Light & Wonder, Inc. reported a 3% revenue increase for Q3 2025, driven by its Gaming and iGaming segments, alongside completing the Grover acquisition and refinancing debt with $1 billion in senior notes.
- 3% revenue growth in Q3 2025 led by Gaming and iGaming segments
- Completed $850 million Grover Charitable Gaming acquisition
- Issued $1 billion senior unsecured notes due 2033 to refinance debt
- Operating expenses declined due to cost efficiencies and lower user acquisition
- Transitioning to sole primary listing on ASX from Nasdaq
Solid Revenue Growth Amid Strategic Expansion
Light & Wonder, Inc. (ASX, LNW) delivered a steady financial performance for the quarter ended September 30, 2025, with consolidated revenue rising 3% to $841 million. This growth was primarily fueled by strong contributions from its Gaming and iGaming segments, partially offset by a slight decline in SciPlay revenue. The company’s diversified portfolio of gaming content and digital platforms continues to underpin its cross-platform strategy.
The Gaming segment saw a 4% revenue increase, bolstered by higher gaming operations revenue and the integration of Grover Charitable Gaming, acquired in May 2025. Grover, a leading provider of electronic pull-tabs across five U.S. states, contributed $40 million in revenue during the quarter, enhancing Light & Wonder’s exposure to the charitable gaming market.
Grover Acquisition and Debt Refinancing Strengthen Financial Position
The acquisition of Grover was financed through an $800 million term loan under the LNWI Credit Agreement A, maturing in 2028. Subsequently, Light & Wonder issued $1 billion in 6.25% senior unsecured notes due 2033, using the proceeds to redeem $700 million of 2028 notes and repay revolver borrowings. This refinancing extended debt maturities and lowered interest costs, reflecting prudent capital management amid ongoing expansion.
Operating expenses decreased by 7% year-over-year, driven by cost efficiencies and reduced user acquisition expenses, particularly within SciPlay. However, depreciation and amortization expenses rose 13%, reflecting asset additions from the Grover acquisition and increased investments in gaming operations.
Digital and iGaming Momentum Continues
Light & Wonder’s iGaming segment posted a 16% revenue increase for the quarter, supported by growth in North American markets and expansion of its partner network. The company’s proprietary first-party content and platform capabilities continue to gain traction, contributing to improved margins and higher adjusted EBITDA.
Conversely, SciPlay experienced a modest revenue decline of 4%, attributed to a decrease in average monthly payers, notably in its flagship JACKPOT PARTY® Casino. Nonetheless, average revenue per paying user increased, reflecting effective monetization strategies and the growing contribution of its proprietary direct-to-consumer platform.
Navigating Risks and Regulatory Changes
Light & Wonder is actively managing risks related to recent U.S. and international trade tariffs, geopolitical tensions, and ongoing litigation. The company has implemented supply chain mitigation strategies and operational efficiencies to offset tariff-related cost pressures. Legal contingencies include multiple lawsuits and arbitration proceedings, with some settlements reached and others pending, underscoring the complex regulatory environment in which the company operates.
Additionally, Light & Wonder is progressing with its transition to a sole primary listing on the Australian Securities Exchange (ASX), expected to take effect in November 2025. This move aims to enhance liquidity and market presence in the Asia-Pacific region, although it carries potential risks related to trading volumes and investor access.
Strong Liquidity and Shareholder Returns
As of September 30, 2025, the company held $236 million in cash and maintained a $1 billion revolving credit facility, supporting robust liquidity. Light & Wonder has returned $477 million to shareholders year-to-date through share repurchases, completing over half of its $1.5 billion authorized buyback program. This reflects management’s confidence in the company’s financial strength and growth prospects.
Bottom Line?
With strategic acquisitions, debt refinancing, and a focused ASX listing transition, Light & Wonder is positioning itself for sustained growth amid evolving market dynamics.
Questions in the middle?
- How will the integration of Grover impact Light & Wonder’s long-term revenue mix and margins?
- What are the potential financial implications of ongoing and pending litigation for the company?
- How might the transition to a sole ASX listing affect liquidity and investor engagement?