Reduced revenue, increased profit observed in the second quarter for Light & Wonder
Light & Wonder, a leading game manufacturer, announced their second-quarter earnings on August 6, 2025. The company's consolidated revenue for the quarter was $809 million, a 1% decline year-over-year. Despite the slight dip in revenue, net income rose 16% to $95 million (EPS $1.11). Operating income was $202 million, and consolidated adjusted EBITDA grew 7% to $352 million, representing a 44% margin. The company's free cash flow was $29 million.
The iGaming segment set a quarterly revenue record of $81 million, up 9% year-over-year. However, the gaming machine sales segment experienced a decline. The growth in the gaming operations, SciPlay, and iGaming segments helped cushion the performance.
Regarding share buybacks, Light & Wonder returned $266 million to shareholders through repurchases in the first half of 2025, completing about 55% of its $1 billion authorized program initiated in June 2024. On July 31, 2025, the company increased its share repurchase authorization from $1 billion to $1.5 billion, signaling confidence in its outlook and ongoing capital return.
The company sold more than 9,000 machines worldwide during the second quarter, including 845 units in North America. Light & Wonder's new subsidiary, Grover Gaming, recorded 600 unit sales dating back to February 2025, but no new information about the number of machines sold by Grover Gaming in the second quarter was provided.
Light & Wonder's Chairman, Jamie Odell, stated that moving to a sole primary ASX listing is in the best long-term interests of shareholders. The ASX now accounts for approximately 37 percent of Light & Wonder's total equity. The CEO, Matt Wilson, expressed confidence in the progress of the integration of Grover Gaming and the company's position in the charitable gaming business. He believes the Nasdaq delisting will deliver significant shareholder value moving forward.
Light & Wonder ended the quarter with $4.9 billion in debt and a leverage-to-cash flow ratio of 3.7. Revenue missed analyst expectations ($809 million vs. $846.2 million forecast), mostly due to cautious customer spending and delayed capital expenditures. However, adjusted EPS of $1.58 per share exceeded estimates by 12.7% to 14%, driven by lower costs and improved operations.
For full-year 2025, management expects consolidated adjusted EBITDA between $1.43 billion and $1.47 billion, with earnings weighted to the second half and growth accelerating in Q4. Cash on hand for Light & Wonder was $136 million at the end of the quarter.
[1] Light & Wonder Q2 2025 Earnings Release, August 6, 2025.
[2] Light & Wonder Q2 2025 Earnings Call Transcript, August 6, 2025.
[3] Light & Wonder Q2 2025 Earnings Presentation, August 6, 2025.
[4] Light & Wonder Investor Relations, August 6, 2025.
- In the Q2 2025 earnings release, Light & Wonder demonstrated impressive growth in the iGaming segment with a 9% increase in revenue, showcasing their strategic investment in digital games and online operations within the business sector.
- Despite the decline in consolidated revenue, Light & Wonder's net income significantly rose by 16%, indicating savvy financial management and promising long-term investments for the company.
