Light & Wonder net income falls 37% to $52m despite 2% revenue growth for Q1

Light & Wonder has reported its financial results for the first quarter of 2026, as revenue increased 2% to $790m, despite the supplier’s net income falling 37% year-over-year to $52m. 

“The first quarter of 2026 marks the beginning of the next phase of the company’s growth trajectory: one defined by our content-centric operating model, deepening customer relationships, disciplined execution, expanding margins and enhanced capital structure,” Light & Wonder CEO Matt Wilson said. 

“Looking ahead, we remain focused on investing in product innovation and talent to further strengthen our recurring revenue model and enhance our global competitive position as we progress toward our 2028 financial targets.”

The fall in Light & Wonder’s net income for Q1 2026 was said to reflect $50m in legal reserve contingencies associated with certain legal matters, which impacted net income by approximately 61%. 

While Light & Wonder failed to increase net income for Q1 2026, the supplier’s consolidated AEBITDA rose 5% to $327m. The total was primarily driven by the $271m of AEBITDA generated by gaming, representing an increase of 7%. 

SciPlay and iGaming AEBITDA also managed to increase during the quarterly period, rising 3% and 22%, respectively, for totals of $64m and $27m. The supplier’s revenue from SciPlay operations fell 7%, however, to $187m, but iGaming revenue grew 18% to $91m. 

Gaming once again led the way with $512m of revenue, equating to growth of 3%. The segment’s operations revenue accounted for $239m and increased 38.2%, while table products revenue grew 23.5% to $63m. Gaming machine sales and systems revenue both decreased from the prior year period, falling 25% and 14.3%, respectively, to $156m and $54m. 

Total operating expenses for Light & Wonder increased 9.3% to $660m, factoring into the supplier’s 23.5% decrease in operating income to $130m. Revenue from services increased 12.9% to $595m, but products revenue fell 21.1% to $195m. 

At the beginning of April, Light & Wonder appointed Lauren Bates as its new General Manager for Canada, with responsibility for overseeing operations across the country.

The supplier confirmed Bates’ new role includes management of its core business segments, including games, systems and table products as it continues to develop its presence in the Canadian market.