Light & Wonder (LNW) Q4 2025 earnings summary

Executive summary

• Achieved strong 2025 results with consolidated revenue of $3.3B, AEBITDA of $1.44B, and adjusted NPATA of $567M, meeting or exceeding guidance and driven by Gaming and iGaming growth, as well as successful Grover acquisition integration.

• Returned $877M to shareholders via share repurchases, utilizing 78% of the $1.5B authorization since 2022.

• Transitioned to sole ASX listing and resolved major litigation, providing strategic clarity and removing distractions.

• Announced long-term targets: $2B consolidated EBITDA and EPSa >$10.55 by 2028, reaffirmed for FY28.

• Achieved record North American gaming growth and expanded install base, with Grover contributing to charitable gaming expansion.

Financial highlights

• Full-year consolidated revenue grew 4% to $3.3B; Q4 revenue up 12% YoY to $891M.

• Full-year AEBITDA up 16% to $1.44B; Q4 AEBITDA up 29% to $405M.

• Adjusted NPATA for the year: $567M, up 18% YoY; EPSa up 27% to $6.69.

• Free cash flow for the year: $452M, up 42%; operating cash flow: $794M, up 26%.

• Q4 net loss of $15M due to $128M legal settlement, $49M in other charges, and $18M ASX transition costs.

Outlook and guidance

• FY26 targets continued adjusted NPATA and EPSa growth, with earnings shape similar to 2025 and focus on recurring revenue.

• Strategic investments, tariff costs, and legacy legal costs expected in H1 2026.

• Plan to de-lever balance sheet and remain opportunistic with share repurchases.

• 2028 targets reaffirmed: $2B EBITDA and EPSa >$10.55.

• Expects continued improvement in cash flows and further deleveraging in 2026, barring high-return capital allocation opportunities.