Shares of Light & Wonder (LNW) surged 13.78% in Wednesday's trading session, following the release of the company's impressive third-quarter 2025 financial results. The gaming technology company reported significant growth in revenue and net income, exceeding market expectations and boosting investor confidence.
Light & Wonder announced consolidated revenue of $841 million for the quarter ended September 30, 2025, representing a 3% increase compared to the same period last year. More notably, the company's net income skyrocketed by 78% to $114 million, with earnings per share climbing 89% to $1.34. The strong performance was driven by robust gaming operations and a $40 million contribution from the recently acquired Grover charitable gaming business.
The market responded enthusiastically to Light & Wonder's results, with the stock reaching its highest point since October 7. The company's consistent growth was evident in its 21st consecutive quarterly increase in the North American premium installed base, adding 639 gaming operations units sequentially and over 2,800 units year-over-year. Additionally, Light & Wonder reported record results in its iGaming segment and continued expansion of SciPlay's direct-to-consumer revenue, further solidifying its market position in the digital gaming space.
Despite the positive reception, it's worth noting that the reported earnings of $1.34 per share slightly missed the mean analyst expectation of $1.38. However, this minor shortfall was overshadowed by the overall strong performance and positive outlook. Light & Wonder maintained its full-year 2025 financial guidance, projecting adjusted net profit after tax in the range of $550 million to $575 million and adjusted EBITDA between $1.43 billion and $1.47 billion, indicating continued confidence in its growth trajectory.
The substantial stock price increase reflects investors' optimism about Light & Wonder's strategic initiatives, including its ongoing transition to a sole primary listing on the ASX and efforts to enhance shareholder value through share repurchases and debt management. As the company continues to strengthen its position in the gaming and iGaming markets, market analysts maintain a generally positive outlook, with the current average rating on the shares being "buy" and a median 12-month price target of $110.00, suggesting potential for further upside.