Gaming technology supplier Light & Wonder has reaffirmed its 2026 financial guidance, stating that it “remains on track” to deliver mid-to high-single-digit growth in consolidated adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA).
In a market update released on Tuesday (14 July), the Australia-listed company also reiterated its commitment to reducing debt. Management expects its net debt leverage ratio to reach the midpoint of its target range of 2.5x to 3.5x by the end of 2026, before falling below 3.0x during the first half of 2027. The company also confirmed it will release its second-quarter FY26 results on 4 August 2026.
Share buyback programme still underway
Light & Wonder said it has approximately US$180 million remaining under its ongoing share repurchase programme. The company bought back 1,612,580 CHESS Depositary Interests (CDIs) for a total consideration of around $134 million. As of 1 July 2026, Light & Wonder had 77,049,181 shares outstanding, including common stock and CDIs.
The company has repeatedly stated that reducing leverage remains a key objective, alongside investing in the business and returning capital to shareholders.
Legal costs weigh on first-quarter earnings
Light & Wonder reported first-quarter revenue of $790 million, up 2.1 per cent from the same period last year. Adjusted EBITDA increased 5.1 per cent year-on-year to $327 million, supported by growth across its iGaming and gaming operations divisions.
Profitability, however, came under pressure from legal expenses. The company said net income was impacted by roughly $50 million in provisions related to legacy legal matters, while cash generated from operating activities declined 25 per cent to $139 million, largely due to settlement payments made during the quarter.
A major factor was the settlement reached with Aristocrat Leisure in January, bringing to an end litigation in both Australia and the United States. Under the agreement, Light & Wonder agreed to pay $127.5 million after Aristocrat alleged that the Dragon Train and Jewel of the Dragon games incorporated elements of its intellectual property.
International expansion continues
The trading update follows a series of expansion initiatives undertaken by the company this year. In May, Light & Wonder opened an expanded office in Sliema, Malta, bringing technology, product, compliance and commercial teams together under one roof. The facility is expected to serve as a key hub for regulated iGaming operations across Europe, the Middle East and Africa.
The supplier has also expanded its development capabilities through the launch of Galeforce Studio in Bulgaria. The new facility is designed to increase game development capacity and support content production for regulated markets throughout the EMEA region.
Since its 2023 entry, starting in South Africa, Light & Wonder has distributed more than 6,500 online casino games across newly regulated jurisdictions. Esports in Europe is projected to reach 120 million viewers, while in MENA, led by Saudi Arabia, which is hosting the Esports World Cup and establishing the Olympic Esports Games. Aside from Bulgaria, South Africa and the UAE are also integrating iGaming with esports growth, creating new pathways for cross-border competition with localised content.
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