Light & Wonder Reports Record Profitability Despite Modest Revenue Growth in Q3
Light & Wonder recorded consolidated revenue of $841 million in the third quarter of 2025, marking a 3% increase year-over-year. The company focused on operational efficiency and high-margin segments, leading to strong growth in profitability indicators. Consolidated AEBITDA (Adjusted EBITDA) surged 18% year-over-year to $375 million.
Net income showed significant improvement, jumping 78% year-over-year to $114 million. Adjusted NPATA (Adjusted Net Profit After Tax and Amortization) grew by 25% to $153 million, pushing the Adjusted EPS up 35% to $1.81. The company’s recurring revenue reached $580 million, representing about 69% of consolidated revenue and growing 14% year-over-year. Free cash flow also increased substantially, rising 64% to $136 million.
iGaming and Gaming Operations Drive Margin Growth
Light & Wonder’s improved profitability was driven by high-margin segments. The iGaming segment achieved record revenue of $86 million, a 16% increase year-over-year, and a record AEBITDA of $34 million, growing 42%. The iGaming AEBITDA margin expanded by 800 basis points to 40%, fueled by market strength in North America and increased distribution of proprietary content.
The Gaming segment contributed $558 million in revenue, an increase of 4%. Growth was primarily driven by Gaming operations revenue, which climbed 38%, partly due to a $40 million contribution from the acquired Grover Charitable Gaming. However, this was partly offset by a 21% drop in Gaming machine sales.
The Gaming segment’s AEBITDA grew by 14% to $305 million, and its margin expanded by 500 basis points to 55%. The SciPlay segment revenue dropped 4% to $197 million, but AEBITDA still grew 8% due to efficiency and the expansion of its Direct-to-Consumer (DTC) platform.
Strategic Listing Change and Capital Returns
CEO Matt Wilson noted that the company is moving forward with its transition to a sole primary listing on the Australian Securities Exchange (ASX), a move expected to simplify the listing structure and enhance the company’s profile in the gaming-attuned Australian market. The delisting from NASDAQ is anticipated in November.
Light & Wonder is also focused on capital returns. CFO Oliver Chow highlighted the strong cash flow generation, which supports the company’s disciplined capital allocation program. The company has now completed approximately 51%of its expanded share buyback program.
Operationally, the integration of Grover Gaming is progressing well, and the company is preparing to enter the Indiana charitable gaming market in the coming months. In the iGaming space, the company received approval to begin operations in the Philippines, becoming the first licensed provider there. Proprietary content is performing strongly, with seven of the top ten games on the OpenGaming System (OGS) being internal titles in Q3 2025.
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