Light & Wonder reported stronger earnings and cash generation for the second quarter of 2026 while maintaining its full-year outlook. The company also reiterated its plan to reduce leverage as recurring revenue continues to expand.
For the quarter ended June 30, consolidated revenue increased 2% year over year to $828 million. Net income rose 26% to $120 million, while earnings per share increased 38% to $1.53. Consolidated Adjusted EBITDA grew 9% to $383 million.
Cash Flow Supports Capital Strategy
Net cash provided by operating activities jumped 127% to $241 million, while adjusted free cash flow rose 50% to $156 million.
Light & Wonder repurchased approximately 1.6 million CDIs for $134 million during the quarter, bringing first-half repurchases to $156 million. Since March 2022, the company has returned $2.1 billion through the repurchase of 26.2 million shares or CDIs, representing 27% of shares outstanding before the programs began.
Principal debt stood at $5.2 billion at June 30, resulting in a net debt leverage ratio of 3.4x. The company remains committed to reducing that figure below 3.0x during the first half of 2027.
Chief Financial Officer Oliver Chow said, “The second quarter demonstrated continued scaling across the business, with margin expansion across all three businesses translating into strong underlying cash generation. […]
At the same time, we are continuing to invest deliberately in AI and infrastructure, work we believe will compound over time and support both growth and efficiency across the business. Going forward, our focus will be to pare back on share repurchases and rapidly de-lever our balance sheet to below 3.0x net debt leverage as we progress toward an investment grade level leverage profile.”
Gaming and iGaming Extend Growth
Gaming revenue increased 5% to $554 million. Gaming operations revenue rose 18% to $247 million, while Table products increased 13% to $62 million. Gaming machine sales revenue declined 4%, primarily because of lower shipments linked to fewer new openings and expansions.
The North American Gaming operations premium installed base added 652 units, marking its 24th consecutive quarter of growth and an increase of more than 2,550 units year over year. Grover added 277 units sequentially and more than 1,540 year over year. Globally Light & Wonder shipped 8,796 new gaming machines, including more than 4,900 in North America.
iGaming revenue climbed 14%, while AEBITDA increased 18%, supported by North American momentum, first-party content and partner network growth despite higher UK gaming duties.
Matt Wilson, President and Chief Executive Officer of Light & Wonder, said, “Our second quarter results reflect continued execution of our content-centric operating model, with broad-based growth, margin expansion and quality earnings across all three businesses. We continue to see the benefits of our sustained 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 24th consecutive quarter, and Grover continuing to scale across existing and new markets.[…].”
Light & Wonder maintained its 2026 outlook, with Consolidated Adjusted EBITDA growth expected in the mid- to high-single digits.
Source:
“Light & Wonder, Inc. Reports Second Quarter 2026 Results”, explore.lnw.com, August 4, 2026
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