Highlights

• Light & Wonder delivered first-quarter 2026 consolidated AEBITDA growth of 5% and adjusted free Cash Flow growth of 86%.
• The company's North American premium gaming installed base expanded for the 23rd consecutive quarter, reflecting continued Market Share gains.
• Management reaffirmed expectations for mid- to high-single-digit AEBITDA growth for FY2026 despite macroeconomic and Tariff-related uncertainties.

Light & Wonder Inc. (ASX:LNW) continues to strengthen its position as one of the world's leading gaming technology and content companies. Operating across land-based gaming, social gaming, and iGaming, the company has built a diversified portfolio that generates Revenue from multiple channels and jurisdictions.

On 10 June 2026, Light & Wonder shares closed at AUD 121.76, rising 4.65% during the session. The move followed growing investor confidence in the company's operational momentum, Recurring Revenue profile, and ability to generate cash flow despite ongoing macroeconomic uncertainty.

The company's first-quarter 2026 results highlighted continued expansion across key growth areas, including gaming operations and iGaming, while demonstrating resilience in an environment shaped by Inflation concerns, geopolitical developments, and tariff-related pressures.

First-Quarter 2026 Results Show Continued Growth

For the quarter ended 31 March 2026, Light & Wonder reported consolidated revenue of US$790 million, representing growth of 2% compared with the prior-year period.

While top-line growth was modest, profitability continued improving.

Consolidated AEBITDA increased 5% to US$327 million, supported by growth across all three Business segments.

Adjusted free cash flow increased 86% year-over-year to US$207 million, highlighting the company's growing ability to convert Earnings into cash generation.

Net Income declined 37% to US$52 million; however, the result was heavily influenced by approximately US$50 million of legal reserve contingencies related to legacy legal matters.

Excluding these impacts, underlying operational performance remained considerably stronger than headline profit figures suggest.

Adjusted earnings metrics also remained positive, with adjusted NPATA per share increasing 7% year-over-year.

For investors, the divergence between statutory profit and underlying operational performance is an important consideration when evaluating the quarter.

Gaming Division Continues to Drive Growth

The Gaming segment remains the largest contributor to company earnings and continued delivering positive momentum during the quarter.

Gaming revenue increased 3% to US$512 million.

The most significant contributor was Gaming Operations revenue, which increased 38% year-over-year to US$239 million.

This growth was supported by continued expansion of the installed gaming machine base, particularly within premium products.

One of the most notable achievements was the company's 23rd consecutive quarter of growth in its North American premium installed base.

The premium installed base increased by more than 2,550 units compared with the prior year and expanded by 650 units sequentially during the quarter.

Premium products now represent 56% of the total North American installed base.

Management attributed this success to the popularity of franchises across its COSMIC, COSMIC UPRIGHT, LIGHTWAVE, and HORIZON cabinet platforms.

The continued expansion of recurring revenue-generating gaming operations remains one of the most important drivers of long-term earnings growth.

Grover Acquisition Continues to Add Scale

Another important contributor during the quarter was Grover, the charitable gaming business acquired by Light & Wonder.

Grover contributed US$43 million in Gaming Operations revenue during the period.

The business added 660 units sequentially and expanded into Indiana following the legalization of charitable gaming in that state.

At quarter-end, Grover's installed base exceeded 12,200 units.

The acquisition has strengthened Light & Wonder's exposure to alternative gaming markets and added another recurring revenue stream to the broader portfolio.

As Grover expands geographically, management expects the business to contribute further growth over time.

iGaming Remains a Key Growth Engine

The iGaming segment once again delivered some of the strongest growth across the group.

Revenue increased 18% to US$91 million, while AEBITDA rose 22%.

Growth was driven by increasing adoption of first-party content and expansion of the company's partner network throughout North America.

The platform processed a record US$29.9 billion in wagers during the quarter, highlighting the scale of activity flowing through the business.

As regulated online gaming markets continue to expand, iGaming remains one of the most attractive long-term opportunities within the company.

Management continues investing in content development and platform capabilities to capture future growth in this segment.

The division's ability to generate double-digit growth while also expanding margins remains an encouraging indicator for investors monitoring digital gaming trends.

SciPlay Navigates a Mature Social Casino Market

SciPlay delivered a more mixed performance during the quarter.

Revenue declined 7% year-over-year to US$187 million due largely to ongoing softness in the JACKPOT PARTY Casino title.

However, profitability improved.

AEBITDA increased 3%, while margins expanded by approximately 300 basis points.

One of the most encouraging developments was continued growth in direct-to-consumer revenue.

Direct-to-consumer sales reached US$50 million and accounted for 27% of total SciPlay revenue.

This shift reduces reliance on app store distribution platforms and can improve profitability over time.

Although the broader social casino market remains mature, management continues focusing on user monetization and customer engagement initiatives.

Capital Allocation and Balance Sheet Remain Priorities

Light & Wonder continues balancing Investment, Debt reduction, and Shareholder returns.

During the quarter, the company repurchased approximately 200,000 shares, returning US$22 million to shareholders.

Since launching its buyback program in 2022, the company has returned approximately US$1.9 billion through share repurchases.

Management noted that approximately 25% of shares outstanding prior to the buyback program have now been repurchased.

The company ended the quarter with a net debt Leverage Ratio of 3.5 times, remaining within its target range of 2.5 to 3.5 times.

Management reiterated its goal of reducing leverage below 3.0 times during the first half of 2027.

The combination of deleveraging and continued Buybacks remains an important component of the company's capital allocation strategy.

Outlook for FY2026

Management expects a similar earnings profile to FY2025, with growth weighted toward the second half of the year.

The company continues forecasting mid- to high-single-digit AEBITDA growth for the full year.

This outlook incorporates ongoing macroeconomic uncertainty, tariff-related cost pressures, and expected increases in UK iGaming duties.

Despite these headwinds, management remains confident in the business's ability to achieve its longer-term 2028 financial targets.

Continued growth in gaming operations, expansion of iGaming, and contributions from Grover are expected to remain key earnings drivers.