Light & Wonder Q2 2025 revenue hits $809M, iGaming rises

Light & Wonder has released its financial results for the second quarter of fiscal year 2025, reporting revenue of $809 million. Although this marks a slight year-on-year decline of 1%, the company’s net income rose significantly by 16% to reach $95 million. The firm also reported a 7% increase in adjusted EBITDA, which stood at $352 million for the quarter. These results underscore the company’s continued focus on margin improvement, disciplined capital allocation, and strategic investments in high-potential segments.

Net income growth reflects strong margin management

Despite facing slight topline pressure, Light & Wonder’s financial performance in Q2 2025 was buoyed by enhanced cost controls and improved operational efficiency. The company’s net income rose from $82 million in Q2 2024 to $95 million in the most recent quarter, signaling continued success in its long-term strategy aimed at profit maximization and shareholder value.

A contributing factor to the positive income trajectory has been the company’s sustained focus on cost discipline. Total operating expenses declined by $36 million year-on-year, standing at $607 million for Q2 2025. Among these, selling, general and administrative (SG&A) expenses remained the largest line item, totaling $208 million.

The increase in net income, despite a modest contraction in revenue, demonstrates Light & Wonder’s ability to deliver shareholder value through judicious financial management and consistent operational discipline.

iGaming segment leads growth with strong partner expansion

Among the company’s three major operating segments—Gaming, SciPlay, and iGaming—it was the iGaming division that posted the most impressive growth. Revenue in this segment rose 9% year-on-year to $81 million, underpinned by platform innovation, improved content offering, and a broadened partner base.

Adjusted EBITDA for the iGaming segment surged 17% to $28 million, reflecting both increased revenues and improving operating leverage. This performance builds on a strong Q1, in which iGaming revenue had already risen by 4%, along with a record $25.2 billion in total wagers processed.

The company attributed the segment’s success to continued innovation in its proprietary technology platforms and the development of high-quality digital gaming content tailored for regulated markets.

Gaming revenue sees minor dip amid soft machine sales

The Gaming segment, which remains Light & Wonder’s largest revenue contributor, generated $528 million in Q2 2025. This represents a 2% decline compared to the same quarter in 2024. The downturn was largely driven by a 16% decrease in machine sales and an 11% drop in revenue from gaming systems.

Despite these headwinds, adjusted EBITDA for the Gaming division increased 3% to $280 million, demonstrating that Light & Wonder was able to extract greater value from a smaller revenue base through cost efficiencies and margin optimization.

This performance followed a stronger first quarter, where Gaming revenue had grown 4% to $495 million. The latest results reflect a temporary softness in machine demand, which the company expects to normalize in the coming quarters, particularly as new content titles and hardware are rolled out.

SciPlay segment faces user base decline

The SciPlay business, which includes a portfolio of social casino and mobile games, posted revenue of $200 million in Q2 2025, down 2% year-on-year. The segment experienced a decrease in monthly active users, especially in its flagship title, Jackpot Party Casino. However, this was partially offset by a rise in average monthly revenue per paying user, indicating improved monetization.

Adjusted EBITDA for SciPlay rose 6% to $74 million in Q2, highlighting the segment’s operational resilience and strength in its direct-to-consumer model. In the previous quarter, SciPlay revenue had also declined 2%, but EBITDA had risen by 3%.

The company emphasized that it remains committed to product innovation and user engagement strategies to stabilize and eventually grow SciPlay’s user base in future quarters.

Acquisition of Grover Gaming positions company for long-term growth

A significant development in the quarter was the integration of Grover Gaming’s charitable gaming business. Light & Wonder completed the acquisition in May 2025, with an upfront payment of $850 million. The acquired business operates in a niche, highly regulated vertical within five U.S. states, positioning Light & Wonder for diversified, long-term revenue generation.

Financing for the acquisition was secured through an $800 million Term Loan A facility. This acquisition marks another step in the company’s strategy to expand its footprint in complementary markets with high regulatory barriers to entry and strong recurring revenue potential.

The integration process is currently underway and is expected to conclude by the end of 2025. Light & Wonder anticipates operational synergies and long-term EBITDA contributions from the newly acquired business.

Strategic shift in global listing approach

In another key strategic move, Light & Wonder announced its intention to delist from the Nasdaq Stock Exchange and maintain a sole listing on the Australian Stock Exchange (ASX) by November 2025. The decision is aimed at streamlining regulatory oversight and focusing investor engagement in a single jurisdiction.

The company noted that this shift aligns with its broader capital market strategy and reflects the growing significance of its investor base in the Asia-Pacific region.

Continued investment in international expansion

In July 2025, Light & Wonder received a vendor license in the United Arab Emirates (UAE), authorizing the company to provide land-based gaming machines, table games, and iGaming content to licensed operators in the region. This regulatory milestone opens a new and promising international growth channel for the company, particularly as the UAE gaming market begins to formalize under new legislative frameworks.

The UAE license follows Light & Wonder’s broader international expansion strategy, which includes targeting regulated, high-growth jurisdictions outside of its core North American markets.

Share buy-back program gains momentum

The company also reported progress on its share repurchase program, which was bolstered by an additional $500 million in authorized buy-back capacity during the quarter. In fiscal year 2024, Light & Wonder repurchased $462 million in shares, reinforcing its commitment to returning capital to shareholders.

The share buy-back initiative is part of a broader capital allocation framework that includes strategic acquisitions, debt reduction, and targeted reinvestments in product development and market expansion.

Financial outlook remains strong

Light & Wonder reaffirmed its full-year 2025 guidance, projecting adjusted EBITDA between $1.43 billion and $1.47 billion. In Q1 2025, the company had reported revenue of $774 million and adjusted EBITDA of $311 million, underscoring consistent performance across the first half of the fiscal year.

For fiscal year 2024, the company posted $3.2 billion in revenue—an increase of 10%—along with net income of $336 million. With a net leverage ratio maintained within its target range of 2.5x to 3.5x, Light & Wonder enters the second half of the year on solid financial footing.

Conclusion

While the second quarter of 2025 presented challenges in the form of modest revenue contraction, Light & Wonder continues to demonstrate resilience and forward momentum. Its ability to expand EBITDA, grow net income, and maintain disciplined cost structures, even amid short-term volatility in machine and social casino segments, speaks to the robustness of its long-term strategy.

The Grover Gaming acquisition, UAE licensing, and share buy-back program signal a clear roadmap focused on diversification, shareholder returns, and global growth. Light & Wonder appears well-positioned to continue executing its operational strategy with a measured, value-oriented approach.

FAQs

What were Light & Wonder’s total revenues for Q2 2025?
Light & Wonder reported $809 million in revenue for the second quarter of 2025, reflecting a 1% year-on-year decrease.

Which segment showed the strongest revenue growth in Q2 2025?
The iGaming segment led growth with a 9% increase in revenue, driven by partner expansion and platform innovation.

How much did net income increase in Q2 2025?
Net income rose 16% compared to the prior year, reaching $95 million in Q2 2025.

What was the main reason for the decline in Gaming revenue?
The decline was primarily due to a 16% reduction in machine sales and an 11% drop in gaming systems revenue.

Did the SciPlay segment experience user growth?
No, SciPlay saw a decline in monthly active users, although average revenue per paying user increased.

What is the significance of the Grover Gaming acquisition?
The $850 million acquisition expands Light & Wonder's reach into the regulated charitable gaming sector across five U.S. states.

Why is Light & Wonder delisting from Nasdaq?
The company plans to streamline its capital markets strategy by maintaining a sole listing on the Australian Stock Exchange.

What regulatory milestone did Light & Wonder achieve in the UAE?
In July 2025, Light & Wonder received a vendor license to offer gaming products and content in the UAE.

How much has been allocated to the share repurchase program?
An additional $500 million was authorized for share repurchases in Q2 2025, following $462 million in buy-backs during 2024.

What is the company’s full-year 2025 adjusted EBITDA guidance?
Light & Wonder projects adjusted EBITDA between $1.43 billion and $1.47 billion for fiscal year 2025.