Light & Wonder, Inc. Reports First Quarter 2025 Results

16th Consecutive Quarter of Year-Over-Year Consolidated Revenue Growth with Expanded Margins Driving Strong Cash Flow Generation

Added 2,900+ North American Gaming Operations Units Year-Over-Year and ~500 Units Sequentially

Returned $166 million of Capital to Shareholders through Share Repurchases during the Quarter

Strategic Acquisition of Grover Gaming’s Charitable Gaming Business on Schedule

LAS VEGAS–(BUSINESS WIRE)–Light & Wonder, Inc. (NASDAQ and ASX: LNW) (“Light & Wonder,” “L&W,” “we” or the “Company”) today reported results for the first quarter ended March 31, 2025.

We delivered another solid quarter, achieving a 16^th consecutive quarter of year-over-year consolidated revenue growth, expanding margins across all three of our businesses and generating strong cash flow, while continuing to execute on our robust content roadmap and cross-platform strategy, and remain committed to $1.4 billion 2025 Consolidated AEBITDA target⁽¹⁾ (pre-Grover transaction). We also repurchased approximately 1.9 million shares of common stock at an aggregate cost of $166 million during the three months ended March 31, 2025.

• Gaming revenue increased to $495 million, up 4% compared to the prior year period, primarily driven by growth across all lines of business, including 9% growth in Table products and 5% growth in both Gaming systems and Gaming operations. The growth was fueled by the success of our diversified portfolio of game franchises and gaming solutions, resulting in Gaming Operations North American premium installed base growing for 19 consecutive quarters, 30% growth year-over-year in North American unit shipments, and maintaining #1 ship share in Australia⁽²⁾. AEBITDA increased by 9% on revenue growth and margin expansion of 200 basis points.

• SciPlay revenue was $202 million, a decrease of 2% compared to the prior year period, but continued to outpace the social casino market with strong payer metrics. AEBITDA increased 3%, while margin expanded 200 basis points, driven by our growing direct-to-consumer platform, while we continued to invest in high return marketing initiatives to fuel future growth. Our social casino business continued to deliver consistently high player engagement and monetization, with ARPDAU⁽³⁾ increasing by 5% to $1.06.

• iGaming revenue increased 4% to $77 million, and AEBITDA increased 8% with margin expanding by 100 basis points, primarily reflecting continued momentum in the U.S. and expansion of our partner network.

Matt Wilson, President and Chief Executive Officer of Light & Wonder, said, “Our R&D investment, vast array of product offerings and comprehensive content strategy continue to deliver success in game deployment and franchise expansions. We continue to see our omni-channel strategy prosper with enhanced game development and performance fueling our existing businesses, and further opportunity to extend this strategy with the pending Grover Charitable Gaming Acquisition. We remain confident in the various avenues of growth that we see for 2025 with continued execution on our robust product roadmap driving performance across the business. We are committed to executing off the strong foundation of world class talent and game portfolio that we have built for long-term success.”

Oliver Chow, Chief Financial Officer of Light & Wonder, added, “This quarter is a further testament to our commitment to value creation as we generated strong cash flow coupled with another meaningful quarter of share buyback. Our solid performance continues to be underpinned by a focus on streamlining and optimizing our business to enhance margins as reflected in the quarter across the three business units and corporate functions. The initiatives and processes that we have in place enable us to remain nimble and adaptable to a dynamic environment and positions us well to be a sustainable compounder of growth well into the future.”

LEVERAGE, CAPITAL ALLOCATION AND BUSINESS UPDATE

• Principal face value of debt outstanding⁽¹⁾ was $3.9 billion, translating to a net debt leverage ratio⁽²⁾ of 3.0x as of March 31, 2025, remaining within our targeted net debt leverage ratio⁽²⁾ range of 2.5x to 3.5x, while we accelerated the pace of our share repurchases capitalizing on the market dislocation and consistent with our capital allocation strategy.

• Returned $166 million of capital to shareholders through the repurchase of approximately 1.9 million shares of L&W common stock during the quarter.

• Pending strategic acquisition of Grover Gaming’s charitable gaming business — on February 18, 2025, we announced the pending acquisition for an upfront consideration of $850 million, subject to customary purchase price adjustments. Grover Gaming is a leading provider of electronic pull-tabs distributed over five fast-growing U.S. states: North Dakota, Ohio, Virginia, Kentucky and New Hampshire. The transaction is expected to close during the second quarter of 2025, subject to required regulatory and other approvals and customary closing conditions. Our lead arranger has obtained commitments, subject to customary closing conditions, for a new three-year $800 million Term Loan A credit facility at leverage-based pricing expected to be in line with our current revolving credit facility, the proceeds of which will be used for the financing of this pending acquisition.

• Impact of recent trade tariffs — in April of 2025, the U.S. government and many foreign countries imposed a series of new trade tariffs. These tariffs place additional duties on imports, and we currently source a portion of the raw materials and components for our Gaming Business from China and across Asia. We have evaluated various mitigation strategies, including but not limited to, supplier diversification, adjusting supply chain operations, supplier pricing negotiations and cost control initiatives, among other measures. Over the past several quarters, through margin enhancement initiatives, we have successfully executed meaningful operational efficiencies. While we expect recent tariffs and trade policies to create incremental cost pressures in the near term, our realized and ongoing operational efficiency initiatives coupled with other measures are expected to mitigate these effects. We remain on track to deliver our 2025 Consolidated AEBITDA target⁽³⁾ of $1.4 billion (pre-Grover transaction) and associated Adjusted NPATA targeted range⁽³⁾.

• Dragon Train litigation update — Our external experts have now completed a review of all hold and spin games released from 2015 to the present to determine whether any of these games present issues with respect to Aristocrat math values similar to those identified with Dragon Train and Jewel of the Dragon, both of which were hold and spin games. Our experts found no evidence that Aristocrat math values were used in any of these games.

• Hosting an investor day on May 20th in New York City, to provide an update on our strategy and progress on key initiatives.

First Quarter 2025 Financial Highlights

• First quarter consolidated revenue was $774 million compared to $756 million, a 2% increase compared to the prior year period, and our 16^th consecutive quarter of year-over-year growth. Gaming revenue increased 4% with contributions from all lines of business. iGaming revenue increased by 4%, while SciPlay decreased by 2%, but continued to outpace the market.

• Net income remained at $82 million, as higher revenue and strong margins were offset by higher restructuring and other costs and income tax expense. Net income per share⁽¹⁾ increased by 7% to $0.94 compared to $0.88 in the prior year period.

• Consolidated AEBITDA⁽²⁾ was $311 million, compared to $281 million in the prior year period, an 11% increase driven by revenue growth from Gaming and iGaming and margin expansion across all businesses.

• Adjusted NPATA⁽²⁾ increased 11% to $117 million, as compared to $105 million in the prior year period, primarily due to revenue growth and expanded margins, partially offset by higher income tax expense. Adjusted NPATA per share⁽¹⁾⁽²⁾ increased 21% to $1.35, compared to $1.12 in the prior year period.

• Net cash provided by operating activities was $185 million, compared to $171 million in the prior year period, with the current year period primarily benefiting from earnings growth, which was partially offset by unfavorable changes in working capital inclusive of higher income tax payments.

• Free cash flow⁽²⁾ was $111 million, compared to $93 million in the prior year period. The increase was reflective of strong earnings and lower capital expenditures, partially offset by unfavorable changes in working capital.

First Quarter 2025 Business Segments Key Highlights

• Gaming revenue increased to $495 million, up 4% compared to the prior year period, primarily driven by Table products growth of 9%, Gaming systems growth of 5% and Gaming operations growth of 5%. Gaming operations benefited from 9% year-over-year growth in our North American installed base to 34,501 units, an increase of 497 units as compared to the prior sequential quarter. Our North American premium installed base grew for the 19^th consecutive quarter, representing 51% of our total North American installed base mix. Gaming systems growth was driven by increased global hardware sales. Our diversified portfolio of successful game franchises and the continued proliferation of our COSMIC^®, COSMIC UPRIGHT and HORIZON^® cabinets continue to drive growth and strong performance in our Gaming business. Our North America unit shipments increased 30% year-over-year while we maintained #1 ship share in Australia. Gaming AEBITDA was $254 million, up 9% compared to the prior year period, primarily driven by revenue growth in the period, as well as margin expansion of 200 basis points.

• SciPlay revenue was $202 million, a 2% decrease when compared to the prior year period due to a decline in average monthly payers primarily attributable to JACKPOT PARTY^® Casino, which was partially offset by an increase in average monthly revenue per paying user, while AEBITDA increased 3% to $64 million, reflecting margin expansion. The social casino business continued to deliver consistently high player engagement and monetization, leveraging game content, dynamic Live Ops through the SciPlay Engine and effective marketing strategies. Our growing direct-to-consumer platform, which generated $27 million, or 13% of the total SciPlay revenue for the quarter, was a key driver of AEBITDA growth and margin expansion year-over-year. SciPlay maintained its overall number of payers at 0.6 million and elevated AMRPPU⁽¹⁾ to $116.96, enabling SciPlay to grow ARPDAU⁽²⁾ by 5% year-over-year to $1.06 and payer conversion to 10.4%.

• iGaming revenue increased 4% to $77 million, and AEBITDA increased 8% to $27 million for the current year period. Revenue growth for the period reflected continued momentum in North America and the expansion of our partner network. Wagers processed through our iGaming platform reached a quarterly record of $25.2 billion.

• Capital expenditures were $61 million in the first quarter of 2025 as compared to $66 million in the prior year period.

Earnings Conference Call

As previously announced, Light & Wonder executive leadership will host a conference call on Wednesday, May 7, 2025 at 4:30 p.m. EST to review the Company’s first quarter results. To access the call, live via a listen-only webcast and presentation, please visit explore.investors.lnw.com and click on the webcast link under the Events and Presentations section. To access the call by telephone, please dial: +1 (833) 470-1428 for U.S., +61 2 7908-3093 for Australia or +1 (404) 975-4839 for International and ask to join the Light & Wonder call using conference ID: 402721. A replay of the webcast will be archived in the Investors section on www.lnw.com.

About Light & Wonder

Light & Wonder, Inc. is the leading cross-platform global games company. Through our three unique, yet highly complementary businesses, we deliver unforgettable experiences by combining the exceptional talents of our 6,500+ member team, with a deep understanding of our customers and players. We create immersive content that forges lasting connections with players, wherever they choose to engage. At Light & Wonder, it’s all about the games. The Company is committed to the highest standards of integrity, from promoting player responsibility to implementing sustainable practices. To learn more visit www.lnw.com.

You can access our filings with the Securities Exchange Commission (“SEC”) through the SEC website at www.sec.gov, with the Australian Securities Exchange (“ASX”) through the ASX website at www.asx.com.au or through our website, and we strongly encourage you to do so. We routinely post information that may be important to investors on our website at explore.investors.lnw.com, and we use our website as a means of disclosing material information to the public in a broad, non-exclusionary manner for purposes of the SEC’s Regulation Fair Disclosure.

The information contained on, or that may be accessed through, our website is not incorporated by reference into, and is not a part of, this document, and shall not be deemed “filed” under the Securities Exchange Act of 1934, as amended.

All ® notices signify marks registered in the United States. © 2025 Light & Wonder, Inc. All Rights Reserved.

Forward-Looking Statements

In this press release, Light & Wonder makes “forward-looking statements” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements describe future expectations, plans, results or strategies and can often be identified by the use of terminology such as “may,” “will,” “estimate,” “intend,” “plan,” “continue,” “believe,” “expect,” “anticipate,” “target,” “should,” “could,” “potential,” “opportunity,” “goal,” or similar terminology. These statements are based upon current Company management (“Management”) expectations, assumptions and estimates and are not guarantees of timing, future results or performance. Therefore, you should not rely on any of these forward-looking statements as predictions of future events. Actual results may differ materially from those contemplated in these statements due to a variety of risks and uncertainties and other factors, including, among other things:

• our inability to successfully execute our strategy;
• slow growth of new gaming jurisdictions, slow addition of casinos in existing jurisdictions and declines in the replacement cycle of gaming machines;
• risks relating to foreign operations, including anti-corruption laws, fluctuations in currency rates, restrictions on the payment of dividends from earnings, restrictions on the import of products and financial instability;
• difficulty predicting what impact, new or increased tariffs imposed by and other trade actions taken by the U.S. and foreign jurisdictions could have on our business;
• U.S. and international economic and industry conditions, including changes in consumer sentiment and discretionary spending, increases in benchmark interest rates and the effects of inflation;
• public perception of our response to environmental, social and governance issues;
• the effects of health epidemics, contagious disease outbreaks and public perception thereof;
• changes in, or the elimination of, our share repurchase program;
• resulting pricing variations and other impacts of our common stock being listed to trade on more than one stock exchange;
• level of our indebtedness, higher interest rates, availability or adequacy of cash flows and liquidity to satisfy indebtedness, other obligations or future cash needs;
• inability to further reduce or refinance our indebtedness;
• restrictions and covenants in debt agreements, including those that could result in acceleration of the maturity of our indebtedness;
• competition;
• inability to win, retain or renew, or unfavorable revisions of, existing contracts, and the inability to enter into new contracts;
• risks and uncertainties of ongoing changes in U.K. gaming legislation, including any new or revised licensing and taxation regimes, responsible gambling requirements and/or sanctions on unlicensed providers;
• inability to adapt to, and offer products that keep pace with, evolving technology, including any failure of our investment of significant resources in our R&D efforts;
• failure to retain key Management and employees;
• unpredictability and severity of catastrophic events, including but not limited to acts of terrorism, war, armed conflicts or hostilities, the impact such events may have on our customers, suppliers, employees, consultants, business partners or operations, as well as Management’s response to any of the aforementioned factors;
• changes in demand for our products and services;
• dependence on suppliers and manufacturers;
• SciPlay’s dependence on certain key providers;
• ownership changes and consolidation in the gaming industry;
• fluctuations in our results due to seasonality and other factors;
• the risk that the conditions to the closing of the proposed Grover Gaming charitable business (“Grover Charitable Gaming”) acquisition, including the receipt of regulatory and gaming approvals, may not be satisfied;
• the risk that a material adverse change, event or occurrence may affect the Company and Grover Charitable Gaming prior to the closing of the proposed Grover Charitable Gaming acquisition and may delay the proposed transaction or cause the companies to abandon the proposed transaction;
• the risk that the proposed Grover Charitable Gaming acquisition may involve unexpected costs, liabilities or delays;
• the risk that the businesses of the Company and Grover Charitable Gaming may suffer as a result of uncertainty surrounding the proposed Grover Charitable Gaming acquisition;
• the risk that disruptions from the proposed Grover Charitable Gaming acquisition will harm relationships with customers, employees and suppliers;
• the possibility that the Company may be unable to achieve expected financial, operational and strategic benefits of the proposed Grover Charitable Gaming acquisition and may not be able to successfully integrate Grover Charitable Gaming into the Company’s operations;
• risks as a result of being publicly traded in the United States and Australia, including price variations and other impacts relating to the secondary listing of the Company’s common stock on the Australian Securities Exchange;
• risks relating to consideration of a dual primary listing on both the NASDAQ and the ASX or sole primary listing on the ASX, including delisting our securities from NASDAQ, which could negatively affect the liquidity and trading prices of our common stock and could result in less disclosure about the Company;
• the possibility that we may be unable to achieve expected operational, strategic and financial benefits of the SciPlay merger;
• security and integrity of our products and systems, including the impact of any security breaches or cyber-attacks;
• protection of our intellectual property, inability to license third-party intellectual property and the intellectual property rights of others;
• reliance on or failures in information technology and other systems;
• litigation and other liabilities relating to our business, including litigation and liabilities relating to our contracts and licenses, our products and systems (including further developments in the Dragon Train litigation described under “Aristocrat Matters” in Note 15 of our quarterly report on Form 10-Q filed with the SEC for the quarter ended March 31, 2025), our employees (including labor disputes), intellectual property, environmental laws and our strategic relationships;
• reliance on technological blocking systems;
• challenges or disruptions relating to the completion of the domestic migration to our enterprise resource planning system;
• laws, government regulations and potential trade tariffs, both foreign and domestic, including those relating to gaming, data privacy and security, including with respect to the collection, storage, use, transmission and protection of personal information and other consumer data, and environmental laws, and those laws and regulations that affect companies conducting business on the Internet, including online gambling;
• legislative interpretation

Contacts

COMPANY CONTACTS
Media Relations
Andy Fouché +1 206-697-3678

Vice President, Corporate Affairs and Communications

media@lnw.com

Investor Relations
Nick Zangari +1 702-301-4378

Senior Vice President, Investor Relations and Treasury

ir@lnw.com

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