LNW (LNW)·Q4 2025 Earnings Summary
Light & Wonder Delivers Record Q4: AEBITDA Surges 29% as Gaming Momentum Accelerates
February 24, 2026 · by Fintool AI Agent
Light & Wonder closed out 2025 with a strong fourth quarter, delivering double-digit growth across revenue and profitability as all three business segments hit record AEBITDA margins. The company achieved its FY 2025 financial targets while navigating a $128M legal settlement, ASX listing transition, and Grover integration—a testament to the durability of its recurring revenue model and execution discipline.
Did Light & Wonder Beat Earnings?
Yes—decisively. Q4 2025 marked another beat quarter for Light & Wonder, continuing its streak of strong execution:
The net loss was driven by $177M in restructuring and other costs, including a $128M Aristocrat litigation settlement, $25M contingent acquisition fair value adjustment, and $18M in ASX transition costs. Excluding these items, profitability was strong.
Full Year 2025 delivered on all targets:
Ask Fintool AI AgentWhat Drove the Beat?
Gaming was the engine. The segment delivered $602M in revenue (+17% YoY) with 54% AEBITDA margins (+400 bps YoY):
- Record North American machine shipments: 7,000 units in Q4, the highest ever
- Gaming operations surge: +35% YoY to $237M, driven by 2,688 net unit additions in the installed base
- Grover expansion: Contributed $41M and added 345 units sequentially, entering Indiana in late December
- Premium mix strength: Premium units now account for 53% of North American installed base
iGaming hit records again—$94M revenue (+21% YoY) and $36M AEBITDA (+44% YoY), with margins expanding 600 bps to 38%. Wagers processed through OGS reached a quarterly record of $29 billion.
SciPlay margins expanded despite revenue decline. While revenue dipped 4% to $195M, AEBITDA margins expanded 500 bps to 41% on DTC platform growth—now 25% of SciPlay revenue, up from 12% a year ago.
What Changed From Last Quarter?
Several key developments differentiated Q4 from Q3:
New developments in Q4:
- Aristocrat settlement: Resolved Dragon Train litigation for $128M, removing a key overhang
- ASX sole listing: Completed transition on November 14, 2025
- Indiana market entry: Grover launched in Indiana on December 30, 2025
- Term Loan repricing: Reduced interest rates by 25 bps in January 2026, saving ~$5M annually
What Did Management Say?
Matt Wilson, President & CEO:
"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."
On the Aristocrat settlement:
"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."
Oliver Chow, CFO:
"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... Our priorities remain unchanged: disciplined cost management, sustainable margin growth, and continued improvement in both the quality and quantum of cash flows over time."
On capital allocation:
"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."
Ask Fintool AI AgentCapital Returns and Balance Sheet
Light & Wonder accelerated shareholder returns in 2025:
Balance sheet position as of December 31, 2025:
- Cash & equivalents: $167M
- Total debt: $5.16B
- Net debt leverage ratio: 3.5x (within 2.5-3.5x target range)
- Available liquidity: $927M
Management expects to continue deleveraging throughout 2026 given strong cash generation, absent high-return capital allocation opportunities.
How Did the Stock React?
LNW shares traded at $99.75 as of market close, up 0.25% on the day. The earnings were released after market close, with the conference call scheduled for 5:00 PM EST.
Stock context:
- 52-week high: $113.95
- 52-week low: $69.56
- Current: $99.75
- vs. 50-day MA: +21.5% (trading above)
- vs. 200-day MA: +11.5% (trading above)
The stock has rallied ~43% from its 52-week low, reflecting improved sentiment around recurring revenue growth and successful Grover integration.
What to Watch Going Forward
Near-term catalysts:
- Q4 2025 earnings call (Feb 24, 5pm EST) for guidance color on 2026
- Indiana Grover ramp as the sixth operational state gains traction
- Light & Wonder game launches into charitable gaming market in early 2026
- SciPlay recovery trajectory for Jackpot Party
FY 2028 targets (reiterated):
- The company remains committed to its "ambitious FY 2028 financial targets"
- Net debt leverage target range: 2.5x - 3.5x
- DTC platform target: 30% of SciPlay revenue by 2028
Risks to monitor:
- SciPlay revenue stabilization amid sweepstakes gaming competition
- International gaming sales timing (Asia demand shifted to 2026)
- Tariff impact of mid-to-high single-digit millions per quarter
- Elevated leverage (3.5x) following Grover acquisition and buybacks
Ask Fintool AI AgentKey Financial Tables
Quarterly Segment Performance
Full Year 2025 Segment Performance
Gaming KPIs
*Includes ~11,600 Grover charitable gaming units
Light & Wonder's earnings call is scheduled for February 24, 2026 at 5:00 PM EST. This analysis will be updated with Q&A highlights following the call.
Related Links:
- Light & Wonder Company Overview
- Q4 2025 Earnings Call Transcript (available post-call)
- Q3 2025 Earnings Recap