Light & Wonder Inc. Reports Strong Growth Amid Challenges

Light & Wonder Inc. ((LNW)) has held its Q3 earnings call. Read on for the main highlights of the call.Meet Your ETF AI Analyst Discover how TipRanks' ETF AI Analyst can help you make smarter investment decisions Explore ETFs TipRanks' users love and see what insights the ETF AI Analyst reveals about the ones you follow. 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. Revenue and EBITDA Growth Light & Wonder Inc. reported a 3% year-over-year increase in consolidated revenue, reaching $841 million. The company’s AEBITDA saw an 18% year-over-year growth, climbing to $375 million. This growth was supported by margin expansion across all sectors, underscoring the company’s operational efficiency and financial health. Gaming Operations Success The company’s gaming operations experienced a remarkable 38% year-over-year increase, with strong game performance driving this success. Notably, North American premium units have shown consistent growth, marking 21 consecutive quarters of expansion. iGaming Record Revenue Light & Wonder’s iGaming division delivered record revenue of $86 million for the quarter, up 16% year-over-year. The AEBITDA margins for iGaming increased by 800 basis points, highlighting the division’s growing profitability and market presence. Capital Returns and Share Repurchase The company demonstrated its commitment to shareholder value by returning $111 million through share repurchases. This is part of the larger $1.5 billion share repurchase program, of which $765 million has been completed. SciPlay’s Direct-to-Consumer Growth SciPlay’s Direct-to-Consumer (DTC) platform showed significant growth, accounting for 20% of revenue, up from 12% a year ago. This growth reflects SciPlay’s strategic focus on enhancing profitability and expanding its consumer base. International Market Challenges Despite the overall positive performance, Light & Wonder faced challenges in international markets, particularly with a decline in gaming machine sales. The timing of certain sales in Asia has been shifted to 2026, impacting short-term revenue expectations. Impact of Tariffs The company anticipates tariffs to have a mid- to high single-digit million dollar impact on AEBITDA starting in Q4 and continuing into 2026. This presents a potential headwind for future profitability. Challenges with Jackpot Party SciPlay’s Jackpot Party experienced a decline in revenue due to a decrease in average monthly payers. This has impacted the overall performance of SciPlay’s portfolio, highlighting areas for potential improvement. Forward-Looking Guidance Looking ahead, Light & Wonder anticipates continued growth and strategic initiatives to drive shareholder value. The company reported a 25% year-over-year increase in adjusted NPATA, with per share growth of 35% to $1.81. Gaming operations remain a strong area, with recurring revenue accounting for 69% of consolidated revenue. The Grover acquisition has added significant value, and the company is transitioning to a sole standard listing on the ASX, which is expected to enhance shareholder value further. In summary, Light & Wonder Inc.’s earnings call highlighted a strong quarter with impressive growth in revenue and EBITDA. Despite some challenges in international markets and tariff impacts, the company’s strategic initiatives and operational successes underscore a positive outlook. Investors can look forward to continued growth and value creation as the company executes its strategic plans.