Light & Wonder has reported its financial results for the fourth quarter of 2025 and full-year, as the supplier witnessed a net loss of $15m during the quarterly period, primarily driven by legal settlement charges related to a resolution formed with Aristocrat Gaming in January 2026.
Aristocrat had claimed Light & Wonder’s Dragon Train and Jewel of the Dragon titles were developed using confidential trade secrets and copyright works, eventually concluding with Light & Wonder acknowledging that certain Aristocrat mathematical information was used.
Was Light & Wonder still able to generate momentum despite the net loss?
The supplier’s net revenue for Q4 2025 increased 12% year-over-year to $891m, assisted by 17% growth from Light & Wonder’s gaming vertical to $602m. iGaming revenue also increased during Q4 2025, rising 21% to $94m, while Light & Wonder’s SciPlay revenue fell 4% to $195m.
Light & Wonder also set a quarterly record for iGaming wagers placed during Q4 2025, totaling more than $29bn and reflecting “continued momentum” across North America.
Light & Wonder reported a consolidated AEBITDA of $405m during Q4 2025, representing an increase of 29% and driven by “strong margin expansion” across all businesses. The $15m net loss for Q4 2025 was also attributed to $25m in fair value adjustments and $18m in Australian Securities Exchange (ASX) transition costs.
Light & Wonder reported $604m in revenue from services and an additional $287m in products revenue, equating to increases of 13.5% and 8.3%, respectively. Operating costs for the supplier increased 28.6% from the prior year period to $809m, perhaps leading to a decrease in operating income for Q4 2025 of 51.2% for a total of $82m.
Cost of services totaled $114m for Light & Wonder during Q4 2025, while product expenses and selling, general and administrative costs were $125m and $224m, respectively.
Did Light & Wonder meet FY2025 expectations?
The supplier’s net revenue during the full-year period grew 4% to $3.3bn, with Light & Wonder also managing to increase consolidated AEBITDA by 16% to an all-time high $1.44bn. Net income decreased 18%, however, but Light & Wonder was still able to generate $276m during FY2025.
Gaming accounted for nearly $2.2bn of Light & Wonder’s total net revenue for FY2025, representing an increase of 6% from the prior year period. SciPlay revenue fell 3% to $794m, while iGaming revenue climbed 13% for a total of $337m.
Despite the fall in revenue for FY2025, SciPlay operations still increased consolidated AEBITDA by 6% to $288m, with iGaming producing an additional $125m and increasing 28%. Gaming operations drove the vast majority of consolidated AEBITDA for Light & Wonder during FY2025, generating just over $1bn and increasing 13%.
Light & Wonder generated close to $2.3bn in services revenue during FY2025, increasing 9.1% while products revenue fell 6.1% but still produced just over $1bn. Despite operating expenses increasing 4.4% year-over-year to $2.6bn, Light & Wonder’s operating income for FY2025 grew 2.2% to $683m.
What did Light & Wonder executive leadership say about the results?
Light & Wonder President and CEO Matt Wilson spoke on the Q4 and FY2025 results, having said, “We closed out 2025 with another strong quarter, delivering double-digit year-over-year growth in both revenue and cash flows. We also achieved several important milestones, including the successful acquisition and integration of Grover, accelerating our expansion in the Charitable Gaming market and our transition to a sole primary listing on the ASX.
“Looking ahead, we will remain focused on investing in product innovation and talent to strengthen our recurring revenue model, build on this momentum and enhance our global competitive position as we progress toward our 2028 financial targets.”
CFO Oliver Chow stated Light & Wonder initiatives developed to “navigate dynamic external conditions beyond our control” helped stabilize Q4 and FY2025 performance.
“Our priorities remain unchanged: disciplined cost management, sustainable margin growth and continued improvement in both the quality and quantum of cash flows over time,” Chow said.
“We remain committed to reinvesting in the business to drive sustainable long-term growth, leveraging our broad portfolio of games and offerings, while remaining agile and well positioned to further enhance shareholder value.”
Light & Wonder also entered into another amendment of its long-term credit facilities on January 23, establishing a new tranche of refinancing loans and updating interest terms across its borrowing structure.
Light & Wonder converted its ASX Foreign Exempt Listing to an ASX Standard Listing while simultaneously delisting from Nasdaq on November 14, moves that were confirmed with both the ASX and SEC
