Light & Wonder Delivers $1.443B AEBITDA in FY25

Light & Wonder closed fiscal 2025 with accelerating profitability and expanding recurring revenue, reinforcing its transition toward a structurally stronger earnings profile, following its previously announced Q4 and full-year earnings schedule.

The company reported:

• Revenue of $3.314 billion (+4% YoY)
• Consolidated AEBITDA of $1.443 billion (+16%)
• Adjusted NPATA of $567 million (+18%)
• EPSa of $6.69 (+27%)
• Free cash flow of $452 million (+42%)

Recurring revenue reached $2.214 billion, representing approximately 67% of total revenue.

Gaming: Installed Base Expansion Drives Leverage

North America installed base increased 42% year-over-year, supported by premium unit growth and the integration of Grover. Premium units now represent 53% of the North American installed base (excluding Grover).

Record North American unit shipments and operational mix improvements drove AEBITDA margin expansion to 54% in Gaming during Q4, supported by continued placements across high-traffic regional properties.

iGaming: First-Party Content Scaling

iGaming revenue increased 21% in Q4, supported by first-party content performance and OpenGaming platform expansion. Eight of the top 10 games on the network were proprietary titles, reinforcing the margin profile.

Segment AEBITDA margin expanded to 38%.

SciPlay: Direct-to-Consumer Inflection

SciPlay’s DTC platform accounted for 25% of Q4 revenue, up significantly year-over-year, contributing to an 8% AEBITDA increase despite softer payer volumes.

This signals a shift toward higher-margin monetization rather than pure user growth.

Capital Allocation Discipline

Light & Wonder returned $877 million to shareholders in FY25, including $500 million in Q4 alone. Net debt leverage closed at 3.5x, within target range, with management signaling a deleveraging bias into FY26 following legal settlement payments related to its global IP dispute resolution earlier this year.

Industry Significance

Light & Wonder’s FY25 results highlight three broader industry themes:

• Margin expansion over pure top-line growth
• Rising value of proprietary content ecosystems
• Increasing importance of recurring revenue stability

With FY28 targets of $2 billion in Consolidated AEBITDA and >$10.55 EPSa reaffirmed, the company is positioning itself as a diversified global gaming platform with predictable earnings growth.
Source : Light & Wonder