Company: LAWIL
Filing Date: 2025-11-05
Form Type: 10-Q
Source: 0000750004-25-000072
Chunk: 129

Company: Light & Wonder, Inc.
Filing Date: 2025-11-05
Form: 10-Q
Item: Part I, Item 8
Chunk 129
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, including overall more cautious purchasing behavior and delayed capital expenditure among some of our customers.

The following table summarizes Gaming machine sales changes:

Three Months Ended September 30,VarianceNine Months Ended September 30,Variance202520242025 vs. 2024202520242025 vs. 2024U.S. and Canada unit shipments:Replacement units5,481 5,476 5 — %16,110 15,237 873 6 %Casino opening and expansion units540 618 (78)(13)%1,134 1,103 31 3 %   Total unit shipments6,021 6,094 (73)(1)%17,244 16,340 904 6 %International unit shipments:Replacement units2,550 6,827 (4,277)(63)%9,059 15,924 (6,865)(43)%Casino opening and expansion units37 142 (105)(74)%1,114 1,805 (691)(38)%   Total unit shipments2,587 6,969 (4,382)(63)%10,173 17,729 (7,556)(43)%

Operating Expenses and AEBITDA

Operating expenses increased by $8 million and $23 million for the three and nine months ended September 30, 2025, respectively, as compared to the corresponding prior year periods, primarily due to $22 million and $44 million, respectively, in higher D&A, of which $15 million and $25 million, respectively, is related to Grover, and the remainder of which is related to increased Gaming operations investment, coupled with $5 million and $24 million, respectively, in higher salaries and benefits (including stock-based compensation), partially offset by lower cost of revenue.

AEBITDA increased by $38 million and $68 million for the three and nine months ended September 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 55% and 53% for the three and nine months ended September 30, 2025, respectively, as compared to 50% for both corresponding prior year periods, driven by a more favorable revenue mix, margin enhancements initiatives, Grover contributions and the impact of our