Financial Data and Key Metrics Changes - In 2025, consolidated revenue reached $3.3 billion, a 4% increase from 2024, with fourth-quarter revenue of $891 million, up 12% year-over-year [27][28] - Consolidated EBITDA grew 29% year-over-year to $405 million in Q4, with annual AEBITDA of $1.44 billion, reflecting solid operational performance [30][32] - Adjusted NPATA for Q4 increased 27% to $161 million, while annual adjusted NPATA grew 18% to $567 million [30][31] Business Line Data and Key Metrics Changes - Gaming revenue increased 17% to $602 million in Q4, driven by a 35% rise in gaming operations revenue to $237 million, including a $41 million contribution from Grover [12][27] - SciPlay revenue was $195 million for the quarter, with a strong performance from Quick Hit Slots and 88 Fortunes, although offset by a decrease in average monthly payers at Jackpot Party [21] - iGaming revenue reached a record $94 million, up 21% year-over-year, with EBITDA of $36 million, reflecting a 44% increase [23][24] Market Data and Key Metrics Changes - North American install base for gaming operations increased 42% year-over-year to over 48,300 units, with average daily revenue per unit rising to $47, a 4% increase [14][15] - Global gaming machine sales increased 29% in unit shipments year-over-year to over 12,300 units [16] - The company is well-positioned for international expansion, having received approval to operate in the Philippines and UAE, with launches expected later this year [25][26] Company Strategy and Development Direction - The company aims for long-term targets of $2 billion in consolidated EBITDA and EPSa exceeding $10.55 by 2028, focusing on growth initiatives and capital returns [5][6] - AI is viewed as a significant growth enabler, with the company launching an AI transformation program to enhance operational efficiency and game development [9][11] - The acquisition of Grover Gaming is expected to reinforce the company's recurring revenue model and expand its market presence [18][20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving growth targets despite challenges, emphasizing the importance of operational efficiencies and strategic investments [5][44] - The company anticipates continued growth in premium North American gaming operations and expects to maintain a strong performance in iGaming and SciPlay [44][46] - Legislative activities in states like Pennsylvania and Missouri present potential opportunities for VLT expansion, which the company is well-prepared to capitalize on [68][70] Other Important Information - The company repurchased $877 million worth of shares in 2025, returning a total of $1.9 billion to shareholders since 2022 [6][43] - Operating cash flow for Q4 was $319 million, up 58% year-over-year, with free cash flow increasing 138% to $176 million [37][38] - The company maintains a net debt leverage ratio of 3.4x and has $927 million in available liquidity to support growth initiatives [40][41] Q&A Session Summary Question: Focus on AI and structural moat - Management highlighted the strong structural moats in the gaming industry, emphasizing established market positions and significant R&D investments to optimize operations [49][50] Question: Legislative activity regarding VLT expansion - Management expressed optimism about legislative progress in states like Pennsylvania and Missouri, indicating readiness to deploy products if regulations are enacted [68][70] Question: Insights on Grover acquisition and growth prospects - Management reported strong performance from Grover, with expectations for similar market share in Indiana as seen in existing markets, and indicated a fee per day consistent with Class II standards [75][77]

Financial Data and Key Metrics Changes - In 2025, consolidated revenue reached $3.3 billion, up 4% from 2024, with fourth-quarter revenue of $891 million, a 12% year-over-year increase [27][28] - Consolidated EBITDA grew 29% year-over-year to $405 million in Q4, with annual AEBITDA of $1.44 billion, reflecting solid operational performance [29][30] - Adjusted NPATA per share (EPSA) increased 27% to $6.69, compared to $5.27 in the prior year [30] Business Line Data and Key Metrics Changes - Gaming revenue increased 17% to $602 million in Q4, driven by a 35% rise in gaming operations revenue to $237 million, and a record gaming machine sales of $234 million, up 20% year-over-year [12][27] - SciPlay revenue was $195 million for the quarter, with direct-to-consumer offerings growing to over 25% of total revenue, up from 13% at the end of 2024 [22] - iGaming revenue reached $94 million, up 21% year-over-year, with EBITDA of $36 million, reflecting a 44% increase [23][24] Market Data and Key Metrics Changes - North American install base for gaming operations increased 42% year-over-year to over 48,300 units, with average daily revenue per unit rising to $47, a 4% increase [14] - Global gaming machine sales were up 29% in unit shipments year-over-year to over 12,300 units [15] - The company is well-positioned for potential VLT expansion in states like Pennsylvania and Missouri, with a predicted market size of 40,000 units in Pennsylvania [64][66] Company Strategy and Development Direction - The company aims for $2 billion in consolidated EBITDA and EPSA exceeding $10.55 by 2028, focusing on growth initiatives and capital returns [5][6] - AI is viewed as a significant growth enabler, with the company launching an AI transformation program to enhance operational efficiency and game development [9][11] - The acquisition of Grover Gaming is expected to reinforce the company's recurring revenue model, with strong performance and expansion plans in Indiana [17][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving growth targets despite challenges, emphasizing the importance of operational efficiencies and strategic investments [5][43] - The company anticipates continued growth in premium North American gaming operations and expects to maintain a strong install base [32][44] - Legislative activities in various states present potential opportunities for market expansion, although these are not included in long-term guidance [66] Other Important Information - The company repurchased $877 million worth of shares in 2025, returning a total of $1.9 billion to shareholders since 2022 [6][42] - Operating cash flow was $319 million in Q4, up 58% year-over-year, with free cash flow increasing 138% to $176 million [36][38] - The company maintains a net debt leverage ratio of 3.4 times, with a principal debt value of $5.2 billion [39] Q&A Session Summary Question: Discussion on AI and competitive risks - Management highlighted the structural moats around the business, including strong market positions and established relationships with regulators, which help mitigate competitive risks [46][48] Question: Legislative activity regarding VLT expansion - Management expressed optimism about potential VLT expansion in states like Pennsylvania and Missouri, indicating readiness to deploy products if regulations are enacted [63][64] Question: Insights on Grover acquisition and growth prospects - Management reported strong performance from Grover, with expectations for similar market share in Indiana as seen in existing markets, and indicated a fee per day consistent with Class II standards [70][73]

Financial Data and Key Metrics Changes - In Q4 2025, consolidated revenue reached $891 million, a 12% increase year-over-year, driven by a 17% growth in gaming revenue and record iGaming revenue, which was up 21% year-over-year [24][25] - For the full year, consolidated revenue was $3.3 billion, up 4% from 2024 [24] - Consolidated EBITDA grew 29% year-over-year to $405 million in Q4, with a full-year AEBITDA of $1.44 billion [26][30] - Adjusted NPATA per share (EPSA) increased 27% to $6.69 for the year, compared to $5.27 in the prior year [27] Business Line Data and Key Metrics Changes - Gaming revenue increased by 17% to $602 million in Q4, with gaming operations revenue up 35% year-over-year to $237 million, aided by higher North American installs and a $41 million contribution from Grover [10][24] - SciPlay revenue was $195 million for the quarter, with a notable increase in direct-to-consumer revenue, which grew to over 25% of total SciPlay revenue [19] - iGaming revenue reached $94 million, up 21% year-over-year, with EBITDA of $36 million, reflecting a 44% increase [20][21] Market Data and Key Metrics Changes - North American install base for gaming operations increased 42% year-over-year to over 48,300 units, with average daily revenue per unit rising to $47, a 4% increase [12] - Global gaming machine sales were up 29% in unit shipments year-over-year, totaling over 12,300 units [13] - The company is expanding its presence in new markets, including Indiana and the Philippines, with regulatory approvals received for operations [22][23] Company Strategy and Development Direction - The company aims for long-term targets of $2 billion in consolidated EBITDA and EPSA exceeding $10.55 by 2028, focusing on sustainable growth and capital returns [4][5] - AI is viewed as a significant growth enabler, with the company launching an AI transformation program to enhance operational efficiency and game development [8][51] - The company plans to continue investing in R&D and capital expenditures, targeting around 17% of consolidated revenue [36] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving above-market growth across all business units, particularly in recurring revenue segments [40] - The company anticipates continued growth in North American premium gaming operations and expects to maintain a strong performance in iGaming despite potential headwinds from U.K. tax changes [22][40] - The management highlighted the importance of legislative developments in states like Pennsylvania and Missouri for potential VLT expansion opportunities [62][64] Other Important Information - The company repurchased $877 million worth of shares in 2025, returning a total of $1.9 billion to shareholders since the initiation of the share repurchase program [5][39] - The company reported a net loss of $15 million in Q4 due to restructuring charges, but profitability remained strong when excluding these charges [25][26] Q&A Session Summary Question: AI's impact on competitive risks - Management emphasized that AI is a growth enabler and that the company has strong structural moats, including established market positions and proprietary data [44][46][49] Question: Legislative activity regarding VLT expansion - Management expressed optimism about VLT expansion opportunities in states like Pennsylvania and Missouri, highlighting the company's readiness to deploy its product suite [62][64] Question: Insights on Grover acquisition and Indiana market - Management reported strong performance from Grover, with expectations of similar market share in Indiana as seen in existing markets, and indicated that fee per day in Indiana is expected to align with current trends [68][72]

Fourth Quarter and Full Year 2025 Earnings Presentation February 24, 2026 © 2026 LIGHT & WONDER Forward-Looking Statements S E C T I O N T I T L E, 1 0 P T Forward-Looking Statements In this presentation, and the oral remarks made in connection herewith, Light & Wonder makes "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements describe future expectations, plans, results or strategies and can often be identified by the use o ...

Acquisition and Expansion - Light & Wonder completed the acquisition of Grover on May 16, 2025, which has over 11,600 units and 1,500 locations across six U.S. states, enhancing its charitable gaming offerings [30][32]. - The company completed the acquisition of Grover Charitable Gaming for an upfront consideration of $850 million, with potential contingent payments of up to $200 million based on revenue metrics over four years [170]. - The company aims to grow market share and streamline operations to drive sustainable growth and maintain a healthy balance sheet [27]. - The company is focused on expanding its digital revenue mix and pursuing acquisitions to support its strategic goals [113]. - The company has launched its iGaming services in seven states in the U.S., with ongoing discussions in several other states regarding potential regulations [90]. Business Segments - The company operates in three segments: Gaming, SciPlay, and iGaming, focusing on high-quality products and services across these areas [25][27]. - The gaming segment is authorized in approximately 177 international gaming jurisdictions, with growth driven by new casino openings and expansions [29]. - The iGaming segment provides a comprehensive suite of digital gaming content and player account management systems, with revenue primarily from casino-style games [43]. - SciPlay launched a proprietary direct-to-consumer in-app purchase platform in 2023, aimed at reducing costs associated with third-party platforms [40]. - SciPlay generates significant revenue from in-app purchases, with players receiving free coins, chips, or cards upon game launch [39]. Financial Performance and Risks - The company has incurred significant costs related to its sole primary listing on the ASX, which may affect its liquidity and access to capital markets [108]. - The company’s revenue in the Gaming business is largely driven by players' disposable incomes, which may decline due to unfavorable economic conditions, impacting cash flows from Participation gaming machines [127]. - The company faces risks related to economic conditions, including inflation and decreased discretionary spending, which could adversely affect its financial results [108]. - Approximately 32% of the company's revenue for the year ended December 31, 2025, was derived from sales to customers outside the U.S. [119]. - The company may not have sufficient cash flows from operating activities to service all of its indebtedness and obligations, which could lead to the need for refinancing or restructuring [192]. Competition and Market Environment - Competition in the gaming machine sector is intense, with major competitors including IGT, Aristocrat, and Konami [33]. - The company faces significant competition in the Gaming industry from both traditional and unregulated operators, with some competitors having greater financial resources and experience [142]. - The iGaming business is subject to intense competition, with numerous domestic and foreign providers, which may adversely impact the company's ability to generate revenue [154]. - The company competes for favorable placement on casino gaming floors, and consolidation among operators has increased competition for gaming suppliers [145]. - The company’s success depends on its ability to create products with strong player appeal, as new games must demonstrate revenue potential to be accepted by customers [163]. Regulatory and Compliance Issues - The company is subject to various gaming regulations across different jurisdictions, which may affect its operations and financial performance [94]. - The U.K. Government's reforms to the Gambling Act 2005 may impact the company's revenues, including an increase in Remote Gambling Duty from 21% to 40% starting April 1, 2026 [91]. - The company is monitoring international regulatory changes in online gambling, which may lead to increased compliance costs and operational challenges [92]. - Regulatory changes in responsible gambling measures could negatively impact the company's operations and financial condition, particularly in the iGaming segment [140]. - The company may incur significant costs and liabilities due to compliance with regulations from both ASX and SEC, increasing legal and financial burdens [209]. Employee Engagement and Corporate Responsibility - The company employed approximately 6,800 persons worldwide as of December 31, 2025, with about 2,800 domestically and 4,000 internationally [59]. - The overall employee participation in the Global Engagement Survey was 95% in 2025 and 93% in 2024, indicating high engagement levels [64]. - The company aims to align its operations with the UN Sustainable Development Goals and is an official signatory of the UN Global Compact [69]. - The company has implemented comprehensive safety measures to ensure the health and safety of employees, contractors, and visitors [66]. - The company provides a competitive benefits program, including medical, dental, and vision plans, as well as a 401(k) plan [67]. Research and Development - Research and development efforts are crucial for attracting and retaining customers, focusing on differentiated products and enhancing player experiences [45]. - The company has invested significantly in R&D, but there is no assurance that these investments will lead to commercially viable new technologies or products, which could negatively impact margins [159]. - The company must continuously develop new products to remain competitive, as consumer preferences are cyclical and difficult to predict, potentially leading to pricing pressures [144]. - The company is under pressure to adapt to rapidly changing technology and player preferences, which is critical for maintaining competitiveness and attracting new customers [156]. - The social gaming landscape is evolving rapidly, and failure to develop products compatible with popular platforms could adversely affect the company's market position [164]. Supply Chain and Operational Challenges - The company actively manages supply chain risks by specifying alternative components and maintaining safety stock to address volatility in supply and demand [57]. - The company faces risks related to supply chain disruptions, which could adversely affect the ability to fulfill customer orders and impact financial results [172]. - The integration of acquisitions may divert management's focus from day-to-day operations, potentially delaying the achievement of strategic objectives [169]. - The company’s gaming business could be negatively affected by consolidation among casino operators, which may lead to order cancellations or reduced spending on products [185]. - The company’s results of operations are subject to seasonal fluctuations, with gaming machine sales generally strongest in the second half of the year and player activity for SciPlay typically slower in the second and third quarters [186]. Cybersecurity and Intellectual Property - The company’s success depends on the security and integrity of its systems and products, with potential exposure to cybersecurity breaches [212]. - The gaming industry is facing increasing cybersecurity threats, with potential impacts on operations and financial results if breaches occur [215]. - The company relies on intellectual property protection, including patents, trademarks, and copyrights, to maintain competitive advantages [216]. - Recent changes in U.S. patent eligibility standards may negatively affect the enforceability of certain patents and the value of the company's patent portfolio [217]. - The company is actively enforcing its intellectual property rights against infringement, particularly in the digital gaming sector [220].

Financial Performance - Achieved full year net income of $276 million and record consolidated AEBITDA of $1.44 billion, with adjusted NPATA of $567 million[2] - Fourth quarter consolidated revenue increased 12% to $891 million, while net loss was $15 million, impacted by a $128 million legal settlement charge[5] - Consolidated AEBITDA for Q4 increased 29% to $405 million, with adjusted NPATA up 27% to $161 million, resulting in $1.96 per share[5] - Full year consolidated revenue reached $3.3 billion, a 4% increase compared to the prior year[7] - Net income was $276 million, an 18% decrease from the prior year, primarily due to $219 million in restructuring and other costs[34] - Consolidated AEBITDA for the full year was $1.44 billion, a 16% increase driven by earnings growth and margin strength across all businesses[34] - Adjusted NPATA increased 27% to $161 million, with adjusted NPATA per share rising 38% to $1.96 compared to $1.42 in the prior year[27] - Total revenue for the year ended December 31, 2025, was $3.314 billion, compared to $3.188 billion in 2024, representing a 4% growth[59] Revenue Breakdown - Gaming revenue rose 17% year-over-year to $602 million in Q4, driven by record gaming machine sales of $234 million, up 20%[5] - Gaming revenue for the fourth quarter was $602 million, up 17% year-over-year, supported by record North American Gaming machine sales of 7,000 units[35] - iGaming revenue increased 21% to $94 million, with AEBITDA rising 44% to $36 million, both reaching record levels[38] - Services revenue increased to $604 million in Q4 2025, up from $532 million in Q4 2024, representing a 13.5% growth[51] Shareholder Returns - Returned $877 million to shareholders through share repurchases in 2025, including $500 million in Q4[2] Operational Highlights - Successfully added over 700 gaming operations units in North America during Q4, with a total of over 12,300 units shipped globally[11] - The company remains committed to its FY 2028 financial targets, focusing on product innovation and talent investment[11] Cash Flow and Debt - Free cash flow grew by 42% year-over-year to $452 million during 2025[2] - Free cash flow was $176 million, a 138% increase compared to the prior year, driven by earnings strength and lower cash income tax payments[27] - Cash provided by operating activities for the year ended December 31, 2025, was $794 million, compared to $632 million in 2024, reflecting a 25.7% increase[56] - Long-term debt, excluding current portion, rose to $5,110 million in 2025, compared to $3,847 million in 2024, indicating a 32.8% increase[54] - Total debt as of December 31, 2025, was $5,163 million, up from $3,870 million in 2024, leading to a net debt of $5,040 million[73] Restructuring and Costs - The company incurred restructuring costs of $177 million in Q4 2025, significantly higher than $18 million in Q4 2024[51] - Net loss of $15 million represented a 114% decrease compared to net income of $107 million in the prior year, primarily due to $177 million in restructuring and other costs[27] Goodwill and Assets - The company reported a goodwill increase to $3,371 million in 2025, up from $2,890 million in 2024, reflecting a 16.7% rise[54] - Total assets increased to $6,462 million as of December 31, 2025, up from $5,421 million in 2024, marking a 19.2% growth[54] Non-GAAP Measures - Management introduced non-GAAP measures such as Adjusted NPAT and Adjusted NPATA to better evaluate performance following the Grover acquisition[78] - Consolidated AEBITDA is used to monitor operational performance and facilitate comparisons with other companies[79] - Free cash flow represents net cash from operating activities minus total capital expenditures and is a non-GAAP financial measure[100] - Net debt leverage ratio is calculated as Net debt divided by Consolidated AEBITDA, while Combined net debt leverage ratio uses Combined AEBITDA[102]

Market Overview - The sharemarket opened positively, influenced by an upbeat Wall Street session and higher oil prices, with gains led by financials, consumer discretionary, and energy stocks [1] - The S&P/ASX 200 index rose 0.8% to 8,785.90 points, recovering from a 0.1% decline last week [2] Sector Performance - Financials advanced by 1.2%, recovering from a 2.5% decline the previous week due to concerns over potential rate hikes and market competition [2][8] - Consumer discretionary was the best-performing sector, gaining 2.12% and 3.01% over the past five days [7][10] - Energy stocks increased by 1.2%, driven by higher oil prices amid geopolitical tensions [8] Top Gainers - Light & Wonder Inc. (LNW) led the top performers, closing at $182.500, up $27.800, a gain of 17.970% [3][9] - Catapult Sports Ltd (CAT) rose to $4.410, gaining $0.270 or 6.521% [3][9] - Other notable gainers included Ramelius Resources Limited (RMS), Newmont Corporation (NEM), and Pantoro Gold Limited (PNR) [9] Notable Declines - Mesoblast Limited (MSB) was among the weakest performers, closing at $2.850, down $0.220 or 7.167% [5][10] - Super Retail Group Limited (SUL) fell to $14.890, down $0.830 or 5.280% [5][10] - Additional losses were seen in DroneShield Limited (DRO), Insurance Australia Group Limited (IAG), and BHP Group Limited (BHP) [6][10] Mining Sector - The mining sector slipped by 0.1%, impacted by a 1% decline in BHP due to rising iron ore inventories at Chinese ports [9][10]

Core Viewpoint - Aristocrat Leisure Limited and Light & Wonder have reached a settlement regarding litigation over intellectual property claims related to game development, specifically concerning the Dragon Train and Jewel of the Dragon games [1][5]. Summary by Sections Settlement Details - The settlement includes Light & Wonder compensating Aristocrat USD $127.5 million (approximately AUD $190 million) for claims of misappropriation and infringement of intellectual property [5]. - Light & Wonder acknowledges the use of certain Aristocrat math information in the development of the contested games and has agreed to cease their commercialization globally [5]. - Both companies have agreed to confidential procedures for addressing any future issues related to the use of Aristocrat's math in existing and developing games [5]. Company Statements - Aristocrat's CEO emphasized the importance of protecting intellectual property for the company's ongoing success and welcomed the settlement as a positive outcome [2]. - Light & Wonder's CEO stated the company is committed to respecting competitors' intellectual property rights and has implemented measures to prevent similar issues in the future [3]. Industry Context - Both companies recognize the significant investment and innovation involved in game design and development, highlighting the need for protection of proprietary assets to ensure fair competition in the gaming industry [5].

Market Overview - The Australian share market experienced modest gains across major indexes, with the S&P/ASX 200 closing at 8818.80, down 0.2% from 8835.90 [1][7] - The S&P/ASX 20, S&P/ASX 50, and S&P/ASX 100 also saw declines of 0.8%, 0.4%, and 0.3% respectively [1][7] - The broader S&P/ASX 300 fell 0.2% to finish at 8769.90 from 8784.60 [1][7] Top Gainers - Light & Wonder Inc. (LNW) led the S&P/ASX 200 gainers, rising $13.75, or 10.99%, to close at $138.82 [2][7] - Liontown Resources Limited (LTR) climbed $0.09, or 7.83%, finishing at $1.24 [2][7] - Pilbara Minerals Limited (PLS) added $0.24, or 7.50%, reaching $3.44 [2][7] - Bega Cheese Limited (BGA) advanced $0.35, or 6.55%, closing at $5.69 [2][7] - Mineral Resources Limited (MIN) rose $2.64, or 5.96%, ending at $46.92 [2][7] Top Decliners - Bendigo and Adelaide Bank Limited (BEN) saw the largest decline, dropping $1.08, or 8.49%, to $11.64 [3][7] - Commonwealth Bank of Australia (CBA) fell $11.52, or 6.59%, closing at $163.40 [3][7] - Life360 Inc. (360) slid $2.52, or 5.22%, to $45.80 [3][7] - IperionX Limited (IPX) declined $0.19, or 3.20%, to $5.74 [3][7] - Breville Group Limited (BRG) slipped $0.69, or 2.28%, to $29.58 [3][7] Futures Market - The S&P/ASX 200 Futures for December 2025 fell 48.0 points, or 0.54%, to 8,843.5, indicating a softer market outlook [5][7]

Core Points - Sterling Infrastructure Inc. will replace Light & Wonder Inc. in the S&P MidCap 400, while Red Rock Resorts Inc. will replace Sterling Infrastructure in the S&P SmallCap 600, effective November 13, 2025 [1][2] - Light & Wonder is expected to delist from the NASDAQ Stock Exchange around the same date and will maintain its primary listing in Australia [1] Index Changes - Effective November 13, 2025: - Addition of Sterling Infrastructure (STRL) to the S&P MidCap 400 in the Industrials sector [2] - Deletion of Light & Wonder (LNW) from the S&P MidCap 400 in the Consumer Discretionary sector [2] - Addition of Red Rock Resorts (RRR) to the S&P SmallCap 600 in the Consumer Discretionary sector [2] - Deletion of Sterling Infrastructure (STRL) from the S&P SmallCap 600 in the Industrials sector [2]