Operating margins have scaled to 27.2% in 2025Q3 from 15.5% in 2023Q2, reflecting improved efficiency despite revenue growth normalizing to 2.9%.
| 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 |
|---|
| Sales/Revenue | 3.22B | 3.19B | 2.9B | 2.51B | 2.15B | 1.7B | 2.39B | 3.36B | 3.08B | 2.88B | 2.76B | 1.79B | 1.09B | 940.6M | 878.72M | 882.5M | 927.75M | 1.12B | 1.05B | 897.23M | 781.68M | 725.5M | 560.91M | 455.25M | 440.24M | 233.35M | 211.1M | 159.3M | 157.3M | 176.2M | 153.2M |
| Revenue Growth % | 1.87% | 9.86% | 15.53% | 16.67% | 26.72% | -28.85% | -29% | 9.07% | 6.94% | 4.52% | 54.43% | 63.75% | 15.98% | 7.04% | -0.43% | -4.88% | -17.08% | 6.89% | 16.66% | 14.78% | 7.74% | 29.34% | 23.21% | 3.41% | 88.66% | 10.54% | 32.52% | 1.27% | -10.73% | 15.01% | 2.75% |
| Cost of Goods Sold | 878M | 931M | 872M | 738M | 609M | 610M | 746M | 1.26B | 1.16B | 1.11B | 1.1B | 849.4M | 591.7M | 528.71M | 491.28M | 514.87M | 549.47M | 680.64M | 611.78M | 509.95M | 452.05M | 411.22M | 323.81M | 268.45M | 278.44M | 155.9M | 143.4M | 104.7M | 94.9M | 111.6M | 94.2M |
| COGS % of Revenue | - | 29.2% | 30.05% | 29.38% | 28.29% | 35.9% | 31.24% | 37.32% | 37.77% | 38.37% | 40.02% | 47.55% | 54.24% | 56.21% | 55.91% | 58.34% | 59.23% | 60.84% | 58.45% | 56.84% | 57.83% | 56.68% | 57.73% | 58.97% | 63.25% | 66.81% | 67.93% | 65.72% | 60.33% | 63.34% | 61.49% |
| Gross Profit | 2.34B | 2.26B | 2.03B | 1.77B | 1.54B | 1.09B | 1.64B | 2.11B | 1.92B | 1.78B | 1.65B | 937M | 499.2M | 411.89M | 387.44M | 367.63M | 378.28M | 438.19M | 434.92M | 387.28M | 329.63M | 314.27M | 237.1M | 186.8M | 161.8M | 77.45M | 67.7M | 54.6M | 62.4M | 64.6M | 59M |
| Gross Margin % | 72.74% | 70.8% | 69.95% | 70.62% | 71.71% | 64.1% | 68.76% | 62.68% | 62.23% | 61.63% | 59.98% | 52.45% | 45.76% | 43.79% | 44.09% | 41.66% | 40.77% | 39.16% | 41.55% | 43.16% | 42.17% | 43.32% | 42.27% | 41.03% | 36.75% | 33.19% | 32.07% | 34.27% | 39.67% | 36.66% | 38.51% |
| Gross Profit Growth % | - | 11.18% | 14.43% | 14.9% | 41.78% | -33.68% | -22.1% | 9.84% | 7.98% | 7.4% | 76.6% | 87.7% | 21.2% | 6.31% | 5.39% | -2.81% | -13.67% | 0.75% | 12.3% | 17.49% | 4.89% | 32.55% | 26.92% | 15.45% | 108.91% | 14.4% | 23.99% | -12.5% | -3.41% | 9.49% | 29.96% |
| Operating Expenses | 1.57B | 1.59B | 1.51B | 1.5B | 1.43B | 1.33B | 1.35B | 1.84B | 1.53B | 1.65B | 1.65B | 1.11B | 292.4M | 183.02M | 303.62M | 300.87M | 323.95M | 184.21M | 329.09M | 261.73M | 198.64M | 160.75M | 122.45M | 101.04M | 111.9M | 63.49M | 49.4M | 55.7M | 66.2M | 73.8M | 78.7M |
| OpEx % of Revenue | - | 49.84% | 52.1% | 59.75% | 66.6% | 78.52% | 56.62% | 54.77% | 49.49% | 57.1% | 59.98% | 62.12% | 26.8% | 19.46% | 34.55% | 34.09% | 34.92% | 16.46% | 31.44% | 29.17% | 25.41% | 22.16% | 21.83% | 22.19% | 25.42% | 27.21% | 23.4% | 34.97% | 42.09% | 41.88% | 51.37% |
| Selling, General & Admin | 859M | 872M | 808M | 717M | 679M | 627M | 619M | 696.9M | 613.1M | 577M | 567.7M | 507.7M | 222.1M | 179.4M | 172.9M | 159.1M | 168.25M | 184.21M | 168.72M | 155.73M | 131.84M | 105.27M | 63.13M | 63.13M | 56.7M | 35.66M | 27.2M | 26.2M | 29.5M | 32.9M | 43.2M |
| SG&A % of Revenue | - | 27.35% | 27.84% | 28.54% | 31.54% | 36.9% | 25.92% | 20.72% | 19.88% | 20.01% | 20.58% | 28.42% | 20.36% | 19.07% | 19.68% | 18.03% | 18.14% | 16.46% | 16.12% | 17.36% | 16.87% | 14.51% | 11.26% | 13.87% | 12.88% | 15.28% | 12.88% | 16.45% | 18.75% | 18.67% | 28.2% |
| Research & Development | 259M | 262M | 228M | 218M | 190M | 148M | 166M | 202.3M | 184.1M | 204.8M | 183.9M | 117M | 26M | 6.6M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | 8.22% | 7.86% | 8.68% | 8.82% | 8.71% | 6.95% | 6.02% | 5.97% | 7.1% | 6.67% | 6.55% | 2.38% | 0.7% | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 4M | 455M | 476M | 566M | 565M | 559M | 567M | 942.8M | 728.8M | 864.7M | 903.2M | 485M | 44.3M | -2.98M | 130.72M | 141.77M | 155.7M | 0 | 160.37M | 106.01M | 66.79M | 55.48M | 59.31M | 37.91M | 55.21M | 27.83M | 22.2M | 29.5M | 36.7M | 40.9M | 35.5M |
| Operating Income | 769M | 668M | 518M | 273M | 110M | -245M | 290M | 265.6M | 393.1M | 130.6M | -1.02B | -172.7M | -18.3M | 38.21M | 113.21M | 115.86M | 113.55M | 80.21M | 103.79M | 124.78M | 129.77M | 169.64M | 116.13M | 86.4M | 49.93M | 13.5M | 20.2M | -2.3M | -5.5M | -1.3M | -8.5M |
| Operating Margin % | 23.87% | 20.95% | 17.85% | 10.87% | 5.11% | -14.42% | 12.14% | 7.9% | 12.75% | 4.53% | -37.14% | -9.67% | -1.68% | 4.06% | 12.88% | 13.13% | 12.24% | 7.17% | 9.92% | 13.91% | 16.6% | 23.38% | 20.7% | 18.98% | 11.34% | 5.79% | 9.57% | -1.44% | -3.5% | -0.74% | -5.55% |
| Operating Income Growth % | - | 28.96% | 89.74% | 148.18% | 144.9% | -184.48% | 9.19% | -32.43% | 201% | 112.75% | -493.28% | -843.72% | -147.9% | -66.25% | -2.28% | 2.03% | 41.57% | -22.72% | -16.83% | -3.84% | -23.5% | 46.08% | 34.41% | 73.04% | 269.8% | -33.16% | 978.26% | 58.18% | -323.08% | 84.71% | -18.06% |
| EBITDA | 1.16B | 1.03B | 902M | 693M | 508M | 204M | 832M | 955.3M | 1.08B | 864.5M | -121.4M | 281.6M | 184.7M | 211.58M | 231.81M | 257.62M | 265.33M | 298.85M | 264.15M | 230.79M | 196.57M | 230.92M | 163.81M | 129.24M | 105.14M | 41.33M | 42.4M | 27.2M | 31.2M | 39.6M | 27M |
| EBITDA Margin % | 36.14% | 32.28% | 31.08% | 27.59% | 23.59% | 12.01% | 34.84% | 28.4% | 34.89% | 29.98% | -4.4% | 15.76% | 16.93% | 22.49% | 26.38% | 29.19% | 28.6% | 26.71% | 25.24% | 25.72% | 25.15% | 31.83% | 29.2% | 28.39% | 23.88% | 17.71% | 20.09% | 17.07% | 19.83% | 22.47% | 17.62% |
| EBITDA Growth % | 15.94% | 14.08% | 30.16% | 36.42% | 149.02% | -75.48% | -12.91% | -11.21% | 24.45% | 812.11% | -143.11% | 52.46% | -12.7% | -8.73% | -10.02% | -2.91% | -11.22% | 13.14% | 14.46% | 17.41% | -14.88% | 40.96% | 26.75% | 22.92% | 154.4% | -2.53% | 55.88% | -12.82% | -21.21% | 46.67% | 48.35% |
| D&A (Non-Cash Add-back) | 395M | 361M | 384M | 420M | 398M | 449M | 542M | 689.7M | 682.8M | 733.9M | 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 |
| EBIT | 799M | 714M | 514M | 164M | 184M | -301M | 212M | 260.5M | 374.9M | 176M | -1.03B | -187.7M | -23.8M | 52M | 117.3M | 96.3M | 61.17M | 81.94M | 149.14M | 134.22M | 130.99M | 153.52M | 114.65M | 85.77M | 55.97M | 13.96M | 18.3M | -1.1M | -3.8M | -9.2M | -19.7M |
| Net Interest Income | -299M | -293M | -309M | -327M | -478M | -503M | -589M | -597M | -610M | -661.4M | -664.9M | -307.2M | -119.5M | -100M | -104.7M | -101.61M | -87.5M | -78.07M | -70.77M | -43.39M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 0 | 0 | 15M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 3K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 299M | 293M | 324M | 327M | 478M | 503M | 589M | 597.2M | 609.7M | 661.4M | 664.9M | 307.2M | 119.5M | 100.01M | 104.7M | 101.61M | 87.5M | 65.03M | 13.2M | 33.96M | 26.17M | 75.05M | 34.66M | 64.55M | 50.44M | 17.75M | 19.6M | 13.3M | 11.3M | 30.5M | 38.7M |
| Other Income/Expense | -269M | -247M | -313M | -436M | -404M | -559M | -667M | -604.9M | -620.9M | -609.3M | -299.9M | -322.2M | -125M | -107.02M | -109.8M | -121.17M | -80.66M | -63.3M | -15.25M | -34.73M | -27.39M | -58.93M | -33.19M | -72.91M | -56.48M | -30.77M | -17.7M | -14.5M | -12.6M | -22.6M | -27.5M |
| Pretax Income | 500M | 421M | 205M | -163M | -294M | -804M | -377M | -339.3M | -227.8M | -478.7M | -1.69B | -494.9M | -143.3M | -48.01M | 3.41M | -5.31M | -26.33M | 16.91M | 90.59M | 90.82M | 103.6M | 94.59M | 81.47M | 35.36M | -506K | -16.82M | 600K | -15.6M | -16.4M | -31.8M | -47.2M |
| Pretax Margin % | 15.52% | 13.21% | 7.06% | -6.49% | -13.66% | -47.32% | -15.79% | -10.09% | -7.39% | -16.6% | -61.41% | -27.7% | -13.14% | -5.1% | 0.39% | -0.6% | -2.84% | 1.51% | 8.65% | 10.12% | 13.25% | 13.04% | 14.52% | 7.77% | -0.11% | -7.21% | 0.28% | -9.79% | -10.43% | -18.05% | -30.81% |
| Income Tax | 101M | 85M | 25M | 13M | -318M | -3M | -47M | 13.1M | 14.5M | -125M | -299.9M | -260.6M | -117.7M | 14.62M | 15.98M | 143.89M | 13.55M | 8.42M | 25.22M | 24.06M | 28.29M | 28.85M | 29.32M | -30.19M | 78K | 1.6M | 200K | 300K | 900K | 2.4M | 2.7M |
| Effective Tax Rate % | 20.2% | 20.19% | 12.2% | -7.98% | 108.16% | 0.37% | 12.47% | -3.86% | -6.37% | 26.11% | 17.7% | 52.66% | 82.14% | -30.46% | 468.3% | -2708.23% | -51.45% | 49.81% | 27.84% | 26.49% | 27.3% | 30.5% | 35.99% | -85.39% | -15.42% | -9.53% | 33.33% | -1.92% | -5.49% | -7.55% | -5.72% |
| Net Income | 399M | 336M | 163M | 3.67B | 371M | -569M | -130M | -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 | -5.85M | 400K | -15.9M | -17.7M | -34.2M | -49.9M |
| Net Margin % | 12.39% | 10.54% | 5.62% | 146.3% | 17.23% | -33.49% | -5.44% | -10.48% | -7.86% | -12.27% | -50.54% | -13.12% | -2.77% | -6.66% | -1.43% | -16.91% | -4.3% | 0.76% | 6.25% | 7.44% | 9.64% | 9.06% | 9.3% | 11.43% | -0.13% | -2.51% | 0.19% | -9.98% | -11.25% | -19.41% | -32.57% |
| Net Income Growth % | 35.25% | 106.14% | -95.56% | 890.57% | 165.2% | -337.69% | 63.11% | -45.44% | 31.5% | 74.63% | -495.09% | -675.83% | 51.78% | -398.23% | 91.58% | -274.13% | -569.83% | -87.01% | -2.09% | -11.36% | 14.57% | 26.07% | 0.19% | 9012.67% | 90.02% | -1563.25% | 102.52% | 10.17% | 48.25% | 31.46% | -125.79% |
| Net Income (Continuing) | 399M | 336M | 180M | -176M | 24M | -801M | -330M | -352.4M | -242.3M | -353.7M | -1.39B | -234.3M | -25.6M | -62.63M | -5.8M | -149.2M | -39.88M | 8.49M | 65.37M | 66.76M | 75.32M | 65.74M | 52.15M | 39.73M | -4.86M | -18.42M | 400K | -15.9M | -17.3M | -34.2M | -49.9M |
| Discontinued Operations | 0 | 0 | 0 | 3.87B | 366M | 253M | 212M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 171M | 150M | 129M | 104M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 4.69 | 3.68 | 1.75 | -1.85 | 3.77 | -5.77 | -1.27 | -3.87 | -2.72 | -4.05 | -16.23 | -2.77 | -0.36 | -0.70 | -0.14 | -1.61 | -0.43 | -0.05 | 0.55 | 0.70 | 0.81 | 0.72 | 0.59 | 0.50 | -0.01 | -0.16 | 0.01 | -0.45 | -0.51 | -1.09 | -1.72 |
| EPS Growth % | 27.86% | 110.29% | 194.59% | -149.07% | 165.34% | -354.33% | 67.18% | -42.28% | 32.84% | 75.05% | -485.92% | -669.44% | 48.57% | -400% | 91.3% | -274.42% | -760% | -109.09% | -21.43% | -13.58% | 12.5% | 22.03% | 18% | 3548.28% | 90.94% | -1700% | 102.22% | 11.76% | 53.21% | 36.63% | -117.72% |
| EPS (Basic) | - | 3.77 | 1.79 | 38.78 | 3.86 | -5.79 | -1.27 | -3.87 | -2.72 | -4.05 | -16.23 | -2.77 | -0.36 | -0.70 | -0.14 | -1.61 | -0.43 | -0.05 | 0.57 | 0.73 | 0.84 | 0.84 | 0.74 | 0.64 | -0.01 | -0.16 | 0.01 | -0.45 | -0.51 | -1.09 | -1.72 |
| Diluted Shares Outstanding | 85M | 91M | 93M | 95M | 98M | 95M | 93M | 91M | 89M | 87.3M | 85.9M | 84.6M | 85M | 90M | 92.1M | 92.67M | 92.7M | 92.88M | 96M | 94.98M | 92.48M | 90.71M | 88.14M | 80.15M | 40.34M | 36.93M | 38.34M | 35.7M | 34.47M | 31.3M | 28.96M |
| Basic Shares Outstanding | 84M | 89M | 91M | 94.74M | 96M | 94.59M | 92.93M | 90.96M | 88.97M | 87.3M | 85.9M | 84.58M | 85M | 89.59M | 92.1M | 92.67M | 92.7M | 92.88M | 92.57M | 91.07M | 89.33M | 73.01M | 60.01M | 50.22M | 40.34M | 36.93M | 36.12M | 35.7M | 34.47M | 31.3M | 28.96M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
High leverage and litigation
According to the latest quarterly filings, Light & Wonder's revenue growth has decelerated to 2.9% in 2025Q3, a notable shift from the double-digit expansion observed throughout 2023 and early 2024, suggesting that the initial post-divestiture momentum is stabilizing as the company matures into its current operating structure.
The deceleration in top-line growth indicates that the company may be reaching a saturation point in its core North American replacement cycle. Investors should monitor whether the shift toward digital and iGaming segments can offset the inherent cyclicality of land-based machine sales in future periods.
As reported in financial statements, Light & Wonder achieved a gross margin of 74.2% in 2025Q3, reflecting a consistent upward trend from the 69.6% level seen in 2023Q4, which appears to validate the strategic pivot toward higher-margin digital content and proprietary intellectual property licensing.
This margin expansion suggests that the company is successfully leveraging its digital ecosystem to improve overall profitability. The ability to maintain these elevated margins will likely depend on the company's success in defending its IP against recent legal challenges that could threaten its competitive positioning.
Based on the provided income statement data, operating margins have expanded significantly to 27.2% in 2025Q3 from 15.5% in 2023Q2, demonstrating that the company is effectively scaling its operating income faster than its gross profit through disciplined management of overhead and administrative expenses.
The improvement in operating leverage implies that the company has successfully streamlined its cost structure following the integration of SciPlay. This trend warrants further investigation to determine if such efficiency gains are sustainable or if they are merely a result of temporary cost-cutting measures.
Analysis of the income statement reveals that Light & Wonder's net income has reached $114.0M in 2025Q3, with the notable absence of stock-based compensation expenses compared to the $29.0M charge recorded in 2024Q3, suggesting a cleaner earnings profile that may better reflect core operational performance.
The elimination of stock-based compensation charges appears to have provided a tailwind to reported EPS, which reached $1.34 in the most recent quarter. Investors should remain cautious, however, as the lack of these charges may be a temporary accounting phenomenon rather than a permanent shift in compensation policy.
While profitability metrics appear to be trending upward, the company's high debt-to-equity ratio of 6.16, combined with ongoing intellectual property litigation regarding key game mechanics, presents a significant risk profile that could undermine the current valuation if growth fails to meet market expectations.
The potential for costly legal settlements or product withdrawals could disrupt the company's 'ship share' and long-term revenue visibility. Furthermore, the substantial leverage suggests that any downturn in the gaming cycle could severely restrict the company's financial flexibility and ability to fund necessary R&D.
Quick answers to the most common questions about buying LNW stock.
For fiscal year 2024, Light & Wonder, Inc. (LNW) reported total revenue of $3.19B. This represents a 1980.9% increase compared to $153.2M in 1995.
Light & Wonder, Inc. (LNW) is profitable, generating $336.0M in net income for the fiscal year ending 2024 with a net profit margin of 10.5%.
Light & Wonder, Inc. (LNW) reported an operating income of $668.0M, resulting in an operating profit margin of 21.0%. This margin reflects the operational efficiency of the business before interest and taxes.
Light & Wonder, Inc. (LNW) generated $2.26B in gross profit for the year, representing a gross profit margin of 70.8%. This demonstrates the company's core pricing power and production efficiency.