Light & Wonder Inc. reported its fourth‑quarter and full‑year 2025 results on February 24, 2026. The company posted a net loss of $15 million for Q4, largely driven by a $128 million legal settlement with Aristocrat Leisure, while full‑year net income reached $276 million, down 18% from $336 million in 2024. Consolidated revenue for the year was $3.3 billion, a 4% increase from $3.2 billion in 2024, but Q4 revenue fell 12% to $891 million from $1.0 billion a year earlier.
Gaming revenue climbed 17% to $602 million for the full year, supported by a 20% rise in machine sales and a 35% increase in operations revenue. SciPlay revenue declined 4% to $195 million, with the drop attributed to a lower average monthly payer count, especially in its Jackpot Party Casino game, though the direct‑to‑consumer platform captured higher‑margin transactions. iGaming revenue grew 21% to $94 million, driven by expanded first‑party content in regulated markets and a 16% increase in operations revenue.
Consolidated AEBITDA reached $1.44 billion for the year, up 29% from $1.12 billion in 2024, reflecting a 500‑basis‑point margin expansion to 36% in the full year. Operating cash flow rose 26% to $794 million, and free cash flow grew 42% to $452 million, underscoring the company’s ability to generate cash while investing in growth initiatives.
Capital discipline remained a priority: $877 million was returned to shareholders through share repurchases, including $500 million in Q4. The company completed its transition to a sole primary listing on the Australian Securities Exchange and refined its debt profile, maintaining net leverage at 3.5× as of December 31, 2025, after amending its credit agreement in February 2025 to extend maturities and increase revolving commitments.
Strategically, Light & Wonder continues to invest in artificial intelligence and the integration of its recent acquisition of Grover Gaming, which added $41 million to Q4 revenue and bolstered its charitable gaming segment. Headwinds include the Aristocrat settlement, a UK tax increase to 40% expected to impact iGaming, and ongoing challenges in SciPlay’s player retention. Despite these, the company’s EPS of $1.96 per share beat consensus estimates of $1.53, a surprise of 28%, driven by disciplined cost management and a favorable mix shift toward higher‑margin segments.
Investors focused on the settlement and revenue miss when evaluating the results, but the EPS beat and strong performance in Gaming and iGaming segments provided mitigating factors for the company’s overall financial health.
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