Light & Wonder, Inc.

Thank you all for standing by for today's conference call with light and wonder. Today's call is going to be starting momentarily. Thank you all for your patience today. Welcome to the Light and Wonder 2025 third quarter earnings conference call. At this time, all participants are in a listen only mode. A brief question and answer session will follow the formal presentation. To register to ask a question during this time, simply press star followed by the number one on your telephone keypad. If you change your mind, please press star, followed by the number two. And should you need operator assistance at any point during the call, you can press star, then the number zero. Thank you. I will now turn the call over to Aurora Gallagher, Executive Vice President, Global Chief Corporate Affairs. Please go ahead.

Thank you, operator, and welcome everyone to our third quarter 2025 earnings conference call. Joining me today in Sydney are Matt Wilson, our President and CEO, and Oliver Chow, our CFO. During today's call, we will discuss our third quarter results and operating performance, where we will refer to our earnings presentation. This will then be followed by a question and answer session. Today's call will contain forward-looking statements that may involve certain risks and uncertainties that could cause actual results to differ materially from those discussed during the call. For information regarding these risks and uncertainties, please refer to our earnings materials relating to this call posted in the investor section of our website and our filings with the SEC and the ASX. We will also discuss certain non-GAAP financial measures A description of each non-GAAP measure and a reconciliation of each non-GAAP measure to the most directly comparable GAAP measure can be found in our earnings release and earnings presentation located in the investor section of our website. With that, I will now turn the call over to Matt to discuss the third quarter results and operational highlights on slide three.

Thank you, Rob. Hello, everyone. Thank you all for tuning in today for our third quarter results. I'm pleased to share that our strong execution on our product roadmap and game performance enabled us to deliver robust earnings growth and cash flows. Consolidated revenue for the quarter increased 3% year-over-year to $841 million. Importantly, consolidated EBITDA grew double digits year-over-year to $375 million, an 18% increase supported by record margin expansion across all three businesses. Additionally, adjusted MPAD A for the quarter grew 25% year-over-year, and adjusted MPAD A per share, or EPFA, increased 35% year-over-year to $1.81. Pleasingly, we continue to improve our quality of earnings, with gaming operations once again emerging as an area of strength. Our teams delivered meaningful sequential install-based growth of over 850 units, including Grover. Additionally, recurring revenue grew 14% year over year, which accounts for approximately 69% of our consolidated revenue in the quarter. This high flow through business is a key driver of our cash flow flywheel, which we expect to further enhance through our continued investment and execution on our roadmap. We remain intentional and committed to our capital allocation strategies. This quarter we returned $111 million of capital to our shareholders through share repurchases. We're remaining nimble in the face of any near-term opportunities as we transition to a sole standard listing on the ASX, scheduled to take effect on November 14th in Australia, where we have been listed since May of 2023. I want to thank all of our stakeholders and advisors for their hard work and support during this transition. We are confident our move to the ASX will provide significant shareholder value in the next step of our company's journey and enable us to enhance Light and Wonder's profile in a market that is attuned to the gaming industry. Turning to slide four for an update on our Grover Charitable Gaming integration. We have now seen a full quarter's worth of contributions from Grover with over $40 million in revenue and 229 incremental units added sequentially. Since we announced the acquisition, over 830 units were added to the fleet, bringing the Grover install base to over 11,250 units. Our focus remains on the seamless integration of Grover into game development and technology platforms, and we are pleased with the progress the Grover team has made in building out its teams in anticipation of the growth ahead. Our new office and studio in Raleigh, North Carolina, which will serve as Grover's headquarters, soft opened in late October, and we expect to complete the build-out later this year. The Indiana market launch as our sixth operational state is progressing well. And importantly, we've built out a dedicated and experienced team locally to be fully prepared for launch needs. We remain incredibly excited about the vast potential of Grover and its contributions to our diversified business model and look forward to key light and wonder game launches into the charitable gaming market in early 2026. Moving along to slide five. We've continued to deliver on our core strategy by leveraging and prioritising our robust R&D engine across complementary channels to deliver engaging content experiences as one of the leading cross-platform global games companies. We foster a high-performance culture with talent and a deep bench led by a leadership team with a proven track record, a highly valued asset in this industry. Our financial profile is impressive, with high margins and cash-generating recurring revenue streams that enable meaningful capital creations. We execute on a disciplined capital allocation blueprint to create sustainable shareholder value. We are truly unique among our peers in both structure and operations, operating across multiple industries that have high barriers to entry. I will now take you through our segment results and highlights. On slide seven, you will see that we provided a summary of our revenue and profitability by business. What I'm most impressed with in this quarter is the margin expansion across all verticals. Oliver will provide more details into the growth drivers and outlook later on the call. Turning now to the gaming business performance on Swide 8, you will see that gaming revenue was primarily driven by strong gaming operations performance, which increased 38% year-over-year to $241 million on North American units installed and $40 million on Grover contributions. Looking ahead, we expect momentum to continue in North America on strong game and hardware releases introduced at AGE and G2E, as well as a continued expansion of the charitable gaming business with our entry into Indiana in the coming months. The decline in gaming machine sales was largely in the international markets, which was adversely impacted by the large intended order of 3,600 units in the prior year and our out-of-cycle hardware churn in Australia. Going into the fourth quarter, we expect a sizeable order of our SSBT, or sports betting terminals, in the UK, as well as previously discussed Asia demand that has shifted in timing. Our systems and table businesses both saw modest growth in the quarter, with systems supported by higher international hardware sales, We expect the business to continue its growth trajectory, underpinned by customer-centric innovations. Cable's revenue increased on higher utility sales in North America as we continue to expand our product offerings and pipelines. We received strong feedback on our Obsidian offering, and the new team led by John Hanlon is well-equipped to capitalise on domestic and international electronic table games opportunities over the coming years. Here is an in-depth look at our gaming KPIs on slide 9. We now have 47,240 installed base units in North America. Excluding the 11,255 units at Grover, North American premium units have grown for 21 consecutive quarters and now account for 52% of the total North American installed base. This is a true testament to our game performance and pricing precision of our commercial strategy. In North America, average daily revenue per unit declined on a reported basis due to the inclusion of Grover units. However, excluding Grover, our North American install-based revenue per day increased 5% year-over-year, primarily driven by wide area progressive performance amid a resilient gaming backdrop and strong GGR. Importantly, we continue to lead in the new Isles Games Index with three out of the top five indexing new premium leased and WAP games with our Ultimate Firelink and Huff & Puff franchises. North American gaming machine sales remain strong, with over 6,000 units shipped in the quarter, despite the difficult year-over-year comparison and softness within the international segment. Light and wonder's scale and global presence enabled us to be a meaningful participant in all markets. Just recently, we entered the Nebraska skill game market and commenced trials in the Eastern European dynamic multi-game market. We see ample opportunities for our products to reach new markets that will be coming online and available to us. In the latest ILS report, we saw piggy banking break-ins debut at number one, as the top indexing new video real game and Dragon Spin Saga Fire and Water rounding out the top five, reflecting our continued commitment to building great for sale games. We showcased an exciting lineup at G2E, as shown on slide 10. The feedback on our cabinets and games from our operator partners was encouragingly positive. I am thrilled with the launch of LightWave and expect our cosmic cabinets, along with our proven franchise extensions, to fuel our install base and game sales growth, underpinned by our differentiated R&D engine. Turning to SyFly on slide 11, Quick Hit Slots and 88 Fortunes once again deliver record quarterly revenues, their 15th and 5th consecutive quarters respectively, as they continue to ramp with exciting slot content and features. The year-over-year revenue decline in the quarter was primarily attributed to the decreased number of average monthly payers at Jackpot Party. Despite the softness, we're able to grow the other games within the game portfolio, and we continue to invest in building and deploying engaging games through our omni-channel strategy. Monetisation remains strong, with average monthly revenue per paying user up 11% year-over-year to over $126, and average revenue per daily active user maintaining a record level at $1.08, with 4% year-over-year growth. From a profitability perspective, we continue to see significant progress in our direct-to-consumer platform, which grew to 20% of site-based revenue, up from just 12% a year ago, and putting us well on track to reach our 30% target by 2028. There is continued runway for wider deployment and adoption, which we expect to further expand margins going forward. Regarding jackpot parties, we have seen stabilisation and opportunities to return to growth with a revamped game economy and increased efforts around unregulated sweepstakes gaming. There is reason to believe the general environment will improve as initial data from states where the ban is in effect becomes available. At the same time, we will return to our roots and execute on our success drivers over the past three years. fine-tuning our acquisition, engagement, and monetization flywheel, as you can see here on slide 12, which will enable us to get back on track. In terms of UA, we will remain efficient and continue to focus on ROI opportunities through innovative marketing efforts. Engagement will also be closely assessed and enhanced with meta features and more land-based games to drive cross-platform play. Ultimately, we plan to take a prudent approach to monetization while providing our players with a robust game experience they enjoy. This is a process we will continue to navigate over time, but we remain confident in our teams and the broader portfolio of great games to drive a return to sustainable growth. Moving to iGaming on slide 13, we delivered record revenue of $86 million in the quarter, up 16% year over year, driven by continued strong momentum in North America, underpinned by first-party content proliferation in the US market and growth in our partner networks. In fact, seven out of the top 10 games across our OGS network were first-party game titles, led by Pirate 4 in the number one slot, followed by three Huff & Puff games ranking second, third, and fourth on the list, reflecting the strength of our omnichannel strategy and durability of our game franchise expansion. Margin expansion was evident with the proliferation of first-party content, as Aevadar increased 42% year-over-year to $34 million, with Aevadar margins up 800 basis points over the same period. This also accounted for our strategic initiatives and realignment of resources. Wages processed through OGS grew 23% over the prior period to $28 billion with record volumes across all regions and content types demonstrating the growth potential of our platform and the industry. We remain committed to capitalising on our iGaming roadmap, as you can see on slide 14. There is genuine player affinity for our game franchises and we are committed to bringing those games to the iGaming platform broadly. We are slated to launch more player-favorite LAN-based franchise extensions in the fourth quarter, such as Big Hot Flaming Pots, Tasty Treasures, Tough and Extra Puffs, Ultimate Firelink, Cash Swords, Glacier Gold, and Rainbow Riches, Road to Even More Riches 2, just to name a few. Our OGS is regarded as one of the most mature iGaming content aggregation platforms in the industry, connecting studios and operators in over 40 regulated markets and over 7,500 operator connections. Its reach has enabled studios to scale their games across various jurisdictions, as seen with Lightning Box and Elk, whose GGR has grown over the years. Elk Studios is in the process of expanding its US presence with a pending license in Michigan as we expand the audience for these digital native studios and games. International expansion remains an opportunity for growth. We recently received approval to go live in the Philippines as the first licensed iGaming supplier. and we are very excited about the prospects given that we are one of the leading land-based slot suppliers in the region. We are confident that investments in the iGaming portfolio will be further accentuated with the support of our team's focused execution. We will continue to leverage our leadership position and expand our robust portfolio to capitalise on the opportunities available to us. As we close out the year, I want to commend the team on their resilience and dedication. as they executed on several key operational and financial initiatives simultaneously. It's quite a feat to navigate the broader environment this year, but we're able to deliver growth and profitability supported by a solid business model underpinned by a differentiated R&D mode. I will now hand it over to Oliver to go over our financials. Oliver.