Company: LAWIL
Filing Date: 2025-08-06
Form Type: 10-Q
Source: 0000750004-25-000048
Chunk: 152

Company: Light & Wonder, Inc.
Filing Date: 2025-08-06
Form: 10-Q
Item: Part I, Item 2
Chunk 152
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 2025, primarily due to the expected closure of certain LBOs in the U.K., removals in Greece and the reduction of certain low-yielding units in Latin America.

Gaming Machine Sales

Gaming machine sales revenue decreased primarily due to macroeconomic uncertainty impacting the timing of game sales due to more cautious purchasing behavior and delayed capital expenditure among some of our customers.

The following table summarizes Gaming machine sales changes:

Three Months Ended June 30,VarianceSix Months Ended June 30,Variance202520242025 vs. 2024202520242025 vs. 2024U.S. and Canada unit shipments:Replacement units5,231 5,465 (234)(4)%10,629 9,761 868 9 %Casino opening and expansion units223 344 (121)(35)%594 485 109 22 %   Total unit shipments5,454 5,809 (355)(6)%11,223 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%