Light & Wonder reported a slight revenue dip in Q2 2025 but expanded earnings and margins, fueled by its $850 million Grover acquisition and a strategic shift to a sole ASX listing.
- Q2 2025 revenue down 1% to $809 million; six-month revenue steady at $1.6 billion
- Completed $850 million acquisition of Grover Charitable Gaming in May 2025
- Earnings growth and margin expansion across Gaming, SciPlay, and iGaming segments
- Board approved an additional $500 million share buyback program
- Plan to delist from Nasdaq and maintain sole primary listing on ASX by November 2025
Quarterly Performance Amid Macroeconomic Challenges
Light & Wonder, Inc. (LNW) released its financial results for the quarter ended June 30, 2025, reporting a modest 1% decline in consolidated revenue to $809 million compared to the prior year. Despite this slight dip, the company maintained stable revenue of $1.6 billion for the first half of the year. The results reflect a cautious consumer environment and delayed capital expenditures among some customers, influenced by ongoing macroeconomic uncertainties and new trade tariffs.
Strategic Acquisition Expands Charitable Gaming Footprint
In a significant strategic move, Light & Wonder completed the acquisition of Grover Charitable Gaming for an upfront $850 million in May 2025, with potential contingent payments of up to $200 million tied to revenue milestones over four years. Grover, a leading provider of electronic pull-tabs, operates across five U.S. states, adding over 11,000 active units and 1,500 locations to Light & Wonder’s portfolio. This acquisition broadens the company’s reach into charitable gaming and complements its core Gaming segment.
Segment Highlights and Operational Efficiencies
The company reported earnings growth and margin expansion across all three reportable segments, Gaming, SciPlay, and iGaming. Gaming revenue showed resilience with a 1% increase year-to-date, supported by strong game franchises and Grover’s contribution. SciPlay experienced a slight 2% revenue decline due to lower average monthly payers but improved monetization per user. iGaming revenue grew 9% in Q2, driven by North American market momentum and partner network expansion. Operational efficiencies and margin enhancement initiatives helped mitigate cost pressures from tariffs and inflation.
Capital Management and Shareholder Returns
Light & Wonder’s Board approved an additional $500 million share repurchase authorization, building on the $1 billion program initiated in mid-2024. The company returned $266 million to shareholders through buybacks in the first half of 2025, reflecting confidence in its capital allocation strategy. On the debt front, the company amended its credit facilities, increasing revolving commitments to $1 billion and securing an $800 million term loan to finance the Grover acquisition.
Transition to Sole ASX Listing
In a notable corporate governance development, Light & Wonder announced plans to transition from its current dual listing on Nasdaq and the Australian Securities Exchange (ASX) to a sole primary listing on the ASX by the end of November 2025. This move aims to enhance liquidity and market capitalization on the ASX, though it carries potential risks related to trading volumes and investor access during the transition.
Legal and Regulatory Landscape
The company disclosed ongoing legal proceedings, including intellectual property disputes with Aristocrat Technologies and Evolution Malta, as well as multiple arbitration and class action matters related to its SciPlay segment. While management remains confident in its defenses, these cases introduce uncertainties that could affect future financial outcomes. Additionally, Light & Wonder continues to monitor geopolitical risks, including the situation in Israel where a significant portion of SciPlay’s personnel is based, and the impact of trade tariffs on its supply chain.
Bottom Line?
As Light & Wonder integrates Grover and navigates its ASX-only listing, investors will watch closely how it balances growth ambitions with evolving market and regulatory challenges.
Questions in the middle?
- How will the Grover acquisition impact Light & Wonder’s long-term revenue mix and profitability?
- What are the potential market liquidity and valuation effects of the Nasdaq delisting and sole ASX listing?
- How effectively can the company mitigate tariff-related cost pressures amid ongoing global trade uncertainties?