Light & Wonder reported a 17% increase in third-quarter net income to US$133 million, supported by growth in its Gaming and iGaming businesses. However, weaker Gaming systems and social casino performance contributed to a 2% decline in group revenue to US$824 million.
Adjusted NPATA rose 7% to US$163 million, while Consolidated Adjusted EBITDA increased 2% to US$383 million. Net cash from operating activities reached US$236 million, up 28% year-on-year.
President and CEO Matt Wilson said:
“Our content-centric operating model is enhancing our recurring revenue business, as evidenced in the results. Sustained investment in studios and content is driving strong franchise performance across the portfolio, and our roadmap was well received at both the AGE and G2E, which builds our confidence heading into the fourth quarter and 2027.”
Gaming and iGaming deliver growth
Gaming generated US$554 million in revenue, down 1% year-on-year. Higher machine sales and gaming operations revenue partly offset weaker systems and table products performance.
Machine sales increased 5% to US$199 million, while gaming operations revenue grew 3% to US$248 million, reflecting a larger installed base and higher average daily revenue per unit.
Light & Wonder shipped 8,906 gaming machines worldwide during the quarter, compared with 8,608 a year earlier. International shipments, including Asia-Pacific markets, increased 17% to 3,027 units. North America accounted for more than 5,800 machines.
Gaming systems revenue fell 24% to US$55 million, while table products revenue declined 7% to US$52 million, partly due to the timing of utility sales.
iGaming performed better, with revenue increasing 13% to US$97 million. Growth came from North America, first-party content and an expanding partner network.
SciPlay remained under pressure from weaker demand in the social casino free-to-play market. Revenue declined 12% to US$173 million, although direct-to-consumer sales continued to represent a growing share of the segment.
New leadership at SciPlay
Light & Wonder also appointed Matthieu Labbat as SciPlay CEO, effective immediately.
Labbat previously served as senior vice president and head of Product Madness at Aristocrat Leisure, where he oversaw the mobile gaming business.
Wilson said in a press release: “Matthieu has a proven record of building and scaling mobile gaming businesses, paired with exceptional product vision and a talent for developing teams. That combination makes him the ideal leader for SciPlay as we seek to extend the reach of its portfolio of brands.”
Debt falls as cash generation improves
Light & Wonder reduced its principal debt balance by US$153 million during the quarter to approximately US5 billion Net debt stood at US4.88 billion at September 30, down from just over US$5.02 billion at the end of June.
The net debt leverage ratio improved from 3.4x to 3.3x.
Adjusted free cash flow for the first nine months reached US$545 million, an increase of 49% year-on-year and matching the company’s full-year 2025 result.
Chief Financial Officer Oliver Chow said: “Our recurring revenue base and margin discipline delivered strong cash generation, with year-to-date Adjusted free cash flow of $545 million, up 49% year-over-year and in line with our full-year 2025 level.”
Chow also confirmed continued investment in research and development, gaming operations and AI infrastructure. The company aims to reduce its leverage ratio below 3.0x during the first half of 2027.
Full-year EBITDA growth expected at lower end of guidance
Light & Wonder expects its 2026 Adjusted EBITDA growth to reach the lower end of its previously announced mid-to-high single-digit range.
Management cited continued weakness in social casino gaming and delays in customer capital expenditure. Recurring revenue growth and an expected seasonal improvement in the fourth quarter should provide some offset.
JP Morgan noted that quarterly revenue fell short of market expectations, highlighting softer social casino demand and postponed customer investments.
Light & Wonder remains focused on its longer-term target of US$2 billion in Adjusted EBITDA by 2028. Management also expects recent product presentations at AGE and G2E to support customer interest heading into 2027.