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Light & Wonder Q3 revenue falls 2%

By Reuters News


Overview

  • Global games company's Q3 revenue fell 2% yr/yr

  • Net income for Q3 rose 17% yr/yr, driven by margin strength and operational efficiencies

  • Adjusted EPS for Q3 rose 17% yr/yr as margins improved and share count declined


Outlook

  • Light & Wonder expects FY 2026 Consolidated AEBITDA growth toward the lower end of mid-to-high single digits

  • Company anticipates Adjusted NPATA to grow faster than Consolidated AEBITDA, and EPSa to grow faster than Adjusted NPATA in FY 2026


Result Drivers

  • RECURRING REVENUE GROWTH - Co said recurring revenue from Gaming operations and iGaming was a primary growth driver, supported by installed base expansion and content strength

  • INSTALLED BASE EXPANSION - North American Gaming operations premium installed base grew for the 25th consecutive quarter, adding 2,657 units yr/yr, while Grover units also increased

  • OPERATIONAL EFFICIENCIES - Margin improvement and lower interest and stock-based compensation expenses contributed to higher net income and adjusted NPATA


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Adjusted EBITDA

$383 mln

Q3 Capex

$90 mln


Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

  • Wall Street's median 12-month price target for Light & Wonder, Inc. is $117.50, about 33.3% above its November 3 closing price of $88.15

  • The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 11 three months ago


Reuters Recommended Reads

  • Nov 4 - Flutter pauses share buybacks to focus on cutting costs and debt

  • Nov 4 - Betting tech firm Kambi Q3 revenue rises on business model growth, cost control

  • Nov 3 - Lottomatica's core profit rises 3%, aided by online and sports betting growth


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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