Overview

• Global games supplier's Q1 revenue rose 2% yr/yr, missing analyst expectations

• Q1 adjusted EBITDA up 5% yr/yr, but missed analyst expectations

• Net income fell 37% yr/yr, mainly due to $50 mln in legal reserve contingencies

Outlook

• Company expects FY 2026 consolidated AEBITDA growth in the mid- to high-single digits

• Light & Wonder sees FY 2026 earnings momentum weighted toward the second half

• Company expects to reduce net debt leverage ratio below 3.0x in first half of 2027

Result Drivers

• GAMING OPERATIONS & GROVER - Growth in Gaming operations revenue, including Grover, and an expanded North American installed base drove segment gains

• IGAMING MOMENTUM - iGaming revenue rose 18% yr/yr, driven by first-party content proliferation and partner network expansion, especially in North America

• LEGAL CONTINGENCIES - Net income fell mainly due to a $50 mln charge for legal reserve contingencies related to legacy legal matters

Company press release: ID:nBw2PhlYka

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 16 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the casinos & gaming peer group is "buy"

• Wall Street's median 12-month price target for Light & Wonder Inc is A$191.50, about 71% above its May 6 closing price of A$112.00

• The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 17 three months ago

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