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Mar 31, 2025
Light & Wonder Q1 2025 Earnings Report
Light & Wonder reported modest revenue growth, stable profitability, and expanded margins across segments in Q1 2025.
Key Takeaways
Light & Wonder delivered its 16th consecutive quarter of revenue growth, with expanded margins in all segments and solid cash flow. Net income remained flat, while adjusted EPS and free cash flow improved year-over-year.
Revenue reached $774 million, a 2% increase from Q1 2024.
Gaming segment revenue rose to $495 million, driven by broad-based growth.
Adjusted EPS increased to $1.35, up from $1.12 a year ago.
Free cash flow improved to $111 million, reflecting stronger earnings and reduced capex.
Revenue by Segment
Forward Guidance
L&W reiterated its $1.4 billion AEBITDA target for 2025, excluding Grover Gaming, citing continued margin expansion and robust product strategy.
Positive Outlook
- On track to meet $1.4 billion AEBITDA target for 2025.
- Margin expansion observed across all business units.
- Successful execution of omni-channel and content strategies.
- Growing premium installed base in Gaming Operations.
- Pending Grover Gaming acquisition to support future growth.
Challenges Ahead
- New trade tariffs may create near-term cost pressures.
- SciPlay revenue declined 2% year-over-year.
- Increased restructuring and tax costs affected net income.
- Flat net income despite higher revenue and AEBITDA.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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