Company: LAWIL
Filing Date: 2025-11-05
Form Type: 10-Q
Source: 0000750004-25-000072
Chunk: 79

Company: Light & Wonder, Inc.
Filing Date: 2025-11-05
Form: 10-Q
Item: Part I, Item 1
Chunk 79
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 three and nine months ended September 30, 2025 increased 16% and 10%, respectively, as compared to the prior year periods, primarily driven by continuing momentum in the North American market underpinned by 1PP growth and the expansion of our partner network. Wagers processed through our Open Gaming System for the current year periods increased to $28.0 billion and $79.8 billion, respectively.

Operating expenses increased 2% for the nine months ended September 30, 2025 in correlation with the increase in revenue and also due to $10 million in restructuring costs, largely related to the discontinuation of our Live Casino operations, partially offset by decreases in intangible asset amortization expense and salaries and benefits expense. AEBITDA increased 42% and 22% for the three and nine months ended September 30, 2025, respectively, and AEBITDA margin increased to 40% and 36% for the three and nine months ended September 30, 2025, respectively, primarily due to lower operating expenses (excluding cost of revenue and R&O) and higher margin on 1PP.

RECENTLY ISSUED ACCOUNTING GUIDANCE

We do not expect that any recently issued accounting guidance will have a significant effect on our consolidated financial statements.

CRITICAL ACCOUNTING ESTIMATES

For a description of our policies regarding our critical accounting estimates, see “Critical Accounting Estimates” in Item 7 “Management’s Discussion and Analysis of Financial Condition and Results of Operations” included in our 2024 10-K.

There have been no significant changes in our critical accounting estimate policies or the application of those policies to our condensed consolidated financial statements from those presented in Item 7 “Management's Discussion and Analysis of Financial Condition and Results of Operations” included in our 2024 10-K, except as set forth below.

Business Combinations and Goodwill Update

We have estimated the economic lives of certain acquired assets in connection with the Grover acquisition, and these lives are used to calculate D&A expense. If our estimates of the economic lives change, D&A expense could be accelerated or slowed. For example, if the Grover intangible assets useful lives were extended by two years, the total annual depreciation and amortization would decrease by approximately $7 million, and if the useful lives were shortened by two years, the total annual depreciation and amortization would increase by approximately $14 million. See Note 1 for additional details.

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After the acquisition of