Light & Wonder, Inc. reported its financial results for the first quarter ended March 31, 2025, on May 7, 2025. Consolidated revenue increased by 2.4% year-over-year to $774 million, which fell short of market expectations. Despite the revenue miss, consolidated AEBITDA grew significantly by 11% to $311 million, resulting in a 300 basis point margin expansion to 40%. The company reported a GAAP net income of $82 million, or $0.94 per share, while non-GAAP profit was $1.35 per share, exceeding analysts' consensus estimates by 19.7%.
Segment performance showed Gaming revenue up 4% to $495 million, with Gaming AEBITDA increasing 9% to $254 million and a 51% margin. SciPlay revenue decreased 2% to $202 million, primarily due to a decline in average monthly payers, but AEBITDA grew 3% to $64 million, with its proprietary direct-to-consumer platform contributing approximately 13% of revenue. iGaming revenue rose 4% to $77 million, and AEBITDA increased 8% to $27 million, achieving a 35% margin.
The company generated strong operating cash flow of $185 million, up $14 million year-over-year, and free cash flow of $111 million, a 19% increase compared to Q1 2024. Light & Wonder repurchased approximately 1.9 million shares for $167 million during the quarter under its new $1 billion authorization. Management reiterated its 2025 target of $1.4 billion consolidated AEBITDA and introduced a target adjusted NPATA range for 2025 of $565 million to $635 million, signaling confidence in its financial outlook.
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