Light & Wonder (LNW) Q4 2025 earnings summary

Executive summary

• Achieved or exceeded 2025 financial targets, including record AEBITDA of $1.44B, adjusted NPATA of $567M, and strong cash flow, driven by Gaming and iGaming segments and successful Grover acquisition integration.

• Completed Grover Gaming acquisition, expanding recurring revenue and growth opportunities, and transitioned to sole ASX listing, resolving major litigation and peer disputes.

• Returned $877M to shareholders in 2025 via share repurchases, utilizing 78% of the $1.5B authorization.

• Fourth quarter saw a net loss of $15M due to $128M legal settlement, $25M contingent acquisition adjustment, and $18M ASX transition costs.

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

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 grew 18% YoY to $567M; EPSa up 27% to $6.69.

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

• Recurring revenue reached $2.21B, representing 67% of total revenue and up 9% YoY.

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 anticipated in H1 2026.

• Remains committed to 2028 targets: $2B EBITDA and EPSa >$10.55.

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

• Continued focus on recurring revenue, margin expansion, and operational efficiency.