Light & Wonder’s 2025 Results Take a Blow Due to Dragon Train Lawsuit

Light & Wonder, a leading provider of gaming content, has published its results for the final quarter of 2025, as well as for the full fiscal year. Despite its strong performance, the company’s results were offset by costs associated with the Dragon Link settlement.

Light & Wonder’s Record Results Were Offset by Legal Costs

Light & Wonder reported a strong finish to 2025, with Q4 consolidated revenue reaching $891 million, up 12% year-on-year. Despite that, the company incurred a net loss of $15 million, equivalent to a loss of $0.19 per share. This was attributed to the $128 million legal settlement charge associated with the aforementioned Dragon Link settlement.

Additionally, Light & Wonder had to cover a $25 million contingent acquisition consideration fair value adjustment, as well as $18 million in Australian Securities Exchange transition costs.

Despite the headwinds, Light & Wonder’s business segments delivered record consolidated adjusted EBITDA at $405 million, up 29% year-on-year. Adjusted NPATA, on the other hand, increased by 27% to $161 million.

Taking a look at how the various segments performed, Light & Wonder’s Gaming revenue increased by 17% to $602 million, driven by record-breaking machine sales, especially in North America. The Grover charitable gaming division expanded its footprint by 345 units, while the iGaming segment delivered another record quarter in terms of revenue and AEBITDA.

As for the full year, Light & Wonder’s consolidated revenue and net income reached $3.3 billion and $276 million, respectively. While the revenue figure marked an increase of 4%, the income declined by 18% due to the aforementioned legal troubles.

At the same time, Light & Wonder’s consolidated AEBITDA for the year reached $1.44 billion, up 16% YOY. Adjusted NPATA increased 18% to $567 million.

The company also noted that it ended the year with an outstanding debt of $5.2 billion.

Light & Wonder noted that the results were consistent with its forecast and remained bullish on its 2028 targets.

A Few Notable Highlights

Some 2024 highlights include the return of $877 million to shareholders via share or CHESS Depository Interests repurchases. Between March 2022 and December 2025, the company has returned a total of $1.9 billion to shareholders via such repurchases.

In addition to that, Light & Wonder transitioned to a sole primary listing on the ASX, which was a major development for the business.

Furthermore, Light & Wonder managed to resolve the long-standing dispute with Aristocrat. Despite resulting in a temporary blow to the former company’s finances, the settlement protects the interests of its customers, employees, and shareholders.

For context, the lawsuit related to Light & Wonder’s Dragon Train game, which shared certain similarities with Aristocrat’s Dragon Link. The lawsuit uncovered the use of similar mathematical models, resulting in a prolonged legal clash. In the end, the two companies buried the hatchet, with Light & Wonder agreeing to compensate Aristocrat for the damages.

Now, the former company will be able to return to delivering cutting-edge content without distraction.

Officials Were Pleased with the Results

Officials commented on the results, with Matt Wilson, the company’s president and CEO, calling Q4 “another strong quarter” due to the double-digit YOY growth in revenue and cash flows. He was pleased with the multiple milestones achieved by his team and remained confident in the 2028 targets.

Oliver Chow, Light & Wonder’s chief financial officer, added that the company remains committed to pursuing further growth: “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.”