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Light & Wonder reported second-quarter 2026 consolidated adjusted EBITDA of $383 million, up 9% year on year, and net income of $120 million, up 26%, while warning that higher UK gambling duties will slow iGaming growth over the rest of the year.
Revenue for the three months to 30 June came in at $828 million against $809 million a year earlier, a rise of 2%. The gap between that figure and the earnings growth is the story of the quarter: most of the improvement came from margin and mix rather than from selling more. Adjusted net profit after tax reached $156 million, with higher interest and depreciation charges offsetting part of the EBITDA gain.
Gaming operations do the heavy lifting
Gaming, still the largest of the three segments, generated $554 million in revenue, up 5%. Gaming operations revenue rose 18% to $247 million and table products revenue rose 13% to $62 million. Gaming machine sales moved the other way, falling 4%, which the supplier put down to lower unit shipments on fewer new openings and expansions, plus weaker adjacencies.
The North American premium installed base grew for a 24th consecutive quarter. Grover Gaming, the charitable gaming business, continued to expand across existing and new markets and contributed to the gaming operations line.
iGaming grows 14% into a tax headwind
iGaming revenue increased 14% to $92 million, driven by North American momentum, first-party content proliferation and an expanded partner network. That growth landed in a quarter in which the UK’s Remote Gaming Duty doubled from 21% to 40% on 1 April. A separate 25% remote betting duty is scheduled to take effect in April 2027.
President and CEO Matthew Wilson told investors the segment should keep growing but at a slower rate in the second half, citing the higher duty and tougher year-on-year comparatives, partially offset by demand for proprietary content.
“iGaming once again delivered double-digit growth in both revenue and Adjusted EBITDA, reflecting the resilience of our North American momentum even as we navigate headwinds from increased UK gaming duties, while SciPlay continued to grow its direct-to-consumer revenue.”
The company has been staffing up around that exposure, having hired a London-based iGaming communications director earlier this year as it pushed further into regulated European markets.
SciPlay slips as social casino softens
SciPlay, the group’s social casino and mobile arm, saw revenue fall 9% to $182 million. Light & Wonder attributed the decline to softer conditions across the free-to-play social casino market and a drop in average monthly paying users at Jackpot Party Casino, partially offset by higher spend per paying user.
The mix shift shows up clearly at group level. Services revenue rose 8% to $601 million while product revenue fell 7% to $227 million, pushing a larger share of the business toward recurring streams.
Flat costs lift the profit line
Operating expenses were level year on year. Combined with the revenue increase, that produced operating profit of $223 million, up 10%. Pre-tax profit rose 21% to $150 million, and after $30 million in income tax, net income landed at $120 million.
“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.”
The half-year picture is flatter than the quarter
Taken across the first six months, the numbers are less flattering. First-half revenue reached $1.62 billion, up 2%, but higher operating costs pushed operating profit down 5% to $352 million and pre-tax profit down 7% to $211 million. Net profit for the half was $172 million, 3% lower than the same period last year. Consolidated adjusted EBITDA for the half rose 7% to $710 million.
The second quarter, in other words, repaired a weaker first. Light & Wonder reiterated full-year guidance of mid- to high-single-digit consolidated adjusted EBITDA growth, having posted a record $1.44 billion in consolidated adjusted EBITDA for 2025.
The 2028 target still sets the pace
That guidance keeps the company on a trajectory toward the $2 billion annual adjusted EBITDA target it set for 2028, though the arithmetic leaves little slack. Hitting it from a 2025 base of $1.44 billion requires compounding growth well above single digits in the years after 2026, which puts the weight on iGaming and gaming operations at precisely the point where UK duty is biting and North American comparatives are getting harder.
The second half will show whether the margin expansion Wilson credits for this quarter can hold once the duty increase is fully annualised.
Source: Light & Wonder
