Light & Wonder, Inc.

Good day and thank you for standing by. Welcome to the Light and Wonder fourth quarter and full year 2025 earnings conference call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 1-1 on your telephone. You will then hear an automated message advising that your hand is raised. To withdraw your question, please press star 1-1 again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your first speaker today, Rowan Gallagher. You may begin.

Thank you, Operator, and welcome everyone to our fourth quarter and full year 2025 earnings conference call. Joining me today in Las Vegas are Matt Wilson, our President and CEO, and Oliver Chow, our CFO. During today's call, we will discuss our fourth quarter and full year 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 investors section of our website. With that, I will now turn the call over to Matt to discuss the fourth quarter and full year results and operational highlights on slide three. Thank you, Matt.

Thanks, Rowan. Hello, everyone. Thank you all for joining us. 2025 was a pivotal year for Light and Wonder. In May, we completed the acquisition of Grover Charitable Gaming, a highly synergistic and complementary business with meaningful greenfield growth opportunities. At our second investor day since rebranding as Light and Wonder, we announced our long-term targets of 2 billion in consolidated EBITDA and EPSA exceeding 1055 by 2028. In November, we completed our transition to a sole ASX listing, and early market feedback has been encouraging. Importantly, we also resolved the peer dispute earlier this year, removing any unnecessary distraction and allowing the organisation to remain focused on execution. Our results reflect the team's execution and resilience. Despite challenges along the way, we delivered within our previously guided 2025 consolidated EBITDA and adjusted MPAD-A target ranges. Over the year, we strengthened our operating foundation and further positioned the business financially for long-term sustainable growth. The quality of earnings continues to improve, supported by consistent net ads in the gaming operations install base and $2.2 billion of recurring revenue with margin and cash flow expansion evident throughout the year. Consolidated EBITDA and adjusted MPAD-A both grew in the high teens year over year, and EPSA increased 27% to $6.69 to close out 2025. We remain committed to advancing our growth initiatives while returning capital to shareholders. During the year, we repurchased $877 million worth of shares and have now completed 78% of our second share repurchase program. In total, we have returned $1.9 billion to shareholders since launching our initial program in 2022. Together, these highlights demonstrate strong performance and reinforce our commitment to continuous improvement across financial and operational metrics. Turning to a high-level overview of our performance on slide four. Consolidated revenue growth was driven by gaming, including the contribution from Grover and record results in iGaming, both in the fourth quarter and for the year. That strength was partially offset by modest declines at Sightway. Just as important, our continued focus on profitability translated into meaningful Aebitda growth across all three businesses, with 29% consolidated Aebitda growth in the fourth quarter and 16% for the year compared to 2024. Our commitment to the comprehensive margin enhancement initiatives remained intact as we grew consolidated Aebitda margins 500 basis points in the fourth quarter and full year 2025. The margin uplift across the organisation is expected to remain largely sustainable as we continue to identify and execute key efficiency projects and further optimise our corporate cost structure. With a streamlined set of complementary businesses, we are well positioned to generate sustained top and bottom line growth, supported by an efficient R&D engine which enables us to innovate, scale and leverage capabilities across the enterprise. As many of you may have observed from recent headlines, AI is at the centre of debate across many industries, including gaming. At Light and Wonder, we see AI as a growth enabler, another lever in creating value and helping us achieve our full year 28 financial targets. Through our strategic transformation and track record with margin enhancement initiatives, we have demonstrated the ability to adapt and capitalize on changes, and we believe we can leverage AI to further enhance our existing capabilities. You can see here on slide five that we are well positioned, courtesy of our global scale, which provides us with unique proprietary data sets. By leaning into AI, we can further improve both the quality and quantum of games in a more productive manner and distribute across multiple channels where we already hold leadership positions. Furthermore, our sizable R&D, customer relationships and incumbency in highly regulated markets is underpinned by a collaborative culture fostered by an aligned board and leadership team, which will only further strengthen our structural moat. AI presents a significant opportunity for light and wonder. In fact, we have embraced this technology and commenced on our AI transformation program to drive both growth and efficiency. We are excited to be taking a leadership role in this arena and will provide further details as our AI journey evolves. With that, let's turn to our business unit highlights. On slide seven, gaming revenue was up 17% to $602 million in the quarter, primarily driven by higher gaming operations revenue, which increased 35% year over year to $237 million. Drivers included higher North American installs, specifically in the premium segment, and a $41 million contribution from Grover. Growth was fueled by strong launches of our Cosmic Upright and LightWave cabinets and other key games and hardware as showcased at AGE and G2E last year. Gaming machine sales also delivered a record quarter of $234 million, a 20% increase year over year on a record of 7,000 units shipped in North America. International shipments remain solid, supported by a sizeable order of our SSBTs in the UK as previewed. Our systems and tables businesses both saw timing-related sales declines in the quarter, with systems impacted by higher sales in the prior year and tables on lower utility sales in Asia partially offset by North American sales. We firmly expect both businesses to return to growth underpinned by targeted near-term investments and commercial strategies. Gaming AebaDA rose 26% year-over-year to $323 million, driven by record game sales and strong gaming operations revenue growth. AebaDA margins increased to 54% on a higher mix of gaming operations units and cost efficiencies, reflecting the team's continued execution on quality of earnings enhancements through recurring revenue and streamlined cost structures. Now for an in-depth look at our gaming KPIs on slide 8. our North American install base increased 42% year-over-year to over 48,300 units. Excluding growth in install base of over 11,600 units, gaming operations grew over 700 units sequentially and over 2,600 units year-over-year, marking our 22nd consecutive quarter of North American premium install base increases, which now accounts for over 53% of the total North American install base. This strong growth was driven by the successful launch of LightWave and the continued momentum of our Cosmic Series cabinets. Average daily revenue per unit in North America increased to $47, up 4% year-over-year, driven by a richer product mix, offset by the inclusion of Grover units. Excluding Grover, our North American install-based revenue per day grew 9% year-over-year, driven primarily by stronger performance in premium and wide-area progressives. In fact, we continue to excel across multiple game categories on the ILS charts, with 11 of the top 25 index new premium leased and WAP games featuring our Huff & Puff and Ultimate Fire link titles. This continued momentum is a testament to the quality of our diversified game franchises, with demonstrated performance not just in premium, but also in Class 2, among others. Global gaming machine sales recorded another strong quarter, up 29% in unit shipments year over year to over 12,300 units. Replacement shipments remain strong, and our array of products enabled us to expand our presence in rolling replacement and RFP markets, such as the Canadian VLTs, as well as entries into the Nebraska skill-based market and Eastern European dynamic multigame market. We continue to see progress in the latest Islands report, where Huff and Triple Puff debuted at number two in the New Core Video Real Game Index, while Piggy Banking Break-In remained at number three, with three other like-minded titles in the top ten. We have an expanded and robust global hardware and content roadmap planned for 2026, as shown on slide 9, driven by continued investments in our studios. 2025 was an incredible year for gaming operations, as we launched the lightweight cabinet and introduced Cosmic Sky and our Stepper Landmark 7000 with jackpot wheel, both which will be available to our customers shortly. we are looking to further solidify our game sales market share with Cosmic Jewel Screen and Lightwave Solar with new game titles such as Jin Chan and Fiesta Caliente. We've also planned for expanded regionalised roadmaps for our Australia and Asia customers on slide 10 to support and extend the momentum we've built over the past few years in these markets. Moving along to slide 11 for an update on our prize acquisition, Grover. Since closing the deal in May, Grover has contributed $102 million of revenue, reinforcing the attractive recurring nature of the charitable gaining model. Operationally, we're seeing strong momentum in the install base. We've added over 1,000 units since the announcement and exited 2025 with over 11,600 units installed. In the fourth quarter alone, we added 345 units sequentially across our existing operating markets, demonstrating continued demand and solid execution. We also expanded our footprint into Indiana with a successful launch in late December and are in the early stages of a disciplined deployment strategy. Initial installed locations are demonstrating strong performance consistent with our expectations, and we are continuing to see strong demand from qualified charitable partners. We are well positioned operationally to support continued expansion and remain confident in achieving our fair share in Indiana, consistent with our performance in the jurisdictions we currently operate in over the long term. From an integration standpoint, we're actively optimising game floors by bringing light and wonder game mechanics, cabinets and brands into the Grover footprint. At the same time, we're investing to ensure best-in-class service and to build share as we enter new markets, including existing ones like Maryland, where we currently do not operate in, and potential future openings such as New York. Overall, Grover is performing well, scaling quickly and building a meaningful runway for profitable growth that is akin to our core gaming operations business. Turning to slide 12, Sideplay revenue was $195 million for the quarter, with quick hit slots and 88 fortunes once again reaching record quarterly revenues, their 16th and 6th respectively. The strong performance of these and other portfolio games was offset by a decrease in average monthly payers at Jackpot Party. I'd like to share that underlying metrics is becoming more consistent, starting in December of 2025 and into the new year, with engagement and retention rates returning to normal. This stability gives us confidence to lean back into UA investments, which is vital to sustainable growth. While a revamp of this magnitude takes time, we are confident in a return to prior performance levels. Player monetization remains a key focus and an integral part of the flywheel, with average revenue per daily active user up 4% year-over-year to $1.10, and average monthly revenue per paying user increased 14% to over $133.25. Importantly, we continue to see significant progress in our direct-to-consumer offering, which now has grown to over 25% of the total fourth quarter Sideplay revenue, or $48 million, up from just 13% at the end of 2024. We will cultivate the DTC runway, as it has been a primary driver of Sideplay's EBITDA growth, which is up 8% to $80 million year-over-year. Slide play is an integral part of our omnichannel strategy and we remain committed to the initiatives that we expect to drive above-market performance going forward. Moving to iGaming on slide 13, we delivered a third consecutive quarter of record revenue of $94 million, up 21% year-over-year on continued strong momentum in North America, underpinned by first-party content proliferation in the US and the expansion of our partner network. This quarter marked the fourth sequential period of global first-party content GGR growth on our content aggregation platform OGS, underpinned by solid game performance across the Huff & Puff franchise in the US and the Pirates franchise in Europe. In fact, eight out of the top 10 games across our content aggregation network in the quarter were first-party titles, with Huff & Moxapuff ranking first, Pirates 4 ranking second, and three other Huff & Puff family titles rounding out the top 10. iGaming avatar of $36 million was up 44% year-over-year at record levels, reflecting continued first-party and third-party content growth, with margins up 600 basis points versus the prior period. This margin expansion was driven primarily by profit flow-through from increased revenue and cost realignment associated with the discontinuation of our live casino business. Wages processed through OGS grew 22% year-over-year to $29.2 billion, with record volumes across all regions and content types reflecting the platform's global reach and growth potential. In addition to our aforementioned successful game franchises, we have more land-based favourites in our roadmap, such as Big Hot Flaming Pops, Tasty Treasures and Piggy Banking Super Lock, as you see on slide 14. Our network scale has enabled games from various studios to reach wider audiences across North America. In fact, Elk Studio is now live in Michigan and New Jersey, with Pennsylvania expected to follow. We're also excited about the recent legalisation of iGaming in Maine, which is a welcome sight to the industry. With the recently passed bill in the UK increasing online gaming taxes to 40%, we expect an adverse impact to the business beginning in the second quarter of this year, given our meaningful presence there. We will continue to explore mitigation initiatives with key operating partners as the industry adapts to the change. International expansion continues to be an opportunity for growth. Just last quarter, we received approval to operate in the Philippines as the first licensed iGaming supplier, and we're excited to share that we are now live. We have a strong presence as a leading land-based slot supplier, and we look forward to launching our popular games in the market soon. Similar to the Philippines, we have now received approval to operate in the UAE, with a launch expected later this year. This is another sizable market opportunity we're excited to pursue. Our investments in robust, regionalised roadmaps will continue to support our team's execution in nascent and international markets, further extending our current iGaming market momentum and global presence. With that, I will now hand over to Oliver to go through our financials. Oliver.