decline in social media arm SciPlay.
Adjusted EBITDA was also 5% higher at US$327 million while net income fell 37% year-on-year, impacted by US$50 million in legal reserve contingencies related to historical legal matters.
Releasing its financial results early Thursday, Light & Wonder highlighted a 3% year-on-year increase in gaming revenue to US$512 million. This was, the company explained, aided by 38% growth in gaming operations, benefiting from an increase in its North American installed base of 1,805 units and representing a 23rd consecutive quarter of growth from the segment.
The increase in gaming revenue also benefited from Table Products revenue increasing 24%, while gaming machine sales revenue decreased by 25%, reflecting the timing of international and North America VLT (video lottery terminal) shipments in the prior year period. Gaming Systems revenue decreased by 14%, primarily due to lower hardware sales, Light & Wonder said.
The group’s iGaming revenue increased 18% to US$91 million in 1Q26 with Adjusted EBITDA up 22% to US$33 million. This, the company explained, marks another consecutive quarter of double-digit growth in both revenue and Adjusted EBITDA, driven by continued momentum in North America underpinned by “first-party content proliferation and the expansion of our partner network.”
Meanwhile, SciPlay revenue decreased 7% to US$187 million due to a decline in average monthly JACKPOT PARTY Casino payers.
In releasing its quarterly results, Light & Wonder said it expects its 2026 earnings trajectory to mirror 2025 – weighted towards the second half of the year and reflective of its growing recurring revenue base.
As such, it said FY26 consolidated Adjusted EBITDA growth is expected to be in the mid- to high-single digits, taking into account the impact of ongoing macroeconomic and geopolitical uncertainty.
Matt Wilson, President and CEO of Light & Wonder, said, “The first quarter of 2026 marks the beginning of the next phase of the company’s growth trajectory: one defined by our content-centric operating model, deepening customer relationships, disciplined execution, expanding margins and enhanced capital structure.
“We are seeing the benefits of our continued investment in studios and content, as our franchises drive strong game performance across the portfolio. Gaming momentum remained robust, with our North American premium installed base growing for the 23rd consecutive quarter, and Grover continued its expansion into the recently legalized Indiana market. iGaming delivered another double-digit growth quarter in both revenue and AEBITDA, while SciPlay continued to expand its DTC revenue.
“Looking ahead, we remain focused on investing in product innovation and talent to further strengthen our recurring revenue model and enhance our global competitive position as we progress toward our 2028 financial targets.”
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