Light & Wonder, Inc.

Q2 consolidated revenue was $828 million, up 2% year over year. Consolidated AEBITDA was $383 million, up 9% year over year, with margin expanding 200 basis points to 46%. Net income was $120 million, up 26%, and EPSa was $1.99, up 26% year over year; reported net income per share was $1.53 versus $1.11 a year ago. Adjusted NPATA rose 16% to $156 million, adjusted free cash flow was $156 million, up 50%, and adjusted free cash flow conversion improved to 41% from 30%. For the first half, revenue was over $1.6 billion, up 2%, and consolidated AEBITDA was $710 million, up 7%, with margin up 200 basis points to 44%. Segment highlights: gaming revenue rose 5% to $554 million and EBITDA rose 10% to $307 million; SciPlay revenue fell 9% to $182 million and EBITDA fell 3% to $72 million; iGaming revenue rose 14% to $92 million and EBITDA rose 18% to $33 million; Grover revenue was $45 million. Management reaffirmed full-year 2026 outlook for mid- to high single-digit consolidated AEBITDA growth, expects the earnings shape to remain second-half weighted, and said Q3 gaming sales should trend between 8,500 and 9,000 units globally. Net debt leverage was 3.4x at quarter-end, debt face value was $5.2 billion, liquidity was $928 million, and the company said it still expects leverage below 3x in the first half of 2027.

Matt Wilson framed the quarter as another proof point for the company’s shift toward a higher-quality, recurring-revenue mix. He emphasized resilient land-based demand, strong game performance, and expanding installed base in premium gaming and Grover, while also highlighting iGaming growth and the cash-generative nature of the portfolio. His tone was confident but measured: he repeatedly said expectations are being moderated where needed, especially on gaming operations revenue per day, while still expressing high confidence in the full-year EBITDA outlook.

Oliver Chow focused on profitability, cash conversion, and balance sheet priorities. He cited Q2 revenue of $828 million, AEBITDA of $383 million, net income of $120 million, adjusted NPATA of $156 million, and adjusted free cash flow of $156 million; he also noted operating cash flow of $241 million, capex of $83 million, and improved free cash flow conversion of 41% versus 30% a year ago. On capital allocation, he highlighted $134 million of buybacks in the quarter, $180 million remaining under the approved repurchase program, net debt leverage of 3.4x, and $928 million of liquidity, while reiterating the plan to delever toward the midpoint of the range in 2026 and below 3x in the first half of 2027. He also said corporate costs should run around the mid- to high-$30 million range per quarter, and that some AI spend is currently a drag on margins rather than a benefit.

Analysts focused on several themes: why gaming operations revenue per day was guided to grow roughly in line with CPI despite strong year-to-date performance; whether the recent M&A wave in gaming could affect supplier demand; the mix of revenue versus cost drivers behind second-half EBITDA; SciPlay’s margin and UA spend recovery; and the timing of the Gaming sales deferrals. Management said the RPD moderation was just expectation-setting, not a change in strategy, and pointed to continued strong Huff N’ Puff performance and industry-leading yield expansion. They also said the sales deferrals were signed, contracted deals shifting into the second half, that Resorts World-related removals are now done, that SciPlay is starting to see “green shoots” in ROI and UA, and that M&A among operators should not have major implications for suppliers.