Company: LAWIL
Filing Date: 2025-08-06
Form Type: 10-Q
Source: 0000750004-25-000048
Chunk: 127

Company: Light & Wonder, Inc.
Filing Date: 2025-08-06
Form: 10-Q
Item: Part I, Item 8
Chunk 127
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,223 10,246 977 10 %International unit shipments:Replacement units3,511 5,386 (1,875)(35)%6,509 9,097 (2,588)(28)%Casino opening and expansion units74 115 (41)(36)%1,077 1,663 (586)(35)%   Total unit shipments3,585 5,501 (1,916)(35)%7,586 10,760 (3,174)(29)%

Operating Expenses and AEBITDA

Operating expenses for the three and six months ended June 30, 2025 increased by $2 million and $16 million, respectively, as compared to the corresponding prior year periods, primarily due to $15 million and $22 million, respectively, in higher D&A, $10 million of which is related to Grover for both periods, and the remainder of which is related to increased Gaming operations investment, coupled with $7 million and $19 million, respectively, in higher salaries and benefits (including stock-based compensation), partially offset by lower cost of revenue.

AEBITDA increased by $8 million and $30 million for the three and six months ended June 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 53% and 52% for the three and six months ended June 30, 2025, respectively, as compared to 50% for both corresponding prior year periods, driven by a more favorable revenue mix, margin enhancements initiatives 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 purchases in the form of coins, chips and cards, which players can use to play slot games, table games or bingo games. Players who install SciPlay’s social games typically receive free coins, chips or cards upon the initial launch of the game and additional free coins, chips or cards at specific time intervals. Players may exhaust the coins, chips or cards that they receive for free and may choose to