Light & Wonder Boosts Profit 16% Despite Revenue Dip, Upsizes Share Buyback to $1.5B

Profit Over Revenue

For the second quarter of 2025, Light & Wonder reported a net income of $95 million on consolidated revenue of $809 million. This marks a significant improvement from the prior year and was driven by lower costs of revenue and reduced operating expenses. On a per-share basis, diluted earnings per share (EPS) jumped 23% to $1.11.

The company’s key profitability metric, Consolidated Adjusted EBITDA, rose 7% to $352 million. More impressively, the AEBITDA margin expanded by 4 percentage points to a healthy 44%, a testament to the company’s focus on operational efficiency.

“Our financial performance in the second quarter underscores the benefit of our diversified business model and the disciplined execution of the team,” said Oliver Chow, the company’s Chief Financial Officer.

iGaming Shines, Land-Based Gaming Holds Strong

A closer look at the company’s divisions reveals a mixed but ultimately positive picture.

• iGaming: This was the star performer, with revenue growing 9% to a record $81 million. The segment’s profitability was even better, with AEBITDA climbing 17%. The company’s Open Gaming System (OGS) platform processed a record-breaking $26.6 billion in wagers during the quarter.
• SciPlay: The social casino division saw a 2% dip in revenue to $200 million, but its AEBITDA grew 6% as it successfully expanded its direct-to-consumer platform.
• Gaming: The land-based casino segment experienced a 2% revenue decline to $528 million, partly due to cautious spending from some casino operators amid macroeconomic uncertainty. However, its AEBITDA still grew by 3%, and its North American premium installed base of gaming machines grew for the 20th consecutive quarter.

The Grover Acquisition and a Stock Exchange Shift

Two major strategic initiatives defined the quarter for Light & Wonder. First, the company completed its acquisition of Grover Gaming, a leader in the charitable gaming market. The integration is reportedly progressing ahead of schedule and contributed $21 million in revenue in the quarter. This move gives Light & Wonder a strong foothold in a new and growing segment.

Second, the company made the bold decision to transition to a sole primary stock listing on the Australian Securities Exchange (ASX), with a planned delisting from the Nasdaq by the end of November 2025. This move, following extensive consultation with investors, aims to align the company’s capital markets presence with its shareholder base and long-term growth plans.

“Our Board has determined that moving to a sole primary ASX listing is in the best long-term interests of our shareholders,” said Jamie Odell, Chair of the Board.

Capital Returns and a Confident Outlook

Light & Wonder remains committed to returning value to its shareholders. The company repurchased $100 million of its own stock in the second quarter, bringing the total for the first half of the year to $266 million. With the upsized $1.5 billion authorization, the company now has $950 million remaining for future buybacks.

This aggressive capital return strategy is supported by solid cash flow. While reported free cash flow was $29 million, the figure was impacted by a one-time $73 million payment related to a legal settlement. Absent this payment, free cash flow would have exceeded $100 million.

Looking ahead, Light & Wonder expects its earnings to be weighted toward the second half of the year, with an acceleration in growth anticipated in the fourth quarter.

“We remain committed to R&D investment to further proliferate our high-performing content across channels,” said Matt Wilson, President and CEO. With its strategic acquisitions taking hold and a clear focus on disciplined growth, Light & Wonder has demonstrated its ability to generate strong profits even in a challenging market.