Light & Wonder, Inc. Reports First Quarter 2025 Results 16th Consecutive Quarter of Year-Over-Year Consolidated Revenue Growth with Expanded Margins Driving Strong Cash Flow Generation Added 2,900+ North American Gaming Operations Units Year-Over-Year and ~500 Units Sequentially Returned $166 million of Capital to Shareholders through Share Repurchases during the Quarter Strategic Acquisition of Grover Gaming's Charitable Gaming Business on Schedule LAS VEGAS — May 7, 2025 — Light & Wonder, Inc. (NASDAQ and ...

Core Insights - Light & Wonder (LNW) is expected to report quarterly earnings of $1.17 per share, reflecting a 25.8% increase year over year [1] - Analysts forecast revenues of $808.58 million, indicating a 7% year-over-year growth [1] - There have been no revisions in the consensus EPS estimate over the last 30 days, suggesting stability in analysts' forecasts [1] Revenue Estimates - Revenue from SciPlay is projected to reach $222.59 million, representing an 8.1% increase year over year [3] - Revenue from Gaming is expected to be $511.28 million, showing a 7.4% increase from the previous year [4] - Revenue from iGaming is estimated at $81.40 million, indicating a 10% increase year over year [4] AEBITDA Estimates - AEBITDA for Gaming is anticipated to be $254.30 million, up from $232 million in the same quarter last year [4] - AEBITDA for iGaming is expected to reach $26.78 million, compared to $25 million in the same quarter last year [5] - AEBITDA for SciPlay is projected at $69.06 million, an increase from $62 million in the same quarter last year [5] Stock Performance - Over the past month, shares of Light & Wonder have increased by 18.3%, outperforming the Zacks S&P 500 composite, which rose by 11.5% [6] - Currently, LNW holds a Zacks Rank 3 (Hold), indicating that its performance may align with the overall market in the near future [6]

Core Viewpoint - Rosen Law Firm is investigating potential securities claims on behalf of shareholders of Light & Wonder, Inc. due to allegations of materially misleading business information issued to the investing public [1]. Group 1: Legal Actions and Implications - Shareholders who purchased Light & Wonder securities may be entitled to compensation through a class action lawsuit without any out-of-pocket fees [2]. - A preliminary injunction was granted to Aristocrat Technologies against Light & Wonder, prohibiting the sale or commercialization of the "Dragon Train" product, which allegedly infringes on Aristocrat's intellectual property [3]. Group 2: Rosen Law Firm's Credentials - Rosen Law Firm has a strong track record in securities class actions, having achieved the largest securities class action settlement against a Chinese company at the time and being ranked No. 1 for the number of settlements in 2017 [4]. - The firm has recovered hundreds of millions of dollars for investors, securing over $438 million in 2019 alone [4].

Core Viewpoint - Rosen Law Firm is investigating potential securities claims on behalf of shareholders of Light & Wonder, Inc. due to allegations of materially misleading business information [1] Group 1: Legal Actions and Implications - Shareholders who purchased Light & Wonder securities may be entitled to compensation through a class action without any out-of-pocket fees [2] - A preliminary injunction was granted to Aristocrat Technologies against Light & Wonder, prohibiting the sale or commercialization of the "Dragon Train" product, which allegedly infringes on Aristocrat's intellectual property [3] - Following the news of the injunction, Light & Wonder's stock experienced a significant decline of 19.49% on September 24, 2024 [3] Group 2: Rosen Law Firm's Credentials - Rosen Law Firm has a strong track record in securities class actions, having achieved the largest securities class action settlement against a Chinese company at the time [4] - The firm was ranked No. 1 by ISS Securities Class Action Services for the number of securities class action settlements in 2017 and has consistently ranked in the top 4 since 2013 [4] - In 2019, the firm secured over $438 million for investors, showcasing its capability in recovering significant amounts for its clients [4]

Company Overview - Light & Wonder, Inc. is a leading developer of technology-based products and services for the gaming, social, and digital gaming industries globally, having changed its name from Scientific Games Corporation on April 28, 2022, to align with its vision of becoming a leading cross-platform global games company [11]. Zacks Rank and Style Scores - Light & Wonder is currently rated as a 3 (Hold) on the Zacks Rank, with a VGM Score of A, indicating a solid position in the market [12]. - The company has a Growth Style Score of B, forecasting a year-over-year earnings growth of 9.3% for the current fiscal year, supported by three analysts revising their earnings estimates higher in the last 60 days [12]. - The Zacks Consensus Estimate for Light & Wonder has increased by $0.10 to $5.76 per share, and the company boasts an average earnings surprise of 29.1% [12]. Investment Potential - With a solid Zacks Rank and top-tier Growth and VGM Style Scores, Light & Wonder is positioned as a potential top pick for growth investors [13].

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Group 1 - The company specializes in analyzing restaurant stocks in the U.S. market, covering various segments such as QSR, fast casual, casual dining, fine dining, and family dining [1] - Advanced analytical models and specialized valuation techniques are employed to provide detailed insights and actionable strategies for investors [1] - The founder actively engages in academic and journalistic initiatives, contributing to institutions that promote individual and economic freedom [1] Group 2 - The company has no stock, option, or similar derivative position in any of the companies mentioned, nor plans to initiate any such positions within the next 72 hours [2] - The article expresses the author's own opinions and is not receiving compensation from any company mentioned [2] - Seeking Alpha clarifies that past performance is not a guarantee of future results and that no investment recommendations are being made [3]

Core Insights - Light & Wonder (LNW) reported strong fourth-quarter 2024 results, with both revenue and net income exceeding expectations, showcasing the company's robust portfolio and business model [1][2][3] Financial Performance - Net income for Q4 2024 was $107 million or $1.2 per share, up from $66 million or 73 cents per share in Q4 2023, driven by revenue growth and asset sales [2] - Total revenues in Q4 2024 reached $797 million, an increase from $770 million in the prior-year quarter, surpassing the consensus estimate of $795 million [3] - For the full year 2024, LNW reported total revenues of $3.2 billion, up from $2.9 billion in 2023 [3] Revenue Breakdown - Services revenues increased to $532 million from $515 million year-over-year, while product sales rose to $265 million from $255 million [4] - Gaming revenues were $515 million, reflecting a 4% year-over-year increase, supported by strong sales of Gaming Machines and operations [4] - SciPlay revenues remained stable at $204 million, with a 6% increase in average revenue per daily active user [5] - iGaming revenues grew to $78 million, an 11% increase from the previous year, driven by momentum in North America and Europe [5] Operational Metrics - Non-GAAP consolidated AEBITDA was $315 million, up from $302 million year-over-year, with an AEBITDA margin remaining flat at 39% [6] - Cash generated from operating activities in 2024 was $632 million, compared to $590 million in 2023, with Q4 generating $202 million [7] Liquidity Position - As of December 31, 2024, LNW had $196 million in cash and cash equivalents, with long-term debt totaling $3.84 billion [7]

Financial Data and Key Metrics Changes - Consolidated revenue for 2024 was $3.2 billion, a 10% increase from the prior year, with fourth quarter revenue at $797 million, up 4% year-over-year [37] - Full year operating income was $668 million, a 29% increase year-over-year, with fourth quarter operating income growing 8% to $168 million [38] - Diluted net income per share more than doubled from $1.75 in 2023 to $3.68 in 2024, with fourth quarter diluted net income per share at $1.20, up from $0.73 [39] - Consolidated AEBITDA for 2024 was $1.24 billion, an 11% increase from 2023, with fourth quarter AEBITDA at $315 million, a 4% increase [40] Business Line Data and Key Metrics Changes - In Gaming, revenue for the quarter was $515 million, a 4% year-over-year increase, with systems growth of 24% [42] - SciPlay's full year revenue grew 6% to $821 million, with fourth quarter revenue at $204 million and AEBITDA increasing 7% year-over-year to a record $74 million [47] - iGaming revenue grew 11% year-over-year to $78 million in the quarter, with full year revenue up 9% to $299 million [52] Market Data and Key Metrics Changes - North America revenue per day grew 2% for the year, with global gaming machine sales at $195 million in the quarter, up 25% year-over-year [44] - The company maintained the number one ship share position in North America for the second, third, and fourth quarters [72] - The iGaming business processed over $24 billion in wagers through the OGS platform, reflecting a 30% year-over-year growth in US GGR [53] Company Strategy and Development Direction - The company plans to focus on top and bottom line growth while continuing investments for future growth, including the acquisition of Grover Gaming's charitable gaming business for $850 million [9][10] - The strategy includes leveraging R&D investments to enhance product offerings and expand into new markets, particularly in charitable gaming and iGaming [29][62] - The decision to divest the live casino business reflects a commitment to allocate resources to higher ROI opportunities [26][90] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving the $1.4 billion AEBITDA target for 2025, supported by strong product lineups and market momentum [68][75] - The company anticipates normalized growth in gaming operations in 2025, driven by a robust roadmap and strong performance from new game releases [15][17] - Management highlighted the importance of maintaining operational excellence and optimizing processes to navigate dynamic market conditions [57][58] Other Important Information - The company reported free cash flow of $74 million in the fourth quarter and $318 million for the year, reflecting strong earnings [61] - The acquisition of Grover is expected to be accretive to adjusted NPATA in the first full calendar year of ownership in 2026 [62] - The company has engaged advisors to evaluate potential strategies for enhancing its ASX listing and capital structure [34] Q&A Session Summary Question: Can you talk through how you see the cadence in getting to $1.4 billion in AEBITDA this year? - Management expressed confidence in achieving the target, citing strong product lineups and momentum leading into 2025 [68][75] Question: How might the installed base change in Q1 in light of new product strength? - Management noted that fee degradation seen in Q4 would reverse in Q1, with a strong lineup of new games expected to drive growth [79][82] Question: Can you discuss the margin growth in Q4 for the gaming segment? - Management indicated that margin growth was driven by mix and controllable factors, with expectations for continued margin expansion in 2025 [86][88] Question: What are the drivers of iGaming growth and outlook? - Management highlighted the successful launch of Huff N' Puff in iGaming and the focus on quality content and cadence of releases across channels [95][98] Question: How do you think about growth in cash flow moving forward? - Management emphasized the importance of free cash flow and the expected contribution from the Grover acquisition to drive incremental cash flow [104]