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Light & Wonder, Inc. LNW reported modest first-quarter 2025 results, wherein the adjusted earnings surpassed the respective Zacks Consensus Estimate while revenues missed the same.
The Las Vegas-based cross-platform games and entertainment company reported year-over-year revenue growth, demonstrating the strength of its portfolio and resilient business model. Management’s strong emphasis on implementing automation, standardization, AI tools and process development to drive organizational efficiency and scalability is a tailwind.
Bottom Line
Net income for the reported quarter remained unchanged at $82 million or 94 cents per share compared with $82 million or 88 cents per share in the prior-year quarter, as higher revenues and strong margins were offset by increased restructuring charges and a higher income tax expense. Nevertheless, quarterly earnings comprehensively beat the Zacks Consensus Estimate by 18 cents. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)
Light & Wonder, Inc. Price, Consensus and EPS Surprise
Light & Wonder, Inc. price-consensus-eps-surprise-chart | Light & Wonder, Inc. Quote
Revenues
Total revenues for first-quarter 2025 rose to $774 million from $756 million in the prior-year quarter, backed by healthy growth across multiple business segments. This is the 16th consecutive quarter of year-over-year consolidated revenue growth for the company. While Services revenues increased to $527 million from $517 million, Products revenues grew 3.34% year over year to $247 million. However, the top line missed our consensus estimate of $809 million.
Gaming revenues were $495 million, up 4% year over year, led by growth across all business lines and supported by a diverse product portfolio. Demand for COSMIC, COSMIC UPRIGHT and HORIZON cabinets also remained strong.
SciPlay generated $202 million in revenues, down 2% year over year, yet continued to outperform the broader social casino market, supported by strong player engagement.
iGaming revenues increased 4% year over year to $77 million. Healthy traction in North America, record content launch and continued global market growth fueled net sales in this segment.
Other Details
Non-GAAP consolidated AEBITDA improved to $311 million from $281 million in the year-ago quarter, reflecting a return to normalized growth. This improvement was primarily driven by revenue expansion and sustained margin strength across multiple verticals. AEBITDA margin improved to 40% from the prior-year quarter’s tally of 37%.