The EPS miss may weigh on the stock near term, but strong cash generation and maintained guidance could limit downside. Watch for Q3 trends in SciPlay and iGaming, and any updates on debt leverage progress toward the 3.0x target.
Price Chart
Executive Summary
Light & Wonder reported Q2 2026 GAAP EPS of $1.53, missing the $1.74 consensus by 12% due to higher interest and depreciation from the Grover acquisition, while revenue of $828M was slightly below the $840.2M estimate. Underlying operational performance was solid: consolidated AEBITDA grew 9% to $383M, net income rose 26% to $120M, and operating cash flow surged 127% to $241M. The company reiterated its full-year outlook for mid- to high-single-digit AEBITDA growth, providing some support.
Key Financial Metrics
Key Facts
- Q2 2026 GAAP diluted EPS of $1.53 vs consensus of $1.74 (12% miss)
- Revenue of $828M vs consensus of $840.2M (1.5% miss, in line)
- Consolidated AEBITDA increased 9% YoY to $383M
- Net income rose 26% to $120M; operating cash flow up 127% to $241M
- Adjusted free cash flow was $156M, up 50% YoY
- Company maintained full-year 2026 outlook for mid- to high-single-digit AEBITDA growth
- Gaming revenue up 5%, iGaming up 14%, SciPlay down 9%
- Returned $134M in share repurchases during Q2; net debt leverage ratio at 3.4x
Financial Impact
GAAP EPS miss of 12% on consensus, but AEBITDA beat and cash flow growth partially offset; revenue slightly below consensus.
Risk Factors
- SciPlay revenue declining 9% YoY amid mature social casino market
- Net debt leverage at 3.4x; deleveraging pace below 3.0x by H1 2027 may be delayed
- U.K. iGaming gambling duty increases effective April 2026 create headwinds for iGaming segment
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0000750004-26-000032 |
| Document: lnw-20260804.htm | 0000750004-26-000032 |
| Document: 0000750004-26-000032-index-headers.html | 0000750004-26-000032 |
| Document: 0000750004-26-000032-index.html | 0000750004-26-000032 |
| Document: 0000750004-26-000032.txt | 0000750004-26-000032 |
| 8-K Data (Synthetic) | 0000750004-26-000032 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Aug 4, 2026 11w ago | 8-K | $84.36 $91.20 | ▲ +8.11% | ▲ +8.71% | $90.15 (+6.86%) |
Jun 11, 2026 19w ago | Institutional Cluster | $87.49 $74.17 | ▼ −15.22% | ▼ −17.82% | $90.15 (+3.04%) |
Jun 10, 2026 19w ago | 8-K | $87.49 $74.17 | ▼ −15.22% | ▼ −17.82% | $90.15 (+3.04%) |
Jun 1, 2026 21w ago | DEFA14A | $83.43 $75.09 | ▼ −10.00% | ▼ −8.43% | $90.15 (+8.05%) |
US Market Status
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