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Light & Wonder is prioritizing debt reduction after cutting quarterly debt by AU$153 million ($107.7 million), CDC Gaming Reports reported.
The company also posted higher third-quarter profit despite lower revenue, according to its earnings release carried by Business Wire.
Debt Reduction Takes Priority
“For now, we are prioritizing debt reduction,” CFO Oliver Chow said, according to CDC Gaming Reports. Chow said the company aims to reduce leverage to three times cash flow by June 2027, the outlet reported.
CDC Gaming Reports said Light & Wonder made no share repurchases during the third quarter. The outlet also reported that Fitch Ratings upgraded the company’s outlook to Positive.
Chow said investment in research and development would remain protected, according to CDC Gaming Reports. “We will never compromise the foundational R&D structure of the business,” he said.
Profit and Cash Flow Rise Despite Lower Revenue
For the quarter ended September 30, 2026, consolidated revenue fell 2% year-over-year to $824 million, according to Business Wire. Net income rose 17% to $133 million, the company’s release on Business Wire said.
Business Wire reported adjusted EBITDA of $383 million, up 2%, and adjusted free cash flow of $181 million, up 21%.
Gaming operations revenue increased 3% to $248 million, according to Business Wire. Gaming machine sales revenue rose 5% to $199 million, while gaming systems revenue declined 24% to $55 million, the release said.
CDC Gaming Reports said executives described the systems business as being in a rebuild phase. Recurring revenue reached 67% of the company’s total, compared with 64% in 2024, according to the outlet.
SciPlay Weakens as Traditional iGaming Grows
SciPlay revenue fell 12%, CDC Gaming Reports reported. Its third-quarter user count dropped 17%, while average spending per user increased 5%, according to the outlet.
“The social casino market remains under pressure,” CEO Matt Wilson said, according to CDC Gaming Reports. Wilson attributed the weakness to sweepstakes casinos, the outlet reported.
CDC Gaming Reports said Light & Wonder announced Matt LaBatt’s arrival as its new social-casino COO. Wilson said the transition allows SciPlay to review its strategy and shift spending toward higher-return areas, according to the outlet.
Traditional iGaming revenue increased by double digits, CDC Gaming Reports reported. Wilson also said tribal and regional gaming remained strong, according to the outlet.
Casino operators were replacing larger-than-usual portions of their slot floors, Wilson told CDC Gaming Reports. He said operators were increasing floor space dedicated to premium games from 9% to 15%.
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Sources: As reported by CDC Gaming Reports and Business Wire.
