Light Wonder 2025 Q1 Earnings Strong Performance as EPS Beats Expectations
Wednesday, May 7, 2025 9:12 pm ET
54min read Light & Wonder (LNW) reported its fiscal 2025 Q1 earnings on May 07th, 2025. The total revenue of Light & Wonder increased by 2.4% to $774 million in 2025 Q1, up from $756 million in 2024 Q1. Meanwhile, Light & Wonder's earnings per share (EPS) exceeded expectations, marking a 19.7% increase from analysts' consensus estimates. The company maintained its guidance for the fiscal year, projecting robust growth driven by strategic investments and operational improvements.
Revenue
Light & Wonder achieved consolidated revenue of $774 million, marking a 2% year-over-year increase, with its Gaming segment contributing $495 million, representing a 4% growth. The iGaming segment followed suit, posting a 4% increase with $77 million in revenue. However, the SciPlay segment experienced a slight decline of 2%, contributing $202 million to the overall revenue.
Earnings/Net Income
Light & Wonder's EPS rose 6.6% to $0.97 in 2025 Q1 from $0.91 in 2024 Q1, marking continued earnings growth. Meanwhile, the company's net income declined to $82 million in 2025 Q1, down 0.0% from $82 million reported in 2024 Q1. Remarkably, in 2025 Q1, the company set a new record high for fiscal Q1 net income, the highest in over 20 years. The EPS performance aligns with expectations and reflects positive earnings momentum.
Price Action
The stock price of Light & Wonder has edged down 0.73% during the latest trading day, has jumped 9.66% during the most recent full trading week, and has surged 17.36% month-to-date.
Post-Earnings Price Action Review
The strategy of purchasing Light & Wonder (LNW) shares after a quarter-over-quarter revenue decline and holding them for 30 days has historically delivered a 31.78% return over the past five years. This performance stands in contrast to a benchmark return of 84.08%, resulting in an excess return of -52.31% and a compound annual growth rate (CAGR) of 5.70%. Despite a maximum drawdown of -30.51% and volatility of 20.70%, the strategy yielded a Sharpe ratio of 0.28. This analysis highlights potential challenges and opportunities for investors considering short-term strategies in the context of Light & Wonder's share price movements.
CEO Commentary
CEO of Light & Wonder, Inc. expressed confidence in the company's growth trajectory, citing strong performance driven by innovative product offerings and strategic market positioning. The CEO highlighted that recent investments have bolstered operational capabilities, allowing the company to capitalize on emerging opportunities. However, he acknowledged challenges in the current economic landscape that could impact future performance. Overall, the tone of the commentary reflects an optimistic outlook, emphasizing commitment to enhancing shareholder value through continued focus on core business strengths.
Guidance
The company anticipates robust performance in the upcoming quarters, projecting revenue growth driven by increased market demand. The CEO indicated that Light & Wonder expects to achieve an EPS of approximately $0.97 for Q1 2025, with total revenue projected to reach $774 million. Additionally, the guidance reflects a net income expectation of around $82 million, underscoring confidence in sustained operational momentum and effective cost management strategies.
Additional News
Light & Wonder recently announced the strategic acquisition of Grover Gaming's charitable gaming assets for $850 million in cash, with a potential $200 million revenue-based earn-out over four years. This acquisition is expected to close in Q2 2025 and aims to establish the company's position in the fast-growing charitable gaming space. Furthermore, the company promoted Nathan Drane to Chief Product Officer, expanding his role from overseeing the Gaming business to leading game creation across the enterprise. Lastly, Light & Wonder returned $166 million to shareholders through share repurchases during the quarter, demonstrating its commitment to enhancing shareholder value.
Revenue
Light & Wonder achieved consolidated revenue of $774 million, marking a 2% year-over-year increase, with its Gaming segment contributing $495 million, representing a 4% growth. The iGaming segment followed suit, posting a 4% increase with $77 million in revenue. However, the SciPlay segment experienced a slight decline of 2%, contributing $202 million to the overall revenue.
Earnings/Net Income
Light & Wonder's EPS rose 6.6% to $0.97 in 2025 Q1 from $0.91 in 2024 Q1, marking continued earnings growth. Meanwhile, the company's net income declined to $82 million in 2025 Q1, down 0.0% from $82 million reported in 2024 Q1. Remarkably, in 2025 Q1, the company set a new record high for fiscal Q1 net income, the highest in over 20 years. The EPS performance aligns with expectations and reflects positive earnings momentum.
Price Action
The stock price of Light & Wonder has edged down 0.73% during the latest trading day, has jumped 9.66% during the most recent full trading week, and has surged 17.36% month-to-date.
Post-Earnings Price Action Review
The strategy of purchasing Light & Wonder (LNW) shares after a quarter-over-quarter revenue decline and holding them for 30 days has historically delivered a 31.78% return over the past five years. This performance stands in contrast to a benchmark return of 84.08%, resulting in an excess return of -52.31% and a compound annual growth rate (CAGR) of 5.70%. Despite a maximum drawdown of -30.51% and volatility of 20.70%, the strategy yielded a Sharpe ratio of 0.28. This analysis highlights potential challenges and opportunities for investors considering short-term strategies in the context of Light & Wonder's share price movements.
CEO Commentary
CEO of Light & Wonder, Inc. expressed confidence in the company's growth trajectory, citing strong performance driven by innovative product offerings and strategic market positioning. The CEO highlighted that recent investments have bolstered operational capabilities, allowing the company to capitalize on emerging opportunities. However, he acknowledged challenges in the current economic landscape that could impact future performance. Overall, the tone of the commentary reflects an optimistic outlook, emphasizing commitment to enhancing shareholder value through continued focus on core business strengths.
Guidance
The company anticipates robust performance in the upcoming quarters, projecting revenue growth driven by increased market demand. The CEO indicated that Light & Wonder expects to achieve an EPS of approximately $0.97 for Q1 2025, with total revenue projected to reach $774 million. Additionally, the guidance reflects a net income expectation of around $82 million, underscoring confidence in sustained operational momentum and effective cost management strategies.
Additional News
Light & Wonder recently announced the strategic acquisition of Grover Gaming's charitable gaming assets for $850 million in cash, with a potential $200 million revenue-based earn-out over four years. This acquisition is expected to close in Q2 2025 and aims to establish the company's position in the fast-growing charitable gaming space. Furthermore, the company promoted Nathan Drane to Chief Product Officer, expanding his role from overseeing the Gaming business to leading game creation across the enterprise. Lastly, Light & Wonder returned $166 million to shareholders through share repurchases during the quarter, demonstrating its commitment to enhancing shareholder value.
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