Revenue declines, yet profit increases in Q2 for Light & Wonder
In the rapidly evolving world of gaming, Light & Wonder continues to make strides, navigating short-term revenue challenges while focusing on long-term growth. The company reported its second-quarter earnings on August 6, 2025, revealing a slight decline in revenue but a significant increase in net income.
The second quarter of 2025 saw Light & Wonder's revenue decrease by one percent to $809 million, compared to the same period in the previous year. This slight dip is attributed to weakness in some business segments and macroeconomic headwinds. However, the company managed to boost its net income by 16 percent year-over-year, reaching $95 million.
The improved profitability is primarily due to lower costs and operational efficiencies. Adjusted earnings per share also beat estimates, and consolidated AEBITDA grew by 7 percent to $352 million.
In the gaming operations sector, Light & Wonder demonstrated resilience with continued growth in North American premium installed base and daily revenue. The SciPlay and iGaming segments also performed well, with iGaming revenues increasing by 9 percent year-over-year.
Looking ahead, Light & Wonder's growth strategy is centred around automation, AI tools, and process standardization to drive organizational efficiency and scalability. The company is also advancing a robust content roadmap and cross-platform strategy.
A significant component of this growth strategy is the acquisition of Grover Gaming, completed for $850 million in early 2025. Integration is progressing ahead of schedule, with over 600 active Grover units added since the acquisition announcement. This acquisition expands Light & Wonder's footprint in the charitable gaming sector, diversifies revenue streams, and is expected to contribute positively to the gaming operations business.
CEO Matt Wilson expressed satisfaction with the progress of the Grover Gaming integration and sees growth opportunities in the charitable gaming business. CFO Oliver Chow expects a smooth transition to Light & Wonder's sole ASX listing, with the added $500 million capacity to the repurchase program.
To further support its growth ambitions, Light & Wonder repurchased $266 million in Light & Wonder shares in the first six months of 2025. The repurchase authorization for the company's shares has been increased to $1.5 billion, including money already spent.
Despite the challenges, Light & Wonder remains within its targeted net-debt leverage ratio range on a combined basis following the Grover acquisition. The company ended the quarter with $136 million in cash on hand and $4.9 billion in debt, resulting in a leverage-to-cash flow ratio of 3.7.
Company Chairman Jamie Odell stated that the ASX now accounts for approximately 37 percent of Light & Wonder's total equity. Matt Wilson believes the Nasdaq delisting will deliver tremendous shareholder value going forward, as the company continues to execute on its capital allocation plan, enabling its flexibility to pursue both growth and shareholder value creation.
[1] Light & Wonder's Q2 2025 Earnings Release [2] Light & Wonder's Q2 2024 Earnings Release [3] Light & Wonder's Press Release on Grover Gaming Acquisition [4] Light & Wonder's Q2 2024 Earnings Call Transcript [5] Light & Wonder's Q2 2025 Earnings Call Transcript
In the realm of Light & Wonder's financials, the second quarter of 2025 demonstrated a decline in revenue by one percent to $809 million, yet a substantial increase in net income by 16 percent, reaching $95 million. This growth strategy involves acquisitions, such as the Grover Gaming acquisition for $850 million, and the pursuit of automation, AI tools, and process standardization to boost profitability.
Light & Wonder'sfocus on investing in its business, as seen by the acquisition of Grover Gaming, is anticipated to contribute positively to the gaming operations business and diversify revenue streams, thereby enhancing its long-term financial prospects.
