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Light & Wonder, Inc. Shs Chess Depository Interests Repr 1 Sh
(Sydney:LNW)
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Rating:59Neutral
Price Target:
AU$134.00
▲(3.06% Upside)
Action:Reiterated
Date:10/07/26
The score is anchored by solid operating profitability and improving recent cash generation, supported by a constructive earnings outlook and positive management commentary. However, materially elevated leverage and a thin equity buffer increase financial risk, and the technical setup is bearish with the stock trading below major moving averages and weak momentum.
Positive Factors
Recurring Revenue Growth
A growing recurring-revenue mix makes results less dependent on one-time equipment sales and supports greater earnings visibility. Expansion from 63% of revenue in 2022 to about 70% recently indicates a durable shift toward installed-base, content, and service economics.
Negative Factors
Elevated Leverage
High leverage leaves the company with less financial flexibility and makes cash allocation more constrained while debt reduction remains a priority. The thin equity buffer increases sensitivity to operating setbacks, and below-target leverage is not expected until the first half of 2027.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring Revenue Growth
A growing recurring-revenue mix makes results less dependent on one-time equipment sales and supports greater earnings visibility. Expansion from 63% of revenue in 2022 to about 70% recently indicates a durable shift toward installed-base, content, and service economics.
Read all positive factors
Light & Wonder, Inc. Shs Chess Depository Interests Repr 1 Sh (LNW) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$9.64B
Dividend YieldN/A
Average Volume (3M)220.44K
Price to Earnings (P/E)26.0
Beta (1Y)1.21
Revenue Growth0.17%
EPS Growth-21.07%
CountryAU
Employees6,800
SectorConsumer Cyclical
Sector Strength84
IndustryGambling, Resorts & Casinos
Share Statistics
EPS (TTM)3.38
Shares Outstanding77,049,180
10 Day Avg. Volume192,284
30 Day Avg. Volume220,439
Financial Highlights & Ratios
PEG Ratio-2.65
Price to Book (P/B)35.62
Price to Sales (P/S)2.63
P/FCF Ratio18.03
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
AU$177.50Price Target Upside36.52% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering12
EPS Forecast (FY)7.61
Revenue Forecast (FY)AU$3.39B
Light & Wonder, Inc. Shs Chess Depository Interests Repr 1 Sh Business Overview & Revenue Model
Company Description
Light & Wonder, Inc. operates as a prominent global entertainment technology provider, specializing in cross-platform games. Its operations are organized into three distinct segments: Gaming, SciPlay, and iGaming. The Gaming segment offers a compr...
How the Company Makes Money
Light & Wonder generates revenue through a combination of product sales, recurring participation/lease-style arrangements, software and service fees, and digital game monetization across its operating segments. In its Gaming segment, it earns mone...
Light & Wonder, Inc. Shs Chess Depository Interests Repr 1 Sh Earnings Call Summary
Earnings Call Date:Aug 04, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 04, 2026
Earnings Call Sentiment Positive
The call was predominantly positive, with strong growth in AEBITDA, adjusted NPATA, EPS, recurring revenue, cash flow, gaming operations and iGaming. Management reaffirmed full-year EBITDA guidance and highlighted continued installed-base, content and product momentum. The principal negatives were SciPlay's revenue and EBITDA declines, user-acquisition challenges, expected iGaming growth moderation from U.K. tax increases, weaker gaming systems and the need to reduce leverage. Overall, the highlights significantly outweighed the lowlights.Positive Updates
Strong Quarterly Profitability
Consolidated AEBITDA was $383 million, up 9% year-over-year, while adjusted NPATA grew 16% to $156 million. EPSa increased 26% year-over-year to $1.99, outpacing revenue and consolidated AEBITDA growth.
Negative Updates
SciPlay Revenue and EBITDA Decline
SciPlay revenue was $182 million, down 9% year-over-year, and EBITDA was $72 million, down 3%. Management attributed the performance to broader industry softness, a lower player base and lower revenue flow-through, and said it was not satisfied with the results or current position of the business.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Quarterly Profitability
Consolidated AEBITDA was $383 million, up 9% year-over-year, while adjusted NPATA grew 16% to $156 million. EPSa increased 26% year-over-year to $1.99, outpacing revenue and consolidated AEBITDA growth.
Read all positive updates
Company Guidance
Light & Wonder reaffirmed mid- to high single-digit consolidated AEBITDA growth in full year 2026, with earnings broadly in line with 2025 and weighted towards the second half, including fourth quarter weighting; North America daily average revenue per unit is expected to grow year-over-year, tracking in line with CPI, and third quarter game sales are expected to trend between 8,500 and 9,000 units globally. The company expects net debt leverage toward the midpoint of its targeted range by year-end and below 3x during the first half of 2027, with the intention to move toward an investment-grade level profile; buyback activity should be well below the first half level of circa $150 million. Corporate costs are expected in the mid- to high $30 million range per quarter, annual R&D and CapEx spend is targeted at roughly 17%, and can range between 15% and 20% in any given quarter.Light & Wonder, Inc. Shs Chess Depository Interests Repr 1 Sh Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
34
Negative
Cash Flow
69
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 3.33B | 3.31B | 3.19B | 2.90B | 2.51B |
| Gross Profit | 2.36B | 2.43B | 2.26B | 2.03B | 1.77B |
| EBITDA | 1.11B | 1.08B | 1.07B | 898.00M | 584.00M |
| Net Income | 268.13M | 276.00M | 336.00M | 163.00M | 3.67B |
Balance Sheet | |||||
| Total Assets | 6.36B | 6.46B | 5.42B | 5.55B | 6.01B |
| Cash, Cash Equivalents and Short-Term Investments | 245.89M | 167.00M | 196.00M | 425.00M | 914.00M |
| Total Debt | 5.17B | 5.21B | 3.92B | 3.93B | 3.95B |
| Total Liabilities | 6.06B | 6.22B | 4.79B | 4.79B | 4.85B |
| Stockholders Equity | 301.87M | 245.00M | 636.00M | 765.00M | 990.00M |
Cash Flow | |||||
| Free Cash Flow | 551.60M | 484.00M | 338.00M | 348.00M | -597.00M |
| Operating Cash Flow | 877.31M | 794.00M | 632.00M | 590.00M | -381.00M |
| Investing Cash Flow | -324.72M | -1.17B | -258.00M | -251.00M | 6.12B |
| Financing Cash Flow | -576.36M | 321.00M | -577.00M | -788.00M | -5.46B |
Light & Wonder, Inc. Shs Chess Depository Interests Repr 1 Sh Technical Analysis
Positive
130.02
Price Trends
120.11
Positive
118.92
Positive
124.47
Positive
Market Momentum
3.14
Negative
65.63
Neutral
84.50
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:LNW, the sentiment is Positive. The current price of 130.02 is above the 20-day moving average (MA) of 117.83, above the 50-day MA of 120.11, and above the 200-day MA of 124.47, indicating a bullish trend. The MACD of 3.14 indicates Negative momentum. The RSI at 65.63 is Neutral, neither overbought nor oversold. The STOCH value of 84.50 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:LNW.
Light & Wonder, Inc. Shs Chess Depository Interests Repr 1 Sh Risk Analysis
Light & Wonder, Inc. Shs Chess Depository Interests Repr 1 Sh disclosed 51 risk factors in its most recent earnings report. Light & Wonder, Inc. Shs Chess Depository Interests Repr 1 Sh reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Light & Wonder, Inc. Shs Chess Depository Interests Repr 1 Sh Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | AU$37.34B | 26.87 | 23.15% | 1.57% | -1.22% | 10.79% | |
66 Neutral | AU$380.53M | 11.15 | 26.69% | 4.46% | 33.23% | -14.58% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
61 Neutral | AU$11.91B | 42.49 | 94.29% | 3.08% | -4.64% | -22.15% | |
59 Neutral | AU$9.64B | 25.99 | 68.56% | ― | 0.17% | -21.07% | |
57 Neutral | AU$2.02B | 44.16 | 3.66% | 3.41% | 0.13% | 26.25% | |
50 Neutral | AU$390.68M | -20.28 | -5.86% | 15.59% | -13.43% | -208.54% |
* Consumer Cyclical Sector Average
AU:LNW
Light & Wonder, Inc. Shs Chess Depository Interests Repr 1 Sh
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Light & Wonder, Inc. Shs Chess Depository Interests Repr 1 Sh Corporate Events
Light & Wonder Updates ASX on Lapse of Equity Incentive Securities
Oct 7, 2026
Light Wonder Inc. has notified the ASX of the cessation of several classes of equity-linked securities, including options expiring at various dates and prices, and both performance restricted stock units and standard restricted stock units. The l...
Light & Wonder Director Increases Equity Stake Through RSU Vesting
Oct 5, 2026
Light Wonder, Inc. operates in the gaming and entertainment technology industry, offering casino, digital and content solutions delivered through common stock and CHESS Depository Interests on the ASX. The company targets both land-based and onli...
Light & Wonder Updates Director Jamie Odell’s Equity Holdings After RSU Vesting
Oct 5, 2026
Light Wonder, Inc. has reported a change in director Jamie Ronald Odell’s holdings following the vesting of restricted stock units on 1 October 2026. The update was lodged with the ASX in line with disclosure requirements for director inter...
Light & Wonder Corrects Director Shareholding Disclosure After Administrative Error
Sep 29, 2026
Light Wonder, Inc. has issued an amended director’s interest notice to correct an administrative error in previously reported shareholdings for director Hamish McLennan. A Form 4 filed with the U.S. Securities and Exchange Commission for Ma...
Light & Wonder Sets Out 2025 CSR Agenda to “Change the Game for Good”
Sep 29, 2026
Light Wonder has released its 2025 Corporate Social Responsibility Report, branded as “Changing the game for good,” outlining its approach to players, people, the planet, communities, supply chain and governance. The report signals a ...
Light & Wonder Updates Director Matthew Wilson’s Equity Holdings
Sep 21, 2026
Light Wonder, Inc. has disclosed a change in director Matthew Richard Wilson’s interests in company securities, reflecting an update to his equity-based compensation. The notice details his holdings in common stock, restricted stock units a...
Light & Wonder Issues New Unquoted Equity Under Employee Incentive Plan
Sep 16, 2026
Light Wonder Inc., a gaming and entertainment company listed on the ASX under the code LNW, continues to use unquoted performance restricted stock units and restricted stock units as part of its employee incentive plans. These equity awards form ...
Light & Wonder Sets Interim Oversight as SciPlay CEO Josh Wilson Departs
Sep 16, 2026
Light Wonder, Inc., a global cross-platform games company, operates three complementary business segments, including its SciPlay social casino unit. The group focuses on immersive content and direct-to-consumer gaming experiences, supported by a ...
Caledonia Discloses 5.37% Stake in Light & Wonder
Sep 1, 2026
Caledonia (Private) Investments Pty Limited and affiliated entity Caledonia US, LP have disclosed beneficial ownership of 4,141,343 shares of Light Wonder, Inc. common stock, representing approximately 5.37% of the company’s outstanding sha...
Light & Wonder Director Adjusts Equity Holdings After Option Exercise
Aug 20, 2026
Light Wonder, Inc. has disclosed a change in director Antonia Korsanos’s holdings, reflecting adjustments to her equity-based compensation. The filing outlines movements in her directly held common stock, options over shares, and restricted...
Light & Wonder Director Increases Equity Stake After Option Exercise
Aug 20, 2026
Light Wonder, Inc. has reported a change in the equity interests held by director Jamie Ronald Odell, reflecting movements in his direct and indirect holdings of company shares and options. The update details his involvement through personal hold...
Light & Wonder Flags Broad Risk Landscape Around Q2 2026 and Strategic Moves
Aug 4, 2026
Light Wonder has outlined extensive risk factors and uncertainties tied to its second-quarter 2026 results and broader strategic execution, underscoring challenges ranging from slow growth in new gaming jurisdictions and competitive pressures to ...
Light & Wonder details filing status and share structure in latest quarterly report
Aug 4, 2026
Light Wonder, Inc. has filed its quarterly report for the period ended June 30, 2026, confirming that it has met all required U.S. Securities Exchange Act reporting obligations over the past year and is classified as a large accelerated filer rat...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.