Light & Wonder (LNWO) AI Stock Analysis

• Market Cap: N/A
• Dividend Yield: N/A
• Average Volume (3M): 2.68M
• Price to Earnings (P/E): 21.3
• 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: 281,280
• 30 Day Avg. Volume: 2,677,613
• 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: 10.00T>
• Enterprise Value/Revenue: 3.66
• Enterprise Value/Gross Profit: 5.04
• Enterprise Value/Ebitda: 9.89
• 1Y Price Target: $105.64
• Price Target Upside: 7.97% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 8
• EPS Forecast (FY): 5.03
• Revenue Forecast (FY): $3.34B

• Rating: 79 Outperform
• Price Target: $109.00 ▲(11.41% Upside)

Light & Wonder's strong financial performance and positive earnings call sentiment are the most significant factors driving the stock score. The technical analysis indicates a strong upward trend, though caution is advised due to overbought signals. The valuation is moderate, with no dividend yield, which slightly tempers the overall attractiveness.

Positive Factors

Revenue Growth

Consistent revenue growth indicates robust business expansion and market demand for LNW's gaming solutions, supporting long-term growth.

Recurring Revenue

High recurring revenue enhances financial stability and predictability, providing a strong foundation for sustainable growth.

iGaming Performance

Strong iGaming growth reflects successful adaptation to digital trends, positioning LNW well in the evolving gaming landscape.

Negative Factors

High Debt Levels

High debt levels can limit financial flexibility and increase risk, especially in volatile market conditions, impacting long-term stability.

International Market Challenges

Challenges in international markets may hinder growth opportunities and revenue diversification, affecting overall business expansion.

Tariff Impacts

Tariff impacts can increase costs and pressure margins, potentially affecting profitability and competitive positioning in the long term.

Light & Wonder Business Overview & Revenue Model

Company Description

Light & Wonder, Inc. (LNWO) is a global leader in cross-platform games and entertainment, primarily serving the gaming and casino industries. The company operates in two main sectors: Gaming and Digital. Their core products include gaming machines, table games, and interactive gaming solutions, which are designed to enhance player engagement and drive revenue for casinos and gaming operators. Light & Wonder also focuses on developing innovative technology solutions to optimize operations and improve customer experiences.

How the Company Makes Money

Light & Wonder generates revenue through multiple key streams. The Gaming sector contributes significantly through the sale and lease of gaming machines and equipment, as well as ongoing service and maintenance contracts. In the Digital sector, the company earns revenue from online gaming solutions, including casino games and sports betting platforms, often through partnerships with various online gaming operators. Additionally, Light & Wonder benefits from licensing agreements, where it allows third-party developers to utilize its technology and intellectual property. Strategic partnerships with casinos and gaming companies also enhance its reach and revenue potential, while continuous innovation in gaming technology keeps the company competitive.

Light & Wonder Financial Statement Overview

Summary

Light & Wonder exhibits strong financial performance with significant revenue growth and improved profitability. The company has made strides in managing its leverage, although it still relies heavily on debt. Cash flow generation is robust, supporting operational and strategic initiatives. While the financial outlook is positive, the company should continue to focus on reducing debt levels to mitigate financial risk.

Income Statement

Light & Wonder has demonstrated strong revenue growth, particularly in the TTM period with a 75.1% increase, indicating robust business expansion. The gross profit margin remains healthy at 53.37%, although it has decreased from previous years, suggesting increased cost pressures. The net profit margin improved to 12.39%, reflecting enhanced profitability. EBIT and EBITDA margins are solid, showing effective cost management and operational efficiency.

Balance Sheet

The company's debt-to-equity ratio has improved significantly in the TTM period, indicating better leverage management, although it remains high compared to industry norms. Return on equity is strong at 59.53%, showcasing effective use of equity to generate profits. The equity ratio is relatively low, suggesting a high reliance on debt financing, which could pose risks in volatile market conditions.

Cash Flow

Operating cash flow has improved, with a positive operating cash flow to net income ratio of 1.09, indicating good cash generation relative to earnings. Free cash flow growth is strong at 46.24%, and the free cash flow to net income ratio of 0.57 suggests a healthy conversion of earnings into cash. However, historical fluctuations in cash flow highlight potential volatility.

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	2.34B	2.26B	2.03B	1.77B	1.54B	1.09B
EBITDA	1.19B	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	334.00M
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	-788.00M	-5.46B	-679.00M	463.00M

Light & Wonder Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 97.84
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LNWO, the sentiment is Positive. The current price of 97.84 is above the 20-day moving average (MA) of 91.99, above the 50-day MA of 83.76, and above the 200-day MA of 89.58, indicating a bullish trend. The MACD of 4.77 indicates Negative momentum. The RSI at 67.01 is Neutral, neither overbought nor oversold. The STOCH value of 68.75 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for LNWO.

Light & Wonder Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LNWO	79 Outperform	―	21.32	50.47%	―	1.87%	42.43%
BYD	71 Outperform	$6.32B	3.54	87.17%	0.87%	5.91%	336.91%
WYNN	67 Neutral	$13.05B	27.68	―	0.80%	-0.26%	-44.45%
MGM	63 Neutral	$9.87B	226.43	2.25%	―	0.05%	-94.07%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
MLCO	56 Neutral	$3.43B	33.41	―	―	11.32%	―
CZR	51 Neutral	$4.74B	―	-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.