Light & Wonder sees record number of gaming machine sales in its fourth quarter
$128m legal settlement with Aristocrat leads to loss
Light & Wonder delivered a strong finish to 2025, achieving solid financial results underpinned by disciplined execution and robust game performance, while completing its three-year financial targets and value creation cycle.
Fourth quarter consolidated revenue increased 12 per cent to $891m, with net loss impacted by approximately $128m legal settlement charge associated with a strategic resolution of the Aristocrat matter, $25m contingent acquisition consideration fair value adjustment, and $18m in Australian Securities Exchange (ASX) transition costs.
During the fourth quarter, all three businesses delivered record AEBITDA, with Consolidated AEBITDA up 29 per cent to $405m, and Adjusted NPATA up 27 per cent to $161m, resulting in 38 per cent growth on a per share basis to $1.96 as compared to the prior year.
Gaming revenue increased 17 per cent year-over-year to $602m in the fourth quarter, driven primarily by record Gaming machine sales of $234m, up 20 per cent, along with Gaming operations revenue, which increased 35 per cent to $237m. The company shipped a record 7,000 North American units this quarter, while North American Gaming operations’ premium installed base grew for 22 consecutive quarters, adding over 700 units during the fourth quarter.
Matt Wilson, President and Chief Executive Officer of Light & Wonder, said: “We closed out 2025 with another strong quarter, delivering double-digit year-over-year growth in both revenue and cash flows. We also achieved several important milestones, including the successful acquisition and integration of Grover, accelerating our expansion in the Charitable Gaming market, and our transition to a sole primary listing on the ASX. We also continued to invest in our studios, which is paying dividends as our franchises drive strong game performance across the portfolio. Gaming momentum remained robust, with more than 700 North American Gaming operations units added sequentially and over 12,300 units shipped globally during the quarter, while iGaming delivered another quarterly revenue and AEBITDA records. Looking ahead, we will remain focused on investing in product innovation and talent to strengthen our recurring revenue model, build on this momentum, and enhance our global competitive position as we progress toward our 2028 financial targets.”
Oliver Chow, Chief Financial Officer of Light & Wonder, said: “The sustainable margin expansion and cash flow growth achieved in 2025 reflect our disciplined execution and focus on initiatives designed to navigate dynamic external conditions beyond our control. Importantly, we maintained our net debt leverage ratio within our targeted range following the Grover acquisition and ASX listing transition, and we expect to continue deleveraging throughout 2026, supported by the strength of our business profile, absent any high return capital allocation opportunities. Our priorities remain unchanged: disciplined cost management, sustainable margin growth, and continued improvement in both the quality and quantum of cash flows over time. This is underpinned by prudent capital allocation, including the repurchase of $877m under our authorized $1.5bn share repurchase program in 2025. We remain committed to reinvesting in the business to drive sustainable long-term growth, leveraging our broad portfolio of games and offerings, while remaining agile and well positioned to further enhance shareholder value.”
Grover charitable gaming expanded its footprint by 345 units on a sequential basis and successfully entered the Indiana market.
Grover contributed $41m to consolidated revenue during the fourth quarter of 2025. iGaming once again reached quarterly record revenue underpinned by first-party content proliferation and increased 21 per cent compared to the prior year period. SciPlay revenue decreased by four per cent, but continued to exhibit strong player monetisation and expanded its DTC revenue to 25 per cent of total SciPlay revenue.
iGaming once again delivered quarterly record revenue and AEBITDA on continuing U.S. momentum underpinned by first-party content proliferation and partner network growth, while SciPlay continued to grow its direct-to-consumer (DTC) revenue.
