Light & Wonder Q2 Net Income Up 26% to US$120m

Light & Wonder (ASX:LNW) reported results for the second quarter ended 30 June 2026. Consolidated revenue grew 2% year over year to US$828 million and net income increased 26% to US$120 million, or US$1.53 per diluted share, up 38%. Consolidated AEBITDA, a non-GAAP measure, increased 9% to US$383 million, and consolidated AEBITDA margin was 46% against 44% in the prior year period. Adjusted NPATA increased 16% to US$156 million, or US$1.99 per share on an EPSa basis, up 26%. Net cash provided by operating activities was US$241 million, a 127% increase on a prior year period of US$106 million that the company said was impacted by US$73 million related to certain legal settlement payments, and adjusted free cash flow rose 50% to US$156 million.

Gaming revenue increased 5% to US$554 million, led by Gaming operations revenue up 18% to US$247 million and Table products up 13% to US$62 million, while gaming machine sales revenue decreased 4% to US$184 million on lower unit shipments, which the release attributed both to fewer new openings and expansions and lower adjacencies and to timing deferred into the second half of the year, with steady average selling price per unit. Gaming systems revenue declined 16% to US$61 million, which the company primarily attributed to lower hardware sales, and SciPlay revenues decreased 9%. The company shipped 8,796 new units globally during the quarter, including over 4,900 in North America. The North American Gaming operations premium installed base added 652 units sequentially and over 2,550 units year over year, and Grover charitable gaming added 277 units sequentially. iGaming revenue and AEBITDA increased 14% and 18% respectively. Light & Wonder repurchased approximately 1.6 million CHESS Depositary Interests for US$134 million during the quarter, taking first-half repurchases to US$156 million, and reported principal face value of debt outstanding of US$5.2 billion, a net debt leverage ratio of 3.4x as at 30 June 2026. The company maintained its full-year 2026 financial outlook, saying it continues to expect full-year consolidated AEBITDA growth in the mid- to high-single digits, and restated its commitment to reduce net debt leverage below 3.0x during the first half of 2027.