Company: LAWIL
Filing Date: 2025-11-05
Form Type: 10-Q
Source: 0000750004-25-000072
Chunk: 149

Company: Light & Wonder, Inc.
Filing Date: 2025-11-05
Form: 10-Q
Item: Part I, Item 2
Chunk 149
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ations with respect to various conditions and other applicable U.S. and Australian regulatory, and other third-party, approval and processes.

In April of 2025, the U.S. government and many foreign countries imposed a series of new trade tariffs and other changes in trade policy. In addition, in response to these tariffs, other countries have implemented retaliatory tariffs and other measures impacting U.S. goods. These tariffs place additional duties on imports, and we currently source a portion of the raw 

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materials and components for our Gaming business from China and across Asia. We have evaluated various mitigation strategies, including but not limited to, supplier diversification, adjusting supply chain operations, supplier pricing negotiations and cost control initiatives, among other measures. Over the past several quarters, through margin enhancement initiatives, we have also successfully executed meaningful operational efficiencies. While we expect recent tariffs and trade policies to continue to create incremental cost pressures in the near term, our realized and ongoing operational efficiency initiatives coupled with other measures are expected to significantly mitigate these effects. Additionally, as described above, overall macroeconomic uncertainty, including tariffs, is impacting some of our customers and their game replacement cycle as they are being more cautious on the timing of their capital expenditures. The full impact of the tariffs on our financial results will depend on several factors, including the duration and magnitude of the trade measures, our customer behavior and timing of capital expenditures, overall market conditions and our ability to successfully execute our mitigation strategies.

CONSOLIDATED RESULTS

Three Months Ended September 30,VarianceNine Months Ended September 30,Variance($ in millions)202520242025 vs. 2024202520242025 vs. 2024Total revenue$841 $817 $24 3 %$2,424 $2,391 $33 1 %Total operating expenses612 658 (46)(7)%1,824 1,891 (67)(4)%Operating income229 159 70 44 %600 500 100 20 %Net income before income taxes139 81 58 72 %367 289 78 27 %Net income114 64 50 78 %291 228 63 28 %

Revenue

Consolidated Revenue by Reportable Business Segment(in millions)Three Months Ended September 30, 2025 and 2024Nine Months Ended September 30, 2025 and 2024

Gaming revenue increased 4% and 2% for the three and