Light & Wonder, Inc. Reports Fourth Quarter and Full Year 2025 Results

Achieved Full Year Net Income of $276 Million and Record Consolidated AEBITDA⁽¹⁾ of $1.44 Billion and Adjusted NPATA⁽¹⁾ of $567 Million

Continued Strong Performance in North America with over 700 Gaming Operations Units⁽²⁾ Added Sequentially and over 2,680 Units in North America Year-over-Year, with Grover Adding 345 Units Sequentially

Record Quarterly North American Gaming Machine Unit Shipments of 7,000 Units

Margin Enhancement Initiatives Drove Profitability Expansion across All Businesses

Grew Cash Flows from Operating Activities by 26% Year-over Year to $794 Million and Free Cash Flow by 42% Year-over-Year to $452 Million during 2025

Returned $877 Million of Capital to Shareholders through Share Repurchases during 2025, Including $500 Million in Q4

Successfully Transitioned to Sole ASX Listing

LAS VEGAS — February 24, 2026 — Light & Wonder, Inc. (ASX: LNW) (“Light & Wonder,” “L&W,” “we” or the “Company”) today reported results for the fourth quarter and fiscal year ended December 31, 2025.

Light & Wonder delivered a strong finish to 2025, achieving solid financial results underpinned by disciplined execution and robust game performance, while completing its three-year financial targets and value creation cycle. Fourth quarter consolidated revenue increased 12% to $891 million, while we incurred a net loss of $15 million or net loss per share⁽³⁾ of $0.19, a decrease of 114% or 116% on a per-share basis, compared to the prior year period. Net loss was impacted by approximately $128 million legal settlement charge associated with a strategic resolution of the Aristocrat matter, $25 million contingent acquisition consideration fair value adjustment, and $18 million in Australian Securities Exchange (“ASX”) transition costs.

During the fourth quarter, all three businesses delivered record AEBITDA, with Consolidated AEBITDA⁽¹⁾ up 29% to $405 million, and Adjusted NPATA⁽¹⁾ up 27% to $161 million, resulting in 38% growth on a per share basis⁽¹⁾⁽³⁾ to $1.96 as compared to the prior year.

Gaming revenue increased 17% year-over-year to $602 million in the fourth quarter, driven primarily by record Gaming machine sales of $234 million, up 20%, along with Gaming operations revenue, which increased 35% to $237 million. We shipped a record 7,000 North American units this quarter, while North American Gaming operations premium installed base grew for 22 consecutive quarters adding over 700 units during the fourth quarter.

Grover charitable gaming (“Grover”) expanded its footprint by 345 units on a sequential basis and successfully entered the Indiana market.

iGaming once again delivered quarterly record revenue and AEBITDA on continuing U.S. momentum underpinned by first-party content proliferation and partner network growth, while SciPlay continued to grow its direct-to-consumer (“DTC”) revenue.

For the full year, we delivered $3.3 billion in consolidated revenue and $276 million of net income, an increase of 4% and decrease of 18%, respectively, compared to the prior year period, and $3.26 of net income per share⁽³⁾. The net income and net income per share⁽³⁾ were primarily impacted by $128 million legal settlement charge associated with a strategic resolution of the Aristocrat matter, a $25 million contingent acquisition consideration fair value adjustment, and $37 million related to ASX transition and Grover acquisition related costs.

Consolidated AEBITDA⁽¹⁾ grew 16% to $1.44 billion, and Adjusted NPATA⁽¹⁾ increased 18% to $567 million, or to $6.69 on a per share basis⁽¹⁾⁽²⁾, an increase of 27%. These results are consistent with the Company’s previously provided 2025 financial outlook, which called for $1.43 billion to $1.47 billion of Consolidated AEBITDA⁽¹⁾ and $550 million to $575 million of Adjusted NPATA⁽¹⁾. The Company remains committed to its ambitious FY 2028 financial targets⁽³⁾.

During FY 2025, we returned $877 million to shareholders through share or CHESS Depositary Interests (“CDIs”) repurchases at an average price of $86.80. With approximately 78% of the authorized share repurchase program now complete, we have remaining capacity of $336 million.

Since initiation of the prior share repurchase program in March of 2022 and through December 31, 2025, the Company has returned $1.9 billion to shareholders by repurchasing 24.4 million shares or CDIs, representing 25% of total outstanding shares prior to the commencement of the programs⁽⁴⁾.

The Company further optimized its capital markets profile by transitioning to a sole primary listing on the ASX and extended certain debt maturities to 2033, while lowering applicable interest rates.

The completion of the three‑year financial targets cycle reflects disciplined execution, earnings strength, and cash flow delivery, positioning Light & Wonder to enter its next chapter with growing recurring revenue⁽⁵⁾, related improving cash flow momentum and balance‑sheet capacity to support continued value creation.

Light & Wonder is pleased to resolve the recent litigation dispute with a major competitor, providing finality and certainty for all stakeholders. This settlement protects the interests of our customers, employees, and shareholders, and allows us to continue our focus on delivering the market-leading content our customers expect, without distraction or disruption.

Matt Wilson, President and Chief Executive Officer of Light & Wonder, said, “We closed out 2025 with another strong quarter, delivering double-digit year-over-year growth in both revenue and cash flows. We also achieved several important milestones, including the successful acquisition and integration of Grover, accelerating our expansion in the Charitable Gaming market, and our transition to a sole primary listing on the ASX. We also continued to invest in our studios, which is paying dividends as our franchises drive strong game performance across the portfolio. Gaming momentum remained robust, with more than 700 North American Gaming operations units⁽⁶⁾ added sequentially and over 12,300 units shipped globally during the quarter, while iGaming delivered another quarterly revenue and AEBITDA records. Looking ahead, we will remain focused on investing in product innovation and talent to strengthen our recurring revenue model⁽⁵⁾, build on this momentum, and enhance our global competitive position as we progress toward our 2028 financial targets⁽³⁾.”

Oliver Chow, Chief Financial Officer of Light & Wonder, said, “The sustainable margin expansion and cash flow growth achieved in 2025 reflect our disciplined execution and focus on initiatives designed to navigate dynamic external conditions beyond our control. Importantly, we maintained our net debt leverage ratio within our targeted range⁽³⁾ following the Grover acquisition and ASX listing transition, and we expect to continue deleveraging throughout 2026, supported by the strength of our business profile, absent any high return capital allocation opportunities. Our priorities remain unchanged: disciplined cost management, sustainable margin growth, and continued improvement in both the quality and quantum of cash flows over time. This is underpinned by prudent capital allocation, including the repurchase of $877 million under our authorized $1.5 billion share repurchase program in 2025. We remain committed to reinvesting in the business to drive sustainable long-term growth, leveraging our broad portfolio of games and offerings, while remaining agile and well positioned to further enhance shareholder value.”

LEVERAGE, CAPITAL ALLOCATION AND BUSINESS UPDATE

• Returned $500 million of capital to shareholders through the repurchase of approximately 8 million shares of LNW common stock or CDIs during the quarter. The Company repurchased 10.1 million shares or CDIs and utilized $877 million of its authorized $1.5 billion share repurchase program in FY 2025, and since initiation of the prior share repurchase program in March of 2022, the Company has returned $1.9 billion to shareholders through the repurchase of 24.4 million shares, representing 25% of total outstanding shares prior to the commencement of the programs⁽¹⁾. The average purchase price since initiation of the programs through December 31, 2025 of $78.57 per share represents a 21% discount to the closing price of $99.09 (AU$140.24) on the ASX as of February 18, 2026.
• Principal face value of debt outstanding⁽²⁾ was $5.2 billion, translating to a net debt leverage ratio⁽³⁾ of 5x as of December 31, 2025 or combined net debt leverage ratio⁽³⁾ of 3.4x, which remained within our targeted net debt leverage ratio⁽⁴⁾ range of 2.5x to 3.5x, despite the accelerated pace of our share repurchases as we continued to capitalize on opportunities consistent with our capital allocation strategy. We retain a flexible capital structure that allows us to deploy balance sheet capacity opportunistically when appropriate. Our business profile enables us to de-lever through the course of 2026, courtesy of our strong operating business model.
• Sole primary listing on the ASX was completed on November 14, 2025, following our successful voluntary delisting from the Nasdaq.
• Resolved Dragon Train litigation with Aristocrat in January 2026. We agreed to pay approximately $128 million to settle the matter⁽⁵⁾. This settlement protects the interests of our customers, employees, and shareholders, and allows us to continue our focus on developing and delivering the market-leading content our customers expect, without distraction or disruption. We continue to leverage our diversified portfolio of successful game franchises to execute on our strategy and financial targets, which remain unchanged.
• Repriced our Term Loan B in January 2026, reducing applicable interest rates by 25 basis points, resulting in a decrease in annualized interest costs of approximately $5 million.