Light & Wonder(US:LNW)2025-11-05 21:35Financial Performance - Total revenue for the three months ended September 30, 2025, was $841 million, a 3% increase from $817 million in the same period of 2024[22] - Net income for the three months ended September 30, 2025, was $114 million, compared to $64 million for the same period in 2024, representing a 78% increase[26] - Operating income for the nine months ended September 30, 2025, was $600 million, up from $500 million in the same period of 2024, reflecting a 20% increase[22] - Total revenue for the nine months ended September 30, 2025, reached $2,424 million, compared to $2,391 million for the same period in 2024, marking a growth of 1.4%[65] - Net income for the nine months ended September 30, 2025, was $291 million, compared to $246 million for the same period in 2024, representing an increase of 18.3%[106] Cash and Assets - Cash and cash equivalents increased to $236 million as of September 30, 2025, from $196 million at the end of 2024[29] - Total assets rose to $6,509 million as of September 30, 2025, compared to $5,421 million at the end of 2024, marking a 20% increase[29] - Total receivables, net, increased to $746 million as of September 30, 2025, compared to $682 million as of December 31, 2024, reflecting a growth of 9%[70] - Current receivables as of September 30, 2025, were $687 million, up from $620 million as of December 31, 2024, with a net allowance for credit losses decreasing from $35 million to $28 million[69] Liabilities and Debt - Total liabilities increased to $5,786 million as of September 30, 2025, from $4,785 million at the end of 2024, reflecting a 21% increase[29] - Total long-term debt outstanding as of September 30, 2025, is $4.988 billion, with a book value of $4.942 billion, compared to $3.870 billion as of December 31, 2024[10] - The company recorded a contingent acquisition consideration liability of $63 million as of September 30, 2025, up from $15 million at the end of 2024[102] Income and Expenses - The company reported a basic net income per share of $1.37 for the three months ended September 30, 2025, compared to $0.72 for the same period in 2024, a 90% increase[22] - Research and development expenses for the three months ended September 30, 2025, were $62 million, slightly down from $66 million in the same period of 2024[22] - The cost of revenue for the three months ended September 30, 2025, was $217 million, compared to $246 million in the same period of 2024, showing a decrease of 11.8%[58] - Payroll and related expenses for the three months ended September 30, 2025, were $125 million, consistent with $126 million in the same period of 2024, indicating stability in labor costs[58] Acquisitions and Investments - 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[37] - Capital expenditures for the three months ended September 30, 2025, totaled $79 million, up from $71 million in the same period of 2024, indicating an increase of 11.3%[61] Stockholder Information - Stockholders' equity as of September 30, 2025, totaled $723 million, an increase from $636 million on January 1, 2025[104] - The company repurchased approximately 4.3 million shares of common stock for $380 million during the nine months ended September 30, 2025, with an additional 1.3 million shares purchased for $101 million post-quarter[108] Legal and Regulatory Matters - The estimated range of possible legal losses related to various contingencies is up to approximately $14 million in excess of accrued liabilities[115] - LNWI faces a potential payment of approximately 90 billion Colombian pesos (about $30 million) plus default interest due to a ruling by the Tribunal in Colombia[119] - The claims in the Automatic Card Shufflers Litigation seek unspecified money damages, with discovery closing on December 1, 2023[124] Other Financial Metrics - AEBITDA for the three months ended September 30, 2025, was $375 million, compared to $319 million for the same period in 2024, reflecting a year-over-year increase of 17.6%[61] - Total stock-based compensation expense for the nine months ended September 30, 2025, was $87 million, up from $82 million in the same period of 2024[106] - The effective tax rate for the nine months ended September 30, 2025, was impacted by foreign earnings, with an income tax expense of $76 million compared to $61 million in 2024[110]