ES
IT
PT
DE
NL
Gaming revenue increased by five per cent with North America growing for the 24th consecutive quarter
Light & Wonder delivered a second quarter of consolidated earnings growth and margin expansion across all business segments, underpinned by its highly diversified business model and disciplined capital allocation, with continued strong cash flow generation and momentum expected to build into the second half of the year.
Consolidated revenue grew two per cent year-over-year to $828m. We continue to enhance our quality of earnings through a deliberate strategy to improve revenue quality, focusing on growing recurring revenue. Gaming operations, Grover and iGaming represented the primary growth drivers, each delivering double-digit year-over-year revenue increases, supported by continued operational momentum and content strength.
Gaming revenue increased five per cent year-over-year to $554m, led by Gaming operations revenue (increased 18 per cent to $247m) and Table products (up 13 per cent to $62m). Gaming machine sales revenue decreased four per cent, primarily reflecting lower unit shipments on fewer new openings and expansions and lower adjacencies, with a steady average selling price per unit.
North American Gaming operations premium installed base extended its growth streak to a 24th consecutive quarter, adding 652 units sequentially (over 2,550 on a year-over-year basis), with Grover further expanding its footprint by 277 units on a sequential basis. From a Gaming machine sales perspective, this quarter, 8,796 new units were shipped globally, including over 4,900 new units shipped in North America.
iGaming delivered another quarter of double-digit growth, with revenue and AEBITDA increasing 14 per cent and 18 per cent, respectively, on continuing momentum in North America. This was underpinned by first-party content proliferation and partner network growth, despite UK tax increases during the period. SciPlay continues to grow its direct-to-consumer (DTC) revenue while average revenue payer metrics improved on a sequential basis amid a mature social casino market.
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. iGaming once again delivered double-digit growth in both revenue and AEBITDA, reflecting the resilience of our North American momentum even as we navigate headwinds from increased U.K. gaming duties, while SciPlay continued to grow its direct-to-consumer revenue. As we look toward the second half of the year, we remain focused on disciplined execution, continued investment in product innovation and talent, and progressing towards both our 2026 and 2028 financial targets.”
Oliver Chow, Chief Financial Officer of Light & Wonder, said: “The second quarter demonstrated continued scaling across the business, with margin expansion across all three businesses translating into strong underlying cash generation. As signalled last quarter, we accelerated our pace of share repurchases, returning $134m to shareholders in the second quarter alone, bringing first-half repurchases to $156m and making tangible progress on our commitment to return meaningful capital to shareholders, while maintaining balance sheet flexibility. 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.”
