Light & Wonder (LNW) AI Stock Analysis

• Market Cap: $6.57B
• Dividend Yield: N/A
• Average Volume (3M): 1.30M
• Price to Earnings (P/E): 17.6
• Beta (1Y): 1.10
• Revenue Growth: 1.87%
• EPS Growth: 42.43%
• Country: US
• Employees: 6,800
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Gambling, Resorts & Casinos
• EPS (TTM): 1.34
• Shares Outstanding: 81,523,880
• 10 Day Avg. Volume: 2,014,647
• 30 Day Avg. Volume: 1,302,506
• PEG Ratio: 0.21
• Price to Book (P/B): 12.09
• Price to Sales (P/S): 2.41
• P/FCF Ratio: 22.75
• Enterprise Value/Market Cap: 1.80
• Enterprise Value/Revenue: 3.66
• Enterprise Value/Gross Profit: 6.87
• Enterprise Value/Ebitda: 12.10
• 1Y Price Target: $104.77
• Price Target Upside: 17.60% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 64 Neutral
• Price Target: $95.00 ▲(6.63% Upside)

Light & Wonder's overall stock score is driven by strong earnings performance and strategic growth initiatives, as highlighted in the earnings call. However, financial performance is impacted by high leverage and declining revenue growth. Technical indicators suggest potential bearish momentum, and valuation metrics indicate moderate attractiveness. The absence of a dividend yield is a minor drawback.

Positive Factors

Recurring Revenue Growth

A strong increase in recurring revenue indicates a stable and predictable income stream, enhancing long-term financial stability and supporting strategic growth initiatives.

iGaming Performance

The growth in iGaming revenue highlights the company's successful adaptation to digital trends, positioning it well in the expanding online gaming market.

Capital Allocation Strategy

Effective capital allocation through share repurchases demonstrates management's commitment to enhancing shareholder value and confidence in future growth prospects.

Negative Factors

High Leverage

The high leverage poses a risk to financial stability, potentially limiting the company's ability to invest in growth opportunities and manage economic downturns.

Declining Revenue Growth

A decline in revenue growth indicates potential challenges in maintaining market share and competitiveness, which could impact long-term profitability.

International Market Challenges

Challenges in international markets may hinder global expansion efforts and revenue diversification, affecting the company's growth trajectory.

Light & Wonder Business Overview & Revenue Model

Company Description

Light & Wonder (LNW) is a global leader in the gaming and entertainment industry, specializing in digital gaming solutions and casino management systems. The company operates across various sectors, including gaming machines, table games, and digital gaming, offering innovative products and services that enhance player experiences and optimize casino operations. LNW focuses on delivering cutting-edge technology and engaging content to both land-based and online gaming markets, positioning itself as a key player in the evolving landscape of the gaming industry.

How the Company Makes Money

Light & Wonder generates revenue through multiple streams, primarily by selling gaming machines and systems to casinos and gaming operators. The company offers a range of products including slot machines, table games, and interactive gaming solutions, which are sold or leased to clients. Additionally, LNW provides casino management systems that help operators manage gaming operations more efficiently, contributing to recurring revenue through service agreements and software licensing. The company also earns revenue from its digital gaming segment, which includes online gaming platforms and mobile applications. Strategic partnerships with various online gaming operators and platforms further enhance LNW's earnings potential, as they expand the distribution of its digital content. Furthermore, LNW benefits from the growing trend of online and mobile gaming, which has been accelerated by technological advancements and changing consumer preferences.

Light & Wonder Financial Statement Overview

Summary

Light & Wonder demonstrates strong profitability and operational efficiency, with solid EBIT and EBITDA margins. However, challenges include declining revenue growth and high leverage, which could impact financial stability. Cash flow management is stable but shows room for improvement.

Income Statement

Light & Wonder shows strong profitability with a healthy gross profit margin of 71.63% and a net profit margin of 10.92% for the TTM. However, the revenue growth rate has declined by 28.1% in the TTM, indicating potential challenges in maintaining revenue levels. The EBIT and EBITDA margins are solid at 22.93% and 34.81%, respectively, reflecting efficient operational management.

Balance Sheet

The company has a high debt-to-equity ratio of 6.96, suggesting significant leverage and potential financial risk. However, the return on equity is strong at 49.57%, indicating effective use of equity to generate profits. The equity ratio is relatively low, which could be a concern for financial stability.

Cash Flow

Operating cash flow is robust with a coverage ratio of 0.87, but free cash flow has decreased by 8.9% in the TTM. The free cash flow to net income ratio is 0.44, suggesting moderate efficiency in converting net income into free cash flow. Overall, cash flow management appears stable but shows room for improvement.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.22B	3.19B	2.90B	2.51B	2.15B	1.70B
Gross Profit	1.72B	2.26B	2.03B	1.77B	1.54B	1.09B
EBITDA	976.00M	1.07B	898.00M	584.00M	582.00M	148.00M
Net Income	399.00M	336.00M	163.00M	3.67B	371.00M	-569.00M
Balance Sheet
Total Assets	6.51B	5.42B	5.55B	6.01B	7.88B	7.98B
Cash, Cash Equivalents and Short-Term Investments	324.00M	196.00M	425.00M	914.00M	585.00M	928.00M
Total Debt	4.99B	3.92B	3.93B	3.95B	8.75B	9.36B
Total Liabilities	5.79B	4.79B	4.79B	4.85B	9.99B	10.51B
Stockholders Equity	723.00M	636.00M	765.00M	990.00M	-2.26B	-2.65B
Cash Flow
Free Cash Flow	389.00M	338.00M	348.00M	-597.00M	514.00M	281.00M
Operating Cash Flow	677.00M	632.00M	590.00M	-381.00M	685.00M	471.00M
Investing Cash Flow	-1.11B	-258.00M	-251.00M	6.12B	-442.00M	-173.00M
Financing Cash Flow	350.00M	-577.00M	-292.00M	-5.46B	-679.00M	463.00M

Light & Wonder Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 89.09
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LNW, the sentiment is Positive. The current price of 89.09 is above the 20-day moving average (MA) of 76.27, above the 50-day MA of 81.98, and below the 200-day MA of 89.57, indicating a neutral trend. The MACD of -0.42 indicates Negative momentum. The RSI at 72.00 is Negative, neither overbought nor oversold. The STOCH value of 69.11 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for LNW.

Light & Wonder Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BYD	71 Outperform	$6.35B	3.55	87.17%	0.86%	5.91%	336.91%
LNW	64 Neutral	$6.57B	17.56	50.47%	―	1.87%	42.43%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
WYNN	61 Neutral	$13.12B	27.82	―	0.82%	-0.26%	-44.45%
MGM	59 Neutral	$8.93B	205.02	2.25%	―	0.05%	-94.07%
MLCO	47 Neutral	$3.32B	32.34	―	―	11.32%	―
CZR	44 Neutral	$4.05B	―	-6.06%	―	0.87%	31.28%

Light & Wonder Corporate Events

Light & Wonder Inc. Reports Strong Growth Amid Challenges

The recent earnings call for Light & Wonder Inc. painted a picture of robust growth and operational success, despite facing some challenges. The company reported strong revenue and EBITDA growth, driven by impressive performances in gaming and iGaming sectors. While there were some concerns regarding international market challenges and tariff impacts, the overall sentiment was positive, highlighting a strong performance for the quarter.

Light & Wonder Reports Strong Q3 2025 Earnings

Light & Wonder, Inc. is a leading global games company specializing in cross-platform gaming solutions, operating in the gaming and digital entertainment industry. The company is known for its innovative game content and strong market presence.

Light & Wonder Plans Nasdaq Delisting for ASX Listing

On October 13, 2025, Light & Wonder, Inc. announced its plan to delist from the Nasdaq Stock Market and transition to a sole primary listing on the Australian Securities Exchange (ASX), effective November 13, 2025. This strategic move aims to align the company’s capital markets presence with its long-term growth plans and consolidate trading liquidity on the ASX, which has a strong understanding of the gaming sector. The transition will impact existing Nasdaq shareholders, who will need to convert their shares into CHESS Depositary Interests (CDIs) to trade on the ASX or opt for alternative trading options.

The most recent analyst rating on (LNW) stock is a Buy with a $130.00 price target. To see the full list of analyst forecasts on Light & Wonder stock, see the LNW Stock Forecast page.

Light & Wonder Issues CHESS Depositary Statement

On October 7, 2025, Light & Wonder, Inc. provided the Australian Securities Exchange with a Statement of CHESS Depositary Interests on Issue. This announcement, detailed in their Current Report on Form 8-K, is informational and not subject to liabilities under the Securities Exchange Act of 1934.

The most recent analyst rating on (LNW) stock is a Buy with a $130.00 price target. To see the full list of analyst forecasts on Light & Wonder stock, see the LNW Stock Forecast page.

Light & Wonder Issues CHESS Depositary Interests Statement

On September 5, 2025, Light & Wonder, Inc. provided the Australian Securities Exchange with a Statement of CHESS Depositary Interests on Issue. This announcement is part of the company’s regulatory compliance and does not impact its filings under the Securities Act of 1933 or the Securities Exchange Act of 1934.

The most recent analyst rating on (LNW) stock is a Hold with a $93.00 price target. To see the full list of analyst forecasts on Light & Wonder stock, see the LNW Stock Forecast page.

Light & Wonder Announces $1 Billion Notes Pricing

On September 10, 2025, Light & Wonder, Inc. announced the pricing of $1 billion in senior unsecured notes due 2033 by its subsidiary, Light and Wonder International, Inc. The proceeds from this offering will be used to repay existing borrowings, redeem outstanding notes due 2028, and for general corporate purposes. This strategic financial move is expected to enhance the company’s financial flexibility and strengthen its market position.

The most recent analyst rating on (LNW) stock is a Hold with a $93.00 price target. To see the full list of analyst forecasts on Light & Wonder stock, see the LNW Stock Forecast page.

Light & Wonder Announces $1 Billion Notes Offering

On September 10, 2025, Light & Wonder, Inc. announced a proposed private offering of $1 billion in senior unsecured notes due 2033 through its subsidiary, Light and Wonder International, Inc. The proceeds are intended to repay existing borrowings, redeem $700 million of outstanding notes due 2028, and for general corporate purposes. This move is expected to impact the company’s financial structure by refinancing debt and potentially enhancing its market position.

The most recent analyst rating on (LNW) stock is a Hold with a $93.00 price target. To see the full list of analyst forecasts on Light & Wonder stock, see the LNW Stock Forecast page.

Light & Wonder Issues Statement of CHESS Depositary Interests

On August 7, 2025, Light & Wonder, Inc. provided the Australian Securities Exchange with a Statement of CHESS Depositary Interests on Issue. This announcement is part of their regulatory compliance and does not impact the company’s filings under the Securities Act of 1933 or the Exchange Act.

The most recent analyst rating on (LNW) stock is a Buy with a $120.00 price target. To see the full list of analyst forecasts on Light & Wonder stock, see the LNW Stock Forecast page.