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Light & Wonder Inc reported US$891 million in revenue for the fourth quarter of 2025, up 11.8 percent from the year-ago quarter. The casino equipment and online games supplier described the period as a strong close to the year, with solid results from disciplined operations and strong game sales, while meeting its three-year financial goals. Yet the company posted a US$15 million net loss for the three months to December 31, versus a US$107 million profit last year.
Dragon Train Deal Weighs on Bottom Line
That swing to loss came mainly from a US$128 million charge linked to settling a dispute with Aristocrat Leisure Ltd over alleged trade secret issues tied to the Dragon Train game. Light & Wonder agreed in mid-January to pay US$127.5 million to resolve the matter. Other drags were an adjustment of US$25 million for contingent acquisition costs and US$18 million for the transition to the Australian Securities Exchange (ASX) as its primary listing in November.
Adjusted consolidated EBITDA, however, continued to register a 28.6 percent increase to US$405 million, with records achieved in its land-based gaming, SciPlay digital, and iGaming segments. President and CEO Matt Wilson highlighted double-digit revenue and cash flow growth, as well as other milestones such as the inclusion of the Grover Charitable Gaming buyout and the ASX listing.
Gaming Sales and Installed Base Surge
Gaming revenue jumped 16.9 percent to US$602 million, powered by 7,000 North American machine sales that boosted segment revenue 20 percent, or US$39 million. Operations revenue rose US$62 million, up 35 percent, as the North American installed base grew 7 percent to 36,692 units with 2,688 net adds. Globally, shipments hit 12,361 units versus 9,589 prior year, including 5,361 to markets like Asia Pacific. Wilson noted over 700 sequential North American adds and more than 12,300 worldwide shipments.
iGaming revenue grew 20.5 percent to US$94 million, while SciPlay dipped 4.4 percent to US$195 million. Full-year 2025 net profit fell 17.9 percent to US$276 million on US$3.31 billion revenue, up 4.0 percent, with adjusted EBITDA at US$1.44 billion, ahead 16.0 percent. The May US$850 million Grover deal expanded its U.S. charitable gaming footprint.
Leverage Holds Steady Post-Deals
Net debt stood at US$5.04 billion by year-end, up from US$3.71 billion, for a 3.5 times leverage ratio at the high end of the 2.5-3.5 times goal. New US$2.13 billion term loans in January refinanced older debt. CFO Oliver Chow said leverage stayed in range after Grover and the ASX switch, with plans to cut it further in 2026 unless better capital options arise. Priorities remain cost discipline, margin gains, and richer cash flows.
The Aristocrat payout cleared a legal cloud, letting Light & Wonder push gaming strength and iGaming records. All segments hit adjusted EBITDA highs in Q4, showing core health despite the net hit.
Path Forward After Key Wins
Heading into 2026, Light & Wonder banks on Grover integration for charitable gaming growth, ASX focus, and shipment momentum. Wilson spotlighted North American sales records and global volume, while iGaming kept setting revenue paces. Chow’s deleveraging push pairs with operational discipline to handle the US$5.04 billion debt load.
The settlement ends Dragon Train uncertainty, freeing focus on land-based expansion and digital upsides. With revenue climbing 11.8 percent and EBITDA up sharply, the Q4 loss looks like a one-off amid broader gains across machines, operations, and online play.
Source: GGR Asia
