Company: LAWIL
Filing Date: 2025-08-06
Form Type: 10-Q
Source: 0000750004-25-000048
Chunk: 82

Company: Light & Wonder, Inc.
Filing Date: 2025-08-06
Form: 10-Q
Item: Part I, Item 1
Chunk 82
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 cash equivalents and restricted cash8 (3)11 Decrease in cash, cash equivalents and restricted cash$(41)$(99)$58 

Cash flows from operating activities

Six Months Ended June 30,Variance(in millions)202520242025 vs. 2024Net income$177 $164 $13 Adjustments to reconcile net income to cash provided by operating activities 225 196 29 Changes in working capital accounts, excluding the effects of acquisitions(111)(48)(63)Net cash provided by operating activities$291 $312 $(21)

Net cash provided by operating activities decreased primarily due to changes in working capital accounts, partially offset by a $42 million increase in earnings (drivers of which are described above). Changes in working capital accounts for the six months ended June 30, 2025 as compared to the six months ended June 30, 2024 were negatively impacted by $73 million related to certain legal settlement payments and increased inventory levels.

Cash flows from investing activities

Net cash used in investing activities increased primarily due to the Grover acquisition, partially offset by lower capital expenditures related to the timing of investments in Gaming operations. Capital expenditures are composed of investments in systems, equipment and other assets related to contracts, property and equipment, intangible assets and software. 

Cash flows from financing activities

Net cash provided by financing activities increased, primarily driven by borrowings incurred under the LNWI Term Loan A and the LNWI Revolver, partially offset by higher purchases of our outstanding common stock under our share repurchase programs. During the six months ended June 30, 2025 and 2024, we paid (including excise tax) $270 million and $175 million, respectively, to purchase our common stock.

Credit Agreement and Other Debt

For additional information regarding the LNWI Credit Agreement and other debt, interest rate risk and interest rate hedging instruments, see Notes 14 and 15 and Item 7A “Quantitative and Qualitative Disclosures About Market Risk” in our 2024 10-K as well as Notes 10 and 11 and Item 3 below in this Form 10-Q.

Off-Balance Sheet Arrangements

As of June 30, 2025, we did not have any significant off-balance sheet arrangements.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

Market risk is the risk of loss arising from adverse changes in market rates and prices, such as interest rates, foreign exchange