Light & Wonder Q2: Net Income Up 16%, Grover Acquisition Ahead of Schedule

Strong Earnings Amid Market Uncertainty

Light & Wonder, Inc. (ASX/NASDAQ, LNW) delivered a resilient second quarter in 2025, reporting a 16% increase in net income to $95 million despite a slight 1% dip in consolidated revenue to $809 million. The company attributed this performance to disciplined cost management, operational efficiencies, and strong game performance across its segments, even as macroeconomic uncertainty tempered customer purchasing behavior and delayed capital expenditures.

Margin expansion was a highlight, with consolidated adjusted EBITDA rising 7% to $352 million. The diversified business model, spanning gaming operations, social casino (SciPlay), and iGaming, helped offset near-term volatility. Notably, iGaming revenue surged 9% to a quarterly record $81 million, while SciPlay continued to outpace the social casino market despite a modest 2% revenue decline.

Grover Acquisition Accelerates Growth

The company completed its strategic acquisition of Grover Gaming’s charitable gaming business in May 2025 for $850 million, integrating the business ahead of schedule. Grover contributed $21 million in revenue during Q2 and added over 600 active units since the acquisition announcement, bolstering Light & Wonder’s North American installed base. This segment’s installed units grew 9% year-over-year, marking the 20th consecutive quarterly increase in the premium installed base.

Grover’s addition has enhanced the company’s footprint in charitable gaming across five U.S. states, positioning Light & Wonder for further growth opportunities in this niche market. The acquisition was financed through an $800 million term loan, with management maintaining a net debt leverage ratio within targeted ranges despite accelerated share repurchases.

Strategic Shift to Sole ASX Listing

In a significant corporate move, Light & Wonder’s Board approved transitioning from a dual listing on Nasdaq and the ASX to a sole primary listing on the Australian Securities Exchange. The company expects to delist from Nasdaq by the end of November 2025, pending regulatory approvals. This decision aligns with the company’s strategic focus on its shareholder base and long-term growth plans.

Since launching the secondary ASX listing in May 2023, ASX trading now accounts for approximately 37% of total equity. The Board believes the sole ASX listing will enhance shareholder value and simplify capital market presence. The company has engaged prominent advisors including Barrenjoey Advisory, Goldman Sachs, and J.P. Morgan to facilitate the transition.

Capital Management and Outlook

Light & Wonder demonstrated strong capital discipline, returning $266 million to shareholders through share repurchases in the first half of 2025 and increasing its authorized buyback program from $1 billion to $1.5 billion. Management expects to utilize at least half of the remaining $950 million capacity before the Nasdaq delisting, reflecting confidence in the company’s near- and long-term prospects.

For the full year 2025, the company provided guidance for consolidated adjusted EBITDA between $1.43 billion and $1.47 billion and adjusted NPATA (net profit after tax and amortization) between $550 million and $575 million, inclusive of Grover contributions. Earnings are anticipated to be weighted toward the second half, with growth accelerating in the fourth quarter driven by international game sales timing.

CEO Matt Wilson emphasized ongoing R&D investment and cross-platform content proliferation as key drivers for sustained growth, while CFO Oliver Chow highlighted margin expansion and disciplined resource allocation as foundations for financial strength. The company remains committed to its long-term blueprint focused on quality earnings and sustainable value creation.