📊 LAWIL Key Takeaways
Is Light & Wonder, Inc. (LAWIL) a Good Investment?
Light & Wonder demonstrates critical balance sheet distress with a 21.25x debt-to-equity ratio and $5.2B long-term debt against $245M equity, creating significant financial risk. The 1155% revenue surge paired with 0% net income growth strongly suggests acquisition-driven expansion without profitability translation. Interest coverage of 2.2x leaves minimal buffer for operational stress, despite adequate near-term liquidity.
Strong operating margin and double‑digit free cash flow margin indicate a solid core business with healthy cash generation. However, extremely high leverage, thin equity, and weak interest coverage constrain flexibility and elevate refinancing risk, while flat net income and EPS decline despite outsized revenue growth raise quality‑of‑growth concerns. Execution should focus on sustained FCF and deleveraging before a more constructive view.
Why Buy Light & Wonder, Inc. Stock? LAWIL Key Strengths
- Strong operating cash flow of $794M with $509M free cash flow provides debt service capacity
- Operating margin of 20.6% demonstrates core business efficiency despite leverage concerns
- Current ratio of 1.60x and quick ratio of 1.39x support short-term liquidity needs
- Free cash flow margin of 15.4% shows underlying operational profitability quality
- Robust operating margin (20.6%) and FCF margin (15.4%)
- Strong operating cash flow ($794M) enabling deleveraging/investment
- Adequate liquidity (current 1.60x, quick 1.39x)
LAWIL Stock Risks: Light & Wonder, Inc. Investment Risks
- Unsustainable leverage with 21.25x debt-to-equity ratio creates distress vulnerability with minimal equity cushion
- Interest coverage of 2.2x provides dangerously thin margin for downturns or rate increases on debt obligations
- Revenue growth of 1155% versus flat net income growth indicates acquisition-driven expansion without profitability gains or integration concerns
- Stockholders' equity of only $245M versus $6.2B total liabilities signals severe equity depletion and restructuring risk
- Diluted EPS down 11.4% YoY despite flat net income reflects significant shareholder dilution from acquisition financing
- Very high leverage (Debt/Equity 21.25x) with thin equity base
- Low interest coverage (2.2x) heightens refinancing/interest‑rate risk
- EPS down 11.4% and flat net income despite revenue spike, questioning growth quality
Key Metrics to Watch
- Debt-to-equity ratio and debt repayment progress toward sustainable leverage levels
- Interest coverage ratio stability and free cash flow adequacy for debt service obligations
- Organic revenue growth and net income margin trajectory separate from acquisition impacts
- Interest coverage
- Long‑term debt reduction
Light & Wonder, Inc. (LAWIL) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Light & Wonder, Inc. presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
LAWIL Profit Margin, ROE & Profitability Analysis
LAWIL vs Technology Sector: How Light & Wonder, Inc. Compares
How Light & Wonder, Inc. compares to Technology sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Light & Wonder, Inc. Stock Overvalued? LAWIL Valuation Analysis 2026
Based on fundamental analysis, Light & Wonder, Inc. has mixed fundamental signals relative to the Technology sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Light & Wonder, Inc. Balance Sheet: LAWIL Debt, Cash & Liquidity
LAWIL Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Light & Wonder, Inc.'s revenue has grown significantly by 39% over the 5-year period, indicating strong business expansion. The most recent EPS of $1.75 reflects profitable operations.
LAWIL Revenue Growth, EPS Growth & YoY Performance
LAWIL Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $817.0M | N/A | $0.71 |
| Q2 2025 | $809.0M | N/A | $0.90 |
| Q1 2025 | $756.0M | N/A | $0.88 |
| Q3 2024 | $731.0M | $64.0M | $0.71 |
| Q2 2024 | $731.0M | -$1.0M | $-0.01 |
| Q1 2024 | $670.0M | $22.0M | $0.23 |
| Q3 2023 | $648.0M | $75.0M | $0.81 |
| Q2 2023 | $610.0M | -$1.0M | $-0.01 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Light & Wonder, Inc. Dividends, Buybacks & Capital Allocation
LAWIL SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Light & Wonder, Inc. (CIK: 0000750004)
📋 Recent SEC Filings
❓ Frequently Asked Questions about LAWIL
What is the AI rating for LAWIL?
Light & Wonder, Inc. (LAWIL) has a Combined AI Rating of SELL from Claude (SELL) and ChatGPT (HOLD) with 73% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are LAWIL's key strengths?
Claude: Strong operating cash flow of $794M with $509M free cash flow provides debt service capacity. Operating margin of 20.6% demonstrates core business efficiency despite leverage concerns. ChatGPT: Robust operating margin (20.6%) and FCF margin (15.4%). Strong operating cash flow ($794M) enabling deleveraging/investment.
What are the risks of investing in LAWIL?
Claude: Unsustainable leverage with 21.25x debt-to-equity ratio creates distress vulnerability with minimal equity cushion. Interest coverage of 2.2x provides dangerously thin margin for downturns or rate increases on debt obligations. ChatGPT: Very high leverage (Debt/Equity 21.25x) with thin equity base. Low interest coverage (2.2x) heightens refinancing/interest‑rate risk.
What is LAWIL's revenue and growth?
Light & Wonder, Inc. reported revenue of $3.3B.
Does LAWIL pay dividends?
Light & Wonder, Inc. does not currently pay dividends.
Where can I find LAWIL SEC filings?
Official SEC filings for Light & Wonder, Inc. (CIK: 0000750004) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is LAWIL's EPS?
Light & Wonder, Inc. has a diluted EPS of $3.26.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is LAWIL a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Light & Wonder, Inc. has a SELL rating with 73% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is LAWIL stock overvalued or undervalued?
Valuation metrics for LAWIL: ROE of 112.7% (sector avg: 22%), net margin of 8.3% (sector avg: 18%). Higher ROE suggests strong returns relative to peers.
Should I buy LAWIL stock in 2026?
Our dual AI analysis gives Light & Wonder, Inc. a combined SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is LAWIL's free cash flow?
Light & Wonder, Inc.'s operating cash flow is $794.0M, with capital expenditures of $285.0M. FCF margin is 15.4%.
How does LAWIL compare to other Technology stocks?
Vs Technology sector averages: Net margin 8.3% (avg: 18%), ROE 112.7% (avg: 22%), current ratio 1.60 (avg: 2.5).
Is Light & Wonder, Inc. carrying too much debt?
LAWIL has a debt-to-equity ratio of 21.25x, which is above the Technology sector average of 0.5x. However, the current ratio of 1.60 suggests adequate short-term liquidity.
Why is LAWIL's return on equity (ROE) so high?
Light & Wonder, Inc. has a return on equity of 112.7%, significantly above the Technology sector average of 22%. A high ROE indicates the company is efficient at generating profits from shareholder equity. This is supported by a 8.3% net margin.