Light & Wonder (L&W) reported a resilient second quarter for 2025, with profitability rising across all business divisions despite a slight dip in revenue. The results reflect the company’s continued focus on disciplined capital allocation, strong operational execution, and its recent acquisition of Grover, which bolstered North American growth.
Revenue and Profitability Trends
The company posted $809 million in consolidated revenue, down 1% from last year, but achieved a 7% year-over-year increase in consolidated AEBITDA, underscoring improved margins and operational efficiency. Adjusted NPATA grew 4%, and net income jumped 16%, signaling strong bottom-line performance.
L&W’s consolidated AEBITDA margin expanded by 400 basis points to 44%, driven by a healthy mix of recurring revenues and operational cost control.
Gaming Division: Installed Base Expansion
Gaming revenue reached $528 million, with a standout 19% year-over-year increase in gaming operations, supported by the addition of over 845 units to the North American installed base and the integration of Grover’s charitable gaming business.
While global game sales shipments were down around 20%, average sales price per new unit rose 2% year-over-year to $18,930, reflecting strong product mix. Table products revenue rose 2% thanks to robust international performance.
HUFF N’ MORE PUFF ranked as #1 game for Gross Gaming Revenue Volume on OGS
SciPlay: Monetization Strength
SciPlay delivered $200 million in quarterly revenue, with AEBITDA climbing 6% to $74 million and margins expanding to 37%. Growth was fueled by higher monetization metrics, including a 10% increase in average monthly revenue per paying user (AMRPPU) to $128.96.
Direct-to-consumer revenue rose to 18% of total SciPlay revenue, up 500 basis points from Q4 2024, improving long-term margin potential.
iGaming: Record-Setting Quarter
L&W’s iGaming business hit an all-time high with $81 million in revenue, up 9% from last year, and AEBITDA rising 17% to $28 million.
The company processed $26.6 billion in wagers on its OpenGaming™ System (OGS), a 22% jump year-over-year, highlighting the strength of its partner network and content offering.
Capital Allocation and Debt Management
L&W continued to prioritize shareholder returns, repurchasing $100 million in shares during Q2, bringing first-half 2025 buybacks to $266 million – more than half of its $1 billion repurchase program. The board has approved an increase to $1.5 billion in total buybacks.
The company ended the quarter with net debt of $4.76 billion, maintaining a leverage ratio of 3.7x, within its targeted range.
Cash Flow and Guidance
Free cash flow for the quarter came in at $29 million, impacted by a $73 million legal settlement. Adjusted for this one-time item, free cash flow exceeded $100 million, reflecting stronger earnings and efficient capital spending.
Looking ahead, L&W reaffirmed its FY 2025 guidance, projecting consolidated AEBITDA between $1.43 billion and $1.47 billion, including approximately $65 million in Grover contributions. Adjusted NPATA is expected to range from $550 million to $575 million.
Light & Wonder Q2 2025 Results
| Metric | Q2 2025 Result | YoY Change |
|---|---|---|
| Consolidated Revenue | $809M | ▼ 1% |
| Consolidated AEBITDA | $352M | ▲ 7% |
| AEBITDA Margin | 44% | ▲ 400 bps |
| Adjusted NPATA | $135M | ▲ 4% |
| Gaming Operations Revenue | $209M | ▲ 19% |
| SciPlay Revenue | $200M | ▼ 2% |
| iGaming Revenue | $81M | ▲ 9% |
| OGS Wagers Processed | $26.6B | ▲ 22% |
| Share Buybacks | $100M (Q2) | 55% of $1B program complete |
