Light & Wonder, Inc. · ASX:LNW

Light & Wonder — Q2 2026 Earnings Presentation

54 slides from Light & Wonder's earnings presentation, Aug 4, 2026

  1. Slide 1: Second Quarter 2026 Earnings Presentation

    Second Quarter 2026 Earnings Presentation August 4, 2026 – U.S. August 5, 2026 – Australia © 2026 LIGHT & W ONDER

  2. Slide 2: Forward-Looking Statements

    SECTION TITLE, 10PT Forward-Looking Statements Forward-Looking Statements In this presentation, and the oral remarks made in connection herewith, Light & Wonder makes “forward-looking statements” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking stateme

  3. Slide 3: 2Q26 Key Highlights

    v2Q26 Key Highlights Consolidated $383M Adjusted NPATA(1) $156M AEBITDA(1) +9% YoY +16% YoY $1.99 Adjusted Free 41% EPSa(1)(2) Cash Flow +26% YoY Conversion(1)(3) +1100 bps YoY Continued Focus on our Recurring Revenue(4), Business Enhanced Profitability, and Strengthened our Cash Generative Business

  4. Slide 4: 2Q26 Recurring Revenue Translates to a Cash Generative Business

    2Q26 Recurring Revenue Translates to a Cash Generative Business (1) Growth of our Recurring Creating a Highly Cash Driving Profitability Revenue(1) Generative Business Recurring Revenue(1) of $580M, +6% YoY Net Income EPS(2) Net Cash Provided by Operating Activities ~70% $120M $1.53 $241M 2Q26 Conso

  5. Slide 5: Increasing Recurring Revenue as a % of Consolidated Revenue

    Increasing Recurring Revenue as a % of Consolidated Revenue (1) IN $MILLIONS Consolidated Revenue Trend 1H26 $3,314 71% $3,188 $2,883 $2,901 recurring revenue(1) as % of total revenue 67% ~$1.2B 66% 64% 63% 63% recurring revenue (1) 2022 2023 2024 2025 (1) % Recurring Revenue Total Revenue Progressi

  6. Slide 6: 2Q26 Consolidated and Segment Results Summary

    2Q26 Consolidated and Segment Results Summary $ Millions, Unaudited Q2 2026 Q2 2025 Change 1H 2026 1H 2025 Change Highlights Revenue by Segment Gaming $554 $528 5% $1,066 $1,022 4% • Consolidated Revenue of $828M, +2% YoY, driven by SciPlay 182 200 (9%) 368 402 (8%) Gaming (+5%) and iGaming (+14%),

  7. Slide 7: Segment Results & Highlights

    Segment Results & Highlights © 2026 LIGHT & WONDER 7

  8. Slide 8: Gaming Continues to Grow its Recurring Revenue Base

    Gaming Continues to Grow its Recurring Revenue Base (1) IN $MILLIONS Revenue AEBITDA Gaming Highlights • Gaming revenue of $554M, +5% YoY, driven by strong $1,066 $578 Gaming operations and Table products growth, offset by $1,022 lower Gaming machine and Systems sales $534 o Gaming operations +18% Y

  9. Slide 9: Delivered on Key Gaming Performance Metrics

    Delivered on Key Gaming Performance Metrics Gaming Operations KPIs: Q2 2026 Q2 2025 Change 1H 2026 1H 2025 Change U.S. and Canadian units:(1) Gaming KPI Highlights Installed base at period end 48,639 46,368 5% 48,639 46,368 5% • N.A. Installed base of 48,639, +5% or ~2,200 units Average daily revenu

  10. Slide 10: Grover Continues to Scale on Product Launch and LNW Integration

    Grover Continues to Scale on Product Launch and LNW Integration Geographic Footprint Grover Highlights • Revenue was $45 million in the quarter, driven by strong game performance and install base growth across new and existing markets Current Grover Operating Jurisdictions • Ended 2Q26 with over 12,

  11. Slide 11: Growing Our North America Gaming Operations Installed Base

    Growing Our North America Gaming Operations Installed Base North America Gaming Operations Installed Base (Units) 50000 Premium Installed Base Grover 12,571 40000 ~15% 17,172 Premium installed base 16,884 12,294 12,571 2023-2025 CAGR 30000 16,487 11,634 20000 17,120 19,520 20,177 20,829 ~8% 10000 14

  12. Slide 12: Broader Industry Dynamics Shaping SciPlay Performance

    Broader Industry Dynamics Shaping SciPlay Performance IN $MILLIONS Revenue AEBITDA SciPlay Highlights $402 $138 $138 $368 • Revenue of $182M, -9% YoY, attributed to broad based market softness, resulting in a lower total addressable market $200 $74 $182 $72 o AMRPPU(5) of $133.80, +4% YoY, reflectiv

  13. Slide 13: Disciplined Execution of SciPlay's Stabilization Strategy

    Disciplined Execution of SciPlay’s Stabilization Strategy IN $MILLIONS SciPlay Revenue SciPlay Update $821 $794 $777 • Optimize game economy to reach equilibrium between acquisition and monetization $671 • Reinvest to acquire users, but selective with purpose $606 and focused on ROI $582 • Understan

  14. Slide 14: iGaming Driven by Strong Content Performance & Market Growth

    iGaming Driven by Strong Content Performance & Market Growth IN $MILLIONS Revenue AEBITDA i iGaming Highlights • Revenue of $92M, +14% YoY, driven by strong game performance and continued expansion of our global first and third-party networks $66 $183 o 8 of the top 10 games across the OGS(1)(2) $55

  15. Slide 15: Global iGaming Footprint Presents Meaningful Growth Opportunities

    Global iGaming Footprint Presents Meaningful Growth Opportunities i iGaming Outlook • Continued expansion of first-party content, supported by continued momentum with HUFF N’ PUFFTM and PIROTSTM franchises • Entered Alberta, Canada market on July 1st - first day of market opening to commercial opera

  16. Slide 16: Financials

    Financials © 2026 LIGHT & WONDER 16

  17. Slide 17: 2Q26 Group Results

    2Q26 Group Results $ Millions, Unaudited Q2 2026 Q2 2025 Change 1H 2026 1H 2025 Change Revenue $828 $809 2% $1,617 $1,582 2% 2Q26 Performance Highlights Cost of services and products(1) (210) (219) (404) (430) Selling, general and administrative (211) (208) (448) (425) • Consolidated Revenue of $828

  18. Slide 18: Consolidated AEBITDA & Adjusted NPATA Q2 QTD Bridge

    Consolidated AEBITDA(1) & Adjusted NPATA(1) Q2 QTD Bridge IN $MILLIONS 1 $383 27 5 Consolidated AEBITDA(1) Drivers 2 • Gaming AEBITDA +$27M YoY, delivered on revenue growth and favorable product mix shift, supplemented by operational efficiencies (includes Grover contribution) $352 • SciPlay AEBITDA

  19. Slide 19: Consolidated AEBITDA & Adjusted NPATA Q2 YTD Bridge

    Consolidated AEBITDA(1) & Adjusted NPATA(1) Q2 YTD Bridge IN $MILLIONS 11 44 - $710 Consolidated AEBITDA(1) Drivers 8 • Gaming AEBITDA +$44M YoY, delivered primarily on Gaming operations growth, $663 inclusive of Grover, supplemented by operational efficiencies • SciPlay AEBITDA flat YoY, reflective

  20. Slide 20: Building on Highly Cash Generative Financial Profile

    Building on Highly Cash Generative Financial Profile $ Millions, Unaudited Q2 2026 Q2 2025 1H 2026 1H 2025 Highlights Net cash provided by operating activities $241 $106 $380 $291 Less: Capital expenditures (83) (78) (157) (139) • Net cash provided by operating activities of $241M, Less: Payments on

  21. Slide 21: Optimizing our Capital Structure on Path to Deleverage

    Optimizing our Capital Structure on Path to Deleverage Highlights • Average tenor: ~3.9 years • Plan to prioritize deleverage of our balance sheet through 2H26 and into FY27 with the intention to move toward an investment grade level leverage profile(1) • Effective Interest cost(4): 6.30% • Principa

  22. Slide 22: Cash Generation Funding Value Creation and Deleveraging Capacity

    Cash Generation Funding Value Creation and Deleveraging Capacity Net Debt Leverage Ratio(1) 11 Target(2) 10 10.5x 9 8 Divesture of $2.1 Billion in share buy backs 7 sports betting and lottery 6 businesses ~1.4x illustrative gross turns equivalent impact(1)(4) 6.2x 5 4 3 3.5x 3.4x 3.3x 3.1x 3.0x <3.0

  23. Slide 23: Prioritizing Our Capital Allocation Initiatives

    Prioritizing Our Capital Allocation Initiatives Disciplined Optimized Capital Capital Return to Investment in Key Structure on Debt Shareholders(4) Growth Reduction Opportunities • Invest with purpose to • Target to reduce net debt • Q2 buy-back $134M (1H 26: maximize ROI of every dollar leverage ra

  24. Slide 24: Outlook

    Outlook © 2026 LIGHT & WONDER 24

  25. Slide 25: Financial Outlook

    Financial Outlook Light & Wonder reaffirms financial outlook of mid-to-high single-digit Consolidated AEBITDA(1) growth in FY 2026 • Mid-to-high single digit Consolidated AEBITDA(1) growth supports strong Adjusted NPATA(1) and EPSa (1)(2) growth • We continue to anticipate the shape of earnings to b

  26. Slide 26: Incremental Guidance and Modeling Parameters For FY26

    Incremental Guidance and Modeling Parameters For FY26 Gaming Grover SciPlay iGaming • >500 N.A. premium Gaming • 100 - 150 net adds / quarter, • Revenue trend in-line with broader • Moderating YoY growth in 2H26, operations net adds/quarter excluding Indiana Social Casino industry 1PP expansion offs

  27. Slide 27: Appendix

    Appendix - Strategy & Competitive Advantage - Resilient Industry - Recent Financial Performances - North American Installed Base - Capital Allocation (self-fund growth – R&D / Capex) - Buyback History - Regional Hardware and content product roadmap - Q2 Results snapshot © 2026 LIGHT & WONDER 27

  28. Slide 28: Executing on Our Strategy and Competitive Advantage

    Executing on Our Strategy and Competitive Advantage Comprehensive End-to-End Solutions Provider to Casino Operators One stop shop with integrated solutions tailored for casino operators We power key aspects of operations (land-based and digital) as a single source for seamless execution Well-establi

  29. Slide 29: Operating in a Growing, Resilient Industry

    Operating in a Growing, Resilient Industry IN $BILLIONS U.S. Gross Gaming Revenue(1) $200 2008: Global Financial Crisis 2020: COVID-19 Pandemic $180 $160 COVID-19 $140 Pandemic Global Financial $120 Crisis $100 $80 $60 2003 2006 2009 2012 2015 2018 2021 2024 1H26 U.S. gross gaming revenue grew year-

  30. Slide 30: Delivering Consistent Consolidated AEBITDA Growth

    Delivering Consistent Consolidated AEBITDA Growth (1)(2) IN $MILLIONS Consolidated AEBITDA(1) – Yearly Historical $1,443 16.1% CAGR since ‘21 $1,244 $1,118 >$1.4B $913 $793 2025 Consolidated AEBITDA(1) FY2021 FY2022 FY2023 FY2024 FY2025 Delivering consistent Consolidated AEBITDA(1) growth through co

  31. Slide 31: Consolidated AEBITDA Historical by Quarter

    Consolidated AEBITDA Historical by Quarter (1)(2) I N $ M I L L I O N S (3) Consolidated AEBITDA(1)(2) – Quarterly $430 $405 $383 $375 $380 $352 $330 $327 $330 $319 $315 $311 $302 $281 $286 $281 $280 $265 $249 $232 $235 $230 $216 $212 $203 $202 $180 $142 $130 Delivering consistent Consolidated AEBIT

  32. Slide 32: Growing Our North America Gaming Operations Installed Base

    Growing Our North America Gaming Operations Installed Base North America Gaming Operations Installed Base (Units) 50000 48,326 11,634 48,600 12,294 48,639 12,571 $55.00 +4,787 +5% $53.00 40000 Net premium units Revenue per day growth 34,004 $51.00 installed 2023 - 2025 2023 - 1H26 31,220 17,172 16,1

  33. Slide 33: Disciplined Investment to Drive and Self-Fund Future Growth

    Disciplined Investment to Drive and Self-Fund Future Growth IN $MILLIONS 0.35 R&D + Capex as % of Consolidated Revenue $600 $555 $562 0.3 $470 0.25 $400 $285 0.2 17% 17% 18% $200 16% 0.15 $0 0.1 FY23 FY24 FY25 1H26 R&D Capex % of Consolidated Revenue Consistent and ratable re-investments to drive fu

  34. Slide 34: Disciplined Investment to Drive and Self-Fund Future Growth

    Disciplined Investment to Drive and Self-Fund Future Growth I N $ M I L L I O N S (1) R&D + Capex as % of Consolidated Revenue 0.2 %R&D % Capex R&D + Capex as % of Consolidated Revenue $160 0.195 $152 $153 $150 19% 0.19 $143 $144 $141 $141 0.185 $140 $137 $138 18% 18% 0.18 $128 $130 $125 17% $126 17

  35. Slide 35: Shares of Common Stock Outstanding

    Shares of Common Stock Outstanding (1) SHARES IN M ILLIONS Shares of Common Stock Outstanding(1) ~$2.1B returned to shareholders 100 96.6 since programs’ inception(2) 95 91.1 ~26M 89.8 90 86.2 shares repurchased since 85 programs' inception(2) 80 78.7 77.1 77.0 ~27% reduction in shares outstanding 7

  36. Slide 36: Executing on our Hardware and Content Roadmap (Americas)

    Executing on our Hardware and Content Roadmap (Americas) LAUNCH LAUNCH RELEASE KEY ROADMAP THROUGH 2026 RELEASE KEY ROADMAP THROUGH 2026 CONTENT CONTENT COSMIC COSMIC DUAL & SKYTM COSMIC 1Q26 PROFILE 1Q26 / 4Q26 LIGHTWAVE LIGHTWAVETM SOLARTM 4Q25 LATE 2Q26 KEY COSMICTM L7 NEW TOP FAMILY BOX LAUNCH L

  37. Slide 37: Executing on our Hardware and Content Roadmap (ASIA/ANZ)

    Executing on our Hardware and Content Roadmap (ASIA/ANZ) ASIA ANZ LAUNCH KEY ROADMAP FAMILIES THROUGH LAUNCH KEY ROADMAP FAMILIES THROUGH RELEASE RELEASE FAMILTIES 2026 FAMILIES 2026 COSMIC DUAL LAUNCH 2Q26 COSMIC DUAL LAUNCH 2Q26 KEY FAMILIES THROUGH 2026 Launch periods are based on current estimat

  38. Slide 38: KPI Assessment Against Guided Outlook

    KPI Assessment Against Guided Outlook Key Performance Metrics Guided Outlook 2Q26 Update Status Over 500 units per quarter; N.A. Premium installed base grew over 650 units in the quarter; over 2,500 units Gaming - N.A. Premium installed base 2024 to 2028: +400 bps market share(1) added YoY, now repr

  39. Slide 39: Non-GAAP Financial Measures

    Non-GAAP Financial Measures Management uses the following non-GAAP financial measures in conjunction with GAAP financial measures: useful information regarding the Company’s liquidity and its ability to service debt and fund investments. Adjusted NPAT, Adjusted NPATA, Adjusted NPATA per share (on a

  40. Slide 40: Non-GAAP Financial Measures (continued)

    Non-GAAP Financial Measures (continued) Adjusted NPATA per share is reconciled to diluted net income per share and includes the same adjustments with Net income attributable to noncontrolling interest; (2) Net income from discontinued operations, net of tax; (3) respect to Adjusted NPATA as describe

  41. Slide 41: Non-GAAP Financial Measures (continued)

    Non-GAAP Financial Measures (continued) AEBITDA from discontinued operations is reconciled to Net income from discontinued operations, net of tax and EBITDA from Equity Investments includes the following adjustments: (1) Restructuring and other, which includes charges or expenses attributable to: EB

  42. Slide 42: L&W Reconciliation of Consolidated AEBITDA, Normalized EBITDA, Normalized EBITA, Adjusted NPATA and Adjusted NPAT

    L&W Reconciliation of Consolidated AEBITDA, Normalized EBITDA, Normalized EBITA, Adjusted NPATA and Adjusted NPAT Note: Unaudited, U.S. Dollars in millions. (1) Refer to the Consolidated AEBITDA definition above for a description of items included in restructuring and other. (2) Includes $9 million

  43. Slide 43: L&W Reconciliation of Adjusted NPATA Per Share

    L&W Reconciliation of Adjusted NPATA Per Share Note: Unaudited, U.S. Dollars in per share amounts. © 2026 LIGHT & WONDER 43

  44. Slide 44: L&W Reconciliation of Consolidated AEBITDA

    L&W Reconciliation of Consolidated AEBITDA Note: Unaudited, U.S. Dollars in millions. © 2026 LIGHT & WONDER 44

  45. Slide 45: L&W Reconciliation of Consolidated AEBITDA (continued)

    L&W Reconciliation of Consolidated AEBITDA (continued) Note: Unaudited, U.S. Dollars in millions. © 2026 LIGHT & WONDER 45

  46. Slide 46: L&W Reconciliation of Consolidated AEBITDA (continued)

    L&W Reconciliation of Consolidated AEBITDA (continued) Note: Unaudited, U.S. Dollars in millions. © 2026 LIGHT & WONDER 46

  47. Slide 47: L&W Reconciliation of Consolidated AEBITDA, AEBITDA from Discontinued Operations and Combined AEBITDA

    L&W Reconciliation of Consolidated AEBITDA, AEBITDA from Discontinued Operations and Combined AEBITDA Note: Unaudited, U.S. Dollars in millions. (1) EBITDA from equity investments is a non-GAAP financial measure reconciled to (loss) earnings from equity investments on slide 54. (2) Combined AEBITDA

  48. Slide 48: L&W Reconciliation of Consolidated AEBITDA, Grover Adjusted EBITDA and Combined AEBITDA

    L&W Reconciliation of Consolidated AEBITDA, Grover Adjusted EBITDA and Combined AEBITDA Note: Unaudited, U.S. Dollars in millions. (1) Grover Adjusted EBITDA is unaudited and based on preliminary estimates and assumptions. Refer to the Grover Adjusted EBITDA definition above for further description

  49. Slide 49: L&W Reconciliation of Principal Face Value of Debt Outstanding to Net Debt Leverage Ratio

    L&W Reconciliation of Principal Face Value of Debt Outstanding to Net Debt Leverage Ratio and Combined Net Debt Leverage Ratio Note: Unaudited, U.S. Dollars in millions. (1) Combined AEBITDA consists of Consolidated AEBITDA, Grover Adjusted EBITDA, AEBITDA from discontinued operations and EBITDA fro

  50. Slide 50: L&W Reconciliation of Illustrative Gross Turns Equivalent Impact

    L&W Reconciliation of Illustrative Gross Turns Equivalent Impact Note: Unaudited, U.S. Dollars in millions. (1) Refer to slide 48 for a reconciliation of Consolidated AEBITDA. (2) Illustrative net debt adjustment represents total gross capital deployment consisting of $2,080 million related to share

  51. Slide 51: L&W Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow and Adjusted Free Cash Flow

    L&W Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow and Adjusted Free Cash Flow Note: Unaudited, U.S. Dollars in millions. (1) Professional fees, services and other costs related to strategic initiatives, the Grover acquisition and transition to an ASX sole primary list

  52. Slide 52: L&W Adjusted NPATA to Adjusted Free Cash Flow Conversion Illustration

    L&W Adjusted NPATA to Adjusted Free Cash Flow Conversion Illustration Note: Unaudited, U.S. Dollars in millions. (1) Represents a non-GAAP measure reconciled to Net cash provided by operating activities on slide 51. (2) Represents a non-GAAP measure reconciled to Net income on slide 42. (3) Free cas

  53. Slide 53: L&W Reconciliation of Consolidated AEBITDA Margin

    L&W Reconciliation of Consolidated AEBITDA Margin Note: Unaudited, U.S. Dollars in millions. (1) Refer to the reconciliation of Consolidated AEBITDA included in the table titled "L&W Reconciliation of Consolidated AEBITDA, Normalized EBITDA, Normalized EBITA, Adjusted NPATA and Adjusted NPAT” for th

  54. Slide 54: L&W Reconciliation of Earnings from Equity Investments to EBITDA from Equity Investments

    L&W Reconciliation of Earnings from Equity Investments to EBITDA from Equity Investments Note: Unaudited, U.S. Dollars in millions. (1) Combined EBITDA from equity investments consists of EBITDA from both discontinued and continuing operations equity investments. © 2026 LIGHT & WONDER 54

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