Light & Wonder Records $15m Q4 Net Loss After Aristocrat Settlement

Light & Wonder reported a net loss of $15m for Q4 2025, driven primarily by legal settlement charges tied to a January 2026 resolution with Aristocrat Gaming. 

This was due to claims that Light & Wonder’s Dragon Train and Jewel of the Dragon titles were developed using confidential trade secrets and copyrighted materials. Aristocrat alleged that proprietary mathematical information had been used in the development process. 

Additional financial pressures affected quarterly profitability. The company recorded a $15m net loss for Q4 2025 due to $25m in fair value adjustments and $18m in Australian Securities Exchange transition costs.

Operating expenses rose 28.6% year-over-year to $809m. Operating income fell 51.2% to $82m as higher costs affected performance. Cost of services totaled $114m, while product expenses reached $125m. Selling, general and administrative costs came in at $224m.

Revenue Growth and Margin Expansion in Q4

Light & Wonder generated net revenue of $891m in Q4 2025, a 12% increase from the prior year period. This was boosted by a 17% growth from the company’s gaming vertical segment to $602m.

iGaming revenue also climbed 21% to $94m during Q4, while SciPlay revenue declined 4% to $195m.

Light & Wonder reported a record $29bn in iGaming wagers for the quarter, highlighting continued momentum across North America.

Consolidated AEBITDA reached $405m, marking a 29% increase year-over-year, and supported by strong margin expansion across business units.

Services revenue totaled $604m, an increase of 13.5%. Products revenue rose 8.3% to $287m, demonstrating demand across hardware and content offerings.

Full Year Performance and Segment Trends

For the full year 2025, Light & Wonder reported net revenue of $3.3bn, up 4% from 2024. Consolidated AEBITDA increased 16% to a record $1.44bn.

Net income for the year declined 18% but still reached $276m during FY2025. Gaming contributed nearly $2.2bn to the company’s annual revenue, reflecting 6% growth. SciPlay revenue fell 3% to $794m over the full year, while iGaming revenue increased 13% to $337m.

Despite the fall in revenue, gaming operations generated over $1bn in consolidated AEBITDA, representing a 13% increase. For SciPlay, there was a 6% increase to $288m in AEBITDA, while iGaming produced $125m, rising by 28%.

The company’s services revenue for FY2025 reached around $2.3bn, up 9.1%. Products revenue declined 6.1% but still exceeded $1bn.

Furthermore, operating income increased 2.2% to $683m despite Light & Wonder’s operating expenses rising by 4.4% to $2.6bn. 

Leadership Commentary and Financial Positioning

President and CEO Matt Wilson addressed the quarterly and annual results. He stated, “We closed out 2025 with another strong quarter, delivering double-digit year-over-year growth in both revenue and cash flows. We also achieved several important milestones, including the successful acquisition and integration of Grover, accelerating our expansion in the Charitable Gaming market and our transition to a sole primary listing on the ASX.

“Looking ahead, we will remain focused on investing in product innovation and talent to strengthen our recurring revenue model, build on this momentum and enhance our global competitive position as we progress toward our 2028 financial targets.”

Chief Financial Officer Oliver Chow highlighted that the company stabilised Q4 and FY2025 performance through initiatives developed to “navigate dynamic external conditions beyond our control”.

“Our priorities remain unchanged: disciplined cost management, sustainable margin growth and continued improvement in both the quality and quantum of cash flows over time,” Chow said.

“We remain committed to reinvesting in the business to drive sustainable long-term growth, leveraging our broad portfolio of games and offerings, while remaining agile and well positioned to further enhance shareholder value.”

On January 23, the company amended its long term credit facilities. The update established a new tranche of refinancing loans and revised interest terms across its borrowing structure.