Light & Wonder(US:LNW)2026-02-24 23:00Financial 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]