Light & Wonder Posts Q1 Growth with Strong Gaming Momentum

Light & Wonder Inc. (NASDAQ and ASX: LNW) has announced its financial results for the first quarter of 2025, marking a sixteenth consecutive quarter of year-over-year revenue growth. The Las Vegas-based gaming and technology company reported solid performance across its business lines, accompanied by improved margins and substantial shareholder returns.

Growth in Core Segments Bolsters Revenue

The company reported total revenue of $774 million for the three-month period ending March 31, 2025, a 2% rise from $756 million in the prior-year quarter. Gaming led the way, contributing $495 million—up 4% year-over-year—fueled by steady expansion in table products, gaming systems, and gaming operations. This growth included a 9% increase in table products and 5% growth in both gaming operations and systems.

Light & Wonder’s North American installed base rose for the nineteenth quarter in a row, with unit shipments in the region surging 30% year-over-year. The company also maintained its top ship share position in the Australian market.

Gaming segment AEBITDA rose to $254 million, up 9% from the previous year, with segment margins improving by 200 basis points. CEO Matt Wilson credited the results to the firm’s strong product pipeline, robust content offerings, and omni-channel approach. “We continue to see our omni-channel strategy prosper with enhanced game development and performance fueling our existing businesses,” Wilson said.

iGaming and SciPlay Show Mixed Performance

Light & Wonder’s iGaming division recorded $77 million in revenue, reflecting a 4% increase year-over-year. The segment’s AEBITDA jumped 8%, ed by expansion in the U.S. and new partnerships. Margin gains also contributed to the division’s improved performance.

Meanwhile, SciPlay, the company’s digital gaming unit, posted $202 million in revenue, marking a slight decline of 2% compared to the same quarter last year. Despite the dip, driven by a reduction in average monthly payers—particularly at JACKPOT PARTY® Casino—SciPlay still outperformed the broader social casino market. AEBITDA for the segment grew by 3%, aided by increased average revenue per daily active , which climbed 5% to $1.06.

Strong Cash Generation and Shareholder Returns

Light & Wonder generated $185 million in net cash from operating activities during the quarter, up from $171 million a year earlier. Free cash flow also rose to $111 million, compared to $93 million in the prior year. The increase was largely driven by higher earnings and reduced capital expenditures, partially offset by less favorable working capital movements.

In line with its capital allocation priorities, the company returned $166 million to shareholders through the repurchase of approximately 1.9 million shares. CFO Oliver Chow emphasized the company’s focus on efficiency and value delivery, stating, “Our solid performance continues to be underpinned by a focus on streamlining and optimizing our business to enhance margins.”

Grover Gaming Acquisition and Tariff Mitigation Efforts

Light & Wonder remains on schedule to complete its $850 million North Dakota, Ohio, Virginia, Kentucky, and New Hampshire—is expected to close in the second quarter of the year. Financing for the transaction will come from a newly secured $800 million Term Loan A facility, priced similarly to the company’s existing revolving credit line.

The company is also navigating new trade tariffs introduced in April that affect certain imported raw materials and components used in its gaming products. In response, Light & Wonder has begun implementing a range of countermeasures, such as diversifying suppliers and negotiating pricing adjustments. While the tariffs are expected to exert some cost pressure, management remains confident that these actions, combined with ongoing efficiency gains, will help the company stay on track to meet its 2025 AEBITDA target of $1.4 billion (excluding the Grover acquisition).

Key Financial Metrics and Strategic Update

Net income for the quarter held steady at $82 million, while diluted earnings per share rose to $0.94 from $0.88. Consolidated AEBITDA climbed 11% to $311 million, driven by revenue growth and improved margins across business segments. Adjusted NPATA also increased by 11% to $117 million, or $1.35 per diluted share, up from $1.12.

Light & Wonder reported a debt balance of $3.9 billion and a net debt leverage ratio of 3.0x, remaining within its target range of 2.5x to 3.5x. Liquidity stood at $1.08 billion as of March 31, 2025.

Additionally, the company confirmed it found no issues with other hold-and-spin games following the previously disclosed litigation involving Dragon Train and Jewel of the Dragon. Independent experts reviewed all such games released since 2015 and identified no evidence of problematic math values from Aristocrat.

Light & Wonder is slated to host an investor day on May 20 in New York City, where executives will provide further updates on strategic initiatives and long-term growth plans.

Source:

Light & Wonder, Inc. Reports First Quarter 2025 Results, explore.investors.lnw.com, May 7, 2025.