Light & Wonder, the prominent land-based and online gaming supplier, closed the fiscal year 2025 with remarkable earnings, despite a significant legal settlement that weighed on its quarterly performance. The company posted record consolidated earnings before interest, taxes, depreciation, and amortization (AEBITDA) of $1.44 billion, up 16% from the previous year, signaling robust operational growth.

However, the company’s fourth-quarter net income was impacted by a $128 million settlement with rival Aristocrat over the Dragon Train litigation, which caused a net loss of $15 million for the period. This legal matter resulted in the largest drag on Light & Wonder’s financial performance during the quarter, although the company’s overall growth trajectory remained strong throughout 2025.

Gaming and Operations Surge in 2025

Despite the legal setback, Light & Wonder’s revenue surged to $3.3 billion for the year, marking a 4% increase compared to 2024. The gaming segment, which includes both machine sales and gaming operations, saw an impressive 17% year-over-year rise in revenue, bringing in $602 million for Q4. This growth was largely driven by record gaming machine sales, which topped $234 million in the quarter.

In North America, the company shipped a record-breaking 7,000 gaming units during the quarter, contributing to a continued expansion in the region. Additionally, the North American gaming operations saw a 35% increase in revenue, totaling $237 million. This expansion marks the 22nd consecutive quarter of growth for Light & Wonder’s premium installed base in North America.

“Gaming momentum remained robust,” said Matt Wilson, CEO of Light & Wonder, in the company’s financial report, “with more than 700 North American units added sequentially and over 12,300 units shipped globally during the quarter, while iGaming delivered another quarterly revenue and AEBITDA records.”

Throughout 2025, Light & Wonder also made strategic investments, notably completing the acquisition of Grover, a significant expansion in the charitable gaming market. The company also transitioned to a sole primary listing on the Australian Securities Exchange (ASX), further optimizing its capital markets profile.

In line with its commitment to returning value to shareholders, Light & Wonder repurchased $877 million in shares during the year. The share repurchase program, which began in 2022, has seen the company return a total of $1.9 billion to its investors, with 25% of the total outstanding shares repurchased.

“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,” said Oliver Chow, CFO of Light & Wonder.

Challenges and Forward-Looking Strategy

Looking ahead, Light & Wonder remains focused on its 2028 financial targets, which include continued investment in product innovation and talent. The company has emphasized the importance of its recurring revenue model, driven by ongoing game development and growing global demand for its offerings.

Despite the challenges posed by the legal settlement and the dynamic external environment, Light & Wonder’s strong financial results provide a solid foundation for continued growth. The company plans to maintain a disciplined approach to cost management, margin expansion, and cash flow improvement throughout 2026.

“While no company can ever eliminate the risk of a cyberattack, we are taking appropriate steps and working with industry-leading third-party IT advisors to strengthen our systems to protect against future incidents,” Wilson added, highlighting the company’s commitment to safeguarding its operations.