Light & Wonder posts modest Q3 revenue. Light & Wonder reported third-quarter 2026 consolidated revenue of $824 million, a 2% decline year-over-year, even as net income rose 17% to $133 million. The results, released on November 4, 2026, reflect a familiar pattern for the gaming supplier: continued strength in its iGaming segment and core gaming operations, weighed down by ongoing weakness in the social casino free-to-play market through its SciPlay division. Segment performance. The iGaming segment once again delivered double-digit growth, with revenue increasing 13% during the quarter. The performance continues a consistent trend throughout 2026, following 18% revenue growth in the first quarter and 14% growth in the second quarter, driven largely by momentum in the United States market. By contrast, SciPlay revenue declined 12% to $173 million, which the company attributed to continued softness in the broader social casino free-to-play market. The decline was partially offset by growth in direct-to-consumer revenue, which reached $53 million, or 31% of total SciPlay revenue for the quarter - an expanded contribution compared with 29% in the prior quarter and approximately 18% a year earlier. Within the core Gaming segment, machine sales increased 5% to $199 million, supporting profitability even as consolidated revenue slipped. Despite the modest top-line contraction, the company's profitability improved. Net income of $133 million compared favorably with $114 million in the prior-year period, and earnings and cash flow both grew as recurring gaming revenue expanded. The results suggest that favorable product mix and growth in higher-margin recurring revenue streams are helping to buffer the company against softness in specific segments. Year-to-date consolidated revenue grew 1% to $2,440 million, indicating the business remains broadly stable despite quarterly volatility. Light & Wonder reaffirmed its outlook for mid to high single-digit consolidated AEBITDA growth for the full year 2026, with earnings expected to be weighted toward the latter part of the year. The reaffirmation signals management confidence that the iGaming trajectory and gaming operations can carry the company through the continued free-to-play headwinds. A mixed but manageable picture. For industry professionals, the quarter underscores two divergent dynamics in the gaming sector. Digital real-money iGaming continues to expand at a healthy clip in regulated U.S. markets, rewarding suppliers with diversified content portfolios. Meanwhile, the social casino free-to-play market remains under sustained pressure, with SciPlay's declining revenue partially cushioned - but not fully offset - by its growing direct-to-consumer strategy. The company's ability to grow net income and cash flow despite a revenue decline points to disciplined cost management and a favorable revenue mix. However, the persistence of SciPlay weakness will remain a key variable as the company works toward its full-year guidance. With one quarter remaining in its fiscal year, Light & Wonder enters the final stretch with momentum in its highest-growth segment and a reaffirmed earnings outlook - a position that many peers in the segment would consider resilient, if not entirely unqualified.

Light & Wonder executives prioritize debt reduction in third-quarter earnings call. November 4, 2026 · 7:30pm ET | 4:30pm PT Email, LinkedIn, and more CEO Matt Wilson closed the book on "an eventful quarter" late on Wednesday, holding Light & Wonder's third-quarter earnings call. "Customers responded positively," he said, to the company's offerings at Global Gaming Expo and the Australasian Gaming Expo. Wilson hailed the company's financial results, including an AU$153 million ($107.7 million) debt reduction. (See sidebar.) He laid particularly emphasis on Fitch Ratings' having upgraded Light & Wonder's outlook to "Positive." "For now, we are prioritizing debt reduction," added CFO Oliver Chow. He said the company was aiming to get its leverage down to three times cash flow by June of 2027. To that end, no share repurchases were made during the third quarter, although Chow insisted they remained a permanent facet of Light & Wonder strategy. He praised an expectedly strong fourth quarter, despite strong year-over-year comparisons. "We will never compromise the foundational R&D structure of the business," Chow promised, in pursuit of short-term goals. "Overall, this is another quarter in which earnings grew" and cash flow was stronger, Wilson said. Recurring revenue was up to 67% of Light & Wonder's total, he added, from 64% in 2024. "We also saw solid performance in our Class II segment," Wilson noted. This helped counterbalance systems sales that were down 24% and table game ones that were seven percent off. The systems business was, Wilson said, in "a rebuild phase." With regard to Light & Wonder's Grover Gaming subsidiary, Wilson said it was targeting charitable gaming in Maryland, with an eye to a late-2027 debut. He also played up a spate of new casino-game releases, with titles such as Back to the Future. Revenues for Light & Wonder's ailing SciPlay subsidiary fell 12%. "The social casino market remains under pressure," said Wilson, blaming sweepstakes casinos for the softness. SciPlay had 17% fewer users during the third quarter, although they spent five percent more on average. "Despite the softness, I am confident in the SciPlay team," said Wilson, who also announced the arrival of a new social-casino COO, Matt LaBatt. LaBatt was currently in Tel Aviv, meeting SciPlay staffers. "This transition allows us to review our business strategy," said Wilson remarked, adding that the transition included moving spending away from SciPlay into higher-return areas of the business. "We've lost some of innovation over the last few years," said Chow, who had been filling in as interim COO of SciPlay. "It's going to be a bit of journey for us." In traditional iGaming, a double-digit increase in revenue was credited to such game titles as Pirots, Huff n' Puff and Ultimate Fire Link. "Our broad content portfolio continues to cement our leading position," Wilson said, adding that he expected Light & Wonder to be in the Florida online market by year's end. Despite a significant tax increase in the United Kingdom, Wilson said the underlying British business remained strong. All Brazil-facing content, however, had been disabled, in keeping with that country's new ban on iGaming. U.S. consumer trends were raised as a possible concern. "We've proven over the years to be agile," Wilson replied. "We find ways to navigate." Tribal and regional gaming were still strong, he noted, which was good for Light & Wonder. "Destination markets are a smaller percentage of our slot base," Wilson explained. Not only were casino operators looking to replace larger-than-usual percentages of their slot floors, Wilson observed. They had also raised the amount of floor space dedicated to premium games, from nine percent to 15%. Wilson said he thought Aristocrat Leisure had "been more flat" in this regard while Light & Wonder was on the upswing. Potential new markets were also on the minds of Light & Wonder executives. "The elections yesterday throw a new lens on what can happen in the state legislatures," said Wilson. Chicago was, he continued, choosing locations for slot routes. Light & Wonder had product ready for those, with 15 years of past Illinois performance to show for it. 2027 would be, the CEO said, "a pretty sizable opportunity." Pennsylvania, where skill games remain in limbo, was "further afield" to Wilson, although he hoped for legislative activity on that issue. "We don't forecast or make plans over things we can't control," he added. Wilson did observe that Light & Wonder's Georgia-based skill games were a model of what could go into Pennsylvania, should lawmakers break the logjam. Looking ahead, Wilson remarked that sales figures and favorable industry commentary on Light & Wonder products added up to "tons of momentum for us. Promising customer feedback and customer data gives us the confidence to finish the year strong."

Light & Wonder has appointed Matthieu Labbat chief executive officer of SciPlay, its social casino business, effective November 4, 2026. Labbat has nearly 13 years of experience building and scaling mobile games. He most recently led Product Madness, a mobile gaming business with more than $1 billion in annual revenue. Under him, its staff grew from about 120 to more than 600, and it became the No. 1 publisher in its category. Earlier, he held product and performance roles at King and worked as a consultant at Analysys Mason. "Matthieu has a proven record of building and scaling mobile gaming businesses," said Matt Wilson, Light & Wonder's president and chief executive officer. Chief financial officer Oliver Chow oversaw SciPlay during the transition.