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]