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Light & Wonder, Inc. Shs Chess Depository Interests Repr 1 Sh
(Sydney:LNW)
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Rating:61Neutral
Price Target:
AU$131.00
▲(0.75% Upside)
Action:Reiterated
Date:08/09/26
The score is primarily held back by elevated balance-sheet risk (sharp increase in leverage and a thin equity buffer) despite strong operating margins and improving recent cash generation. Technicals are supportive in the near term (price above key shorter moving averages with positive MACD), while valuation is moderate based on the P/E multiple.
Positive Factors
High Operating Margins
Sustained high gross and EBITDA margins indicate durable pricing power and a capital-light content model. These margins support reinvestment in game development and systems while cushioning cyclical downturns, underpinning long-term cash generation and competitive differentiation.
Negative Factors
Elevated Leverage
A dramatic jump in leverage and a very thin equity base materially increases financial risk. High debt limits strategic flexibility, raises refinancing and covenant risk during stress, and amplifies downside to equity holders across a 2–6 month horizon and beyond if operating volatility persists.
Read all positive and negative factors
Positive Factors
Negative Factors
High Operating Margins
Sustained high gross and EBITDA margins indicate durable pricing power and a capital-light content model. These margins support reinvestment in game development and systems while cushioning cyclical downturns, underpinning long-term cash generation and competitive differentiation.
Read all positive factors
Light & Wonder, Inc. Shs Chess Depository Interests Repr 1 Sh (LNW) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$9.83B
Dividend YieldN/A
Average Volume (3M)294.77K
Price to Earnings (P/E)17.8
Beta (1Y)1.13
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. Volume472,284
30 Day Avg. Volume294,769
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$176.00Price Target Upside35.36% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering12
EPS Forecast (FY)5.44
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 makes money primarily by selling and leasing gaming equipment and by providing recurring, usage-based gaming and software revenues. Key revenue streams typically include: (1) Gaming machine and hardware sales: revenue from the outri...
Light & Wonder, Inc. Shs Chess Depository Interests Repr 1 Sh Earnings Call Summary
Earnings Call Date:Feb 24, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Nov 04, 2026
Earnings Call Sentiment Positive
The call presented a predominantly positive operational and financial story: strong recurring revenue growth, record unit shipments, broad-based AEBITDA and margin expansion, robust cash generation, successful Grover integration and active capital returns. Key risks and near-term headwinds were acknowledged, including significant one-time legal and transition charges that depressed GAAP earnings in the quarter, SciPlay's Jackpot Party underperformance that requires UA reinvestment to fully recover, and an adverse U.K. tax change beginning Q2 2026. Balance sheet leverage and higher interest expense from the Grover acquisition are manageable but noteworthy. On balance, operational momentum and margin/cash-flow improvements outweigh the discrete charges and isolated business challenges.Positive Updates
Consolidated Revenue and AEBITDA Growth
Q4 consolidated revenue of $891M, up 12% year-over-year; full-year consolidated revenue of $3.3B, up 4% versus 2024. Q4 consolidated AEBITDA of $405M, up 29% year-over-year, and full-year AEBITDA of $1.44B (16% growth vs. 2024).
Negative Updates
Quarterly Net Loss and One-Time Charges
Reported a Q4 net loss of $15M reflecting a $128M settlement and other charges (~$49M) including contingent acquisition fair value adjustment and ASX transition costs; full-year net income declined ~18% YoY, impacted by $219M of restructuring and other charges.
Read all updates
Q4-2025 Updates
Positive
Negative
Consolidated Revenue and AEBITDA Growth
Q4 consolidated revenue of $891M, up 12% year-over-year; full-year consolidated revenue of $3.3B, up 4% versus 2024. Q4 consolidated AEBITDA of $405M, up 29% year-over-year, and full-year AEBITDA of $1.44B (16% growth vs. 2024).
Read all positive updates
Company Guidance
The company reiterated its long‑term 2028 targets of $2.0 billion consolidated AEBITDA and EPSa > $10.55, and guided that 2026 should deliver another year of strong adjusted NPATA and EPSa growth with a broadly similar earnings shape to 2025; key modeling metrics include expected North American premium net installs of >500 units per quarter and continued net installed‑base growth (including Grover), gaming AEBITDA margin around 50% in Q1 (with tariff headwinds of mid‑ to high‑single‑digit millions per quarter), SciPlay DTC penetration moving toward its 30% 2028 target (25% in Q4), combined R&D+CapEx targeted at ~17% of consolidated revenue, an expected effective tax rate of 22–24%, and organic deleveraging through 2026 from 3.4x year‑end net leverage toward the lower end of a 2.5–3.5x range; capital‑allocation guidance included continued opportunistic buybacks after returning $1.9 billion since 2022 ( $877 million repurchased in 2025, $500 million in Q4, 78% of the $1.5 billion program), available liquidity of $927 million, principal debt of $5.2 billion (term loan repriced to 2% margin on $2.1 billion for ~$5 million annual savings), and continued focus on sustaining improved cash conversion (Q4 conversion ~43% of AEBITDA and 109% of NPATA; full‑year FCF conversion 31% of AEBITDA and 80% of adjusted NPATA).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
Neutral
130.02
Price Trends
118.87
Positive
118.35
Positive
131.43
Negative
Market Momentum
2.29
Positive
52.87
Neutral
28.53
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:LNW, the sentiment is Neutral. The current price of 130.02 is above the 20-day moving average (MA) of 129.80, above the 50-day MA of 118.87, and below the 200-day MA of 131.43, indicating a neutral trend. The MACD of 2.29 indicates Positive momentum. The RSI at 52.87 is Neutral, neither overbought nor oversold. The STOCH value of 28.53 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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$36.31B | 25.52 | 23.15% | 1.62% | -1.22% | 10.79% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
61 Neutral | AU$9.83B | 17.81 | 113.60% | ― | 0.17% | -21.07% | |
61 Neutral | AU$11.11B | 39.01 | 94.29% | 3.31% | -4.64% | -22.15% | |
57 Neutral | AU$2.03B | 43.81 | 3.66% | 3.39% | 0.13% | 26.25% | |
46 Neutral | AU$199.38M | -4.97 | -29.69% | ― | 8.87% | -260.38% | |
43 Neutral | AU$392.36M | -20.37 | -5.86% | 16.31% | -13.43% | -208.54% |
* Consumer Cyclical Sector Average
AU:LNW
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Light & Wonder, Inc. Shs Chess Depository Interests Repr 1 Sh Corporate Events
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...
Light & Wonder Issues New Unquoted Equity Under Employee Incentive Plans
Jul 9, 2026
Light Wonder Inc. has notified the ASX of the issue of new unquoted equity securities under its employee incentive schemes. The company will grant 54,991 performance restricted stock units and 16,111 restricted stock units effective 1 May 2026, r...
Light & Wonder Reports Lapse of Options and Restricted Stock Units
Jul 7, 2026
Light Wonder Inc. has notified the market of the cessation of several classes of equity-linked securities, including 270,000 options expiring on various dates and at various prices. The announcement details these changes to its issued capital as ...
Light & Wonder Extends Daily On-Market Buy-Back of ASX Chess Depositary Interests
Jun 24, 2026
Light Wonder Inc. has continued its on-market share buy-back program for its CHESS Depositary Interests on the ASX, reporting that a total of 2,435,503 securities had been repurchased prior to the latest trading day. The company bought back a fur...
Light & Wonder Reports Ongoing Daily Buy-Back of ASX CDIs
Jun 23, 2026
Light Wonder Inc. has continued its on-market buy-back of CHESS Depositary Interests on the ASX, updating investors on the daily progress of the program. The company reported that a total of 2,348,157 securities had been repurchased prior to the ...
Light & Wonder Advances On-Market Buy-Back of ASX CHESS Depositary Interests
Jun 22, 2026
Light Wonder Inc. has provided an updated notification to the ASX on its ongoing on-market buy-back of CHESS Depositary Interests, confirming that 2,307,073 securities had been repurchased prior to the latest reporting day. The company reported t...
Light & Wonder Continues ASX On‑Market Buy-Back of CDIs
Jun 21, 2026
Light Wonder Inc. has issued an updated notification to the ASX confirming ongoing on‑market buy-backs of its CHESS Depositary Interests, each representing one underlying share, under a program first announced in December 2025. The latest d...
Light & Wonder Reports Daily Progress in Ongoing On‑Market Buy‑Back
Jun 18, 2026
Light Wonder has reported a daily update to its on‑market share buy‑back for its CHESS Depositary Interests, continuing a capital management program first notified in December 2025. The company disclosed that it has repurchased a cumu...
Light & Wonder updates director equity holdings under annual compensation plan
Jun 18, 2026
Light Wonder, Inc. has disclosed a change in the equity interests of director Virginia Eileen Shanks, reflecting routine adjustments tied to the company’s equity-based compensation program. Following the vesting of previously granted restri...
Light & Wonder updates director equity holdings after RSU vesting and grant
Jun 18, 2026
Light Wonder disclosed a change in director Stephen William Morro’s holdings following the vesting of previously granted restricted stock units and the award of new equity as part of his annual director compensation. After 2,391 RSUs vested...
Light & Wonder updates ASX on director Hamish McLennan’s expanded equity stake
Jun 18, 2026
Light Wonder, Inc. has disclosed a change in director Hamish Roy McLennan’s holdings, following the vesting of previously granted restricted stock units and the award of new equity as part of his annual director compensation. After the tran...
Light & Wonder updates director equity holdings after RSU vesting and grant
Jun 18, 2026
Light Wonder has disclosed a change in director Michael Francis Marchetti’s securities holdings following the vesting and grant of restricted stock units tied to his annual director compensation. After the transaction on 11 June 2026, March...
Light & Wonder Director Adjusts Equity Stake and Delegates Insider Filing Authority
Jun 18, 2026
Light Wonder director Jamie Odell exercised 135,000 stock options tied to CHESS Depositary Interests and converted them into common stock, while simultaneously selling and withholding a portion of the resulting holdings to cover the exercise pric...
Light & Wonder director Korsanos exercises options and streamlines filing authority
Jun 18, 2026
Light Wonder director and officer Antonia Korsanos exercised 135,000 stock options, converting them into common stock represented by CHESS Depositary Interests on the Australian Securities Exchange and subsequently selling a portion to cover tax ...
Light & Wonder Updates ASX on Progress of On‑Market CDI Buy‑Back
Jun 17, 2026
Light Wonder, Inc. has provided an updated notification to the ASX regarding its on‑market share buy‑back of CHESS Depositary Interests, each representing one underlying share. The latest filing confirms the program’s ongoing ex...
Light & Wonder director boosts net equity stake after option exercise
Jun 16, 2026
Light Wonder, Inc. disclosed a change in director Antonia Korsanos’ holdings following the cashless exercise of 135,000 vested options, which generated 81,252 new shares, and the on-market sale of 30,000 shares to cover associated tax oblig...
Light & Wonder Director Boosts Shareholding Through Option Exercise
Jun 16, 2026
Light Wonder, Inc. disclosed a change in director Jamie Ronald Odell’s interests following the cashless exercise of 135,000 vested options, which resulted in the acquisition of 81,252 common shares. Odell then sold 30,000 shares on market a...
Light & Wonder updates ASX on ongoing on-market share buy-back
Jun 9, 2026
Light Wonder Inc., a gaming and entertainment technology provider listed on the ASX via 1:1 CHESS Depositary Interests, continues to use share buy-backs as part of its capital management strategy. The company’s securities trade under the ti...
Light & Wonder Continues On-Market Buy-Back of ASX CDIs
Jun 4, 2026
Light Wonder, Inc. has reported an update on its on-market share buy-back of CHESS Depositary Interests on the ASX, confirming that a total of 1,946,557 securities had been repurchased before the most recent trading day. The company disclosed tha...
Light & Wonder Reports Ongoing On-Market Buy-Back of ASX CDIs
Jun 3, 2026
Light Wonder Inc., which offers its shares to Australian investors via CHESS Depositary Interests on the ASX under ticker LNW, operates as a publicly listed entity in the gaming sector and uses buy-backs as part of its capital management strategy...
Light & Wonder Issues Daily Update on Ongoing On-Market Buy-Back
Jun 1, 2026
Light Wonder Inc. has provided an updated notification to the ASX regarding its ongoing on-market share buy-back for CHESS Depositary Interests, maintaining its capital management strategy. The company reported that a total of 1,847,245 securitie...
Light & Wonder Files 2025 Conflict Minerals Disclosure Report
Jun 1, 2026
Light Wonder, Inc. has filed a Specialized Disclosure Report on Form SD with the U.S. Securities and Exchange Commission, covering its use of conflict minerals for the 2025 reporting period. The filing indicates that the company has prepared a Co...
Light & Wonder Sets Rules for ASX CDI Holders Ahead of Virtual AGM
Jun 1, 2026
Light Wonder, Inc. has outlined how holders of its CHESS Depositary Interests on the ASX can participate in its upcoming virtual Annual Meeting of Stockholders scheduled for June 11, 2026 AEST. The company explains that each CDI represents a bene...
Light & Wonder Continues On-Market Buy-Back of ASX Chess Depositary Interests
May 31, 2026
Light Wonder has reported the latest activity under its ongoing on-market share buy-back program for its CHESS Depositary Interests on the ASX, disclosing that a total of 1,753,411 securities had been repurchased prior to the most recent trading ...
Light & Wonder Extends On-Market Buy-Back of ASX CHESS Depositary Interests
May 28, 2026
Light Wonder Inc., a gaming and entertainment company whose CHESS Depositary Interests trade on the ASX under code LNW, offers investors 1:1 exposure to its underlying shares and participates in the global gaming technology sector. The company ha...
Light & Wonder Issues New Performance Restricted Stock Units Under Incentive Plan
May 27, 2026
Light Wonder Inc. has notified the ASX of the issue of 54,328 unquoted performance restricted stock units under its employee incentive scheme. The securities, carrying the code LNWAI, were issued on 22 May 2026 and are subject to transfer restric...
Light & Wonder Updates ASX on Ongoing On‑Market Buy‑Back
May 27, 2026
Light Wonder, Inc. has provided an updated notification to the ASX on its ongoing on‑market share buy‑back of CHESS Depositary Interests, confirming that a total of 1,639,358 securities had been repurchased prior to the latest reporti...
Light & Wonder Grants Performance-Based RSUs to Gaming CEO
May 27, 2026
Light Wonder, Inc. disclosed that Siobhan Lane, its senior vice president and CEO of Gaming, received a grant of 12,073 restricted stock units, each convertible into one share of common stock. The award aligns Lane’s compensation with share...
Light & Wonder Grants Performance-Based Stock Units to CFO
May 27, 2026
Light Wonder, Inc. disclosed a change in beneficial ownership involving its executive vice president, chief financial officer and treasurer, Oliver Chow. A grant of 12,073 restricted stock units was reported, aligning executive compensation with ...
Light & Wonder CEO Receives Performance-Based Restricted Stock Grant
May 27, 2026
Light Wonder president and CEO Matthew R. Wilson has been granted 30,182 restricted stock units, each convertible into one share of common stock, according to a recent insider ownership filing. The award is structured as a performance-based incen...
Light & Wonder boosts director’s performance-based equity holding
May 27, 2026
Light Wonder, Inc. has disclosed a change in the interests of director Matthew Richard Wilson following an allocation of performance restricted stock units under the company’s Amended and Restated 2003 Incentive Compensation Plan. Wilson re...
Light & Wonder Reports Daily Progress on ASX On‑Market Buy‑Back
May 26, 2026
Light Wonder, Inc., whose CHESS Depositary Interests trade on the ASX under the ticker LNW on a 1:1 basis with its underlying shares, continues to give Australian investors access to its U.S.-based gaming and entertainment technology business thr...
Light & Wonder Reports Daily Progress in On-Market Buy-Back
May 24, 2026
Light Wonder Inc. has provided an updated notification to the ASX on its ongoing on-market share buy-back of CHESS Depositary Interests. The company reported that a total of 1,505,272 securities had been repurchased before the previous trading da...
Light & Wonder Continues On-Market Buy-Back of ASX Chess Depositary Interests
May 21, 2026
Light Wonder, Inc., whose CHESS Depositary Interests trade on the ASX under ticker LNW, is a gaming and entertainment business offering gaming technology and content to investors via 1:1 depositary interests. The company’s structure allows ...
Light & Wonder updates market on ongoing on‑market buy‑back
May 12, 2026
Light Wonder Inc. has provided an updated notification to the ASX regarding its ongoing on-market share buy-back program for its CHESS Depositary Interests, trading under the code LNW. The company reported that it had repurchased a cumulative tot...
Light & Wonder Updates Market on Progress of On-Market Buy-Back
May 11, 2026
Light Wonder Inc. has provided an updated notification to the ASX on its ongoing on-market buy-back of CHESS Depositary Interests, confirming that a total of 1,078,902 securities had been repurchased prior to the latest reporting date, with a fur...
Light & Wonder Updates Market on Progress of Ongoing Share Buy‑Back
May 10, 2026
Light Wonder has provided an updated notification to the ASX regarding its ongoing on‑market share buy‑back of CHESS Depositary Interests under code LNW. The filing shows a cumulative 1,034,223 securities repurchased prior to the late...
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.