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 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]