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.

• Announced definitive agreement to acquire Grover Gaming's charitable 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 2026.

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

• Strategic decision to discontinue and divest the live casino business to reallocate resources to higher ROI segments.

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

Financial highlights

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

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

• Diluted net income per share more than doubled to $3.68 in 2024 from $1.75 in 2023; net income for 2024 was $336 million.

• Consolidated Adjusted EBITDA for 2024 was $1.24 billion, up 11% year-over-year; Q4 Adjusted EBITDA was $315 million, up 4%.

• Adjusted NPATA for 2024 totaled $480 million, up 24% year-over-year; Adjusted NPATA per share (diluted) was $5.27.

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

Outlook and guidance

• Targeting consolidated Adjusted EBITDA of $1.4 billion in 2025, with low double-digit growth expected in Q1.

• Grover Gaming acquisition expected to close in Q2 2025, be high single-digit accretive to adjusted EBITDA in 2026, and enhance recurring revenue.

• Continued investments in R&D, product roadmap, and user acquisition to drive organic growth.