Summary of Light & Wonder (LNW) 2025 Investor Day Company Overview - **Company Name**: Light & Wonder (LNW) - **Headquarters**: Las Vegas, Nevada - **Market Presence**: Dual listed on NASDAQ and ASX, with nearly 40% of market cap on ASX - **Employee Count**: Approximately 6,500 globally - **Revenue**: Consolidated revenue of just under GBP 3.2 billion, representing a 13% CAGR since 2022 [8][9][27] Financial Performance - **EBITDA**: Grew to $1.24 billion, a 17% CAGR [9][27] - **NPATA**: Increased to $480 million, a 24% CAGR [9][27] - **Debt Reduction**: Leverage reduced from 10.5 times in 2020 to 3 times currently [29] - **Shareholder Returns**: $1.2 billion returned to shareholders through share repurchase programs [29] Strategic Initiatives - **Acquisition of Grover Charitable Gaming**: Aimed at enhancing growth in the charitable gaming segment, which is a fast-growing adjacency with over 20% top-line growth [54][55][59] - **R&D Investment**: Increased internal rate of investment in R&D and CapEx by 28% since 2022 [22][28] - **Future Financial Targets**: Targeting $2 billion in EBITDA by 2028 and doubling NPATA per share from $5.27 to over $10.55 [33][34] Market Position and Growth Strategy - **Gaming Segments**: Focus on gaming, iGaming, social casino, and now charitable gaming [42] - **Game Performance**: Held 28% of the top new core performing games in North America as of the latest report [25][27] - **Expansion Plans**: Plans to enter new markets, including Indiana, which presents a $100 million revenue opportunity [79] Charitable Gaming Insights - **Market Size**: Charitable gaming market valued at $4.4 billion, with $1.1 billion allocated to electronic pull tabs [73] - **Customer Loyalty**: Strong customer base committed to supporting charities through gaming [74] - **Integration of Grover**: Grover's existing game mechanics will be enhanced with Light & Wonder's game catalog, improving quality and profitability [62][100] Corporate Culture and ESG Commitment - **High-Performance Culture**: Emphasis on attracting and retaining top talent, with a focus on collaboration and integrity [45][49] - **ESG Initiatives**: Investment in responsible gaming programs and alignment with UN Sustainable Development Goals [51][53] Conclusion - **Future Outlook**: Light & Wonder is positioned for significant growth through strategic acquisitions, enhanced R&D, and a focus on high-quality game development across multiple gaming segments, including the newly integrated charitable gaming sector [41][43][100]

Core Insights - Light & Wonder (NASDAQ: LNW) has experienced a significant stock price increase of 900% after divesting its lottery and sports betting units, which resulted in the elimination of over $1 billion in net debt [1] Company Overview - The company sold its lottery arm to Brookfield and its sports betting unit to Endeavor, focusing on its core business operations [1] Financial Impact - The divestitures led to a substantial reduction in net debt, enhancing the company's financial position and investor confidence [1]

Core Viewpoint - Light & Wonder, Inc. is transitioning from a gaming stock to a diversified, cross-platform content business characterized by high margins, strong recurring revenues, and an expanding digital presence [1] Group 1 - The company is evolving into a more valuable entity beyond its initial classification as a gaming stock [1] - It is focusing on building a diversified content business that leverages multiple platforms [1] - The business model is expected to yield high margins and strong recurring revenues [1]

Core Insights - Light & Wonder, Inc. reported modest first-quarter 2025 results with adjusted earnings surpassing Zacks Consensus Estimate while revenues missed expectations [1] Financial Performance - Net income for the quarter remained unchanged at $82 million or 94 cents per share compared to $82 million or 88 cents per share in the prior-year quarter, with quarterly earnings beating the Zacks Consensus Estimate by 18 cents [3] - Total revenues for Q1 2025 rose to $774 million from $756 million in the prior-year quarter, marking the 16th consecutive quarter of year-over-year revenue growth, although it missed the consensus estimate of $809 million [4] - Gaming revenues were $495 million, up 4% year over year, while SciPlay generated $202 million in revenues, down 2% year over year [5] - iGaming revenues increased 4% year over year to $77 million, driven by strong demand in North America and global market growth [6] Operational Efficiency - Non-GAAP consolidated AEBITDA improved to $311 million from $281 million in the year-ago quarter, with AEBITDA margin increasing to 40% from 37% [7] Cash Flow and Liquidity - The company generated a cash flow of $185 million from operating activities in Q1 2025, compared to $171 million in the prior-year quarter, with $134 million in cash and cash equivalents and $3.88 billion of long-term debt as of March 31, 2025 [8]

Core Insights - Light & Wonder reported revenue of $774 million for the quarter ended March 2025, reflecting a 2.4% increase year-over-year, but a revenue surprise of -4.28% compared to the Zacks Consensus Estimate of $808.58 million [1] - The company's EPS was $1.35, up from $0.93 in the same quarter last year, resulting in an EPS surprise of +15.38% against the consensus estimate of $1.17 [1] Revenue Performance - SciPlay revenue was $202 million, below the average estimate of $222.59 million, representing a year-over-year decline of -1.9% [4] - Gaming revenue reached $495 million, slightly below the average estimate of $511.28 million, with a year-over-year increase of +4% [4] - iGaming revenue was reported at $77 million, also below the average estimate of $81.40 million, showing a year-over-year growth of +4.1% [4] AEBITDA Metrics - AEBITDA for Gaming was $254 million, closely matching the average estimate of $254.30 million [4] - AEBITDA for Corporate was reported at -$34 million, better than the average estimate of -$38.93 million [4] - AEBITDA for iGaming was $27 million, slightly above the average estimate of $26.78 million [4] - AEBITDA for SciPlay was $64 million, below the average estimate of $69.06 million [4] Stock Performance - Light & Wonder shares have returned +20.7% over the past month, outperforming the Zacks S&P 500 composite's +10.6% change [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [3]

分组1 - Light & Wonder reported quarterly earnings of $1.35 per share, exceeding the Zacks Consensus Estimate of $1.17 per share, and showing an increase from $0.93 per share a year ago, resulting in an earnings surprise of 15.38% [1] - The company posted revenues of $774 million for the quarter ended March 2025, which was 4.28% below the Zacks Consensus Estimate, but an increase from $756 million year-over-year [2] - Light & Wonder has surpassed consensus EPS estimates in all four of the last quarters, while it has topped consensus revenue estimates two times during the same period [2] 分组2 - The stock has gained approximately 8.7% since the beginning of the year, contrasting with a decline of 4.7% in the S&P 500 [3] - The current consensus EPS estimate for the upcoming quarter is $1.50 on revenues of $863.51 million, and for the current fiscal year, it is $5.72 on revenues of $3.45 billion [7] - The Zacks Industry Rank indicates that the Gaming industry is currently in the bottom 44% of over 250 Zacks industries, suggesting potential underperformance compared to the top 50% [8]

Financial Data and Key Metrics Changes - The company reported consolidated revenue growth of 2% year over year to $774 million, marking the sixteenth consecutive quarter of revenue growth [21] - Net income increased to $82 million, with diluted net income per share rising to $0.94 from $0.88 in the prior year [22] - Consolidated EBITDA grew by 11% to $311 million, resulting in a consolidated EBITDA margin of 40%, a 300 basis point increase year over year [22][24] Business Line Data and Key Metrics Changes - Gaming revenue reached $495 million, a 4% increase, with EBITDA growing 9% to $254 million, reflecting a margin expansion of 200 basis points to 51% [24][26] - SciPlay revenue was $202 million, with EBITDA growing 3% to $64 million, representing a margin of 32% [27] - iGaming revenue increased by 4% to $77 million, with EBITDA growing 8% to a record $27 million [30] Market Data and Key Metrics Changes - The North American installed gaming base increased by approximately 500 units sequentially, with over 34,000 units now in operation [8][25] - Global gaming machine sales were $208 million, up 1% year over year, with a 26% increase in North American replacement market shipments [25][26] - The U.S. and Canada markets saw GGR increases of 3011% year over year, indicating strong market performance [14] Company Strategy and Development Direction - The company is focused on a comprehensive product roadmap and operational excellence, aiming for sustainable growth through R&D investments [5][6] - A strategic acquisition of Grover Gaming's charitable gaming asset is expected to enhance the company's role in the global gaming market [17][18] - The company plans to continue leveraging its diverse game franchises and first-party content to drive future growth [16][32] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the gaming industry's resilience despite potential macroeconomic challenges [6][7] - The company is committed to achieving its 2025 consolidated EBITDA target of $1.4 billion, despite tariff headwinds [35] - Management noted that GGR remains a critical metric, with strong performance observed across U.S. markets [86] Other Important Information - The company has implemented measures to mitigate tariff impacts, including diversifying the supply chain and pulling forward inventory [41][91] - The direct-to-consumer (DTC) platform has seen significant growth, now accounting for over 13% of revenue, with plans for further expansion [13][56] - The company is preparing for an upcoming Investor Day to discuss its fundamentals and growth strategy [19][20] Q&A Session Summary Question: Impact of tariffs on the business - Management indicated that tariffs are currently manageable, with strategies in place to mitigate costs and maintain targets [41][42][44] Question: U.S. Gaming operations yield - Management noted that weather-related factors impacted yields, but overall trading has returned to normal [50][51] Question: SciPlay business and DTC strategy - Management expressed excitement about a recent favorable ruling regarding alternative payment methods, which will support DTC growth [56][57] Question: International gaming business performance - Management acknowledged a decline in the international installed base but attributed it to tough comparisons from the previous year [62][63] Question: Update on dual listing exploration - Management confirmed ongoing discussions about an Australian listing but indicated a cautious approach due to market uncertainties [72][74] Question: Pathways to achieve EBITDA guidance - Management highlighted the importance of maintaining momentum in gaming operations and optimizing costs to reach the $1.4 billion EBITDA target [78][84]

Financial Data and Key Metrics Changes - The company reported consolidated revenue growth for the sixteenth consecutive quarter, with a 2% increase to $774 million compared to the prior year, driven by gaming and iGaming businesses [20][21] - Net income was $82 million, resulting in diluted net income per share of $0.94, up from $0.88 in the prior year [21] - Consolidated EBITDA grew by 11% to $311 million, with a consolidated EBITDA margin of 40%, a 300 basis point increase year over year [21][30] - Adjusted NPATA increased by 11% year over year to $117 million, with adjusted NPATA per share rising 21% to $1.35 [21][22] Business Line Data and Key Metrics Changes - Gaming revenue reached $495 million, a 4% uplift, with EBITDA growing 9% to $254 million, reflecting a margin expansion of 200 basis points to 51% [22][23] - Gaming operations generated $173 million in revenue, a 5% increase year over year, with an average revenue per day of over $48 [23] - SciPlay revenue was $202 million, with Quick Hit Slots achieving record performance, contributing to a 3% EBITDA growth to $64 million [26][27] - iGaming revenue increased 4% year over year to $77 million, with EBITDA growing 8% to a record $27 million [29] Market Data and Key Metrics Changes - The North American installed base increased by approximately 500 units sequentially, totaling over 34,000 units, with 51% of the fleet classified as premium [6][23] - The company regained the number one position in Australia for ship share, supported by strong game franchises [7] - The U.S. and Canada markets saw GGR increases of 3011% year over year, indicating robust growth in iGaming [12] Company Strategy and Development Direction - The company is focused on operational excellence, a comprehensive product roadmap, and reinvesting in R&D for sustainable growth [4][5] - A strategic acquisition of Grover Gaming's charitable gaming asset is expected to enhance the company's role in the global games market [16][17] - The company aims to maintain a high return on investment while expanding its direct-to-consumer platform [11][55] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the gaming industry's resilience despite potential macroeconomic challenges [5][34] - The company is committed to achieving its 2025 consolidated EBITDA target of $1.4 billion, despite tariff headwinds [34] - Management noted that GGR remains a critical metric, with strong performance observed across U.S. markets [84] Other Important Information - The company has implemented measures to mitigate tariff impacts, including diversifying the supply chain and pulling forward inventory [89][91] - The direct-to-consumer platform has seen significant growth, now accounting for over 13% of revenue [11][54] Q&A Session Summary Question: Impact of tariffs on business - Management indicated that tariffs are currently manageable, with strategies in place to mitigate costs and maintain revenue targets [40][41] Question: U.S. gaming operations yield - Management noted that weather-related factors impacted yields, but overall trading has returned to normal [48][49] Question: SciPlay business and DTC strategy - Management expressed excitement about a recent favorable ruling regarding alternative payment methods, which will enhance the DTC strategy [54][55] Question: International gaming business performance - Management acknowledged a decline in international installed base due to tough comparisons from the previous year but remains optimistic about future contributions [61][62] Question: Update on dual listing strategy - Management confirmed ongoing discussions regarding an Australian listing but indicated a cautious approach due to market uncertainties [70][72] Question: Pathways to achieving EBITDA guidance - Management reiterated the importance of maintaining momentum in gaming operations and optimizing costs to achieve the $1.4 billion EBITDA target [76][80]

Financial Performance - Consolidated Revenue increased by 2% year-over-year, from $756 million to $774 million[10, 50] - Consolidated AEBITDA grew by 11% year-over-year, from $281 million to $311 million[10, 50] - Adjusted NPATA increased by 11% compared to the prior year period[18] - Adjusted NPATA per Share increased over 20% to $135 compared to $112 in the prior year period[51] - Free Cash Flow was $111 million, up 19% compared to $93 million in the prior year period[60, 63] Segment Performance - Gaming revenue increased by 4% year-over-year, from $476 million to $495 million[22] - SciPlay AEBITDA increased by 3% year-over-year, from $62 million to $64 million[33] - iGaming revenue increased by 4% year-over-year, from $74 million to $77 million[41] Capital Allocation - Returned $166 million to shareholders in 1Q25 through share repurchases, completing approximately 45% of the total $1 billion program authorization[18] - Net debt leverage ratio was 30x, within the targeted range of 25x to 35x[18] - Interest expense decreased 9% year-over-year, from $75 million to $68 million[57]

[PART I. FINANCIAL INFORMATION](index=8&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) This section presents the unaudited condensed consolidated financial statements and management's discussion and analysis [Item 1. Condensed Consolidated Financial Statements (unaudited)](index=8&type=section&id=Item%201.%20Condensed%20Consolidated%20Financial%20Statements%20(unaudited)) For the three months ended March 31, 2025, Light & Wonder reported total revenues of $774 million, a 2% increase year-over-year, with net income flat at $82 million and diluted EPS rising to $0.94 [Consolidated Statements of Operations](index=8&type=section&id=Consolidated%20Statements%20of%20Operations) Revenue for Q1 2025 increased to $774 million, driven by services revenue, while operating income rose slightly to $170 million and net income remained stable at $82 million Consolidated Statements of Operations Highlights (Q1 2025 vs Q1 2024) | Metric | Three Months Ended March 31, 2025 (in millions) | Three Months Ended March 31, 2024 (in millions) | | :--- | :--- | :--- | | **Total Revenue** | **$774** | **$756** | | Services Revenue | $527 | $517 | | Products Revenue | $247 | $239 | | Operating Income | $170 | $165 | | Net Income | $82 | $82 | | Diluted EPS | $0.94 | $0.88 | [Consolidated Statements of Comprehensive Income](index=9&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income) Total comprehensive income for Q1 2025 significantly increased to $125 million, primarily due to a $48 million foreign currency translation gain Comprehensive Income (Q1 2025 vs Q1 2024) | Metric | Three Months Ended March 31, 2025 (in millions) | Three Months Ended March 31, 2024 (in millions) | | :--- | :--- | :--- | | Net Income | $82 | $82 | | Foreign currency translation gain (loss) | $48 | $(29) | | **Total Comprehensive Income** | **$125** | **$59** | [Consolidated Balance Sheets](index=10&type=section&id=Consolidated%20Balance%20Sheets) As of March 31, 2025, total assets slightly increased to $5.455 billion, while cash and cash equivalents decreased to $134 million and long-term debt rose to $3.884 billion Key Balance Sheet Items | Metric | March 31, 2025 (in millions) | December 31, 2024 (in millions) | | :--- | :--- | :--- | | Cash and cash equivalents | $134 | $196 | | Total Assets | $5,455 | $5,421 | | Long-term debt, excluding current portion | $3,884 | $3,847 | | Total Liabilities | $4,835 | $4,785 | | Total Stockholders' Equity | $620 | $636 | [Condensed Consolidated Statements of Cash Flows](index=11&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash provided by operating activities increased to $185 million in Q1 2025, while significant cash was used in financing activities, primarily for $166 million in stock repurchases Cash Flow Summary (Q1 2025 vs Q1 2024) | Metric | Three Months Ended March 31, 2025 (in millions) | Three Months Ended March 31, 2024 (in millions) | | :--- | :--- | :--- | | Net cash provided by operating activities | $185 | $171 | | Net cash used in investing activities | $(62) | $(71) | | Net cash used in financing activities | $(171) | $(65) | | Purchase of L&W common stock | $(166) | $(25) | | (Decrease) increase in cash, cash equivalents and restricted cash | $(45) | $32 | [Notes to Condensed Consolidated Financial Statements](index=12&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Key notes detail the company's three reportable segments, a pending $850 million acquisition, segment performance, $3.9 billion total debt, and $167 million in share repurchases - The company entered into an agreement to acquire Grover Charitable Gaming for **$850 million** in cash at closing, plus up to **$200 million** in contingent payments, with the transaction expected to close in Q2 2025[36](index=36&type=chunk) Segment Revenue and AEBITDA (Q1 2025 vs Q1 2024) | Segment | Revenue Q1 2025 (in millions) | Revenue Q1 2024 (in millions) | AEBITDA Q1 2025 (in millions) | AEBITDA Q1 2024 (in millions) | | :--- | :--- | :--- | :--- | :--- | | Gaming | $495 | $476 | $254 | $232 | | SciPlay | $202 | $206 | $64 | $62 | | iGaming | $77 | $74 | $27 | $25 | - Total long-term debt outstanding had a face value of **$3.944 billion** as of March 31, 2025, and the company upsized its revolving credit facility from **$750 million** to **$1.0 billion** in February 2025[66](index=66&type=chunk)[67](index=67&type=chunk) - During Q1 2025, the company repurchased approximately **1.9 million shares** of common stock for an aggregate cost of **$167 million** (including excise tax) under its **$1.0 billion** share repurchase program[82](index=82&type=chunk) - As of March 31, 2025, the company had accrued liabilities of **$89 million** for all legal matters, with an estimated possible loss for certain contingencies up to approximately **$13 million** in excess of accrued liabilities[87](index=87&type=chunk)[88](index=88&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=29&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management reported the 16th consecutive quarter of year-over-year consolidated revenue growth, driven by the Gaming segment, alongside strategic acquisitions and capital actions [Business Overview](index=30&type=section&id=Business%20Overview) The company achieved its 16th consecutive quarter of year-over-year revenue growth, marked by strategic actions including a $1.0 billion revolver upsize, the $850 million Grover Charitable Gaming acquisition, and $167 million in share repurchases - The company delivered its **16th consecutive quarter** of year-over-year consolidated revenue growth[118](index=118&type=chunk) - Announced the strategic acquisition of Grover Charitable Gaming for an upfront consideration of **$850 million**, expected to close in Q2 2025[119](index=119&type=chunk) - Amended the LNWI Credit Agreement, upsizing the revolving credit facility to **$1.0 billion** from **$750 million** and extending its maturity[118](index=118&type=chunk) [Consolidated Results](index=31&type=section&id=Consolidated%20Results) Consolidated revenue grew 2% year-over-year to $774 million, primarily driven by the Gaming segment, while operating expenses increased due to restructuring and acquisition costs Consolidated Results Summary (Q1 2025 vs Q1 2024) | Metric | Q1 2025 (in millions) | Q1 2024 (in millions) | Variance (in millions) | % Change | | :--- | :--- | :--- | :--- | :--- | | Total revenue | $774 | $756 | $18 | 2% | | Total operating expenses | $604 | $591 | $13 | 2% | | Operating income | $170 | $165 | $5 | 3% | | Net income | $82 | $82 | $0 | 0% | - Restructuring and other costs increased by **$14 million** (**233%**) to **$20 million**, primarily due to charges related to the discontinuation of iGaming Live Casino operations (**$7 million**) and costs associated with the Grover Charitable Gaming acquisition (**$5 million**)[127](index=127&type=chunk)[132](index=132&type=chunk) [Reportable Business Segment Results](index=33&type=section&id=Reportable%20Business%20Segment%20Results) The Gaming segment led growth with a 4% revenue increase and expanded AEBITDA margin, while SciPlay revenue declined slightly despite improved monetization, and iGaming revenue grew despite discontinuing Live Casino operations Gaming Segment KPIs (Q1 2025 vs Q1 2024) | Metric | Q1 2025 (in millions) | Q1 2024 (in millions) | % Change | | :--- | :--- | :--- | :--- | | Total Revenue | $495 | $476 | 4% | | AEBITDA Margin | 51% | 49% | +2pp | | U.S. & Canada installed base | 34,501 units | 31,534 units | 9% | | U.S. & Canada new unit shipments | 5,769 units | 4,437 units | 30% | SciPlay Segment KPIs (Q1 2025 vs Q1 2024) | Metric | Q1 2025 (in millions) | Q1 2024 (in millions) | % Change | | :--- | :--- | :--- | :--- | | Total Revenue | $202 | $206 | (2)% | | AEBITDA Margin | 32% | 30% | +2pp | | ARPDAU | $1.06 | $1.01 | 5% | | AMRPPU | $116.96 | $113.93 | 3% | - iGaming revenue increased **4%** to **$77 million**, driven by momentum in North America, with wagers processed through the Open Gaming System increasing to **$25.2 billion**, despite the company discontinuing its Live Casino operations[169](index=169&type=chunk)[166](index=166&type=chunk) [Liquidity and Capital Resources](index=38&type=section&id=Liquidity%20and%20Capital%20Resources) As of March 31, 2025, the company had total liquidity of $1.084 billion, supported by $185 million in operating cash flow, with significant cash used for share repurchases and the pending Grover Charitable Gaming acquisition Liquidity Position | Component | March 31, 2025 (in millions) | December 31, 2024 (in millions) | | :--- | :--- | :--- | | Cash and cash equivalents | $134 | $196 | | Available Revolver Capacity | $950 | $740 | | **Total Liquidity** | **$1,084** | **$936** | - Net cash from operating activities increased to **$185 million** in Q1 2025 from **$171 million** in Q1 2024[182](index=182&type=chunk)[183](index=183&type=chunk) - Net cash used in financing activities increased to **$171 million**, driven by **$166 million** in share repurchases, partially offset by net borrowings of **$40 million** on the revolving credit facility[28](index=28&type=chunk)[185](index=185&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=39&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risk is interest rate risk on its $2.2 billion variable-rate debt, partially mitigated by $700 million in interest rate swap contracts - As of March 31, 2025, the company had **$2.2 billion** of variable rate debt obligations[189](index=189&type=chunk) - A hypothetical **1%** change in interest rates would result in an approximate **$22 million** change in annual interest expense[189](index=189&type=chunk)[190](index=190&type=chunk) - The company utilizes interest rate swap contracts with a total notional amount of **$700 million** to hedge a portion of its variable rate debt exposure, maturing in April 2027[71](index=71&type=chunk)[191](index=191&type=chunk) [Item 4. Controls and Procedures](index=40&type=section&id=Item%204.%20Controls%20and%20Procedures) The company's disclosure controls and procedures were deemed effective as of March 31, 2025, with no material changes to internal control over financial reporting during the quarter - Management concluded that the company's disclosure controls and procedures were effective as of March 31, 2025[193](index=193&type=chunk) - No changes in internal control over financial reporting occurred during the quarter that have materially affected, or are reasonably likely to materially affect, internal controls[194](index=194&type=chunk) [PART II. OTHER INFORMATION](index=40&type=section&id=PART%20II.%20OTHER%20INFORMATION) This section covers legal proceedings, risk factors, and details on equity security sales and use of proceeds [Item 1. Legal Proceedings](index=40&type=section&id=Item%201.%20Legal%20Proceedings) This section refers to Note 15 in the Notes to Condensed Consolidated Financial Statements for a detailed discussion of the company's ongoing legal proceedings - For a detailed discussion of legal proceedings, refer to Note 15 of the Condensed Consolidated Financial Statements[195](index=195&type=chunk) [Item 1A. Risk Factors](index=40&type=section&id=Item%201A.%20Risk%20Factors) The company highlights that unfavorable economic conditions, trade tariffs, and geopolitical instability could adversely affect its business and operations - Unfavorable economic conditions, including inflation, rising interest rates, and new tariffs, may reduce discretionary spending and negatively affect business results[197](index=197&type=chunk) - Changes in international trade policy, particularly tariffs on goods from China and Asia, may increase costs and disrupt the supply chain for the Gaming business[204](index=204&type=chunk)[205](index=205&type=chunk) - Political, economic, and military conditions in Israel could adversely affect SciPlay's personnel and operations in that region[201](index=201&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=42&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) During Q1 2025, the company repurchased 1.9 million shares of common stock for $166 million, with $547 million remaining available under the repurchase program Issuer Purchases of Equity Securities (Q1 2025) | Period | Total Shares Purchased | Average Price Paid per Share | Total Cost (in millions) | | :--- | :--- | :--- | :--- | | Jan 2025 | 1.2 million | $87.58 | $106 | | Feb 2025 | 0.7 million | $92.43 | $60 | | Mar 2025 | 0 | $109.83 | $0 | | **Total** | **1.9 million** | **$87.37** | **$166** | - As of March 31, 2025, **$547 million** remained available for purchase under the company's share repurchase program[209](index=209&type=chunk)