Light & Wonder’s 2025 Financial Overview Impacted by Dragon Train Litigation

Light & Wonder Reports Mixed 2025 Results Amid Legal Challenges

Light & Wonder, a prominent gaming content provider, revealed its financial outcomes for the last quarter of 2025 along with full-year performance. Despite strong operational achievements, the overall results were tempered by significant legal expenses linked to the Dragon Train lawsuit.

Strong Revenue Growth Overshadowed by Legal Settlement Costs

During the fourth quarter of 2025, Light & Wonder achieved consolidated revenue of $891 million, marking a 12% increase compared to the previous year. Nevertheless, the company experienced a net loss of $15 million, translating to a loss of $0.19 per share, primarily due to a substantial $128 million charge related to a legal settlement over the Dragon Train dispute.

In addition to this, the company accounted for a $25 million adjustment in contingent acquisition considerations and incurred $18 million in expenses associated with transitioning to the Australian Securities Exchange.

Despite these financial setbacks, Light & Wonder’s core business segments excelled, delivering a record adjusted EBITDA of $405 million, a 29% rise year-over-year. Adjusted NPATA also increased by 27%, reaching $161 million.

Segment Performance Highlights

The Gaming division excelled with a 17% revenue boost to $602 million, driven especially by record sales of gaming machines in North America. The Grover charitable gaming sector also grew significantly, expanding its unit count by 345. Additionally, the iGaming segment achieved another record quarter in both revenue and adjusted EBITDA.

Annual Financial Summary

For the entire fiscal year, Light & Wonder’s consolidated revenue reached $3.3 billion, a 4% increase, while net income fell by 18% to $276 million, influenced heavily by the legal settlement provisions. The company’s annual adjusted EBITDA totaled $1.44 billion, up 16% year-over-year, and adjusted NPATA rose 18% to $567 million.

Notably, the company closed the year with debt amounting to $5.2 billion.

Light & Wonder confirmed that these results aligned with its forecasts and expressed optimism about achieving its 2028 strategic goals.

Key Highlights from 2024 to 2025

The company returned $877 million to shareholders during 2024 through share buybacks and CHESS Depository Interests repurchases. Since March 2022, a total of $1.9 billion has been returned to shareholders via these methods.

Another significant development was the transition to a sole primary listing on the Australian Securities Exchange, simplifying the company’s market presence.

Furthermore, Light & Wonder successfully settled a long-standing legal dispute with Aristocrat. Although the settlement affected financial results temporarily, it ensures protection for customers, employees, and shareholders moving forward.

The dispute originated from similarities between Light & Wonder’s Dragon Train game and Aristocrat’s Dragon Link, involving comparable mathematical models which led to extended litigation. Ultimately, the companies resolved their differences with Light & Wonder agreeing to compensation, allowing the business to refocus on innovation and content development.

Leadership’s Positive Outlook

Matt Wilson, President and CEO, described the fourth quarter as “another strong quarter” highlighted by double-digit growth in both revenue and cash flow. He praised the team’s achievements and reaffirmed confidence in meeting the company’s 2028 targets.

Chief Financial Officer Oliver Chow emphasized the company’s dedication to ongoing growth through reinvestment and strengthening its diverse portfolio of games. He highlighted a commitment to agility and enhancing shareholder value in the long term.