Light & Wonder, Inc. Reports First Quarter 2026 Results

Delivered Growth, Margin Expansion⁽¹⁾, and Quality of Earnings with Net Income of $52 Million and Consolidated AEBITDA⁽²⁾ of $327 Million

Gaming Operations North American Premium Units Base Grew for 23^rd Consecutive Quarter, Adding over 2,550 Premium Units⁽³⁾ Year-over-Year, and 660 Grover Units Added Sequentially

Generated Cash Flows from Operating Activities of $139 Million and Adjusted Free Cash Flow⁽²⁾ of $207 Million

LAS VEGAS — May 6, 2026 — Light & Wonder, Inc. (ASX: LNW) (“Light & Wonder,” “L&W,” “we” or the “Company”) today reported results for the first quarter ended March 31, 2026.

Light & Wonder delivered a solid start to 2026 underpinned by its highly diversified business model, continued disciplined execution across all three businesses and strong cash flow generation, while demonstrating resilience against a backdrop of macroeconomic and geopolitical uncertainty, including tariff-related pressures. Consolidated revenue grew 2% year-over-year to $790 million, against a strong prior year period. We continue to execute against our commitment to deliver enhanced quality of earnings through recurring revenue⁽⁴⁾, with Gaming operations and iGaming as the primary growth drivers during the quarter, each delivering double-digit year-over-year revenue increases. This was further underpinned by continued operational momentum and content strength. Net income was $52 million or $0.66 per share⁽⁵⁾, down 37% and 30% year-over-year, respectively, reflecting approximately $50 million in legal reserve contingencies associated with certain legacy legal matters, which impacted year-over-year net income and net income per share⁽⁵⁾ growth by approximately 61% and 67%, respectively. Net cash provided by operating activities was $139 million, a 25% decrease compared to the same period in 2025, primarily reflecting the payment of legal matter settlements in the quarter.

The first quarter demonstrated broad-based strength, with all three businesses delivering another quarter of segment AEBITDA growth and AEBITDA margin (“margins” or “margin”) expansion. Consolidated AEBITDA⁽²⁾ grew 5% to $327 million, and Adjusted NPATA⁽²⁾ was $115 million, resulting in 7% growth on a per share basis⁽²⁾⁽⁵⁾ to $1.45 as compared to the prior year period. Adjusted Free cash flow⁽²⁾ was $207 million, an 86% increase year-over-year, reflecting strong underlying cash generation across the business.

Gaming revenue increased 3% year-over-year to $512 million, driven by Gaming operations revenue, which increased 38% to $239 million and Table Products, which increased 24% to $63 million. Gaming machine sales revenue decreased 25%, primarily reflecting the timing of international and North America Video Lottery Terminal (“VLT”) shipments in the prior year period, while average selling price per unit remained resilient at around $19,700.

North American Gaming operations premium installed base grew for the 23^rd consecutive quarter adding 650 units sequentially (over 2,550 on a year-over-year basis), and Grover charitable gaming (“Grover”) expanded its footprint by 660 units on a sequential basis, boosted by entry into the recently legalized Indiana market. In North America, we also shipped over 5,000 North American units this quarter.

iGaming once again delivered quarterly double-digit growth in revenue of 18% and AEBITDA of 22% on continuing U.S. momentum underpinned by first-party content proliferation and partner network growth. While SciPlay revenues remain challenged amid a mature social casino market, the business continued to grow both its direct-to-consumer (“DTC”) revenue and active users on a sequential basis.

Matt Wilson, President and Chief Executive Officer of Light & Wonder, 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. We are seeing the benefits of our continued investment in studios and content, as our franchises drive strong game performance across the portfolio. Gaming momentum remained robust, with our North American premium installed base growing for the 23^rd consecutive quarter, and Grover continued its expansion into the recently legalized Indiana market. iGaming delivered another double-digit growth quarter in both revenue and AEBITDA, while SciPlay continued to expand its DTC revenue. Looking ahead, we remain focused on investing in product innovation and talent to further strengthen our recurring revenue model⁽¹⁾ and enhance our global competitive position as we progress toward our 2028 financial targets⁽²⁾.”

Oliver Chow, Chief Financial Officer of Light & Wonder, said, “Our first quarter results reflect continued margin expansion across the businesses and scaling cash flow, driving the improving cash conversion profile of our business, while we make deliberate investments in AI and infrastructure that we believe will compound meaningfully over time to support both growth and efficiency. Our capital allocation priorities remain disciplined and unchanged: investing in high-return growth opportunities, managing our net debt leverage ratio⁽³⁾ toward the lower end of our targeted range⁽²⁾ and returning capital to shareholders meaningfully, having now repurchased 25% of total shares outstanding since the program’s inception⁽⁴⁾. We maintained our net debt leverage ratio⁽³⁾ within our targeted range⁽²⁾ and expect to deleverage throughout 2026, supported by strong underlying business performance. Importantly, we remain committed to reducing our net debt leverage ratio⁽²⁾ to below 3.0x during the first half of 2027, with the intention to accelerate share repurchases in the second quarter, creating sustainable long-term shareholder value.”

LEVERAGE, CAPITAL ALLOCATION AND BUSINESS UPDATE

• Principal face value of debt outstanding⁽⁵⁾ was $5.2 billion, translating to a net debt leverage ratio⁽³⁾ of 5x as of March 31, 2026 or combined net debt leverage ratio⁽³⁾ of 3.4x, remaining within our targeted net debt leverage ratio⁽²⁾ range of 2.5x to 3.5x. Period end net debt leverage includes $137 million in litigation settlement payments.
• Repriced our Term Loan B in January 2026, reducing the applicable margin and resulting in a decrease in annualized interest costs of approximately $5 million.
• Returned $22 million of capital to shareholders through the repurchase of approximately 2 million CHESS Depositary Interests (“CDIs”) during the quarter. Since initiation of the prior share repurchase program in March of 2022, the Company has returned $1.9 billion to shareholders through the repurchase of 24.6 million shares or CDIs. This represents 25% of total outstanding shares prior to the commencement of the programs⁽⁴⁾.

With approximately 79% of the authorized share repurchase program now utilized, we have remaining capacity of $314 million. We retain a flexible capital structure, which enables us to deploy balance sheet capacity when appropriate. Subject to the continuation of share repurchases⁽⁴⁾, we are committed to deleveraging our balance sheet towards the mid-point of our targeted net debt leverage ratio range⁽²⁾ over the course of FY 2026 and below 3.0x during the first half of 2027.