Key points:
- Q1 2025 revenue grew 2% to $774m, marking the 16th straight quarter of year-on-year growth
- Gaming revenue rose 4%, iGaming revenue rose 4%, while SciPlay declined 2%
- Adjusted EBITDA increased 11% to $311m; adjusted NPATA grew 11% to $117m
Light & Wonder began 2025 with steady top-line expansion, reporting a 2% year-on-year increase in consolidated revenue to $774m for the first quarter. This marks the company’s 16th consecutive quarter of year-on-year revenue growth, driven by solid performance in its Gaming and iGaming divisions.
Gaming revenue increased by 4% to $495m, fuelled by growth across all sub-segments. Table product sales rose 9%, while both gaming systems and operations increased by 5%.
The company also shipped 30% more gaming units in North America and maintained its top ship share in Australia. Gaming adjusted EBITDA rose 9% to $254m, with margins expanding by 200 basis points to 51%.
SciPlay revenue, meanwhile, declined by 2% to $202m due to a dip in average monthly payers for its Jackpot Party title. However, average monthly revenue per paying user (AMRPPU) rose to $116.96, helping EBITDA grow by 3% to $64m and margins expand by 200 basis points to 32%. Direct-to-consumer sales contributed 13% of SciPlay revenue.
iGaming revenue grew 4% to $77m, as wagers processed through the platform hit a record $25.2bn. EBITDA for the segment rose 8% to $27m, with margin gains of 100 basis points. Growth was driven by North American momentum and an expanded partner network.
Solid cash flow and strategic spending bolster long-term outlook
Adjusted EBITDA for the group increased by 11% to $311m, reflecting margin expansion across all three business segments. Net income held steady at $82m, with earnings per diluted share rising 7% to $0.94.
Adjusted NPATA also rose 11% to $117m and free cash flow improved 19% to $111m on the back of strong earnings and reduced capex.
Operating cash flow climbed to $185m from $171m a year earlier, despite higher income tax payments. Capital expenditures declined slightly from $66m in Q1 2024 to $61m this quarter.
The company returned $166m to shareholders during the quarter, repurchasing 1.9 million shares. Net debt stood at $3.9bn, translating to a leverage ratio of 3.0x – within its target range of 2.5x to 3.5x.
Grover Gaming deal and trade tariffs in focus
Light & Wonder’s $850m acquisition of Grover Gaming’s charitable gaming business remains on track for Q2 completion. The deal, announced in February, is expected to expand L&W’s presence in five regulated US states. Financing will come from a new $800m Term Loan A credit facility.
The company also confirmed it is mitigating potential cost pressures from new trade tariffs imposed in April 2025. Strategies under evaluation include supplier diversification and operational efficiencies to offset anticipated increases in raw material and component costs.
Past performance and market trends
The latest results follow a record-breaking year for Light & Wonder, which posted $3.2bn in full-year 2024 revenue – a 10% year-on-year rise. Gaming led the growth with a 12% increase, while iGaming rose 9% and SciPlay 6%. Net income for 2024 jumped 86.7% to $336m. The company also repurchased $462m in shares during 2024, including $243m in Q4 alone.
Looking ahead, Light & Wonder reaffirmed its full-year 2025 adjusted EBITDA target of $1.4bn (pre-Grover transaction) and will host an investor day on 20 May in New York to provide further updates on strategy and growth initiatives.
