Operating cash flow remains robust with an OCF/NI ratio of 1.61 in 2025Q3, though free cash flow remains volatile due to capital expenditures consuming 9.4% of revenue.
| Metric | TTM | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Oct'00 | Oct'99 | Oct'98 | Oct'97 | Oct'96 | Oct'95 |
|---|
| Cash from Operations | 677M | 632M | 590M | -381M | 685M | 471M | 546M | 346.1M | 507.1M | 419M | 414.2M | 203.5M | 171.2M | 156.75M | 171.08M | 170.57M | 220.08M | 208.5M | 186.35M | 128.53M | 200.85M | 123.12M | 115M | 69.85M | 62.41M | 25.41M | 26.5M | 8.2M | 23.7M | 14.9M | 8M |
| Operating CF Margin % | - | 19.82% | 20.33% | -15.17% | 31.82% | 27.72% | 22.86% | 10.29% | 16.45% | 14.53% | 15.01% | 11.39% | 15.69% | 16.66% | 19.47% | 19.33% | 23.72% | 18.64% | 17.8% | 14.32% | 25.7% | 16.97% | 20.5% | 15.34% | 14.18% | 10.89% | 12.55% | 5.15% | 15.07% | 8.46% | 5.22% |
| Operating CF Growth % | 60.25% | 7.12% | 254.86% | -155.62% | 45.44% | -13.74% | 57.76% | -31.75% | 21.03% | 1.16% | 103.54% | 18.87% | 9.22% | -8.38% | 0.3% | -22.49% | 5.55% | 11.88% | 44.99% | -36.01% | 63.13% | 7.06% | 64.63% | 11.93% | 145.64% | -4.12% | 223.17% | -65.4% | 59.06% | 86.25% | 25% |
| Net Income | 399M | 336M | 180M | 3.7B | 390M | -548M | -118M | -352.4M | -242.3M | -353.7M | -1.39B | -234.3M | -30.2M | -62.63M | -12.57M | -149.2M | -39.88M | 8.49M | 65.37M | 66.76M | 75.32M | 65.74M | 52.15M | 52.05M | -584K | -18.42M | 400K | -15.9M | -17.3M | -34.2M | -49.9M |
| Depreciation & Amortization | 0 | 361M | 384M | 420M | 398M | 449M | 647M | 689.7M | 682.8M | 738.7M | 903.2M | 454.3M | 203M | 173.37M | 118.6M | 141.77M | 151.78M | 218.64M | 160.37M | 106.01M | 66.79M | 61.28M | 47.69M | 42.84M | 55.21M | 27.83M | 22.2M | 29.5M | 36.7M | 40.9M | 35.5M |
| Stock-Based Compensation | 0 | 110M | 118M | 69M | 113M | 56M | 37M | 43.9M | 27.2M | 35.3M | 25.4M | 24.1M | 22.3M | 24.16M | 21.54M | 22.81M | 34.59M | 34.12M | 25.31M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | 0 | -108M | -84M | -29M | -342M | -27M | -21M | -33.3M | -5.7M | -164.6M | -330.6M | -260.2M | -107.8M | 7.88M | -81K | 124.14M | 15.2M | -16.76M | -7.22M | -8.97M | 16.45M | -6.95M | 19.95M | -37.3M | -1.81M | 120K | 100K | -600K | -800K | 1.9M | 900K |
| Other Non-Cash Items | 470M | 9M | 74M | -3.65B | -17M | 420M | 142M | 128.8M | 71.5M | 97.6M | 1.05B | 66.9M | 47.6M | 40.12M | 18.07M | 2.95M | 41.42M | -22.11M | -35.66M | 24.45M | -310K | -8.59M | -4.79M | 3.69M | 1.62M | -1.39M | -100K | 1.7M | 2.7M | 100K | 3.6M |
| Working Capital Changes | -193M | -76M | -82M | -892M | 143M | 121M | -141M | -130.6M | -26.4M | 65.7M | 161.8M | 152.7M | 36.3M | -26.15M | 25.52M | 28.11M | 16.96M | -13.88M | -21.8M | -51.83M | 12.57M | -28M | -2.7M | -7.22M | 5.54M | 9.68M | 2.3M | -6.6M | 4.2M | 500K | 500K |
| Change in Receivables | 0 | -148M | -68M | -35M | 19M | 137M | 39M | 102.1M | -62.3M | -17.2M | 26.5M | 21M | 135.6M | -25.59M | 13.81M | -4.4M | 30.05M | -20.8M | -9.38M | -25.01M | -25.01M | -1.05M | -27.8M | 8.61M | 8.61M | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Inventory | 0 | 2M | -29M | -65M | 9M | 4M | -20M | 23.7M | -2.2M | 2.5M | 29.3M | 12.4M | 13.6M | -2.63M | -3.65M | 4.14M | 2.52M | -2.64M | -19.49M | -15.89M | -11.85M | 465K | -3.97M | 8K | 7.71M | 4.68M | -3.3M | -4.6M | -1.6M | 5.9M | -4.3M |
| Change in Payables | 0 | 59M | 65M | -74M | 91M | -31M | -19M | -125.8M | 64.5M | 14.7M | 4.5M | -33.4M | -5.1M | 10.09M | -2.1M | -2.92M | -4.5M | 6.33M | -8.14M | 14.6M | 14.6M | 5.17M | 6.91M | -4.35M | -4.35M | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Investing | -1.11B | -258M | -251M | 6.12B | -442M | -173M | -263M | -798.1M | -414.6M | -231.7M | -263.8M | -3.33B | -1.66B | -141.84M | -161.14M | -287.58M | -188.2M | -236.75M | -372.54M | -500.5M | -199.32M | -144.49M | -244.97M | -49.25M | -56.08M | -357.48M | -25.5M | -29.2M | 10.9M | -7.9M | -43.8M |
| Capital Expenditures | -288M | -294M | -242M | -216M | -171M | -137M | -285M | -390.8M | -293.7M | -272.9M | -323.6M | -238.3M | -165.8M | -111.33M | -91.88M | -108.65M | -111.58M | -229.92M | -216.34M | -189.12M | -143.17M | -80.43M | -35.61M | -15.88M | -46.49M | -6.13M | -2.1M | -2.8M | -7.5M | -2.1M | -18.1M |
| CapEx % of Revenue | 8.94% | 9.22% | 8.34% | 8.6% | 7.94% | 8.06% | 11.93% | 11.62% | 9.52% | 9.46% | 11.73% | 13.34% | 15.2% | 11.84% | 10.46% | 12.31% | 12.03% | 20.55% | 20.67% | 21.08% | 18.32% | 11.09% | 6.35% | 3.49% | 10.56% | 2.63% | 0.99% | 1.76% | 4.77% | 1.19% | 11.81% |
| Acquisitions | -5M | -5M | -4M | -136M | -186M | -13M | -1M | -477M | -165M | -1.2M | -2.7M | -3.14B | -1.55B | -24.82M | -52.95M | -12.49M | -86.56M | -8.11M | -120.05M | -296.93M | -24.82M | -23.37M | -167.91M | -4.1M | -316.24M | -316.24M | 0 | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | -815M | 0 | -3M | 6.37B | -95M | -47M | 23M | 69.7M | 44.1M | 42.4M | 62.5M | 49.3M | 50.1M | -5.69M | 20.91M | -166.44M | 9.94M | 1.27M | -5.31M | -14.46M | -31.34M | -40.68M | -41.45M | -29.27M | 306.65M | -35.11M | -23.4M | -26.4M | 18.4M | -5.8M | -25.7M |
| Cash from Financing | 350M | -577M | -788M | -5.46B | -679M | 463M | -129M | -156.2M | 580.2M | -196M | -183.2M | 3.16B | 1.54B | -10.11M | -24.64M | -9.79M | 92.15M | 146.44M | 186.04M | 355.18M | -22.54M | 46.2M | 173.08M | -11K | 223K | 343.11M | -2.9M | 9.5M | -22M | -5.7M | 33.9M |
| Debt Issued (Net) | 1.07B | -11M | -34M | -4.93B | -577M | 507M | -397M | -90.4M | 642.3M | -139.7M | -141.3M | 3.4B | 1.62B | 76.7M | -7.8M | 31.69M | 97.01M | 181.37M | 161.1M | 335.56M | -30.41M | 9.81M | 170.41M | -80.88M | -823K | 252.41M | -3.2M | 9M | -23M | -5.6M | 29.4M |
| Equity Issued (Net) | -4M | -1000K | -1000K | -1000K | 0 | 0 | 1000K | 0 | -1000K | 0 | 0 | -1000K | -800K | -1000K | 0 | -1000K | -1000K | -1000K | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K | 200K | 500K | 1000K | 0 | 1000K |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -4.72M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | -623M | -462M | -193M | -442M | 0 | 0 | 0 | -20.9M | -9.5M | -6.1M | -1.4M | -29.5M | -800K | -68.46M | -2.35M | -26.34M | -5.54M | -23.14M | 0 | -9.82M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | -100M | -104M | -561M | -91M | -102M | -44M | -74M | -65.8M | -52.6M | -56.3M | -41.9M | -208.3M | -83.8M | -18.31M | -16.84M | -15.15M | -1.24M | -15.09M | 9.78M | 12.39M | -478K | 0 | -237K | -17.53M | 0 | -16.79M | 100K | 0 | 0 | -100K | 0 |
| Net Change in Cash | -78M | -209M | -446M | 266M | -442M | 768M | 155M | -614.1M | 677.2M | -13.6M | -43.1M | 18.1M | 44.7M | 4.61M | -19.88M | -135.85M | 124.45M | 111.24M | 1.61M | -11.15M | -27.18M | 28.92M | 44.44M | 22.28M | 6.16M | 10.24M | -1.7M | -11.3M | 12.2M | 1M | -1.1M |
| Free Cash Flow | 389M | 338M | 348M | -597M | 514M | 334M | 261M | -44.7M | 213.4M | 146.1M | 90.6M | -34.8M | 5.4M | 45.42M | 79.19M | 61.92M | 108.5M | -21.42M | -29.99M | -60.59M | 57.68M | 42.69M | 79.39M | 53.97M | 15.92M | 19.28M | 24.4M | 5.4M | 16.2M | 12.8M | -10.1M |
| FCF Margin % | 12.08% | 10.6% | 11.99% | -23.77% | 23.87% | 19.66% | 10.93% | -1.33% | 6.92% | 5.07% | 3.28% | -1.95% | 0.5% | 4.83% | 9.01% | 7.02% | 11.69% | -1.91% | -2.86% | -6.75% | 7.38% | 5.88% | 14.15% | 11.86% | 3.62% | 8.26% | 11.56% | 3.39% | 10.3% | 7.26% | -6.59% |
| FCF Growth % | 24.28% | -2.87% | 158.29% | -216.15% | 53.89% | 27.97% | 683.89% | -120.95% | 46.06% | 61.26% | 360.34% | -744.44% | -88.11% | -42.65% | 27.89% | -42.93% | 606.52% | 28.57% | 50.51% | -205.05% | 35.12% | -46.23% | 47.09% | 239.08% | -17.42% | -21% | 351.85% | -66.67% | 26.56% | 226.73% | 22.9% |
| FCF per Share | 4.58 | 3.71 | 3.74 | -6.28 | 5.24 | 3.52 | 2.81 | -0.49 | 2.40 | 1.67 | 1.05 | -0.41 | 0.06 | 0.50 | 0.86 | 0.67 | 1.17 | -0.23 | -0.31 | -0.64 | 0.62 | 0.47 | 0.90 | 0.67 | 0.39 | 0.52 | 0.64 | 0.15 | 0.47 | 0.41 | -0.35 |
| FCF Conversion (FCF/Net Income) | 0.97x | 1.88x | 3.62x | -0.10x | 1.85x | -0.83x | -4.20x | -0.98x | -2.09x | -1.18x | -0.30x | -0.87x | -5.67x | -2.50x | -13.61x | -1.14x | -5.52x | 24.56x | 2.85x | 1.93x | 2.67x | 1.87x | 2.21x | 1.34x | -106.87x | -4.34x | 66.25x | -0.52x | -1.34x | -0.44x | -0.16x |
| Interest Paid | 80M | 286M | 306M | 351M | 453M | 471M | 549M | 633M | 575M | 621.5M | 596.3M | 185.3M | 101.8M | 85.9M | 97.2M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 140M | 164M | 147M | 692M | 38M | 22M | 41M | 33M | 38M | 21.9M | 34.1M | 24.7M | 14.9M | 7.5M | 8.4M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
High leverage and litigation
According to the latest financial data, Light & Wonder consistently reports operating cash flow significantly higher than net income, with an OCF/NI ratio reaching 1.61 in 2025Q3, which suggests that the company's reported earnings may be conservative relative to its actual cash-generating capacity.
The persistent gap between net income and operating cash flow indicates that non-cash charges or working capital adjustments are heavily influencing the bottom line. Investors should monitor whether this conversion quality remains sustainable as the company shifts further toward digital-first revenue streams.
As reported in recent quarterly filings, LNW's free cash flow trajectory remains inconsistent, fluctuating from a low of $28.0M in 2025Q2 to $124.0M in 2025Q1, reflecting the inherent lumpiness of capital-intensive gaming machine cycles and the timing of digital segment investments.
While the company has demonstrated the ability to generate over $100M in quarterly free cash flow, the volatility suggests that operational cash flow is sensitive to product launch cadences. This inconsistency warrants caution, as the company's high debt load requires predictable cash generation to maintain financial flexibility.
Based on the provided cash flow statements, Light & Wonder maintains a capital expenditure intensity that consistently consumes between 7.9% and 10.6% of revenue, highlighting the ongoing requirement for heavy investment in physical cabinet manufacturing and R&D to defend its market position.
The sustained level of capital spending suggests that the company is not yet in a 'harvest' phase where it can significantly reduce investment without risking its competitive moat. This capital intensity acts as a structural drag on free cash flow, limiting the amount of capital available for debt reduction.
Data from recent periods reveals significant working capital outflows, including a $115.0M drag in 2025Q3, which appears to be a primary factor in the periodic compression of free cash flow despite strong underlying operational performance in the gaming and digital segments.
These substantial working capital swings may indicate aggressive inventory management or timing differences in the collection of receivables from casino operators. Analysts should investigate whether these outflows represent a permanent change in the operating cycle or temporary timing mismatches in the supply chain.
As indicated by the cash flow statements, Light & Wonder has prioritized share repurchases, totaling $110.0M in 2025Q3 alone, even while carrying a high debt-to-equity ratio of 6.16, which suggests a management strategy focused on equity value support over rapid balance sheet deleveraging.
The decision to return capital to shareholders while maintaining significant leverage may signal management's confidence in future cash flows. However, this approach leaves the company with less margin for error should the gaming market face a cyclical downturn or if litigation outcomes require significant cash outlays.
Quick answers to the most common questions about buying LNW stock.
Light & Wonder, Inc. (LNW) generated $632.0M in net cash from operating activities in 2024. This reflects the cash generated directly from core business operations.
Light & Wonder, Inc. (LNW) generated $338.0M in free cash flow in 2024. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Light & Wonder, Inc. (LNW) spent $294.0M on capital expenditures in 2024. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2024, Light & Wonder, Inc. (LNW) spent $462.0M on share repurchases. This shows the company's commitment to returning capital to its equity investors.