Light & Wonder recorded a $15 million net loss in the fourth quarter of 2025, reversing a $107 million gain in 4Q24, largely due to the $128 million ‘in legal settlement charges’ linked to compensation to Aristocrat.
The group in January agreed to the compensation settlement over ‘claims for misappropriation and infringement of its intellectual property’ tied to its Dragon Train game which made use of ‘certain Aristocrat math information’ connected to the development of the game without L&W’s knowledge.
The $128 million compensation was part of a total of $177 million ‘in restructuring and other costs’, including $18 million related to its delisting from Nasdaq and transition to a sole listing on the Australian Securities Exchange (ASX).
The compensation cost cut into results that were otherwise strong, with gaming operations revenue up by 35 percent to $237 million and gaming machine sales revenue increasing 20 percent yearly to $243 million, both quarterly records.
Gaming results boom
In total, the group’s Gaming segment saw a 17 percent uptick in revenue, to $602 million during the quarter ending December 31st, helping to boost AEBITDA by 26 percent yearly to $323 million.
During the quarter, Light & Wonder saw North American Gaming machine sales of 7,000 units, ‘which led to a 20 percent revenue increase of $39 million year-over-year’. Of these, some 604 units were for casino opening and expansion, while 6,393 were replacement units. The group recorded 38,326 installed units in the US and Canada during the quarter, up from 34,004 in 4Q24.
International new unit shipments totaled 5,361 in 4Q25, increasing from 3,609 in 4Q24. All of the machines, however, were replacement units, rather than new units for ‘casino opening and expansion’. The group recorded 18,898 installed units in its International segment, down from 20,165 in 4Q24.
During the quarter, the group’s charitable gaming segment Grover contributed $41 million in consolidated revenue.
Revenue from the group’s social gaming segment SciPlay fell, however, during the quarter, by 4 percent to $195 million ‘due to a decline in average monthly payers primarily attributable’ to its Jackpot Party Casino game. However, the social casino business continued to deliver ‘quality player monetization’, notes the company.
SciPlay AEBITDA rose by 8 percent yearly to $80 million, largely due to the growth of its DTC platform which generated 25 percent of total SciPlay revenue for the quarter, at $48 million.
Looking to iGaming, quarterly revenue and AEBITDA hit record levels, up by 21 percent and 44 percent, respectively, to $94 million and $36 million.
‘Revenue growth for the period reflected continued momentum in North America underpinned by first-party content proliferation and the expansion of our partner network,’ indicates L&W of the segment, highlighting that wagers processed through its iGaming platform also hit a quarterly record of $29.2 billion, up from $24 billion in 4Q24.
Speaking of the results overall, Light & Wonder CEO Matt Wilson noted that “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.”
L&W CFO Oliver Chow highlighted “The sustainable margin expansion and cash flow growth achieved in 2025 reflect our disciplined execution and focus on initiatives designed to navigate dynamic external conditions beyond our control”.
Looking ahead the group’s CEO indicated that “we will remain focused on investing in product innovation and talent to strengthen our recurring revenue model(5), build on this momentum, and enhance our global competitive position as we progress toward our 2028 financial targets”.
