Financial Data and Key Metrics Changes - In Q4 2025, total revenue increased by 7.5% year-over-year to $341 million, marking the highest quarterly revenue in the company's history [5][16] - Adjusted EBITDA grew by 19% year-over-year to a record $56 million, reflecting expense discipline and operating leverage [5][16] - For the full year 2025, revenue reached over $1.3 billion, representing an 8% growth compared to 2024, while adjusted EBITDA increased by 11% year-over-year to $210 million [5][17] Business Line Data and Key Metrics Changes - The company supported over 4,500 locations and nearly 28,000 gaming machines nationwide, demonstrating the breadth and durability of its platform [5] - In Illinois, the focus on optimizing the terminal base led to steady hold-per-day improvement and margin expansion [6] - In Nevada, terminal count increased by 13% year-over-year in Q4, supported by strategic route expansions [7] Market Data and Key Metrics Changes - Illinois remains the largest market, with ongoing efforts to improve unit economics and expand margins [6] - Louisiana revenue saw significant increases in Q4, aided by bolt-on acquisitions and optimization of the Toucan Gaming platform [7] - Nebraska and Georgia demonstrated strong growth both quarterly and annually, indicating ongoing expansion of the operating platform [8] Company Strategy and Development Direction - The company aims to drive steady organic growth in core markets, scale profitability in developing markets, and execute accretive tuck-in acquisitions [9][20] - The leadership transition is expected to leverage local and national relationships to capitalize on growth opportunities, particularly in the Chicago VGT market [10] - The company is focused on shifting the route business towards a more entertainment and hospitality-oriented model with higher margins [33] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the Chicago market, noting the acceptance of applications by the Illinois Gaming Board as a positive sign for future revenue generation [23] - The company anticipates that the performance per location in Chicago will exceed that of the rest of its portfolio due to better location selection and service capabilities [65] - Management remains cautious about potential legislative changes in other states, emphasizing a conservative approach to expectations for new market entries [39] Other Important Information - The company repurchased approximately 3.8 million shares of common stock during 2025, including 1.5 million shares in Q4 [9][20] - The rollout of Ticket-In, Ticket-Out technology is progressing, with 81% of locations fully TITO-enabled, expected to enhance player convenience and operating efficiency [11] Q&A Session Summary Question: What is the status of the Chicago market and potential revenue generation? - Management indicated that while there are still processes to complete, the acceptance of applications is a positive development [23] Question: How does the company view the market opportunity in Chicago compared to the rest of the state? - Management believes that while the average equipment per establishment may be lower, the higher population density in Chicago should lead to greater average play per machine [25] Question: What are the implications of the Hawthorne bankruptcy for the company? - Management acknowledged the challenges facing Illinois horse racing but expressed readiness to support the Illinois Racing Board [31] Question: How does the company view potential new markets for electronic gaming machines? - Management remains cautious about the likelihood of legalization in states like Pennsylvania and Virginia, preparing for the best but budgeting for the worst [39] Question: What is the company's strategy regarding capital allocation between buybacks and acquisitions? - Management stated that M&A tends to be the most attractive option if the price is right, but they will also consider share repurchases if no suitable acquisitions are available [57][60]

Financial Data and Key Metrics Changes - In Q4 2025, total revenue increased by 7.5% year-over-year to $341 million, marking the highest quarterly revenue in the company's history [5][17] - Adjusted EBITDA grew by 19% year-over-year to a record $56 million, reflecting expense discipline and operating leverage [5][17] - For the full year 2025, revenue reached over $1.3 billion, representing an 8% growth compared to 2024, while Adjusted EBITDA increased by 11% to $210 million [5][18] Business Line Data and Key Metrics Changes - In Illinois, the company focused on optimizing its footprint and terminal base, leading to steady improvements in hold-per-day and margin expansion [6][11] - In Nevada, terminal count increased by 13% year-over-year in Q4, supported by strategic route expansions [7] - Louisiana revenue saw significant growth in Q4, aided by bolt-on acquisitions and optimization of the Toucan Gaming platform [7][14] Market Data and Key Metrics Changes - Illinois remains the largest market, with ongoing efforts to improve unit economics and expand margins [6] - Nebraska and Georgia showed strong growth both quarterly and annually, indicating the ongoing expansion of the operating platform [8] - The company is well-positioned as a buyer of choice in the market, with a healthy pipeline for acquisitions [8] Company Strategy and Development Direction - The company aims to drive steady organic growth in core markets, scale profitability in developing markets, and execute accretive tuck-in acquisitions [9][21] - The leadership transition is expected to leverage local and national relationships to capitalize on growth opportunities, particularly in the Chicago VGT market [10] - The company is focused on shifting its route business towards a more entertainment and hospitality-oriented model, enhancing margins [34] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the Chicago market, noting the acceptance of applications by the Illinois Gaming Board as a positive sign for future revenue generation [24] - The company anticipates that the performance per location in Chicago will exceed that of the existing portfolio, despite potential operational challenges [25][66] - Management remains cautious about legislative changes in other states, emphasizing a conservative approach to expectations for new market entries [40] Other Important Information - The company repurchased approximately 3.8 million shares of common stock during 2025, including 1.5 million shares in Q4 [9][21] - The capital allocation framework remains disciplined, balancing organic investment, acquisitions, and shareholder returns [21] Q&A Session Summary Question: Update on Chicago market and potential revenue generation - Management indicated that while there are still processes to complete, the acceptance of applications is a positive development [24] Question: Market opportunity in Chicago compared to the rest of the state - Management believes that while the average equipment per establishment may be lower, the higher population density in Chicago could lead to greater average play per machine [25][26] Question: Impact of Hawthorne's bankruptcy on the company - Management acknowledged the challenges facing the Illinois horse racing market but expressed readiness to support the Illinois Racing Board [32] Question: Views on potential new markets for legalization - Management expressed caution regarding the likelihood of legalization in states like Pennsylvania and Virginia, noting the complexities involved [40] Question: Growth CapEx and balancing buybacks versus acquisitions - Management indicated that most capital spending in Illinois will focus on maintenance rather than expansion, while other markets will see growth investments [55] Question: Correlation between tax returns and gaming activity - Management confirmed a historical correlation between tax returns and increased gaming activity, particularly in the months of February and March [53] Question: Future of TITO implementation and its benefits - Management estimated that the company is in the early stages of TITO implementation, with expectations for benefits to materialize as adoption increases [71]

Financial Data and Key Metrics Changes - In Q4 2025, total revenue increased by 7.5% year-over-year to $341 million, marking the highest quarterly revenue in the company's history [5][18] - Adjusted EBITDA grew by 19% year-over-year to a record $56 million, reflecting expense discipline and operating leverage [5][18] - For the full year 2025, revenue reached over $1.3 billion, representing an 8% growth compared to 2024, while adjusted EBITDA increased by 11% year-over-year to $210 million [5][19] Business Line Data and Key Metrics Changes - The company supported over 4,500 locations and nearly 28,000 gaming machines nationwide, demonstrating the breadth and durability of its platform [5] - In Illinois, the focus on optimizing the terminal base led to steady hold-per-day improvement and margin expansion [6] - In Nevada, terminal count increased by 13% year-over-year, supported by strategic route expansions [7] Market Data and Key Metrics Changes - Illinois remains the largest market, with ongoing efforts to improve unit economics and expand margins [6] - Louisiana revenue saw significant increases in Q4, supported by bolt-on acquisitions and optimization of the Toucan Gaming platform [8] - Nebraska and Georgia demonstrated strong growth both quarterly and annually, indicating ongoing expansion and increasing leverage of the operating platform [9] Company Strategy and Development Direction - The company aims to drive steady organic growth in core markets, scale profitability in developing markets, and execute accretive tuck-in acquisitions [10][21] - The leadership transition is expected to leverage local and national relationships to capitalize on growth opportunities, particularly in the Chicago VGT market [11] - The company is focused on shifting the route business towards a more entertainment and hospitality-oriented model with higher margins [35] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the Chicago market, noting the acceptance of applications by the Illinois Gaming Board as a positive sign for future revenue generation [25] - The company anticipates that the performance per location in Chicago will exceed that of the rest of its portfolio due to better location selection and equipment [66] - Management remains cautious about the legislative environment in other states, indicating a conservative approach to potential market expansions [40] Other Important Information - The company repurchased approximately 3.8 million shares of common stock during 2025, including 1.5 million shares in Q4 [10][21] - The capital allocation framework remains disciplined, balancing organic investment, acquisitions, and shareholder returns [10][21] Q&A Session Summary Question: What is the status of the Chicago market and potential revenue generation? - Management indicated that while there are still processes to complete, the acceptance of applications is a positive sign for future revenue [25] Question: How does the company view the unit economics in Chicago compared to the rest of the state? - Management believes that while the average equipment may be lower due to space constraints, the higher population density in Chicago should lead to greater average play per machine [26][27] Question: What is the company's perspective on the potential bankruptcy of Hawthorne and its implications? - Management acknowledged the challenges facing Illinois horse racing but expressed optimism about their own operations and readiness for the upcoming season [33] Question: How does the company view potential market expansions in states like Pennsylvania and Virginia? - Management remains cautious about the likelihood of legalization in these states, noting the complexities involved [40] Question: What is the expected impact of increased tax returns on gaming activity? - Management noted a historical correlation between tax returns and increased gaming activity, particularly in the months of February and March [54] Question: How does the company balance growth CapEx with share buybacks? - Management stated that they evaluate every dollar of investment based on return potential, with a focus on M&A opportunities if the price is right [58] Question: What is the expected timeline for the rollout of gaming in Chicago? - Management estimates that the market could go live in late Q4 2026 or Q1 2027, depending on the speed of regulatory processes [85]

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 ...

Financial Performance - Consolidated revenue increased by 3% year-over-year to $841 million[9,63], driven by Gaming and iGaming revenue growth[63] - Consolidated AEBITDA increased by 18% year-over-year to $375 million[9,63], with margin expansion across all businesses[63] - Adjusted NPATA increased by 25% year-over-year to $153 million[9,63], benefiting from revenue growth and expanded AEBITDA margins[63] - Adjusted NPATA per share (EPSa) increased 35% year-over-year to $1.81[9,63] Segment Results - Gaming revenue increased by 4% year-over-year to $558 million[19,23], driven by Gaming operations and Table products[23] - SciPlay revenue decreased by 4% year-over-year to $197 million[19,23], but AEBITDA increased by 8% to $71 million[23] - iGaming revenue increased by 16% year-over-year to $86 million[19,23], with AEBITDA increasing by 42% to $34 million[23] Key Metrics - Recurring revenue accounted for approximately 69% of consolidated revenue, totaling $580 million, a 14% year-over-year increase[9] - North America installed base increased 42% year-over-year to 47,240 units, including over 11,250 units from Grover Gaming[29,33] - Wagers processed through OGS in iGaming grew 23% year-over-year to $28 billion[52,53] Capital Allocation - $111 million was returned to shareholders through share repurchases in 3Q25[9] - The company maintains a net debt leverage ratio of 3.5x[78]

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 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]

Group 1 - Inspired Entertainment (NASDAQ: INSE) operates in the business-to-business (B2B) segment of the casino gaming industry, providing gaming machines, technology, and related services to both online and land-based casino operators [1] - INSE stock may represent a notable investment opportunity among various companies in the gaming machine sector [1]

Core Insights - Apollo has completed the acquisition of International Game Technology PLC's Gaming & Digital Business and Everi Holdings Inc. for approximately $6.3 billion, establishing IGT as a leader in gaming, digital, and financial technology solutions [1][4] Company Overview - The newly formed IGT will be headquartered in Las Vegas and will operate under the IGT name while retaining the Everi brand in select markets [2] - IGT will be organized into three business units: Gaming, Digital, and FinTech, focusing on customer-centric solutions and a collaborative culture [2][6] Leadership and Management - Nick Khin is currently the Interim CEO of IGT and will transition to lead the Gaming business unit after Hector Fernandez assumes the CEO role in Q4 2025 [3][4] Strategic Vision - The merger aims to create a more competitive and agile platform for long-term growth, enhancing IGT's ability to deliver differentiated content and capabilities globally [4][6] - Apollo's support is expected to position IGT to lead the future of gaming with innovative solutions that enhance the player journey [3][4]