Light & Wonder Inc. Earnings Call Highlights Growth and Challenges

Light & Wonder Inc. ((LNW)) has held its Q1 earnings call. Read on for the main highlights of the call.

Light & Wonder Inc. recently held its earnings call, revealing a cautiously optimistic outlook for the company. The discussion highlighted significant growth in EBITDA and strong performance in North American gaming operations, alongside record achievements in SciPlay and iGaming. Despite these successes, challenges such as weather impacts, a decline in international sales, and tariff-related supply chain issues were also acknowledged. Overall, the positive developments and growth prospects were seen to outweigh the concerns, leading to a generally favorable sentiment.

Double-Digit EBITDA Growth

The company announced a return to double-digit consolidated EBITDA growth, with an impressive 11% increase in the first quarter of 2025. This growth brought EBITDA to $311 million, up from $281 million the previous year, showcasing the company’s robust financial health.

Strong North American Gaming Operations

Light & Wonder’s North American gaming operations demonstrated strength by adding approximately 500 units to its installed base, reaching over 34,000 units, with 51% classified as premium. The company also achieved a notable 400 basis point share gain in North American game sales, reaching 24% in 2024.

Record Performance in SciPlay

SciPlay continued its impressive streak with QuickHit Slots achieving its thirteenth consecutive record revenue and 88 Fortunes marking three consecutive quarters of record revenues, reflecting consistent growth and strong market presence.

iGaming Market Expansion

The iGaming segment experienced substantial growth, with a 3011% increase in GGR in the U.S. and Canada markets year over year. This expansion was driven by successful first-party game launches and exclusive partnerships, underscoring the company’s strategic market positioning.

Strategic Acquisition of Grover Gaming

The strategic acquisition of Grover Gaming’s charitable gaming asset is expected to bolster Light & Wonder’s position as a leading cross-platform global games company. With licensing approvals on track, the transaction is anticipated to close by the second quarter.

Weather Impact on North American Gaming Ops

Weather conditions, particularly in the Northeast, adversely affected the average revenue per day for North American gaming operations, impacting the WAP product.

International Gaming Business Decline

The international gaming business faced challenges with a 10% year-on-year reduction in the volume of unit sales, attributed to previously elevated sales levels.

Impact of Tariffs and Supply Chain Challenges

The company is actively navigating tariffs affecting input costs and supply chain issues. Mitigation strategies, including supply chain reconfiguration and inventory management, are being implemented to address these challenges.

Forward-Looking Guidance

During the earnings call, Light & Wonder provided forward-looking guidance, emphasizing their strategic direction and strong performance. The company reported a 2% increase in consolidated revenue to $774 million, driven by gaming and iGaming businesses, and a 16th consecutive quarter of revenue growth. With a reaffirmed 2025 consolidated EBITDA target of $1.4 billion, excluding Grover acquisition contributions, the company is focusing on ongoing investments in R&D, supply chain optimization, and strategic growth initiatives.

In conclusion, Light & Wonder’s earnings call painted a picture of a company on a positive trajectory, with strong EBITDA growth and robust performances across key segments. While challenges persist, the company’s strategic initiatives and market expansions provide a solid foundation for future growth.