Company: LAWIL
Filing Date: 2025-11-05
Form Type: 10-Q
Source: 0000750004-25-000072
Chunk: 159

Company: Light & Wonder, Inc.
Filing Date: 2025-11-05
Form: 10-Q
Item: Part I, Item 2
Chunk 159
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 monthly revenue by average MPUs for the applicable time period.(7) Payer conversion rate is calculated by dividing average MPU for the period by the average MAU for the same period.

SciPlay revenue decreased by 4% and 3% for the three and nine months ended September 30, 2025, respectively, primarily due to a decline in average monthly payers, primarily attributable to Jackpot Party® Casino and partially offset by an increase in average monthly revenue per paying user.

Average MAU and average MPU for the three and nine months ended September 30, 2025 decreased due to the turnover in users. ARPDAU increased as a function of higher player monetization with a slight decrease in average DAU. AMRPPU increased, despite payer conversion decreasing slightly, as SciPlay continues to improve content and features, resulting in steady paying player interaction.

Payer conversion rates decreased slightly but remained near 10% due to consistent payer interaction with the games as a result of SciPlay’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