Light & Wonder Q3: iGaming Up 13%, SciPlay Down 12%
Light & Wonder reported third-quarter revenue of $824 million, down 2% from $841 million a year earlier, as double-digit iGaming growth was offset by weaker social casino and gaming systems sales. The company said in its Q3 2026 results release on November 4, 2026 that full-year earnings growth is now expected toward the lower end of its previous range.
Profit rose despite the lower top line. Net income was $133 million, up 17%, or $1.72 per share, up 28%. Consolidated AEBITDA grew 2% to $383 million, with the margin up one percentage point to 46%.
Adjusted NPATA increased 7% to $163 million, and adjusted free cash flow rose 21% to $181 million. Year-to-date revenue is up 1% at $2,440 million.
iGaming Posts Another Double-Digit Quarter
iGaming revenue increased 13% to $97 million, which the company attributed to continued momentum in North America, the spread of its first-party content and growth in its partner network. Segment AEBITDA rose 9% to $37 million, though the margin slipped two percentage points to 38% because of revenue mix and growth investment.
Wagers processed through Light & Wonder's iGaming platform reached a quarterly record of $31.7 billion. For more on the group's leadership changes in its social casino arm, see our report on how Light & Wonder began its search for a new SciPlay CEO.
SciPlay Softness Continues
SciPlay revenue fell 12% to $173 million, which the company again blamed on softness in the broader free-to-play social casino market. Segment AEBITDA dropped 6% to $67 million, but margin improved three percentage points to 39% on efficiency work and growth in direct-to-consumer sales.
Direct-to-consumer revenue contributed $53 million, or 31% of SciPlay revenue, compared with 20% a year earlier and 29% in the second quarter. Average monthly revenue per paying user grew 5% to $132.80, while daily active users were roughly flat from the previous quarter.
Gaming Division And Balance Sheet
Gaming revenue edged down 1% to $554 million. Gaming operations, including Grover, rose 3% to $248 million, and the North American premium installed base grew for a 25th straight quarter, adding more than 2,650 units year over year. Gaming machine sales climbed 5% to $199 million, with 8,906 new units shipped globally, and further acceleration is expected in the fourth quarter. Gaming systems revenue fell 24% to $55 million on lower hardware sales, and table products revenue dropped 7% to $52 million.
Principal debt outstanding was $5.0 billion, giving a net debt leverage ratio of 3.3x, down from 3.4x at the end of June. The company repurchased no shares in the quarter and said it is prioritizing deleveraging, with a target of dropping below 3.0x in the first half of 2027.
The outlook reflects weakness in social casino and some delayed timing of customer investment, partly offset by growing recurring revenue and a seasonally strong fourth quarter. Players in regulated US states can browse licensed games on our online casinos page.
Building Momentum
Management struck a confident tone on the outlook. Chief Executive Matt Wilson said the content-led model is strengthening recurring revenue and that customer feedback after the AGE and G2E trade shows supports momentum heading into the fourth quarter and 2027.
Chief Financial Officer Oliver Chow said year-to-date adjusted free cash flow reached $545 million, up 49%, in line with the full-year 2025 level.
Grover ended the period with more than 12,750 units installed, up 205 sequentially. Cash and equivalents stood at $139 million, with available liquidity of $1,059 million.
