Light & Wonder reports revenue growth but profit hit by legal costs
Light & Wonder has reported a 2 per cent rise in first-quarter revenue, helped by strong growth in iGaming and gaming operations, but net income fell 37 per cent to $52m after the company set aside about $50m for older legal disputes and faced higher interest costs.
The Las Vegas-based supplier, which has moved to a sole primary listing on the Australian Securities Exchange, posted revenue of $790m for the three months to 31 March 2026, up from $774m a year earlier.
The results come as Light & Wonder continues to move on from a difficult period marked by its intellectual property dispute with Aristocrat, its Nasdaq exit, and a major refinancing completed last year.
iGaming remains a bright spot
For iGaming operators and suppliers, the standout figure was another quarter of double-digit growth in Light & Wonder’s digital business.
iGaming revenue increased 18 per cent year-on-year to $91m, while adjusted EBITDA in the segment rose 22 per cent to $33m. The company said momentum in North America, first-party content and a wider partner network helped drive the performance. Wagers processed through its iGaming platform reached a quarterly record of $29.9bn.
Chief executive Matt Wilson (pictured above) said: “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.”
Legal costs weigh on profit
Despite the revenue growth, the quarter was still shaped by legal costs. Light & Wonder said net income was affected by about $50m set aside for legacy legal matters. Cash from operating activities fell 25 per cent to $139m, mainly because of legal settlement payments in the quarter.
The main legal backdrop was the January settlement with Aristocrat Leisure, which ended proceedings in Australia and the United States. Light & Wonder agreed to pay Aristocrat $127.5m in compensation after Aristocrat claimed that Dragon Train and Jewel of the Dragon had used its intellectual property.
At the time, Light & Wonder acknowledged that Aristocrat’s mathematical model had been used in developing the games and said it would stop generating revenue from them worldwide.
Wilson said then: “Light & Wonder is pleased to resolve this matter and move forward. We are firmly committed to doing business the right way – respecting our competitors’ intellectual property rights while protecting our own rights.”
Wider pressure points
SciPlay, Light & Wonder’s social casino division, remained the weaker part of the group. The business makes free-to-play casino-style games where players can buy virtual coins but do not gamble for real-money payouts. Revenue fell 7 per cent to $187m, although the company said spending by paying users remained resilient and direct-to-consumer revenue rose to 27 per cent of SciPlay revenue.
Light & Wonder also remains focused on debt reduction. Total debt stood at about $5.1bn at the end of March, although the company said it remained within its target leverage range and expects to reduce debt during 2026.
Chief financial officer Oliver Chow said: “Our capital allocation priorities remain disciplined and unchanged: investing in high-return growth opportunities, managing our net debt leverage ratio toward the lower end of our targeted range and returning capital to shareholders meaningfully.”
The company also said it planned to accelerate share repurchases in the second quarter, after returning $22m to shareholders during the first quarter.
For the rest of 2026, Light & Wonder expects earnings growth to be weighted towards the second half of the year. It also warned that tariffs and a pending increase in UK iGaming gambling duties remain part of the outlook.
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