Light & Wonder Reports Q2 2025 Revenue Decline to $809 Million, Net Income Increases by 16%

Light & Wonder, Inc. reported its financial results for the second quarter of 2025, revealing a slight decrease in consolidated revenue to $809 million, down 1% from $818 million in the same period last year. For the first half of 2025, revenue remained stable at $1.582 billion, compared to $1.575 billion in the prior year. The company attributed the revenue decline primarily to macroeconomic uncertainties that led to cautious purchasing behavior among customers, impacting the timing of game sales. Despite this, net income for the quarter increased by 16% to $95 million, compared to $82 million in Q2 2024, while net income for the first half rose to $177 million from $164 million.

In terms of operational performance, Light & Wonder's Gaming segment saw a 2% decrease in revenue for the second quarter, primarily due to a 16% drop in gaming machine sales. However, the segment benefited from a $21 million contribution from the recently acquired Grover Charitable Gaming, which was integrated into the Gaming reportable business segment. The SciPlay segment also experienced a 2% revenue decline, attributed to a decrease in average monthly payers, although average revenue per paying user increased. The iGaming segment, on the other hand, reported a 9% increase in revenue, driven by growth in the North American market.

The company completed the acquisition of Grover on May 16, 2025, for an upfront consideration of $850 million, with potential additional payments based on revenue metrics. This acquisition is expected to enhance Light & Wonder's position in the charitable gaming market, where Grover operates in five states. The acquisition was financed through a new $800 million term loan, which is set to mature in May 2028. The company also announced a strategic decision to transition from a dual listing on Nasdaq and the Australian Securities Exchange (ASX) to a sole primary listing on the ASX by the end of November 2025.

Light & Wonder's total operating expenses for the second quarter decreased by 6% to $607 million, driven by lower costs in several areas, including selling, general, and administrative expenses. The company reported an increase in adjusted EBITDA (AEBITDA) margin to 53% for the quarter, up from 50% in the prior year, reflecting improved operational efficiencies and a favorable revenue mix. The company returned $266 million to shareholders through share repurchases in the first half of 2025, completing approximately 55% of its $1 billion share repurchase program authorized in June 2024.

Looking ahead, Light & Wonder anticipates continued challenges from macroeconomic conditions and trade tariffs affecting its supply chain. However, the company remains focused on executing its growth strategy, leveraging its diversified portfolio of gaming franchises, and enhancing operational efficiencies to mitigate these impacts. The management expressed confidence in the company's ability to navigate these challenges while pursuing opportunities for expansion in both domestic and international markets.