Light & Wonder Second Quarter 2026 Earnings Presentation

Light & Wonder demonstrated robust financial and operational momentum during the second quarter of 2026, characterized by a 9% year-over-year increase in consolidated AEBITDA to $383 million and a 26% rise in adjusted earnings per share to $120 million. Total consolidated revenue reached $828 million, supported by significant growth in the Gaming and iGaming segments. This performance was bolstered by the successful integration of the Grover acquisition and a strategic expansion of the premium installed base in North America, which grew by more than 650 units. These gains effectively offset temporary market softness within the SciPlay segment, underscoring the resilience of the company’s diversified portfolio.

A core pillar of this performance is the transition toward a recurring revenue model, which now comprises approximately 70% of total revenue. This stability, combined with disciplined operational efficiency and a consistent reinvestment strategy—maintaining R&D and capital expenditures at roughly 17% of revenue—has facilitated strong cash generation. Adjusted Free Cash Flow surged 50% year-over-year to $156 million, providing the necessary liquidity to support both ongoing shareholder returns and a rigorous deleveraging program. Management remains committed to reducing the net debt leverage ratio to below 3.0x by the first half of 2027 to achieve an investment-grade financial profile.

Despite navigating approximately $70 million in combined external headwinds and strategic investment costs, the company reaffirmed its fiscal year 2026 outlook for mid-to-high single-digit consolidated AEBITDA growth. By utilizing non-GAAP measures to highlight underlying operational health, the company maintains a clear focus on long-term value creation. Through a disciplined approach to capital allocation and sustained investment in high-growth segments, the organization continues to strengthen its competitive position within the global gaming industry.