Company: LAWIL
Filing Date: 2025-11-05
Form Type: 10-Q
Source: 0000750004-25-000072
Chunk: 74

Company: Light & Wonder, Inc.
Filing Date: 2025-11-05
Form: 10-Q
Item: Part I, Item 1
Chunk 74
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481 5,476 5 — %16,110 15,237 873 6 %Casino opening and expansion units540 618 (78)(13)%1,134 1,103 31 3 %   Total unit shipments6,021 6,094 (73)(1)%17,244 16,340 904 6 %International unit shipments:Replacement units2,550 6,827 (4,277)(63)%9,059 15,924 (6,865)(43)%Casino opening and expansion units37 142 (105)(74)%1,114 1,805 (691)(38)%   Total unit shipments2,587 6,969 (4,382)(63)%10,173 17,729 (7,556)(43)%

Operating Expenses and AEBITDA

Operating expenses increased by $8 million and $23 million for the three and nine months ended September 30, 2025, respectively, as compared to the corresponding prior year periods, primarily due to $22 million and $44 million, respectively, in higher D&A, of which $15 million and $25 million, respectively, is related to Grover, and the remainder of which is related to increased Gaming operations investment, coupled with $5 million and $24 million, respectively, in higher salaries and benefits (including stock-based compensation), partially offset by lower cost of revenue.

AEBITDA increased by $38 million and $68 million for the three and nine months ended September 30, 2025, respectively, which is primarily related to margin expansion and a contribution from Grover since the acquisition closed in May 2025. AEBITDA as a percentage of revenue (“AEBITDA margin”) increased to 55% and 53% for the three and nine months ended September 30, 2025, respectively, as compared to 50% for both corresponding prior year periods, driven by a more favorable revenue mix, margin enhancements initiatives, Grover contributions and the impact of our incentive compensation payout structure.

SCIPLAY

Our SciPlay business segment is a leading developer and publisher of digital games on online platforms. SciPlay operates primarily in the social gaming market, which is characterized by gameplay online or on mobile devices that is social, competitive and self-directed in pace and session length. SciPlay generates a substantial portion of its revenue from in-app