As Light & Wonder executives reiterated during their second-quarter earnings call held late on Tuesday, de-leveraging the company was their prime new objective. CFO Oliver Chow, in particular, laid out an intended path to get Light & Wonder’s debt burden down to three times cash flow by the middle of 2027.
Chow pointed to charts showing a reduction of Light & Wonder debt from 10.5 times cash flow in 2020 to 3.4 times at present. The goal, he said, was to get the company’s debt level to investment grade. Toward that end, stock buybacks would become a lower corporate priority over the balance of 2026.
“The story of the second quarter is one we’ve told consistently,” said CEO Matt Wilson at the outset of the call. “We delivered another quarter of strong financial performance. Our focus is now to rapidly de-lever our balance sheet.”
Wilson also pointed to an increase in recurring revenue as a percentage of Light & Wonder’s total, now up to 71 percent. This would, Wilson said, heighten the predictability of the company’s earnings.
Perhaps the one dim spot in the overall picture was the company’s SciPlay division, down nine percent. Also, gaming-systems sales were down 16 percent on a difficult comparison to 2025’s second quarter. Still, “Our underlying gaming business remains fundamentally strong,” Wilson reported.
North America saw not only a five percent increase in Light & Wonder’s installed base, it also experienced the 24th consecutive quarter of sales growth. Revenue per North American unit also swelled six percent.
Year over year, subsidiary Grover Gaming added 1,549 machines, bringing its United States tally to 12,550. Charitable game Tank Blast, in particular, was reported to have had the highest revenue in its first 14 days of any comparable game in Indiana history. Minnesota and Maryland were also priorities for expansion-related investment, as Wilson stressed that Light & Wonder is focused on long-term growth.
Despite lower revenues (US$128 million), SciPlay saw four percent higher revenue per user and a 51 percent explosion in its direct-to-consumer business. Wilson remained keen on the subsidiary, saying, “We’ve initiated a multi-stage process to get us back on track.”
The CEO also took comfort in the actions of U.S. states against sweepstakes-casino operators, seen as cutting into SciPlay trade. Reiterated Wilson, “SciPlay continues to be an integral part of the business.
“We held share sequentially in what was a tough market,” Wilson continued, “but we’re not happy with it.” He added that illegal sweepstakes gambling was driving up the cost of obtaining customers. Still, “We’re not chasing rainbows as it relates to our [long-term-value] curve.” Interjected Chow, “We’re not going to declare victory, but we are seeing green shoots” in the social-casino sector.
Although Light & Wonder’s igaming business delivered $92 million in revenue, Wilson cautioned of second-half moderation, driven in part by tax hikes in the United Kingdom. That would, he said, be offset by growth in South Africa and, to a lesser extent, Brazil and the Philippines. “We remain content in our igaming road map.”
Chow reaffirmed guidance of mid- to high-single-digit growth in cash flow, U.S. tariffs notwithstanding. He also expected the profile of business throughout the remainder of the year to be much as it was in 2025, with Light & Wonder leadership expecting a bump in game sales in the fourth quarter.
Wilson downplayed the significance of merger-and-acquisition activity among U.S. casino operators. “I don’t think it has any major implications for the supply side,” he said. Managements at operators were unlikely to change and new slot floors were coming on line. “Players demand the best and freshest products,” he said, “and that’s what drives the operators.”
Given that Light & Wonder had a major artificial-intelligence presentation in the offing, Wilson said he wanted to keep his powder dry on that topic. “We’re at the very early stages of AI adoption. We want to be targeted. We don’t want to be busy fools.”
