Light & Wonder Reports $790 Million Revenue, 37% Decline in Net Income for Q1 2026

Light & Wonder, Inc. reported its financial results for the first quarter of 2026, revealing total revenue of $790 million, a 2% increase from $774 million in the same period last year. The company's net income for the quarter was $52 million, down 37% from $82 million in the prior year, resulting in a diluted earnings per share of $0.66 compared to $0.94. The decline in profitability was attributed to increased operating expenses, which rose to $660 million from $604 million, driven by higher selling, general, and administrative costs, as well as significant legal reserves related to ongoing litigation.

The company's revenue growth was primarily fueled by its Gaming segment, which saw a 3% increase in revenue to $512 million, bolstered by a $23 million rise in gaming operations revenue and contributions from the recently acquired Grover business. However, this was partially offset by a $52 million decline in gaming machine sales, which had benefited from favorable shipment timing in the previous year. The SciPlay segment experienced a 7% revenue decrease, attributed to a decline in average monthly payers, while iGaming revenue increased by 18%, reflecting strong performance in North American markets.

Operationally, Light & Wonder's customer base expanded, with the installed base of gaming operations in the U.S. and Canada increasing by 1,805 units year-over-year. The company reported an average daily revenue per unit of $48.01, up from $46.68, indicating improved engagement metrics. The total number of average monthly active users (MAUs) in the SciPlay segment decreased to 5.1 million, down from 5.5 million, while average revenue per daily active user (ARPDAU) remained stable at $1.05.

Strategically, the company completed the acquisition of Grover in May 2025, which has begun to contribute to revenue, although its impact on net income was not material in the latest quarter. Light & Wonder continues to focus on expanding its digital gaming offerings and enhancing its product portfolio. The company has also initiated a share repurchase program, with $22 million spent on repurchasing shares in the first quarter of 2026. Looking ahead, Light & Wonder anticipates continued growth in its iGaming and Gaming segments, although it remains vigilant regarding potential market challenges, including inflationary pressures and geopolitical uncertainties.