Light & Wonder revenue hits US$790M in Q1 FY26

Global gaming supplier Light & Wonder (ASX:LNW) has reported a 2% year-on-year increase in consolidated revenue, reaching US$790 million for the first quarter of 2026.

The results showcase a period defined by expansion in core gaming segments, despite being tempered by a 7% decline in revenue from its social media arm, SciPlay, which fell to US$187 million due to lower player engagement.

While adjusted EBITDA rose 5% to US$327 million, net income saw a sharp 37% decrease, primarily attributed to a US$50 million legal reserve contingency linked to historical matters.

The gaming division remained the primary engine of growth, with revenue climbing 3% to US$512 million.

The performance was bolstered by a 38% surge in gaming operations—marking the 23rd consecutive quarter of growth—and a 24% rise in table products.

However, these gains were partially offset by a 25% drop in machine sales and a 14% dip in systems revenue, reflecting unfavourable year-on-year comparisons in hardware shipments.

Meanwhile, the iGaming sector continued its upward trajectory, posting an 18% revenue jump to US$91 million, driven by content expansion in North America.

CEO Matt Wilson expressed confidence in the company’s "content-centric operating model", noting that the group expects 2026 earnings to be weighted towards the second half of the year.

Despite macroeconomic uncertainties, Light & Wonder forecasts mid- to high-single-digit adjusted EBITDA growth for the full year as it progresses towards its 2028 financial targets.