Light & Wonder (LNW) Investor Day 2025 summary

Strategic transformation and business focus

• Refocused from a fragmented conglomerate to a streamlined, content-led games company, divesting lottery and sports to repair the balance sheet and reinvest in R&D and talent.

• Achieved dual listing on NASDAQ and ASX, with nearly 40% of market cap now on ASX, and inclusion in ASX 100 and Russell 1000; management targets future inclusion in the ASX 50.

• Executed two share repurchase programs totaling $1.75B, repurchasing 16.1M shares (~17% of shares outstanding) to enhance shareholder value.

• Acquired Grover Charitable Gaming, expanding into a high-growth, high-margin charitable gaming segment.

• Built a high-performance culture, emphasizing talent attraction, retention, and core values to drive innovation and execution.

Financial performance and guidance

• Delivered 13% consolidated revenue CAGR and 17% EBITDA/AEBITDA CAGR since 2022, with 2024 revenue at $3.19B and AEBITDA at $1.24B.

• Reduced leverage from 10.5x in 2020 to 3x in 1Q25, strengthening the balance sheet and enabling reinvestment.

• Set new targets: $2B consolidated AEBITDA and over $10.55 EPSA by 2028, nearly doubling 2024 levels.

• Recurring revenue now represents 64% of the base, with digital revenues at $1.1B in 2024.

• Margin enhancement and recurring revenue focus have driven consolidated AEBITDA margin to 40% in 1Q25.

Business segment highlights and growth drivers

• Gaming: Achieved 19 consecutive quarters of premium install-based growth, #1 global chip share, and 400 bps share growth in global game sales since 2022.

• SciPlay: Outperformed the social casino market for three years, scaled direct-to-consumer from 0% to 11% of revenue, targeting 30% by 2028.

• iGaming: Processed $91B in wagers in 2024, launched 1,000+ games, and aims for 300 bps improvement in first-party content share by 2028.

• Charitable gaming: Grover delivered ~$135M revenue and ~$111M adjusted EBITDA in 2024, with plans to expand into new states and leverage LNW content for accelerated growth.

• Ongoing investments in R&D, talent, and cross-platform tools support product innovation and market share gains across all business lines.