Why did LNW's EPS decline in Q3 and Q4 2024?

The decline in Light & Wonder's (LNW) EPS in Q3 and Q4 2024 can be attributed to **Legal Challenges and Related Costs**.

1. **Ongoing Litigation with Aristocrat**: The company is embroiled in a legal dispute with rival gaming company Aristocrat, which has intensified with Aristocrat amending its complaint to include a trade secret misappropriation claim. This litigation has led to Light & Wonder stopping the commercialization of certain games to minimize customer disruption.
2. **Legal Costs and Potential Settlements**: The legal proceedings could incur additional costs and require resources that might otherwise be allocated to growth initiatives. These costs, although not directly related to the company's core operations, can negatively impact financial performance by reducing net profit.
3. **Impact on Business Operations**: The termination of a key game designer due to breaches of employment obligations and the cessation of development for unreleased games due to potential legal issues may affect team morale and productivity, leading to operational inefficiencies and potential loss of market position.

In summary, the decline in LNW's EPS is primarily due to the legal challenges and related costs, which have a direct impact on the company's financial performance.