Light & Wonder Q3 Net Income Climbs 17% as Debt Leverage Falls to 3.3x

Light & Wonder increased third-quarter net income by 17% to $133 million even as group revenue declined 2% to $824 million. Adjusted NPATA rose 7% to $163 million and Consolidated Adjusted EBITDA increased 2% to $383 million. Net cash from operating activities reached $236 million, up 28% year-on-year.

Gaming and iGaming provided the main offset to softness elsewhere. According to World Casino News, the supplier's content-centric model supported recurring revenue streams while new product roadmaps received positive feedback at industry events.

Segment Performance

Gaming revenue totaled $554 million, down 1% from the prior year. Machine sales rose 5% to $199 million and gaming operations revenue grew 3% to $248 million, backed by a larger installed base and higher average daily revenue per unit. The company shipped 8,906 machines worldwide compared with 8,608 a year earlier, with international shipments up 17% to 3,027 units. Gaming systems revenue fell 24% to $55 million and table products revenue declined 7% to $52 million.

iGaming revenue advanced 13% to $97 million on North American growth, first-party content and an expanded partner network. SciPlay revenue dropped 12% to $173 million amid weaker demand for social casino free-to-play titles, though direct-to-consumer sales gained share within the segment. The mixed results highlight limits from social casino pressure and delayed customer capital expenditure.

Debt Reduction and Outlook

Light & Wonder cut its principal debt balance by $153 million to approximately $5 billion. Net debt stood at $4.88 billion at September 30, down from just over $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 $545 million, up 49% year-on-year.

President and CEO Matt Wilson said the content-centric operating model is enhancing recurring revenue business. Chief Financial Officer Oliver Chow cited the recurring revenue base and margin discipline for the cash generation. The company aims to reduce its leverage ratio below 3.0x during the first half of 2027. It expects 2026 Adjusted EBITDA growth at the lower end of the mid-to-high single-digit range and holds a longer-term target of $2 billion in Adjusted EBITDA by 2028.