Light & Wonder (LNW) investor relations material

Executive summary

• Achieved 3% year-over-year revenue growth to $841 million in Q3 2025, with net income up 78% to $114 million and net income per share up 89% to $1.34, driven by strong Gaming and iGaming performance and Grover's $40 million contribution.

• Consolidated Adjusted EBITDA (AEBITDA) rose 18% to $375 million, with margin expansion across all business segments and Adjusted NPATA up 25% to $153 million.

• Recurring revenue grew 14% year-over-year to $580 million, now representing 69% of consolidated revenue, supporting predictable earnings and strong cash flow.

• Returned $111 million to shareholders via share repurchases in Q3, with $1.5 billion buyback program 51% utilized by October 2025.

• Transitioning to a sole primary listing on the ASX, with Nasdaq delisting expected in November 2025 and 57% of shares converted to ASX-tradable interests as of early November.

Financial highlights

• Gaming revenue increased 4% to $558 million, with a 38% rise in gaming operations and Grover contributing $40 million; AEBITDA margin rose to 55%.

• iGaming revenue reached a record $86 million, up 16% year-over-year, with AEBITDA up 42% to $34 million and margin expanding 800 basis points to 40%.

• SciPlay revenue declined 4% to $197 million, but AEBITDA rose 8% to $71 million, with direct-to-consumer revenue mix at 20% and margin up 400 basis points to 36%.

• Free cash flow was $136 million, up 64% year-over-year, with net cash from operating activities at $184 million, up 55%.

• Operating income for Q3 2025 was $229 million, up 44% year-over-year.

Outlook and guidance

• Full-year 2025 guidance maintained: Consolidated AEBITDA between $1.43–$1.47 billion and Adjusted NPATA between $550–$575 million, with a focus on scaling recurring revenue and operational efficiencies.

• Targeting 2028 consolidated AEBITDA of $2.0 billion and EPSa above $10.55.

• Tariff impacts expected in Q4 and into 2026, with mitigation efforts underway.

• International sales timing impacted by Asia and Philippines orders shifting into 2026, but share expected to recover.

• Continued investment in growth initiatives and R&D, maintaining a 17% allocation of consolidated revenue.