Key Moments:
- Light & Wonder reported a net loss of $15 million for Q4 2025 due to a $128 million legal settlement with Aristocrat Leisure
- Revenue in Q4 2025 totaled $891 million, with all business units achieving record adjusted EBITDA for the period
- Full-year 2025 net income reached $276 million on revenue of just over $3.3 billion, even after accounting for the settlement charge
Settlement Concludes Trade Secret Dispute
Light & Wonder ended the fourth quarter of 2025 reporting a net loss of $15 million, driven by a $128 million settlement that marked the conclusion of a major intellectual property dispute with Aristocrat Leisure regarding the Dragon Train slot game. This charge was recorded in the three months ending December 31 and was the sole reason the quarter finished in the red. Excluding the settlement, core business results were much stronger, with revenue hitting $891 million and adjusted EBITDA reaching a record high for the period across all operational units.
Resolution Brings Finality to Dragon Train Litigation
The dispute involved claims from Aristocrat alleging that Dragon Train utilized proprietary features. In January, Light & Wonder agreed to halt commercial activities related to the title worldwide, and both companies dropped the associated legal actions. The company recognized the payment under restructuring and related expenses, closing the book on a widely followed case that highlighted the importance of intellectual property in gaming product development. Management has indicated that the matter is now resolved and no longer affects ongoing operations.
Operational Segments Set Performance Records
The underlying performance for Q4 2025 demonstrated continued momentum across Light & Wonder’s business divisions. The land-based gaming segment was the largest contributor, as North American machine sales reached a record, with shipments exceeding 12,000 units globally. Growth in the installed casino base is facilitating strong recurring revenues from operators.
The iGaming business also posted record quarterly revenue, benefiting from a shift toward digital distribution alongside traditional hardware. According to chief executive Matt Wilson, “We closed out 2025 with another strong quarter, delivering double-digit year-over-year growth in both revenue and cash flows.”
SciPlay, Light & Wonder’s social casino platform, helped deliver record adjusted earnings across all three main business units for the quarter.
Annual Results Reflect Resilience
For the full year ending December 31, 2025, Light & Wonder generated net income of $276 million on total revenue slightly above $3.3 billion, even with the inclusion of the settlement payment. The results highlight the significant gains made by the company since its rebranding.
Chief financial officer Oliver Chow confirmed ongoing balance sheet strength, stating, “We maintained our net debt leverage ratio within our targeted range following the Grover acquisition and ASX listing transition, and we expect to continue deleveraging throughout 2026, supported by the strength of our business profile, absent any high return capital allocation opportunities.”
Q4 and Full-Year Performance Overview
| Period | Net Income | Revenue | Key Highlights |
|---|---|---|---|
| Q4 2025 | -$15 million | $891 million | Includes $128 million legal settlement; all divisions reached record adjusted EBITDA |
| Full Year 2025 | $276 million | just over $3.3 billion | Settlement charge absorbed, profits remain positive |
Looking Ahead
The company enters the new financial year with litigation risks mitigated, a growing digital segment, and robust North American machine demand. With the Dragon Train settlement resolved, attention now turns to whether Light & Wonder can maintain record-setting performance across all three divisions in upcoming quarters.
- Author
Daniel Williams
