Financial Performance - Consolidated revenue for Q3 2025 was $841 million, a 3% increase from $817 million in Q3 2024[5] - Net income rose 78% to $114 million, with net income per share increasing 89% to $1.34 compared to the prior year[5] - Consolidated AEBITDA grew 18% to $375 million, while Adjusted NPATA increased 25% to $153 million, or $1.81 per share[5] - Third quarter consolidated revenue was $841 million, a 3% increase from $817 million in the prior year, driven by a 4% increase in Gaming revenue and a 16% increase in iGaming revenue[21] - Net income rose 78% to $114 million, compared to $64 million in the prior year, with net income per share increasing 89% to $1.34[21] - Consolidated AEBITDA increased 18% to $375 million, up from $319 million in the prior year, primarily due to revenue growth from Gaming and iGaming[21] - Adjusted NPATA increased 25% to $153 million, with adjusted NPATA per share rising 35% to $1.81[21] - Operating income increased to $229 million in Q3 2025, up from $159 million in Q3 2024, marking a 44% growth[38] - The company reported a net income margin of 14% for Q3 2025, up from 8% in Q3 2024[45] Cash Flow and Shareholder Returns - Generated $184 million in net cash from operating activities and $136 million in free cash flow, representing year-over-year growth of 55% and 64%, respectively[5] - Returned $111 million to shareholders through share repurchases during the quarter, with a total of $1.5 billion returned since March 2022[11] - Free cash flow increased to $136 million from $83 million in the prior year, driven by similar factors impacting net cash from operating activities[21] - Free cash flow for the three months ended September 30, 2025, was $136 million, compared to $83 million in the same period of 2024, an increase of 63.9%[64] Debt and Financial Position - Principal face value of debt outstanding was $5.0 billion, with a net debt leverage ratio of 3.5x as of September 30, 2025[11] - Long-term debt, excluding current portion, rose to $4,893 million as of September 30, 2025, compared to $3,847 million at the end of 2024[40] - Total debt as of September 30, 2025, was $4,942 million, an increase from $3,870 million as of December 31, 2024[59] - The net debt leverage ratio improved to 3.5 as of September 30, 2025, compared to 3.0 as of December 31, 2024[59] Revenue Breakdown - Gaming revenue increased 4% to $558 million, driven by a 38% rise in Gaming operations revenue to $241 million[5] - SciPlay revenue decreased 4% to $197 million, with average revenue per daily active user increasing 4% to $1.08[24] - iGaming revenue reached $86 million, a 16% increase, with wagers processed through the platform hitting a record $28.0 billion[24] - Total revenue for the Gaming Business Segment reached $558 million, a 3.9% increase compared to $537 million in the same quarter of 2024[50] Operational Developments - The integration of Grover Gaming into the omni-channel strategy is progressing well, with plans to participate in the Indiana charitable gaming market[7] - Transition to a sole primary listing on the ASX is on schedule, with 57% of total outstanding shares converted to ASX tradable interests[15] - The installed base of gaming operations in the U.S. and Canada increased to 47,240 units, up from 33,151 units year-over-year, reflecting a growth of 42.5%[50] - Total new unit shipments for gaming machines were 8,608, down from 13,063 in the same quarter of 2024, indicating a decrease of 33.5%[50] Financial Metrics and Guidance - The company maintains its full-year 2025 financial outlook, with Consolidated AEBITDA guidance between $1.43 billion and $1.47 billion[15] - Adjusted NPATA guidance range for fiscal year 2025 is provided, but a forward-looking quantitative reconciliation to GAAP measures is not available due to uncertainties[78] - Consolidated AEBITDA is presented as a supplemental disclosure and is reconciled to net income, highlighting its importance in evaluating operational performance[82] - Free cash flow is calculated as net cash from operating activities minus capital expenditures and adjusted for changes in restricted cash[89] Non-GAAP Measures - Management introduced the usage of Combined non-GAAP financial measures post-Grover acquisition, which includes results for both the Company and Grover[70] - Net debt leverage ratio and Combined net debt leverage ratio are used to monitor the Company's overall liquidity and financial flexibility[71] - Adjusted NPAT and Adjusted NPATA provide additional perspective on performance by eliminating effects of certain items, which are less indicative of ongoing operations[72] - Combined measures are useful for investors as they provide insights into the combined business of the Company and Grover, enhancing comparisons of liquidity and leverage[74]

Core Perspective - Light & Wonder (LNW) stock is currently viewed as a value investment opportunity, trading approximately 32% lower than its 1-year peak and at a price-to-sales (PS) multiple below the average of the past 3 years [1][3]. Company Overview - Light & Wonder provides technology-driven products and services for the gaming and lottery sectors, including gaming machines, lottery offerings, player loyalty programs, and interactive marketing initiatives globally [5]. Financial Performance - The company has shown revenue growth of 3.9% over the last twelve months (LTM) and an average growth of 11.7% over the past 3 years [8]. - Light & Wonder maintains a free cash flow margin of approximately 10.4% and an operating margin of 24.7% LTM [8]. - The stock trades at a price-to-earnings (PE) multiple of 18.3, indicating a modest valuation despite positive fundamentals [8]. Market Position - Compared to the S&P 500, LNW offers lower valuation, higher 3-year average revenue growth, and more favorable operating margins [8].

Core Viewpoint - Light & Wonder, Inc. intends to delist its common stock from the Nasdaq and transition to a sole primary listing on the Australian Securities Exchange (ASX) [1] Group 1 - The decision to transition to the ASX reflects the company's strategic direction [1]

Core Viewpoint - Light & Wonder, Inc. is currently involved in ongoing litigation with Aristocrat, with a recent ruling from the Nevada Court favoring Aristocrat's request for discovery of mathematical models related to certain games released since 2021 [1] Group 1: Legal Proceedings - The Nevada Court granted Aristocrat's renewed motion to obtain discovery of math models for specific Light & Wonder hold and spin games [1] - This ruling follows a previous denial of a similar request by the Court [1]

Core Viewpoint - Light & Wonder (LNW) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive outlook on its earnings estimates, which significantly influence stock prices [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system emphasizes the importance of changing earnings estimates, which are strongly correlated with near-term stock price movements [4][6]. - Rising earnings estimates for Light & Wonder suggest an improvement in the company's underlying business, likely leading to an increase in stock price [5][10]. Zacks Rating System - The Zacks Rank stock-rating system classifies stocks into five groups based on earnings estimates, with a strong historical performance, particularly for Zacks Rank 1 stocks, which have averaged a +25% annual return since 1988 [7][9]. - The upgrade of Light & Wonder to Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, indicating a strong potential for market-beating returns in the near term [10]. Earnings Estimate Revisions - Light & Wonder is expected to earn $5.29 per share for the fiscal year ending December 2025, with no year-over-year change, while the Zacks Consensus Estimate has increased by 2.2% over the past three months [8].

Core Viewpoint - Light & Wonder, Inc. has appointed Rohan Gallagher as Executive Vice President, Global Chief Corporate Affairs Officer, indicating a strategic focus on enhancing its corporate governance and communication efforts [1] Group 1: Appointment Details - Rohan Gallagher will be based in Sydney in his new role [1] - The position is newly created, highlighting the company's commitment to strengthening its corporate affairs [1] Group 2: Responsibilities - Gallagher will oversee Investor Relations (IR), Environmental, Social, and Governance (ESG), Corporate Social Responsibility (CSR), and Global Communications [1]

Core Viewpoint - Light & Wonder, Inc. announced a plan to offer $1 billion in senior unsecured notes due 2033 through its subsidiary, Light and Wonder International, Inc. [1] Group 1: Offering Details - The company intends to offer $1 billion in aggregate principal amount of senior unsecured notes [1] - The offering is subject to market and other conditions [1] Group 2: Use of Proceeds - The net proceeds from the offering will be used to repay all outstanding borrowings under its revolving credit facility [1]

Core Insights - Light & Wonder, Inc. (LNW) reported modest second-quarter 2025 results, with adjusted earnings exceeding estimates while revenues fell short [1][10] Financial Performance - Net income for the quarter was $95 million or $1.11 per share, an increase from $82 million or 90 cents in the prior-year quarter, driven by lower costs [3] - Adjusted earnings were $1.58 per share, beating the Zacks Consensus Estimate by 14 cents [3] - Total revenues decreased to $809 million from $818 million year-over-year, missing the Zacks Consensus Estimate of $860 million [4] - Services revenues rose to $566 million from $526 million, while Products revenues declined to $243 million from $292 million [4] Segment Performance - Gaming revenues were $528 million, down 2% year-over-year, impacted by a 16% decline in gaming machine sales and an 11% decline in systems revenue [5] - SciPlay generated $200 million in revenues, also down 2% year-over-year, but continued to outperform the broader social casino market [5] - iGaming revenues increased by 9% year-over-year to $81 million, supported by strong growth in North America and record content launches [6] Operational Efficiency - Non-GAAP consolidated AEBITDA improved to $352 million from $330 million in the year-ago quarter, with AEBITDA margin rising to 44% from 40% [7][10] - The improvement was attributed to contributions from the acquisition of Grover and sustained margin strength across multiple verticals [7] Cash Flow and Liquidity - The company generated $106 million in cash flow from operating activities, down from $141 million in the prior-year quarter [8] - As of June 30, 2025, LNW had $136 million in cash and cash equivalents, with long-term debt amounting to $4.81 billion [8] Future Guidance - For 2025, LNW expects adjusted EBITDA in the range of $1.43-1.47 billion and adjusted NPATA projected between $550-575 million [9]

Core Insights - Light & Wonder reported revenue of $809 million for the quarter ended June 2025, a decrease of 1.1% year-over-year, with EPS at $1.58 compared to $1.42 in the same quarter last year [1] - The revenue fell short of the Zacks Consensus Estimate of $859.95 million, resulting in a surprise of -5.93%, while the EPS exceeded expectations by 9.72% [1] Financial Performance Metrics - SciPlay revenue was $200 million, below the average estimate of $211.85 million, reflecting a year-over-year decline of 2.4% [4] - Gaming revenue was reported at $528 million, compared to the estimated $576.53 million, marking a 2% decrease year-over-year [4] - iGaming revenue reached $81 million, slightly above the average estimate of $80.63 million, showing a year-over-year increase of 9.5% [4] - AEBITDA for Gaming was $280 million, lower than the estimated $294.04 million [4] - AEBITDA for Corporate and other segments was reported at -$30 million, better than the average estimate of -$37.84 million [4] - AEBITDA for iGaming was $28 million, slightly above the average estimate of $27.9 million [4] - AEBITDA for SciPlay was $74 million, exceeding the average estimate of $72.71 million [4] Stock Performance - Light & Wonder's shares have returned -11.6% over the past month, contrasting with the Zacks S&P 500 composite's increase of 0.5% [3] - The stock currently holds a Zacks Rank 2 (Buy), suggesting potential outperformance against the broader market in the near term [3]

Core Viewpoint - Light & Wonder reported quarterly earnings of $1.58 per share, exceeding the Zacks Consensus Estimate of $1.44 per share, and showing an increase from $1.42 per share a year ago, representing an earnings surprise of +9.72% [1][2] Financial Performance - The company posted revenues of $809 million for the quarter ended June 2025, which missed the Zacks Consensus Estimate by 5.93% and decreased from $818 million year-over-year [2] - Over the last four quarters, Light & Wonder has surpassed consensus EPS estimates four times but has topped consensus revenue estimates only once [2] Stock Performance and Outlook - Light & Wonder shares have increased by approximately 2.3% since the beginning of the year, compared to the S&P 500's gain of 7.1% [3] - The company's earnings outlook is crucial for assessing future stock performance, with current consensus EPS estimates at $1.61 for the coming quarter and $5.52 for the current fiscal year [4][7] Industry Context - The Gaming industry, to which Light & Wonder belongs, is currently ranked in the bottom 42% of over 250 Zacks industries, indicating potential challenges ahead [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact Light & Wonder's stock performance [5][6]