- **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

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

LNW(Delisted)

LNW fundamentals

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