Light & Wonder, Inc. Reports Fourth Quarter and Full Year 2025 Results

Achieved Full Year Net Income of $276 Million and Record Consolidated AEBITDA⁽¹⁾ of $1.44 Billion and Adjusted NPATA⁽¹⁾ of $567 Million

Continued Strong Performance in North America with over 700 Gaming Operations Units⁽²⁾ Added Sequentially and over 2,680 Units in North America Year-over-Year, with Grover Adding 345 Units Sequentially

Record Quarterly North American Gaming Machine Unit Shipments of 7,000 Units

Margin Enhancement Initiatives Drove Profitability Expansion across All Businesses

Grew Cash Flows from Operating Activities by 26% Year-over Year to $794 Million and Free Cash Flow by 42% Year-over-Year to $452 Million during 2025

Returned $877 Million of Capital to Shareholders through Share Repurchases during 2025, Including $500 Million in Q4

Successfully Transitioned to Sole ASX Listing

LAS VEGAS--(BUSINESS WIRE)--Light & Wonder, Inc. (ASX: LNW) (“Light & Wonder,” “L&W,” “we” or the “Company”) today reported results for the fourth quarter and fiscal year ended December 31, 2025.

Light & Wonder delivered a strong finish to 2025, achieving solid financial results underpinned by disciplined execution and robust game performance, while completing its three-year financial targets and value creation cycle. Fourth quarter consolidated revenue increased 12% to $891 million, while we incurred a net loss of $15 million or net loss per share⁽³⁾ of $0.19, a decrease of 114% or 116% on a per-share basis, compared to the prior year period. Net loss was impacted by approximately $128 million legal settlement charge associated with a strategic resolution of the Aristocrat matter, $25 million contingent acquisition consideration fair value adjustment, and $18 million in Australian Securities Exchange (“ASX”) transition costs.

During the fourth quarter, all three businesses delivered record AEBITDA, with Consolidated AEBITDA⁽¹⁾ up 29% to $405 million, and Adjusted NPATA⁽¹⁾ up 27% to $161 million, resulting in 38% growth on a per share basis⁽¹⁾⁽³⁾ to $1.96 as compared to the prior year.

Gaming revenue increased 17% year-over-year to $602 million in the fourth quarter, driven primarily by record Gaming machine sales of $234 million, up 20%, along with Gaming operations revenue, which increased 35% to $237 million. We shipped a record 7,000 North American units this quarter, while North American Gaming operations premium installed base grew for 22 consecutive quarters adding over 700 units during the fourth quarter.

Grover charitable gaming (“Grover”) expanded its footprint by 345 units on a sequential basis and successfully entered the Indiana market.

iGaming once again delivered quarterly record revenue and AEBITDA on continuing U.S. momentum underpinned by first-party content proliferation and partner network growth, while SciPlay continued to grow its direct-to-consumer (“DTC”) revenue.

For the full year, we delivered $3.3 billion in consolidated revenue and $276 million of net income, an increase of 4% and decrease of 18%, respectively, compared to the prior year period, and $3.26 of net income per share⁽³⁾. The net income and net income per share⁽³⁾ were primarily impacted by $128 million legal settlement charge associated with a strategic resolution of the Aristocrat matter, a $25 million contingent acquisition consideration fair value adjustment, and $37 million related to ASX transition and Grover acquisition related costs.

Consolidated AEBITDA⁽¹⁾ grew 16% to $1.44 billion, and Adjusted NPATA⁽¹⁾ increased 18% to $567 million, or to $6.69 on a per share basis⁽¹⁾⁽²⁾, an increase of 27%. These results are consistent with the Company’s previously provided 2025 financial outlook, which called for $1.43 billion to $1.47 billion of Consolidated AEBITDA⁽¹⁾ and $550 million to $575 million of Adjusted NPATA⁽¹⁾. The Company remains committed to its ambitious FY 2028 financial targets⁽³⁾.

During FY 2025, we returned $877 million to shareholders through share or CHESS Depositary Interests (“CDIs”) repurchases at an average price of $86.80. With approximately 78% of the authorized share repurchase program now complete, we have remaining capacity of $336 million.

Since initiation of the prior share repurchase program in March of 2022 and through December 31, 2025, the Company has returned $1.9 billion to shareholders by repurchasing 24.4 million shares or CDIs, representing 25% of total outstanding shares prior to the commencement of the programs⁽⁴⁾.

The Company further optimized its capital markets profile by transitioning to a sole primary listing on the ASX and extended certain debt maturities to 2033, while lowering applicable interest rates.

The completion of the three‑year financial targets cycle reflects disciplined execution, earnings strength, and cash flow delivery, positioning Light & Wonder to enter its next chapter with growing recurring revenue⁽⁵⁾, related improving cash flow momentum and balance‑sheet capacity to support continued value creation.

Light & Wonder is pleased to resolve the recent litigation dispute with a major competitor, providing finality and certainty for all stakeholders. This settlement protects the interests of our customers, employees, and shareholders, and allows us to continue our focus on delivering the market-leading content our customers expect, without distraction or disruption.

Matt Wilson, President and Chief Executive Officer of Light & Wonder, said, “We closed out 2025 with another strong quarter, delivering double-digit year-over-year growth in both revenue and cash flows. We also achieved several important milestones, including the successful acquisition and integration of Grover, accelerating our expansion in the Charitable Gaming market, and our transition to a sole primary listing on the ASX. We also continued to invest in our studios, which is paying dividends as our franchises drive strong game performance across the portfolio. Gaming momentum remained robust, with more than 700 North American Gaming operations units⁽⁶⁾ added sequentially and over 12,300 units shipped globally during the quarter, while iGaming delivered another quarterly revenue and AEBITDA records. Looking ahead, we will remain focused on investing in product innovation and talent to strengthen our recurring revenue model⁽⁵⁾, build on this momentum, and enhance our global competitive position as we progress toward our 2028 financial targets⁽³⁾.”

Oliver Chow, Chief Financial Officer of Light & Wonder, said, “The sustainable margin expansion and cash flow growth achieved in 2025 reflect our disciplined execution and focus on initiatives designed to navigate dynamic external conditions beyond our control. Importantly, we maintained our net debt leverage ratio within our targeted range⁽³⁾ following the Grover acquisition and ASX listing transition, and we expect to continue deleveraging throughout 2026, supported by the strength of our business profile, absent any high return capital allocation opportunities. Our priorities remain unchanged: disciplined cost management, sustainable margin growth, and continued improvement in both the quality and quantum of cash flows over time. This is underpinned by prudent capital allocation, including the repurchase of $877 million under our authorized $1.5 billion share repurchase program in 2025. We remain committed to reinvesting in the business to drive sustainable long-term growth, leveraging our broad portfolio of games and offerings, while remaining agile and well positioned to further enhance shareholder value.”

LEVERAGE, CAPITAL ALLOCATION AND BUSINESS UPDATE

• Returned $500 million of capital to shareholders through the repurchase of approximately 5.8 million shares of LNW common stock or CDIs during the quarter. The Company repurchased 10.1 million shares or CDIs and utilized $877 million of its authorized $1.5 billion share repurchase program in FY 2025, and since initiation of the prior share repurchase program in March of 2022, the Company has returned $1.9 billion to shareholders through the repurchase of 24.4 million shares, representing 25% of total outstanding shares prior to the commencement of the programs⁽¹⁾. The average purchase price since initiation of the programs through December 31, 2025 of $78.57 per share represents a 21% discount to the closing price of $99.09 (AU$140.24) on the ASX as of February 18, 2026.
• Principal face value of debt outstanding⁽²⁾ was $5.2 billion, translating to a net debt leverage ratio⁽³⁾ of 3.5x as of December 31, 2025 or combined net debt leverage ratio⁽³⁾ of 3.4x, which remained within our targeted net debt leverage ratio⁽⁴⁾ range of 2.5x to 3.5x, despite the accelerated pace of our share repurchases as we continued to capitalize on opportunities consistent with our capital allocation strategy. We retain a flexible capital structure that allows us to deploy balance sheet capacity opportunistically when appropriate. Our business profile enables us to de-lever through the course of 2026, courtesy of our strong operating business model.
• Sole primary listing on the ASX was completed on November 14, 2025, following our successful voluntary delisting from the Nasdaq.
• Resolved Dragon Train litigation with Aristocrat in January 2026. We agreed to pay approximately $128 million to settle the matter⁽⁵⁾. This settlement protects the interests of our customers, employees, and shareholders, and allows us to continue our focus on developing and delivering the market-leading content our customers expect, without distraction or disruption. We continue to leverage our diversified portfolio of successful game franchises to execute on our strategy and financial targets, which remain unchanged.
• Repriced our Term Loan B in January 2026, reducing applicable interest rates by 25 basis points, resulting in a decrease in annualized interest costs of approximately $5 million.

SUMMARY RESULTS

Fourth Quarter 2025 Financial Highlights

• Fourth quarter consolidated revenue was $891 million compared to $797 million, a 12% increase versus the prior year period. Growth was primarily driven by a 17% increase in Gaming revenue as Gaming operations and Gaming machine sales increased 35% and 20% to $237 million and $234 million, respectively, both reaching quarterly records. Grover contributed $41 million to consolidated revenue during the fourth quarter of 2025. iGaming once again reached quarterly record revenue underpinned by first-party content proliferation and increased 21% compared to the prior year period. SciPlay revenue decreased by 4%, but continued to exhibit strong player monetization and expanded its DTC revenue to 25% of total SciPlay revenue.
• Net loss of $15 million represented a 114% decrease compared to net income of $107 million in the prior year, primarily impacted by $177 million in restructuring and other costs, including $128 million in legal settlement charges, $25 million in contingent acquisition consideration fair value adjustments, and $18 million in costs related to the ASX transition. Consolidated revenue growth and record AEBITDA margins (“margins” or “margin”) across all businesses contributed positively, reflecting continued operational efficiencies and disciplined cost management. Net loss per share⁽¹⁾ was $0.19, compared to net income per share⁽¹⁾ of $1.20 in the prior year period, a 116% decrease year-over-year.
• Consolidated AEBITDA⁽²⁾ was $405 million, compared to $315 million in the prior year period, a 29% increase primarily driven by revenue growth from Gaming and iGaming coupled with strong margin expansion across all businesses and contributions from Grover.
• Adjusted NPATA⁽²⁾ increased 27% to $161 million, as compared to $127 million in the prior year period, primarily benefiting from revenue growth and expanded margins across all businesses, partially offset by higher depreciation and amortization, interest expense and global effective tax rate. Adjusted NPATA per share (EPSa)⁽¹⁾⁽²⁾ increased 38% to $1.96, compared to $1.42 in the prior year period.
• Net cash provided by operating activities was $319 million, compared to $202 million in the prior year period, reflective of strong earnings and lower cash income tax payments.
• Free cash flow⁽²⁾ was $176 million compared to $74 million, a 138% increase compared to the prior year period. The increase was primarily driven by earnings strength, lower cash income tax payments and lower interest payments due to third quarter financing transactions.

Full Year 2025 Financial Highlights

• Consolidated revenue was $3.3 billion, a 4% increase compared to the prior year. Gaming revenue increased 6%, primarily due to Gaming operations revenue growth of $170 million or 25%, including $68 million or a 10% increase supported by our diversified portfolio of high-performing game franchises and a contribution of $102 million from Grover. We observed strong performance with the addition of new units in our North American premium install base, which once again reached record levels. Consolidated revenue also benefited from growth in iGaming of 13%.
• Net income was $276 million compared to $336 million in the prior year, a decrease of 18%. The decrease was primarily driven by $219 million in restructuring and other costs, including a $128 million Aristocrat legal matter settlement charge, $25 million in contingent acquisition consideration fair value adjustments, and $37 million related to ASX transition and Grover acquisition related costs. Net income per share⁽¹⁾ decreased by 11% to $3.26, compared to $3.68 in the prior year period.
• Consolidated AEBITDA⁽²⁾ was $1.44 billion compared to $1.24 billion in the prior year, a $199 million or 16% increase driven by earnings growth and margin strength across all of our businesses, a contribution from Grover since its acquisition in May 2025 and lower corporate costs.
• Adjusted NPATA⁽²⁾ increased 18% to $567 million as compared to $480 million in the prior year period, primarily due to margin strength across all our businesses, partially offset by higher depreciation of Gaming operations units and higher interest expense. Adjusted NPATA per share (EPSa)⁽¹⁾⁽²⁾ increased 27% to $6.69, compared to $5.27 in the prior year period.
• Net cash provided by operating activities was $794 million compared to $632 million in the prior year. The current year reflected strong earnings and lower cash income tax payments, partially offset by $73 million related to certain legal settlement payments and $18 million in professional fees, services, and other costs related to the Grover acquisition and completed ASX transition.
• Free cash flow⁽²⁾ was $452 million compared to $318 million, a 42% increase compared to the prior year. The current year benefited from the same factors impacting net cash provided by operating activities as described above, partially offset by increased capital expenditures made to support Gaming operations and Grover installed base unit growth.

Fourth Quarter 2025 Business Segments Key Highlights

• Gaming revenue was $602 million, up 17% compared to the prior year period on record North American Gaming machine sales of 7,000 units, which led to a 20% revenue increase of $39 million year-over-year. Gaming operations also grew $62 million, or 35%, benefiting from an increase in our North American installed base of 2,688 units⁽¹⁾, up 7% year-over-year to 36,692 units⁽¹⁾. Our North American premium installed base (excluding Grover contributions) grew for the 22^nd consecutive quarter, representing 53% of our total North American installed base mix. Our diversified portfolio of successful game franchises and the continued proliferation of our COSMIC^®, LIGHTWAVE^® and HORIZON^® cabinets continued to drive growth and strong performance.
  Grover contributed $41 million to Gaming operations revenue, successfully expanded into Indiana as of December 30, 2025 and had over 11,600 devices included as a part of the installed base as of December 31, 2025, which is an increase of 345 units on a sequential basis, or over 1,000 units since the announcement of the acquisition in February of 2025.
  Gaming AEBITDA was $323 million, up 26% compared to the prior year period, primarily due to revenue growth and margin expansion of 400 basis points, inclusive of Grover contributions.
• SciPlay revenue was $195 million, a 4% decrease compared to the prior year period due to a decline in average monthly payers primarily attributable to JACKPOT PARTY^® Casino, which was partially offset by an increase in average monthly revenue per paying user. The social casino business continued to deliver quality player monetization, leveraging game content and dynamic Live Ops through the SciPlay Engine. SciPlay increased its ARPDAU⁽²⁾ 4% to $1.10 year-over-year and grew AMRPPU⁽³⁾ by 14% to $133.24. AEBITDA increased 8% to $80 million, reflecting margin expansion of 500 basis points primarily driven by our growing DTC platform, which generated $48 million, or 25% of the total SciPlay revenue for the quarter, along with lower operating expenses.
• iGaming revenue increased 21% to $94 million, and AEBITDA increased 44% to $36 million for the current year period, both reaching record levels. Revenue growth for the period reflected continued momentum in North America underpinned by first-party content proliferation and the expansion of our partner network. Wagers processed through our iGaming platform reached a quarterly record of over $29 billion.
• Capital expenditures were $93 million in the fourth quarter of 2025, as compared to $70 million in the prior year period, primarily due to investments made to support Gaming operations growth.

Earnings Conference Call

As previously announced, Light & Wonder executive leadership will host a conference call on Tuesday, February 24, 2026 at 5:00 p.m. EST (Wednesday, February 25, 2026 at 9:00 a.m. AEDT) to review the Company’s fourth quarter and full year 2025 results. To access the call, live via a listen-only webcast and presentation, please visit explore.investors.lnw.com and click on the webcast link under the Events and Presentations section.

COMPANY CONTACTS

Investor Relations
Rohan Gallagher
EVP, Global Chief Corporate Affairs Officer
ir@lnw.com

Media Relations
Andy Fouché
VP, Corporate Affairs and Communications
media@lnw.com