Light & Wonder (LNW) Q4 2024 earnings summary

Executive summary

• Achieved record consolidated revenue of $3.2 billion in 2024, up 10% year-over-year, with double-digit growth and profitability across all business segments.

• Consolidated Adjusted EBITDA for 2024 was $1.24 billion, up 11% year-over-year, with Adjusted NPATA rising 24% to $480 million.

• Announced definitive agreement to acquire Grover Gaming's charitable gaming business for $850 million upfront plus up to $200 million earn-out, expected to close in Q2 2025 and be accretive to adjusted EBITDA in the first full year.

• Returned $462 million to shareholders via share repurchases in 2024, completing the initial $750 million program and progressing on a new $1 billion plan.

• Strategic focus on operational excellence, product innovation, and cross-platform strategy, including integration of SciPlay and iGaming content.

Financial highlights

• Q4 2024 revenue was $797 million, up 4% year-over-year; full-year consolidated revenue reached $3.2 billion, up 10% year-over-year.

• Full-year operating income was $668 million, up 29%; Q4 operating income was $168 million, up 8%.

• Diluted net income per share for 2024 was $3.68, more than double the prior year; Q4 EPS was $1.20.

• Free cash flow for 2024 was $318 million, up from $291 million in 2023.

• Net debt leverage ratio at year-end was 3.0x, within the targeted range of 2.5x to 3.5%, with total debt at $3.9 billion.

Outlook and guidance

• Targeting $1.4 billion in consolidated Adjusted EBITDA for 2025, with confidence based on current momentum and product pipeline.

• Expects Q1 2025 consolidated AEBITDA growth in the low double-digits year-over-year, driven by game sales timing and high-return investments.

• Grover Gaming acquisition expected to close in Q2 2025 and be accretive to adjusted EBITDA in the first full year.

• Continued reinvestment in R&D and capital expenditures to support sustainable growth.

• Targeted net debt leverage ratio remains 2.5x–3.5x.