Light & Wonder (LNW) Q1 2026 earnings summary

Executive summary

• Consolidated revenue rose 2% year-over-year to $790 million in Q1 2026, driven by double-digit growth in Gaming operations and iGaming, despite macroeconomic and geopolitical headwinds.

• Net income was $52 million, down 37% year-over-year, primarily due to $50 million in legal reserve contingencies related to legacy legal matters.

• All business segments achieved AEBITDA growth and margin expansion, with consolidated AEBITDA up 5% to $327 million.

• Adjusted Free Cash Flow surged 86% year-over-year to $207 million, reflecting strong underlying cash generation.

• Recurring revenue represented 73% of total revenue, up 13% year-over-year, highlighting business resilience.

Financial highlights

• Gaming revenue increased 3% to $512 million, with Gaming operations revenue up 38% and Grover contributing $43 million.

• SciPlay revenue declined 7% to $187 million, but DTC revenue hit a record $50 million and AEBITDA margin improved to 35%.

• iGaming revenue grew 18% to $91 million, with AEBITDA up 22% to $33 million and margin expanding to 36%.

• Net cash provided by operating activities was $139 million, down from $185 million, mainly due to legal settlements.

• Adjusted NPATA per share (EPSa) increased 7% to $1.45.

Outlook and guidance

• FY 2026 guidance targets mid- to high-single-digit consolidated AEBITDA growth, absorbing $30–40 million in external headwinds and $20 million in strategic investments.

• Earnings cadence in 2026 expected to mirror 2025, with recurring revenue base providing resilience.

• Commitment to reducing net debt leverage below 3x by H1 2027 and accelerating share repurchases.

• FY28 targets reaffirmed: >$10.55 EPSa and $2.0B consolidated AEBITDA.