Light & Wonder has reported a 2 per cent increase in first-quarter revenue, boosted by strong gains in iGaming and gaming operations, but net profit dropped 37 per cent to $52m after the firm allocated roughly $50m for older legal disputes and encountered higher interest costs.
The Las Vegas-based manufacturer, which has shifted to a single primary listing on the Australian Securities Exchange, posted revenue of $790m for the three months ending 31 March 2026, up from $774m a year earlier.
The outcomes come as Light & Wonder continues to progress from a tough period defined by its intellectual property conflict with Aristocrat, its Nasdaq departure, and a significant refinancing completed last year.
iGaming stays a promising area
For iGaming operators and suppliers, the notable figure was yet another quarter of double-digit expansion in Light & Wonder’s digital segment.
iGaming revenue climbed 18 per cent year-on-year to $91m, while adjusted EBITDA in the sector grew 22 per cent to $33m. The firm stated that momentum in North America, proprietary content, and a broader partner network contributed to the performance. Wagers processed via its iGaming platform hit a quarterly record of $29.9bn.
Chief executive Matt Wilson (pictured above) said: “The first quarter of 2026 marks the start of the next chapter of the Company’s growth path: one characterized by our content-focused operating model, strengthening client connections, disciplined execution, improving margins, and a better capital structure.”
Legal expenses affect profit
Despite the revenue growth, the quarter was still influenced by legal expenses. Light & Wonder indicated that net income was impacted by roughly $50m earmarked for legacy legal issues. Cash from operating activities dropped 25 per cent to $139m, largely due to legal settlement payments during the quarter.
The primary legal context was the January settlement with Aristocrat Leisure, which concluded proceedings in Australia and the United States. Light & Wonder agreed to pay Aristocrat $127.5m in compensation after Aristocrat alleged that Dragon Train and Jewel of the Dragon had utilized its intellectual property.
At that time, Light & Wonder acknowledged that Aristocrat’s mathematical model had been employed in developing the games and stated it would cease generating revenue from them globally.
Wilson said then: “Light & Wonder is happy to resolve this issue and progress ahead. We are firmly dedicated to conducting business correctly – respecting our rivals’ intellectual property rights while safeguarding our own rights.”
Broader stress areas
SciPlay, Light & Wonder’s social casino division, remained the weakest part of the group. The business provides free-to-play casino-style games where players can purchase virtual coins but do not gamble for real-money prizes. Revenue declined 7 per cent to $187m, although the company noted that spending by paying users stayed strong and direct-to-consumer revenue increased to 27 per cent of SciPlay revenue.
Light & Wonder also stays focused on debt reduction. Total debt was roughly $5.1bn at the end of March, although the firm said it remained within its target leverage range and expects to lower debt during 2026.
Chief financial officer Oliver Chow said: “Our capital allocation priorities stay consistent and unchanged: investing in high-return growth prospects, managing our net debt leverage ratio toward the lower end of our targeted range, and returning capital to shareholders in a meaningful way.”
The company also said it planned to accelerate share buybacks in the second quarter, after returning $22m to shareholders during the first quarter.
For the remainder of 2026, Light & Wonder expects earnings growth to be concentrated towards the second half of the year. It also cautioned that tariffs and a pending increase in UK iGaming gambling duties remain part of the outlook.
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