Company: LAWIL
Filing Date: 2025-08-06
Form Type: 10-Q
Source: 0000750004-25-000048
Chunk: 146

Company: Light & Wonder, Inc.
Filing Date: 2025-08-06
Form: 10-Q
Item: Part I, Item 2
Chunk 146
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 source a portion of the raw 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 

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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 June 30,VarianceSix Months Ended June 30,Variance($ in millions)202520242025 vs. 2024202520242025 vs. 2024Total revenue$809 $818 $(9)(1)%$1,582 $1,575 $7 — %Total operating expenses607 643 (36)(6)%1,211 1,235 (24)(2)%Operating income202 175 27 15 %371 340 31 9 %Net income before income taxes124 108 16 15 %228 208 20 10 %Net income95 82 13 16 %177 164 13 8 %

Revenue

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

Gaming revenue decreased 2% and increased 1%, for the three and six months ended June 30, 2025, respectively, as compared to the prior year periods. Both periods were primarily impacted by a decrease in Gaming machine sales and Gaming systems, partially offset by higher Gaming operations revenue, which benefited from $21 million in revenue from Grover for both the three and six months ended June 30, 2025, along with a $13 million and a $21 million, respectively, or 7%