Company: LAWIL
Filing Date: 2025-11-05
Form Type: 10-Q
Source: 0000750004-25-000072
Chunk: 78

Company: Light & Wonder, Inc.
Filing Date: 2025-11-05
Form: 10-Q
Item: Part I, Item 1
Chunk 78
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’s focus on introducing new content, features and live events in games.

Operating Expenses and AEBITDA

Operating expenses decreased 11% and 7% for the three and nine months ended September 30, 2025, respectively, as compared to the prior year periods, which was primarily driven by lower cost of revenue due to higher margins on our direct-to-consumer platform revenue, lower salaries and benefits (including stock-based compensation) of $5 million and $12 million, respectively, and lower user acquisition costs of $5 million and $9 million, respectively.

AEBITDA for the three and nine months ended September 30, 2025 increased by $5 million and $11 million, respectively, and AEBITDA margin increased by 4 percentage points to 36% and 3 percentage points to 35%, respectively, primarily due revenue generated via our proprietary direct-to-consumer platform, which generates higher margins.

iGAMING

Our iGaming business segment provides a comprehensive suite of digital gaming content, distribution platforms and player account management systems, as well as various other iGaming content and services. The majority of our revenue is derived from casino-style game content, including a wide variety of internally developed and branded games as well as popular third-party provider games. These games are made available to iGaming operators via content aggregation platforms, including Open Gaming System, remote gaming servers and various other platforms. We also provide our Open Platform System, a player account management system which offers a wide range of reporting and administrative functions and tools providing operators full control over all areas of digital gaming operations. Generally, we host the play of our game content which is integrated with the online casino operators’ websites.

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Current Year Update

We continue to expand our customer base and capitalize on growth in the North American and International markets, including emerging markets, by leveraging our industry leading platforms, content and solutions, as well as investing in our ability to scale our own original U.S. and international land-based content offering. 

Following the decision made in the first quarter of 2025, the Company has continued to execute on the discontinuation of its Live Casino operations. This reflects our commitment to reallocate resources to maximize our return on investments, and we do not expect that this decision will have a material impact on our iGaming business’s long-term growth prospects.

Results of Operations

Three and Nine Months Ended September 30, 2025 and 2024

iGaming revenue for the