Light & Wonder, Inc. Reports Second Quarter 2025 Results

Earnings Supported by Continued Strong Game Performance and Disciplined Investment

20^th Consecutive Quarterly Increase in Premium Installed Base, Added 845 North American Gaming Operations Units⁽¹⁾ Sequentially and over 2,700 Units Year-over-Year

Completed Grover Acquisition and Executing Ahead of Schedule with 600+ Units Added since Acquisition Announcement

L&W Board Has Approved a Sole Primary Listing on the ASX, with Delisting from the Nasdaq Expected by End of November 2025⁽²⁾

Returned $266 Million of Capital to Shareholders through Share Repurchases during the First Half of 2025 and Approved Additional $500 Million for Share Repurchases

LAS VEGAS — August 6, 2025 — Light & Wonder, Inc. (NASDAQ and ASX: LNW) (“Light & Wonder,” “L&W,” “we” or the “Company”) today reported results for the second quarter ended June 30, 2025 and announced approval for sole primary listing on the ASX with delisting from the Nasdaq expected by end of November 2025.

Light & Wonder delivered earnings growth and margin expansion across all business segments in the second quarter on continued strong game performance and disciplined investment, while advancing our robust content roadmap and cross-platform strategy. Consolidated revenue of $809 million decreased slightly by 1%, while Net income increased 16% to $95 million and Consolidated AEBITDA⁽³⁾ increased 7% to $352 million, as compared to the prior year period. The impact of macroeconomic uncertainty during the quarter led to more cautious purchasing behavior and delayed capital expenditure among some of our customers, which impacted the timing of game sales. Notwithstanding this near-term volatility, our Gaming business sold over 9,000 new units globally, maintaining our strong market share momentum. The momentum also continued in our Gaming operations business as we continued to increase our North American premium installed base and average daily revenue per day, excluding the Grover Charitable Gaming business (“Grover”). SciPlay revenue continued to outpace the market while our iGaming business delivered quarterly record revenue. We successfully completed the acquisition of Grover and are executing on planned integration ahead of schedule with over 600 active units added since the acquisition announcement back in February 2025.

For the first half of 2025, we returned $266 million to shareholders through share repurchases where we completed approximately 55% of the $1.0 billion share repurchase plan authorized in June 2024. Since initiation of the prior share repurchase program in March of 2022, the Company has returned $1.3 billion or 17.3 million shares, representing 18% of total outstanding shares prior to the commencement of the programs. On July 31, 2025, the Company increased its previously approved share repurchase program from $1.0 billion to $1.5 billion, which reflects continued commitment to capital management, confidence in near and long-term outlook and value creation.

The Company is providing FY 2025 Consolidated AEBITDA guidance⁽⁴⁾⁽⁵⁾ inclusive of the Grover business, to a range between $1.43 billion and $1.47 billion and associated Adjusted NPATA guidance range⁽⁴⁾ between $550 million and $575 million. We remain committed to our long-term financial targets and value creation, as announced at our May 2025 Investor Day.

Matt Wilson, President and Chief Executive Officer of Light & Wonder, said, “We remain committed to R&D investment to further proliferate our high-performing content across channels and continue to realize the benefits of strong game performance. Our North American⁽¹⁾ installed base and revenue per day increased as we continue to execute on the key initiatives to both expand and extend the longevity of our fleet for maximum value. Additionally, I am pleased that the integration of Grover is progressing ahead of schedule, and we are very well-positioned in the charitable gaming business with a range of growth opportunities ahead of us. Following an extensive diligence process, I am excited to announce the Board’s decision to transition to a sole ASX listing⁽²⁾, which I believe will deliver tremendous shareholder value going forward. I have confidence in our strategy as we continue to execute to our long-term blueprint, which will continue to drive quality of earnings and sustainable value both operationally and financially.”

Oliver Chow, Chief Financial Officer of Light & Wonder, said, “Our financial performance in the second quarter underscores the benefit of our diversified business model and the disciplined execution of the team. Margin expansion was meaningful, reflecting business performance as well as optimization of resource allocation across digital, content and platform innovation. During the quarter, we continued to invest across the portfolio, arranged financing for the Grover acquisition and continued to execute to our share buy-back program. Additionally, with the added $500 million capacity to the program, we expect a smooth transition to our sole ASX listing. We remain within our targeted net debt leverage ratio⁽³⁾ range on a combined basis following the Grover acquisition and will continue to execute on our capital allocation plan, enabling our flexibility to pursue both growth and shareholder value creation.”

Jamie Odell, Chair of the Light & Wonder Board of Directors, added, “Since we launched the secondary ASX listing back in May 2023, equity traded on the ASX now accounts for approximately 37% of our total equity. Our Board has determined that moving to a sole primary ASX listing is in the best long-term interests of our shareholders. We offer investors a great opportunity to invest in a global growth company, with strong fundamentals, leading market positions in our core segments, growing margins, and strong recurring revenues and operating cash flows. We look forward to engaging with stakeholders throughout this process.”

LEVERAGE, CAPITAL ALLOCATION AND BUSINESS UPDATE

• Sole primary listing on the ASX — Following a comprehensive review, the L&W Board has approved moving from the Company’s current dual listing on Nasdaq and ASX to a sole primary listing on the ASX and we expect to delist from the Nasdaq by end of November 2025⁽²⁾. This decision reflects our strategic focus on aligning our capital markets presence with our long-term growth plans and shareholder base. We continue to engage with index providers and other stakeholders to ensure a streamlined transition and will release further details in the coming months.
• Returned $100 million of capital to shareholders through the repurchase of approximately 1.2 million shares of L&W common stock during the quarter and $266 million or 1 million shares during the first half of 2025. Since initiation of the prior share repurchase program in March of 2022, the Company has returned $1.3 billion or 17.3 million shares, representing 18% of total outstanding shares prior to the commencement of the programs. The Company has completed $550 million of its previously approved $1.0 billion share repurchase program, and now increased the program to $1.5 billion. Management currently expects to utilize at least 50% of the available $950 million prior to the delisting⁽⁴⁾. Full exhaustion of this $950 million (following the increase) capacity by the end of 2025 would temporarily increase our net debt leverage ratio⁽⁵⁾ above the top end of our target range⁽³⁾ of 2.5x to 3.5x and we expect to return to our target range over the near-term. The Company remains committed to executing through a disciplined capital allocation approach and continued earnings growth.
• Principal face value of debt outstanding⁽⁶⁾ was $4.9 billion, translating to a net debt leverage ratio⁽⁵⁾ of 7x as of June 30, 2025 or combined net debt leverage ratio⁽⁵⁾ of 3.4x, which remained within our targeted net debt leverage ratio⁽³⁾ range of 2.5x to 3.5x, despite the accelerated pace of our share repurchases, capitalizing on market dislocation and consistent with our capital allocation strategy.
• Completed strategic acquisition of Grover Gaming’s charitable gaming business — on May 16, 2025, we completed the acquisition for an upfront consideration of $850 million, subject to customary purchase price adjustments. Grover is a leading provider of electronic pull-tabs currently distributed over five U.S. states: North Dakota, Ohio, Virginia, Kentucky and New Hampshire. Financial results of Grover are reported as a part of our Gaming reportable business segment. On May 15, 2025, the Company borrowed an aggregate principal amount of $800 million under its new term loan “A” facility maturing in May 2028, the proceeds of which were used to complete the Grover acquisition.
• FY 2025 Financial outlook update — The Company is providing FY 2025 financial guidance inclusive of the Grover business with the Consolidated AEBITDA guidance⁽¹⁾⁽²⁾ range expected between $1.43 billion and $1.47 billion and associated Adjusted NPATA guidance range⁽¹⁾ between $550 million and $575 million. We expect earnings to be second half weighted, with third quarter 2025 year-over-year Consolidated AEBITDA⁽¹⁾ growth to be in the low double-digits and momentum building into the fourth quarter, where we anticipate an acceleration in growth primarily driven by the timing of international game sales. The Company remains committed to long-term strategy and value creation.

^{(1) Excludes Grover charitable gaming units.
(2) Subject to applicable U.S. and Australian regulatory, and other third-party, approvals and processes.
(3) Represents a forward-looking non-GAAP financial measure presented on a supplemental basis. Additional information on non-GAAP financial measures presented herein is available at the end of this release.
(4) Share repurchase activity is subject to necessary Board approvals, capital allocation priorities and prevailing market conditions.
(5) Represents a non-GAAP financial measure. Additional information on non-GAAP financial measures presented herein is available at the end of this release.
(6) Principal face value of debt outstanding represents outstanding principal value of debt balances that conform to the presentation found in Note 10 to the Condensed Consolidated Financial Statements in our June 30, 2025 Form 10-Q.}