Light & Wonder's Q1 2025: Navigating Contradictions in Tariffs, iGaming Growth, and Cash Flow Strategies

Tariffs and supply chain management, iGaming growth and market expansion, cash flow and capital expenditures, tariff mitigation strategies and impacts, and impact of Apple ruling on social casino strategy are the key contradictions discussed in Light & Wonder's latest 2025Q1 earnings call.



Financial Performance and Revenue Growth:
- Light & Wonder reported revenue of $774 million in Q1 2025, marking a 2% increase year-over-year.
- The growth was driven by strong performance in gaming and iGaming operations, despite weather-related impacts on North American gaming ops.

Gaming Operations and Product Portfolio:
- The company's North American gaming operations installed base increased by approximately 500 units sequentially, bringing the total added machines year-over-year to over 2,900 units.
- Growth was supported by a strong product portfolio, with Light & Wonder holding 40% of the top 25 new premium and WAP games in Q1 2025.

iGaming and Content Expansion:
- iGaming revenue increased by 4% year-over-year to $77 million, with GGR increases in the U.S. and Canada markets of 3011% and 301% respectively.
- Growth was attributed to successful content launches like Huff and More Puff and Wizard of Oz Over the Rainbow, setting new single-game GGR records.

Social Casino and DTC Platform Initiatives:
- SciPlay revenue was $202 million, with record performance from Quick Hit Slots and 88 Fortunes, growing 16% and 31% respectively.
- The company is advancing its direct-to-consumer platform, contributing 13% of revenue, with plans to expand its offering to other games in the portfolio.

Tariff Impact and Strategic Mitigation:
- Tariffs on imported goods are impacting supply chain costs, although the company sees a path to mitigate these effects.
- Strategies include reconfiguring the supply chain and leveraging agreements like USMCA to reduce tariff-related impacts.