Light & Wonder Lifts Net Income 26% as Buybacks Hit $2.1 Billion

Light & Wonder reported its second-quarter 2026 results on August 4, 2026, posting a 26% increase in net income to $120 million on revenue of $828 million, and used the release to confirm a shift in capital allocation: after spending $134 million on share repurchases in the quarter, the company will pare back buybacks and direct cash toward cutting its debt load.

The quarter ended June 30, 2026, delivered consolidated adjusted EBITDA of $383 million, up 9%, with margin expansion across all three of the company’s businesses. Growth was concentrated in recurring-revenue lines — Gaming operations revenue rose 18% to $247 million and iGaming revenue climbed 14% — while table products were up 13% to $62 million and gaming machine sales fell 4% on fewer new openings and expansions. Net cash from operating activities rose 127% from the prior-year period to $241 million, and adjusted free cash flow increased 50% to $156 million.

On the casino floor, the North American premium installed base grew for a 24th consecutive quarter, adding 652 units sequentially and more than 2,550 year over year. The Grover charitable-gaming business added 277 units in the quarter, and the company shipped 8,796 new gaming machines globally, more than 4,900 of them in North America.

“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,” President and Chief Executive Officer Matt Wilson said in the release.

iGaming’s double-digit growth came despite what the company described as headwinds from increased UK gaming duties during the period. SciPlay (SCPL ), the social-casino arm, grew direct-to-consumer revenue against what the release calls a mature social casino market.

Light & Wonder trades buybacks for debt reduction

The balance sheet is where the quarter’s strategy turns. Light & Wonder carried $5.2 billion in principal debt as of June 30, 2026, translating to a net debt leverage ratio of 3.4x, inside its targeted range. The company has now returned $2.1 billion to shareholders since launching buybacks in March 2022, retiring 26.2 million shares, about 27% of the shares outstanding when the programs began. The current repurchase authorization is roughly 88% used, leaving approximately $180 million of capacity.

Chief Financial Officer Oliver Chow said the pace of repurchases, $22 million in the first quarter, accelerated to $134 million in the second, will now reverse. “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,” Chow said, adding that the company continues to invest deliberately in AI and infrastructure. The company reiterated its commitment to bring leverage below 3.0x during the first half of 2027.

The pivot was telegraphed. In its May 6, 2026 first-quarter release, Light & Wonder said it would accelerate share repurchases in the second quarter while holding the same below-3.0x target for the first half of 2027. The second quarter delivered the acceleration and, with it, the inflection point.

Light & Wonder’s second quarter by the numbers

• Consolidated revenue: $828 million, up 2% year over year
• Net income: $120 million, or $1.53 per share, up 26%
• Consolidated adjusted EBITDA: $383 million, up 9%
• Operating cash flow: $241 million, up 127%; adjusted free cash flow: $156 million, up 50%
• Share repurchases: $134 million in the quarter (approximately 1.6 million CDIs); $2.1 billion returned since March 2022
• Principal debt outstanding: $5.2 billion; net debt leverage of 3.4x, with a target below 3.0x in the first half of 2027

What the second half of 2026 holds for Light & Wonder

The company maintained its full-year 2026 outlook, projecting consolidated adjusted EBITDA growth in the mid- to high-single digits with earnings momentum following a similar shape to 2025, and management continues to point to its 2028 financial targets. Elsewhere on the gambling earnings calendar, Super Group raised its 2026 outlook after a record quarter on August 4, 2026.

The legal overhang that hit first-quarter results has also receded. First-quarter net income absorbed roughly $50 million in legal-reserve contingencies tied to certain legacy legal matters, per the May 6, 2026 first-quarter release; the second-quarter release discloses no comparable charge.

Investors get the detail next: Light & Wonder scheduled its earnings conference call for 7:00 p.m. U.S. Eastern on August 4, 2026, after the U.S. market close and before trading opens on the Australian Securities Exchange on August 5, 2026.