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]

Financial Data and Key Metrics Changes - Consolidated revenue for Q3 2025 increased by 3% year over year to $841 million [4] - Adjusted EBITDA grew 18% year over year to $375 million, with a record margin expansion across all three businesses [4][22] - Adjusted EPS increased by 35% year over year to $1.81 [4][22] - Net income rose by 78% year over year, with diluted net income per share increasing by 89% to $1.34 [22] Business Line Data and Key Metrics Changes - Gaming revenue increased by 38% year over year to $241 million, driven by strong gaming operations performance and contributions from Grover [9][22] - Recurring revenue grew by 14% year over year, accounting for approximately 69% of consolidated revenue [5][22] - iGaming revenue reached a record $86 million, up 16% year over year, with Adjusted EBITDA increasing by 42% to $34 million [17][22] Market Data and Key Metrics Changes - North American gaming machine sales remained strong with over 6,000 units shipped in the quarter [12] - The average daily revenue per unit in North America increased by 5% year over year, excluding Grover units [11] - The company entered the Nebraska Skill Game market and commenced trials in the Eastern European Dynamic Multi-game market [12] Company Strategy and Development Direction - The company is transitioning to a sole standard listing on the ASX, expected to enhance its profile in the gaming industry [5][6] - Focus remains on the integration of Grover into game development and technology platforms, with expectations for significant contributions in 2026 [6][39] - The company emphasizes a disciplined capital allocation strategy to create sustainable shareholder value [8][30] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to deliver growth and profitability despite broader market challenges [20] - The gaming consumer market remains resilient, with expectations for continued strong performance in the fourth quarter [44] - Management highlighted the importance of not compromising long-term growth for short-term goals, focusing on quality earnings [37] Other Important Information - The company returned $111 million to shareholders through share repurchases during the quarter [5][30] - Operating cash flows generated in the quarter amounted to $184 million, with free cash flow increasing by 64% year over year to $136 million [26] - The company maintains a net debt leverage ratio of 3.3 times following the Grover acquisition [28] Q&A Session Summary Question: How does the company see the fourth quarter shaping up to hit 2025 guidance? - Management highlighted strong U.S. sales and contributions from Grover, indicating a predictable earnings outlook for Q4 [34][35] Question: Can you provide an update on Grover's integration and Indiana launch? - Grover added 229 games in the quarter, with successful integration into the Light & Wonder family and preparations for the Indiana market entry [38][39] Question: What drove the gaming margin improvement in Q3? - The gaming operations business saw significant growth, contributing to margin expansion, with expectations for continued momentum [40][41] Question: What is the outlook for iGaming and SciPlay? - iGaming showed strong growth driven by first-party content, while SciPlay is focused on stabilizing mature games like Jackpot Party to return to growth [53][48][59]

Financial Data and Key Metrics Changes - Revenue for the quarter was $809 million, including partial contributions from Grover and record revenue at iGaming, offset by modest declines at gaming and SciPlay [24] - Net income increased 16% to $95 million, driven by lower cost of revenue and operating expenses [24] - Consolidated AEBITDA for the quarter was $352 million, an increase of 7% year over year, with a margin of 44%, a 400 basis point increase compared to the prior year [25] - Adjusted NPATA per share increased 11% to $1.58 compared to $1.42 in the prior year period [26] Business Line Data and Key Metrics Changes - Gaming revenue was $528 million, with partial contributions of $21 million from Grover, and AEBITDA was $280 million, an increase of 3% with a margin of 53% [27] - SciPlay revenue was $200 million, with AEBITDA of $74 million, a 6% increase year over year, representing a margin of 37% [30] - iGaming revenue reached $81 million, a 9% increase over the prior year period, with AEBITDA increasing 17% to $28 million [32] Market Data and Key Metrics Changes - Global game sales in the quarter were $191 million, primarily due to macroeconomic uncertainty impacting the timing of game sales [28] - North American unit sales were down moderately year over year, with operator apprehension affecting swap purchases early in the quarter [12] - iGaming in the U.S. and Canada continued its strong growth trajectory with over 25% growth in GGR year over year [20] Company Strategy and Development Direction - The company announced a transition to a sole ASX listing by November 2025, aiming to consolidate liquidity and maximize shareholder value [9][10] - The integration of Grover is progressing well, with seamless onboarding and operational alignment [8] - The company is focused on expanding its charitable gaming business and investing in new markets, including Indiana [9][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to execute with discipline and deliver a stronger growth trajectory in the second half of the year [13] - The tone from operators has trended positively, indicating improvement in the broader market [12] - Management expects third quarter year-over-year consolidated EBITDA growth to be in the low double digits, with momentum building into the fourth quarter [39] Other Important Information - The company repurchased approximately $100 million of shares during the quarter, with a total of $266 million returned in the first half of the year [36] - The company is committed to improving the quality of earnings through enhancing recurring revenue and driving further efficiency [26] - The guidance for fiscal year 2025 consolidated AEBITDA is between $1.43 billion and $1.47 billion, with approximately $65 million contribution from Grover [38] Q&A Session Summary Question: Can you walk us through the investor engagement process regarding the sole ASX listing? - Management detailed that the decision followed extensive consultation with investors and is expected to optimize shareholder value [41][42] Question: Can you provide updates on the litigation? - Management indicated that both the Nevada and Australian Federal Court cases are expected to head to trial in 2026, with recent rulings moving in the company's favor [48][49] Question: Can you explain the new guidance range and its components? - Management clarified that the guidance includes $65 million from Grover, with the base business still targeting $1.4 billion [52][53] Question: How is the integration with Grover progressing? - Management reported that integration is off to a fantastic start, with the business performing well and cultural alignment being strong [63][66] Question: What are the expectations for free cash flow improvement? - Management noted that free cash flow saw a considerable year-over-year increase when normalizing for one-off payments, indicating positive growth potential [90]

Financial Data and Key Metrics Changes - Revenue for the quarter was $809 million, including partial contributions from Grover and record revenue at iGaming, offset by modest declines at gaming and SciPlay [22] - Net income increased 16% to $95 million, driven by lower cost of revenue and operating expenses [22] - Consolidated AEBITDA for the quarter was $352 million, an increase of 7% year over year, with a margin of 44%, a 400 basis point increase compared to the prior year [23] - Adjusted NPATA per share increased 11% to $1.58 compared to $1.42 in the prior year period [24] Business Line Data and Key Metrics Changes - Gaming revenue was $528 million, with partial contributions of $21 million from Grover, and AEBITDA was $280 million, an increase of 3% with a margin of 53% [25] - SciPlay revenue was $200 million, with AEBITDA of $74 million, a 6% increase year over year, representing a margin of 37% [28] - iGaming delivered record revenue of $81 million, a 9% increase over the prior year, with AEBITDA increasing 17% to $28 million [31] Market Data and Key Metrics Changes - Global game sales in the quarter were $191 million, primarily due to macroeconomic uncertainty impacting the timing of game sales [26] - North American unit sales were down moderately year over year, with operator apprehension affecting swap purchases early in the quarter [11] - iGaming in the U.S. and Canada continued its strong growth trajectory with over 25% growth in GGR year over year [19] Company Strategy and Development Direction - The company announced a transition to a sole ASX listing by November 2025, aiming to consolidate liquidity and maximize shareholder value [7][41] - Continued investments in R&D and expansion plans into Indiana, with expectations to deploy first units in the state this fall [7][12] - Focus on enhancing recurring revenue streams and operational efficiency across all business segments [24][33] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to execute with discipline and deliver a stronger growth trajectory in the second half of the year [12] - Positive feedback from operator partners indicates strong performance and value of Light and Wonder games amidst a competitive landscape [11] - The company expects third quarter year-over-year consolidated EBITDA growth to be in the low double digits, with momentum building into the fourth quarter [36] Other Important Information - The company has repurchased approximately $100 million of shares during the quarter, with a total of $1.3 billion returned to shareholders since the program's inception [35] - The Grover acquisition is performing ahead of expectations, contributing positively to the company's growth [62] Q&A Session Summary Question: Can you walk us through the investor engagement process regarding the sole ASX listing? - The decision followed extensive consultation with investors, with strong feedback received, and aims to optimize shareholder value by consolidating liquidity in a deep market [41][42] Question: Can you provide updates on the litigation? - Both Nevada and Australian Federal Court cases are expected to head to trial in 2026, with recent rulings moving in the company's favor [46][47] Question: Can you explain the new guidance range and its components? - The guidance includes $65 million from Grover, with the base business still targeting $1.4 billion, and investments planned for the second half to support long-term growth [50][52] Question: How is the integration with Grover progressing? - Integration is off to a fantastic start, with the business performing well and cultural alignment noted as a positive factor [62][63] Question: How does the company plan to address the impact of sweepstakes gaming on SciPlay? - The company is focusing on internal initiatives to stabilize and grow its social casino business, while also monitoring external market dynamics [80][82] Question: What are the expectations for free cash flow improvement? - Normalized free cash flow saw a considerable year-over-year increase, and the company remains focused on improving cash conversion moving forward [88][90]

Financial Performance - Consolidated revenue decreased by 1% from $818 million in 2Q24 to $809 million in 2Q25[9] - Consolidated AEBITDA increased by 7% year-over-year, from $330 million in 2Q24 to $352 million in 2Q25[9] - Adjusted NPATA increased by 4% year-over-year, from $130 million in 2Q24 to $135 million in 2Q25[9] - iGaming AEBITDA increased by 17% year-over-year[17] - SciPlay AEBITDA increased by 6% year-over-year[17] Gaming Segment - Gaming revenue was $528 million in 2Q25, a decrease of 2% compared to $539 million in 2Q24[24] - Gaming operations revenue increased by 19% year-over-year, driven by the addition of Grover and growth in the North American installed base[26] - Gaming machine sales decreased by 16% year-over-year due to global macroeconomic uncertainty and timing of hardware refresh cycle in Australia[26] - North American installed base increased by 42% year-over-year to over 46,300 units[32] SciPlay Segment - SciPlay revenue was $200 million in 2Q25, a decrease of 2% compared to $205 million in 2Q24[37] - SciPlay's direct-to-consumer (DTC) platform generated $35 million, representing 18% of total SciPlay revenue[40] - Average Revenue Per Daily Active User (ARPDAU) grew 4% year-over-year to a record $1.08[40] iGaming Segment - iGaming revenue reached a record $81 million in 2Q25, a 9% increase compared to $74 million in 2Q24[46] - Wagers processed through OGS increased by 22% to $26.6 billion[47]

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]