- **Revenue & Profit Growth**: 3% revenue growth to $841M, 18% EBITDA rise to $375M, driven by gaming operations and Grover’s $40M contribution.
- **Recurring Revenue Dominance**: 69% of revenue from recurring streams, with North American gaming machine sales up 38% YoY to 6,000 units.
- **Grover Expansion**: 229 new units added in Q3, Indiana launch in early 2026, and Raleigh office expansion.
- **iGaming Momentum**: 16% YoY growth to $86M, first-party content (e.g., Pirates 4) accounts for 70% of OGS revenue, Philippines iGaming launch pending.
- **Cash Return & Debt Management**: $111M share buybacks, $1B debt refinancing reducing interest rate to 6.25%, net leverage at 3.3x target range.

**【CEO Summary Section】**
- **Revenue Growth**: Consolidated revenue increased 3% YoY to $841 million, with Adjusted EBITDA up 18% YoY to $375 million. Recurring revenue accounted for 69% of total revenue, driven by gaming operations and Grover integration.
- **Grover Integration**: Grover contributed $40 million in revenue and added 229 units sequentially, with 830 units added since acquisition. Indiana market launch is expected in early 2026.
- **Capital Allocation**: Returned $111 million to shareholders via share buybacks, with $735 million remaining under the $1.5 billion program. Transitioning to ASX listing by November 14, 2025.
- **Game Performance**: North American gaming machine sales reached 6,000 units, up 38% YoY. Top-performing games include Piggy Bankin’ Breakin’ and Dragon Spin Saga Fire & Water.

**【CFO Financial Commentary】**
- **Profitability**: Net income rose 78% YoY to $420 million, with Adjusted EBITDA up 25% YoY to $375 million. Gaming operations margin expanded due to strong wide-area progressive (WAP) performance.
- **Cash Flow**: Operating cash flow of $184 million and free cash flow of $136 million, up 64% YoY. Cash conversion improved to 89% of Adjusted EBITDA.
- **Debt Management**: Issued $1 billion in 6.25% senior notes due 2033, reducing effective interest rate. Net debt leverage ratio remained at 3.3x, within target range.
- **Tariff Impact**: Mid to high single-digit million-dollar quarterly impact from tariffs, partially offset by pricing and cost mitigation efforts.

**【Q&A Highlights】**
- **Q4 Outlook**: Expect double-digit growth driven by recurring revenue (69% of total), North American outright sales, and iGaming expansion. SSBT orders in the U.K. and Asia will support international growth.
- **Grover Performance**: Grover’s 11,250-unit install base is expected to grow with Light & Wonder game launches in early 2026. Raleigh, NC office soft-opened in October.
- **iGaming Growth**: Record $86 million revenue, up 16% YoY, with first-party content (e.g., Pirates 4) driving 70% of OGS network revenue. Philippines iGaming launch pending regulatory approval.
- **SciPlay Stabilization**: Jackpot Party stabilization efforts include economy adjustments and unregulated sweepstakes gaming. Direct-to-consumer (DTC) revenue mix rose to 20% (vs. 12% YoY), targeting 30% by 2028.
- **International Pipeline**: Australia share normalization expected in 2026 with new hardware launches. Asia demand delayed in Q3 will resume in Q4 with U.K. SSBT orders.

Light & Wonder, Inc. (LNW) Q3 2025 Earnings Call Transcript

- **Grover Acquisition Paying Dividends**: $65M EBITDA contribution in 2025, with seamless integration and Indiana expansion on track.
- **North American Gaming Dominance**: 20+ quarters of premium installed base growth, 44% new game market share.
- **Margin Expansion**: AEBITDA margin 44% (up 400bps YoY), free cash flow conversion 77%.
- **Strategic ASX Transition**: Sole listing by November 2025 to consolidate liquidity and unlock value.
- **Risks Manageable**: Litigation narrowed to 2 games, no material impact on core business.

**【CEO Opening Remarks】**
- Announced the acquisition of Grover Charitable Gaming, adding over 600 active units and contributing $65 million to 2025 EBITDA guidance. Integration is seamless, with plans to launch Light & Wonder-branded games into the charitable gaming market in early 2026.
- Highlighted North American premium installed base growth of 20 consecutive quarters, with 52% of the fleet being premium units. Key titles like Ultimate Fire Link and Huff N' Puff dominate the Eilers chart, capturing 44% of new premium game market share.
- Expanded into Indiana with first unit deployments expected in Q3 2025, and announced a sole ASX listing transition by end of November 2025 to consolidate liquidity and unlock shareholder value.
- SciPlay's direct-to-consumer (DTC) platform grew to 18% of revenue, with plans to scale to 30% by 2028. iGaming revenue set records, driven by North American growth and third-party content expansion.

**【CFO Financial Commentary】**
- Q2 2025 revenue: $809 million (including $21 million from Grover), up 16% YoY in net income to $95 million. AEBITDA: $352 million (+7% YoY), margin: 44% (up 400bps YoY). Adjusted NPATA: $135 million (+4% YoY), EPS: $1.58 (+11% YoY).
- Gaming segment: $528 million revenue (+3% YoY), AEBITDA: $280 million (53% margin). Excluding Grover, North America installed base grew 7% YoY.
- Global game sales: $191 million, impacted by macroeconomic uncertainty and delayed international sales. Shipped 9,000+ units globally, with pipeline supported by Evergreen franchises and new titles.
- SciPlay: $200 million revenue (+6% YoY AEBITDA), DTC platform generated $35 million (18% of revenue). iGaming: $81 million revenue (+9% YoY), AEBITDA margin: 35% (up 300bps YoY).
- Free cash flow: $106 million (excluding $73 million legal settlement), targeting >$100 million YoY growth. Share buyback program expanded to $1.5 billion, with $550 million completed to date.

**【Q&A Highlights】**
- **ASX Listing Transition**: Management emphasized strong investor support, with ASX 50 index inclusion expected post-transition. Share buyback program will prioritize NASDAQ trading ahead of delisting.
- **Litigation Update**: Nevada and Australian federal court cases set for 2026 trials. Favorable rulings narrowed case scope to 2 games (Dragon Train, Jewel or Dragon), with no material impact on core business.
- **Grover Integration**: 600+ unit adds in Q2, ahead of expectations. Indiana expansion on track for Q3 deployments. Light & Wonder-branded games to launch in early 2026.
- **SciPlay Challenges**: Sweepstakes gaming impacting social casino growth. Jackpot Party stabilization efforts underway, with DTC platform scaling.
- **Margins & Cash Flow**: AEBITDA guidance: $1.43-1.47 billion (includes $65M Grover contribution). Free cash flow conversion rate: 77% (normalized basis).

Light & Wonder, Inc. (LNW) Q2 2025 Earnings Call Transcript

- **Revenue Resilience**: Q1 2025 revenue $774M (+2% YoY), driven by gaming ops expansion (+500 units) and SciPlay's record QuickHit Slots growth (+16%).
- **Profit Margin Expansion**: Consolidated EBITDA margin 40% (up 300bps YoY), fueled by cost control and first-party iGaming content.
- **Strategic Acquisitions**: Grover Gaming acquisition to add $800M in recurring revenue, with Indiana e-pool tabs market tailwind.
- **Tariff Mitigation**: Supply chain diversification (Mexico, USMCA) and supplier cost-sharing offset tariffs; no immediate customer price hikes.
- **DTC Growth**: DTC revenue 13% of SciPlay (+75bps YoY), with Apple/Google ruling enabling accelerated monetization.
- **Carbon Platform**: Grover integration accelerates Carbon platform development, with first games launching Q2 2025.


**【CEO Summary Section】**
- **Revenue Growth**: Q1 2025 revenue increased 2% YoY to $774M, driven by gaming and iGaming businesses. North American installed base expanded by 500 units sequentially, with 51% of fleet as premium. Game sales share in North America rose 400bps YoY to 24%.
- **Game Performance**: Top-performing titles include Superhot Flaming Pots, Cosmic Upright Cabinet, and iGaming exclusives like Huff & More Puff. SciPlay's QuickHit Slots and 88 Fortunes grew 16% and 31% YoY, respectively.
- **Strategic Initiatives**: Acquired Grover Gaming's charitable gaming assets, targeting Indiana's e-pool tabs market. Direct-to-consumer (DTC) revenue reached 13% of SciPlay's Q1 2025 total, up 75bps YoY.
- **Tariff Mitigation**: Supply chain diversification (e.g., Mexico via USMCA) and supplier cost-sharing to offset tariffs. No immediate pass-through to customers, but long-term strategy to balance cost and volume.

**【CFO Financial Commentary】**
- **Profitability**: GAAP net income $82M (diluted EPS $0.94), up 4% YoY. Adjusted NPATA $117M (EPSA $1.35), up 21% YoY. Consolidated EBITDA $311M (+11% YoY), margin 40% (up 300bps YoY).
- **Cash Flow**: Free cash flow $111M (+19% YoY), driven by strong earnings and lower CapEx. Share buybacks totaled $166M (1.9M shares) under $1B program.
- **Segment Performance**: Gaming EBITDA $254M (+9% YoY), SciPlay EBITDA $64M (+3% YoY), iGaming EBITDA $27M (record high). OGS GGR $25.2B (+13% YoY).
- **Margin Expansion**: Global average selling price $20K, systems revenue up 5% YoY. iGaming first-party content GGR records set with FanDuel and BetMGM exclusives.

**【Q&A Highlights】**
- **Tariff Impact**: Mitigated via supply chain diversification and supplier cost-sharing. No immediate customer price increases, but long-term risk of volume decline if tariffs persist.
- **International Gaming**: Sequential decline in LatAm due to lease-to-sale conversions. Australia remains #1 ship share supplier, but cycling over prior-year highs.
- **DTC Growth**: Apple/Google ruling enables more aggressive DTC monetization. Target to share Investor Day 2025 DTC growth targets.
- **Gaming Ops Yield**: Q1 2025 weather-impacted WAP performance normalized in Q2. Long-term focus on premium mix and content differentiation.
- **Carbon Platform**: Grover acquisition accelerates Carbon platform development. First games built on Carbon launching in Q2 2025 with Grover, expanding to other verticals later.


Light & Wonder, Inc. (LNW) Q1 2025 Earnings Call Transcript

- **Record 2024 Growth**: 10% revenue growth, 11% AEBITDA expansion, with all segments delivering double-digit EBITDA gains. 
- **Grover Acquisition**: $850M deal to enter high-margin charitable gaming, accretive in 2026 with 7.7x EBITDA multiple. 
- **Installed Base Dominance**: 18th straight quarter of premium growth, 34,000+ units in North America, 25% YoY unit shipments. 
- **SciPlay Momentum**: 6% revenue growth, 36% AEBITDA margin, ARPU up 6% to $1.06, DTC now 13% of revenue. 
- **iGaming Expansion**: 11% revenue growth, 32% AEBITDA margin, $24B wagers processed, 50+ Brazil game launches. 
- **2025 Outlook**: $1.4B AEBITDA target, low double-digit Q1 growth, normalized Gaming RPDs, and Brazil market entry. 
- **Shareholder Returns**: $462M buybacks in 2024, 3x net leverage, and potential ASX dual listing to enhance liquidity. 


**【CEO Opening Remarks】**
- **Record Performance Across Businesses**: 2024 saw double-digit consolidated revenue and EBITDA growth, with record revenues and profitability in Gaming, SciPlay, and iGaming. 
- **Grover Acquisition**: $850M purchase of Grover's charitable gaming business, expected to be accretive in 2026 with 7.7x EBITDA multiple. 
- **Installed Base Growth**: 18th consecutive quarter of premium installed base growth (>50% of North America), with 850+ units added in Q4. 
- **Content Strategy**: Nathan Drane promoted to CPO to unify global product portfolio, leveraging R&D engine across land-based, digital, and charitable gaming. 
- **Cross-Platform Integration**: SciPlay's DTC platform now 13% of revenue, with ARPU and payer conversion metrics at record levels. 
- **iGaming Momentum**: OGS processed $24B in wagers in Q4, 30% YoY growth in US GGR, and launch of 1,000+ first-party games. 
- **Live Casino Divestiture**: Decision to exit live casino to focus on higher ROI content and aggregation strategies. 

**【CFO Financial Highlights】**
- **Consolidated Results**: 2024 revenue $3.2B (+10%), AEBITDA $1.24B (+11%), diluted EPS $3.68 (+113%). Q4 revenue $797M (+4%), AEBITDA $315M (+4%). 
- **Gaming Segment**: Q4 revenue $515M (+4%), AEBITDA $257M (+5%), margin 50% (vs. 49% YoY). North America RPD growth 2% YoY. 
- **SciPlay Performance**: Full year revenue $821M (+6%), AEBITDA $74M (+7%). Q4 ARPU $1.06 (+6%), payer conversion 10.9%. 
- **iGaming Growth**: Q4 revenue $78M (+11%), AEBITDA $25M (+9%). Brazil launch with 50+ game titles, 50% digital-native content. 
- **Free Cash Flow**: $74M in Q4, $318M annualized, driven by earnings and working capital optimization. 
- **Balance Sheet**: Net debt leverage 3x, revolver expanded to $1B. $462M share buybacks in 2024, $243M in Q4. 

**【Q&A Key Takeaways】**
- **2025 Growth Path**: Target $1.4B AEBITDA, with low double-digit Q1 growth and normalized Gaming RPDs post-Dragon Train impact. 
- **Gaming Margins**: 50% AEBITDA margin in Q4, sustained through manufacturing cost control and installed base expansion. 
- **iGaming Strategy**: Focus on 1PP content (e.g., Huff N' Puff) and aggregation, with Brazil and US expansion driving long-term growth. 
- **Supply Chain Risks**: Tariff and steel cost headwinds (~single-digit million impact), mitigated by diversified supply chain. 
- **ASX Listing**: Exploring dual primary listing to optimize shareholder value, decision expected in Q2. 
- **Competitive Dynamics**: Resilient slots demand, 5% YoY lease market growth, and premium game adoption driving operator profitability. 
- **SciPlay UA Spend**: Incremental Q1 spend to capitalize on seasonal returns, supporting DTC expansion and ARPU growth. 


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