Light & Wonder, Inc. · ASX:LNW

Light & Wonder — Q1 2026 Earnings Presentation

38 slides from Light & Wonder's earnings presentation, May 6, 2026

  1. Slide 1: First Quarter 2026 Earnings Presentation

    First Quarter 2026 Earnings Presentation May 6, 2026 © 2026 LIGHT & W ONDER | CONFIDENTIAL

  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: Performance Supported by Diverse and Resilient Businesses

    Performance Supported by Diverse and Resilient Businesses 1Q26 Overview Consolidated Consolidated Adjusted NPATA(1) EPSa(1) Revenue AEBITDA(1) $115M $1.45 $790M $327M -2% YoY +7% YoY +2% YoY +5% YoY N.A. Premium Recurring Revenue(2) Adjusted Free Capital returned to Installed Base Net Cash Flow(1) s

  4. Slide 4: 1Q26 Consolidated and Segment Results Summary

    1Q26 Consolidated and Segment Results Summary $ Millions, Unaudited Q1 2026 Q1 2025 Change Highlights Revenue by Segment Gaming $512 $495 3% • Consolidated Revenue growth +2% driven by Gaming and SciPlay 187 202 (7%) iGaming, underpinned by continued operational momentum and game content strength, p

  5. Slide 5: KPI Assessment Against Guided Outlook

    KPI Assessment Against Guided Outlook Key Performance Metrics Guided Outlook 1Q26 Update Status Over 500 units per quarter; N.A. Premium installed base 56% of N.A. total installed base with over Gaming - N.A. Premium installed base 2024 to 2028: +400 bps market share(1) 650 units added in the quarte

  6. Slide 6: Segment Results & Highlights

    Segment Results & Highlights © 2026 LIGHT & WONDER 6

  7. Slide 7: Gaming Performance Driven by Diversified Portfolio

    Gaming Performance Driven by Diversified Portfolio IN $MILLIONS Revenue AEBITDA Gaming Highlights $512 $271 • Gaming revenue of $512M +3% YoY, led by strong Gaming $495 $254 operations growth inclusive of Grover and robust Table products growth, partially offset by lower Gaming machine sales and Gam

  8. Slide 8: Gaming Continues to Build on Strong Recurring Revenue Foundation

    Gaming Continues to Build on Strong Recurring Revenue Foundation (1) Gaming Operations KPIs: Q1 2026 Q1 2025 Change Status Gaming KPI Highlights U.S. and Canadian units:(2) Installed base at period end 48,600 34,501 41% • N.A. Installed base increased 41% or ~14,100 units YoY to 48,600 Average daily

  9. Slide 9: Grover Scales Into Indiana with L&W Integration Underway

    Grover Scales Into Indiana with L&W Integration Underway Geographic Footprint Grover Highlights • 1Q26 Revenue contribution of $43M, on strong performance across existing markets and Indiana entry Current Grover Operating Jurisdictions • Added 660 units sequentially QoQ, to end 1Q26 with over 12,200

  10. Slide 10: SciPlay Margin Increase on Direct-to-Consumer Expansion

    SciPlay Margin Increase on Direct-to-Consumer Expansion IN $MILLIONS Revenue AEBITDA SciPlay Highlights $202 • Revenue of $187M, down 7% YoY, attributed to: $66 $187 $64 o Lower addressable market o JACKPOT PARTY softness, and o Impact from meaningful DTC(7) expansion • Across broader games portfoli

  11. Slide 11: iGaming Content Leadership Drive Another Strong Quarter

    iGaming Content Leadership Drive Another Strong Quarter IN $MILLIONS iGaming Highlights Revenue AEBITDA $91 $33 • Delivered quarterly revenue of $91M, up 18% YoY, $77 $27 on strong game performance and continued momentum in N.A. o 8 out of the top 10 games across the OGS(1)(2) network in 1Q26 were f

  12. Slide 12: Capitalizing on iGaming Opportunities with Expanded Roadmap

    Capitalizing on iGaming Opportunities with Expanded Roadmap iGaming Outlook • First-party content proliferation across existing markets. Following the success of HUFF N’ PUFF and PIROTS franchises, extend momentum with more franchise extensions and games from THE WIZARD OF OZ , WILLY WONKA and our B

  13. Slide 13: Financials

    Financials © 2026 LIGHT & WONDER 13

  14. Slide 14: 1Q26 Group Results

    1Q26 Group Results $ Millions, Unaudited Q1 2026 Q1 2025 Change Revenue $790 $774 2% 1Q26 Performance Highlights Cost of services and products(1) (194) (211) Selling, general and administrative (237) (217) • Consolidated Revenue +2% YoY to $790M, driven by: Research and development (67) (65) Depreci

  15. Slide 15: Consolidated AEBITDA & Adjusted NPATA Bridge

    Consolidated AEBITDA(1) & Adjusted NPATA(1) Bridge IN $MILLIONS Consolidated AEBITDA(1) Drivers 17 2 6 $327 • Gaming AEBITDA +$17M YoY driven by N.A. Gaming operations $311 9 growth (N.A. unit and RPD(4) growth), inclusive of Grover • SciPlay AEBITDA +$2M YoY driven by continued DTC(5) expansion and

  16. Slide 16: Generated Strong Free Cash Flow

    Generated Strong Free Cash Flow(1) Key Highlights $ Millions, Unaudited Q1 2026 Q1 2025 Operating cash Net cash provided by operating activities $139 $185 • Net cash provided by operating activities was Less: Capital expenditures (74) (61) $139M compared to $185M in the prior year period, primarily

  17. Slide 17: Optimizing Capital Structure

    Optimizing Capital Structure 1Q26 Key Highlights • Principal face value of debt(1) outstanding: $5.2B • Average tenor: ~4.1 years • Net debt leverage ratio(2) 3.5x (Combined net debt leverage ratio(2) • Effective Interest cost(4): 6.32%. Term Loan B repriced in January, of 3.4x) with a 25-basis poin

  18. Slide 18: Maintaining Flexibility on Our Capital Allocation Initiatives

    Maintaining Flexibility on Our Capital Allocation Initiatives Optimized Capital Structure on Capital Return to Disciplined Investment in Opportunistic Debt Reduction Shareholders(3) Key Growth Opportunities • Returned $22 million in 1Q26 • Strategic investments in R&D, content • Preserving financial

  19. Slide 19: Outlook

    Outlook © 2026 LIGHT & WONDER 19

  20. Slide 20: FY26 Outlook

    FY26 Outlook Subject to uncertain externalities (geopolitical, regulatory changes, etc.), Light & Wonder forecasts delivering mid-to-high single-digit Consolidated AEBITDA(1) growth in FY 2026. This takes into consideration current estimates: (a) External factors (U.S. tariffs, change in U.K. iGamin

  21. Slide 21: Appendix

    Appendix © 2026 LIGHT & WONDER 21

  22. Slide 22: Execution Towards our FY28 Financial Targets

    Execution Towards our FY28 Financial Targets EXECUTE INVEST OPTIMIZE ENHANCE on our growth in our people, operations and existing high- pillars platforms, and processes performance technology culture ~ 2X 2024 EPSa to $2.0B Targeted 2028 Consolidated AEBITDA(1) >$10.55 Targeted 2028 EPSa(1) (1) Deno

  23. Slide 23: 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 2026: Middle East conflict $180 $160 COVID-19 $140 Pandemic Global Financial $120 Crisis $100 $80 $60 2003 2006 2009 2012 2015 2018 2021 2024 U.S. Gross Gami

  24. Slide 24: Increasing Recurring Revenue as a % of Consolidated Revenue

    Increasing Recurring Revenue as a % of Consolidated Revenue (1) In Millions Consolidated Revenue $3,314 $3,300 $3,200 $3,188 67% Recurring revenue(1) as % of total revenue 2025 (1Q 2026 ~73% of total revenues) $3,100 $2.2B $3,000 67% $2,901 $2,900 $2,883 64% 2025 recurring revenue (1), ~7% CAGR sinc

  25. Slide 25: 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 48,600 $55.00 11,634 12,294 45000 $53.00 40000 35000 34,004 17,172 16,129 $51.00 31,220 16,884 30000 16,487 $49.00 $48.01 25000 $46.79 $47.06 $46.30 $47.00 20000 19,520 20,1

  26. Slide 26: Shares Outstanding at Period End

    Shares Outstanding at Period End Shares of Common Stock Outstanding at Period End(1) ~$1.9B In Millions 100 96.6 Returned to shareholders 95 91.1 89.8 90 ~25M shares repurchased since 85 86.2 programs' inception(2) 80 78.7 77.1 ~25% 75 70 reduction in shares outstanding from repurchases since progra

  27. Slide 27: 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

  28. Slide 28: 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

  29. Slide 29: Artificial Intelligence – A Light & Wonder Growth Enabler

    Artificial Intelligence – A Light & Wonder Growth Enabler L&W is taking a leadership role in leveraging its strong gaming traits and leaning into AI as part of ways of working. We look at AI in two ways: Attack: By Growth and Productivity Defend: We have a strong Moat built around L&W is deploying a

  30. Slide 30: Non-GAAP Financial Measures

    Non-GAAP Financial Measures Management uses the following non-GAAP financial measures in conjunction with GAAP financial measures: comparisons of overall liquidity, financial flexibility and leverage. Management also believes that Free cash flow and Adjusted NPAT, Adjusted NPATA, Adjusted NPATA per

  31. Slide 31: Non-GAAP Financial Measures (continued)

    Non-GAAP Financial Measures (continued) Normalized EBITA and Normalized EBITDA target to the most directly comparable GAAP measure because we are unable to do so without unreasonable efforts or to reasonably estimate the projected outcome of certain significant items. These items are uncertain, depe

  32. Slide 32: Non-GAAP Financial Measures (continued)

    Non-GAAP Financial Measures (continued) Free Cash Flow and Adjusted Free Cash Flow Free cash flow, as used herein, represents net cash provided by operating activities less total capital expenditures, less payments on license obligations, plus payments on contingent acquisition considerations and ad

  33. Slide 33: 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 Three Months Ended March 31, 2026 2025 Reconciliation of Net Income to Consolidated AEBITDA Net income $ 52 $ 82 (1) Restructuring and other 54 20 Other income, net (12) (1) Loss on debt

  34. Slide 34: L&W Reconciliation of Adjusted NPATA Per Share

    L&W Reconciliation of Adjusted NPATA Per Share Three Months Ended March 31, 2026 2025 Reconciliation of Net Income Per Share to Adjusted NPATA Per Share Net income per share - Diluted $ 0.66 $ 0.94 Amortization of acquired intangibles and impairments 0.45 0.30 Restructuring and other 0.68 0.23 Other

  35. Slide 35: L&W Reconciliation of Consolidated AEBITDA, Grover Adjusted EBITDA and Combined AEBITDA

    L&W Reconciliation of Consolidated AEBITDA, Grover Adjusted EBITDA and Combined AEBITDA Twelve Months Ended June 30, September 30, December 31, March 31, June 30, September 30, December 31, March 31, 2024 2024 2024 2025 2025 2025 2025 2026 Reconciliation of Net Income Attributable to L&W to Consolid

  36. Slide 36: 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 As of June 30, September 30, December 31, March 31, June 30, September 30, December 31, March 31, 2024 2024 2024 2025 2025 2025 2025 2026 Consolidated AEBITDA $ 1,199 $ 1,23

  37. Slide 37: 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 Three Months Ended March 31, 2026 2025 Net cash provided by operating activities $ 139 $ 185 Less: Capital expenditures (74) (61) Less: Payments on license obligations (4) (5) Less: Change i

  38. Slide 38: L&W Reconciliation of Consolidated AEBITDA Margin

    L&W Reconciliation of Consolidated AEBITDA Margin Three Months Ended March 31, 2026 2025 Net income $ 52 $ 82 (1) Consolidated AEBITDA 327 311 Revenue 790 774 Net income margin 7 % 11 % (2) Consolidated AEBITDA margin 41 % 40 % Note: Unaudited, U.S. Dollars in millions. (1) Refer to the reconciliati

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