Reduced revenue, increased profit recorded by Light & Wonder in Q2 financial reports
Light & Wonder Reports Q2 2025 Earnings Amid Macroeconomic Uncertainty
Light & Wonder, a leading game manufacturer, has reported its second-quarter earnings for the year 2025. The company's revenue slightly decreased by 1.1% year-on-year to $809 million, missing analyst estimates by 4.4%. This decline was mainly due to macroeconomic uncertainty leading to cautious purchasing and delayed game sales by customers.
However, the company managed to beat estimates in other key areas. Adjusted EPS was $1.58, a significant 12.7% higher than expected, driven by lower costs and improved margins. Net income increased by 16% to $95 million, and adjusted EBITDA rose by 7% to $352 million, with a 25% operating margin, up from 21.4% the previous year.
The company's cash flow also grew by 7% to $352 million. Light & Wonder ended the quarter with a cash on hand of $136 million and a debt of $4.9 billion.
Grover Gaming Acquisition Boosts Business
The successful acquisition of Grover Charitable Gaming, announced in February 2025, has positively impacted Light & Wonder's business. The operational integration of Grover was ahead of schedule, and over 600 new units were added, contributing to the company's gaming operations. It's worth noting that these sales were in pre-existing Grover jurisdictions.
Despite near-term volatility, the gaming business managed to sell over 9,000 new units globally, maintaining its market share.
Share Repurchase Program Progresses
Light & Wonder's share repurchase program has made significant progress. In the first half of 2025, the company returned $266 million to shareholders, completing approximately 55% of its $1 billion buyback plan authorized in June 2024. On July 31, 2025, the company increased this program from $1 billion to $1.5 billion, reflecting its confidence in its outlook and commitment to capital management and shareholder value creation.
Since the initiation of the share repurchase program in March of 2022, Light & Wonder has returned $1.3 billion or 17.3 million shares, representing 18% of total outstanding shares prior to the commencement of the programs. The ASX now accounts for approximately 37% of Light & Wonder's total equity.
Transition to Sole ASX Listing
Light & Wonder's Chairman, Jamie Odell, believes that moving to a sole primary ASX listing is in the best long-term interests of shareholders. CFO Oliver Chow expects a smooth transition to this new setup.
CEO Matt Wilson stated that the integration of Grover Gaming is progressing ahead of schedule, and he is confident that it will deliver tremendous shareholder value. Wilson is also optimistic about the Nasdaq delisting, believing it will bring significant value to shareholders.
The company's leverage-to-cash flow ratio stands at 3.7, indicating a manageable level of debt.
In conclusion, while macroeconomic uncertainty has caused subdued revenue performance for Light & Wonder, the company's strategic acquisitions, share repurchase program, and operational integration are all progressing positively, signaling a strong future for the company.
In the face of macroeconomic uncertainty, Light & Wonder, a leading game manufacturer, reported a slight decrease in Q2 2025 revenue, but managed to beat estimates in other key areas, such as adjusted EPS and net income, through lower costs and improved margins.
The successful acquisition of Grover Charitable Gaming not only positively impacted Light & Wonder's business by boosting its gaming operations but also added over 600 new units and maintained its market share, with sales in pre-existing Grover jurisdictions.
