Light & Wonder, Inc. · ASX:LNW

Light & Wonder — Q3 2026 Earnings Presentation

45 slides from Light & Wonder's earnings presentation, Nov 5, 2026

  1. Slide 1: Third Quarter 2026 Earnings Presentation

    rsonal use only Third Quarter 2026 Earnings Presentation November 4, 2026 – U.S. November 5, 2026 – Australia © 2026 LIGHT & WONDER

  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: 3Q26 Financial Highlights

    v 3Q26 Financial Highlights KEY FINANCIALS 3Q26 DELIVERY Net Income Consolidated Adjusted NPATA(1) EPSa(1)(4) (Adj.) Free Cash rsonal use only AEBITDA(1) Flow(1) Expand margins and cash generation $133M $383M $163M $2.12 $181M +17% YoY +2% YoY +7% YoY +17% YoY +21% YoY Debt Paid Down Outlook Rating

  4. Slide 4: Scaling Recurring Revenue & Adjusted Free Cash Flow

    Scaling Recurring Revenue(1) & Adjusted Free Cash Flow(2) IN $MILLIONS Consolidated Revenue Adjusted Free Cash Flow(2) rsonal use only $3,314 $545 $3,188 $318 64% 67% 38% 26% 2024 2025 2024 2025 % Recurring Revenue (1) Total Revenue ■ AFCF conversion(2)(3) ■ Adjusted Free Cash Flow(2) 9M 71% ~$1.7B

  5. Slide 5: Segment Results & Highlights

    rsonal use only Segment Results & Highlights © 2026 LIGHT & WONDER 5

  6. Slide 6: Strong Game Content Performance Driving Business Results

    Strong Game Content Performance Driving Business Results IN $MILLIONS Revenue AEBITDA Gaming Highlights rsonal use only $1,619 $1,581 $889 • Gaming revenue of $554M -1% YoY, driven by lower $839 systems and table products sales, partially offset by growth in Gaming operations and Gaming machine sale

  7. Slide 7: Gaming KPIs Reflect Solid Game Performance and Pricing Power

    Gaming KPIs Reflect Solid Game Performance and Pricing Power Gaming Operations KPIs: Q3 2026 Q3 2025 Change 9M 2026 9M 2025 Change U.S. and Canadian units:(1) Gaming KPI Highlights rsonal use only Installed base at period end 49,750 47,274 5% 49,750 47,274 5% • N.A. Installed base of 49,750, +5% or

  8. Slide 8: Grover Hardware and Content Integration on Track

    Grover Hardware and Content Integration on Track Geographic Footprint Grover Highlights rsonal use only • YoY revenue growth was driven by strong game performance and installed base growth across new and existing markets (+$73M Current Grover 9M26 vs 9M25)(1) Operating Jurisdictions Regulated Market

  9. Slide 9: SciPlay to Remain Focused on Stabilizing Player Base

    SciPlay to Remain Focused on Stabilizing Player Base IN $MILLIONS Revenue AEBITDA SciPlay Highlights rsonal use only $599 $541 • Revenue of $173M (21% of group revenues), -12% YoY, $209 $204 driven by continued softness in social casino market $197 $173 $71 • AMRPPU(5) of $132.80, +5% YoY, partially

  10. Slide 10: Content Continues to Drive iGaming Performance

    Content Continues to Drive iGaming Performance IN $MILLIONS Revenue AEBITDA i iGaming Highlights rsonal use only • Revenue of $97M (12% of group revenues), +13% YoY, driven $280 by continued momentum in North America, 1PP content proliferation and partner network growth $244 o Delivered 7th consecut

  11. Slide 11: Disciplined Execution Across our Global iGaming Footprint

    Disciplined Execution Across our Global iGaming Footprint 4Q Releases i iGaming Regional Update rsonal use only • North America: LAP o ELK launched their first multi-state digital native game in Q3 exclusively with FanDuel (HUFF N’ PUFFTM COLLECTR) following PA licensing o Entering the Florida PMR(1

  12. Slide 12: Financials

    rsonal use only Financials © 2026 LIGHT & WONDER 12

  13. Slide 13: 3Q26 Group Results

    3Q26 Group Results $ Millions, Unaudited Q3 2026 Q3 2025 Change 9M 2026 9M 2025 Change Revenue $824 $841 (2%) $2,440 $2,424 1% 3Q26 Performance Highlights Cost of services and products(1) (201) (217) (604) (647) Selling, general and administrative (212) (219) (660) (644) • Consolidated Revenue of $8

  14. Slide 14: Consolidated AEBITDA & Adjusted NPATA 3Q26 QTD Bridge

    Consolidated AEBITDA(1) & Adjusted NPATA(1) 3Q26 QTD Bridge IN $MILLIONS Consolidated AEBITDA(1) Drivers $383 rsonal use only 7 2 • Gaming AEBITDA +$7M YoY, delivered on favorable revenue mix shifts, a growing 3 recurring revenue(4) base and ongoing operational efficiencies • SciPlay AEBITDA -$4M Yo

  15. Slide 15: Consolidated AEBITDA & Adjusted NPATA 9M26 YTD Bridge

    Consolidated AEBITDA(1) & Adjusted NPATA(1) 9M26 YTD Bridge IN $MILLIONS 14 Consolidated AEBITDA(1) Drivers $1,093 50 rsonal use only 4 • Gaming AEBITDA +$50M YoY, driven by Gaming operations growth, inclusive of 5 Grover, supplemented by operational efficiencies • SciPlay AEBITDA -$5M YoY, reflecti

  16. Slide 16: Building on Highly Cash Generative Financial Profile

    Building on Highly Cash Generative Financial Profile $ Millions, Unaudited Q3 2026 Q3 2025 9M 2026 9M 2025 Highlights rsonal use only Net cash provided by operating activities $236 $184 $616 $475 Less: Capital expenditures (90) (79) (247) (218) • Net cash provided by operating activities of $236M, L

  17. Slide 17: Optimizing our Capital Structure on Path to Deleverage

    Optimizing our Capital Structure on Path to Deleverage Highlights rsonal use only • Average tenor: ~3.6 years • Plan to prioritize deleverage of our balance sheet through Q426 and into FY27 with the intention to move towards an investment grade level leverage profile (1) • Effective Interest cost(4)

  18. Slide 18: Prioritizing Our Capital Allocation Initiatives

    Prioritizing Our Capital Allocation Initiatives Disciplined Optimizing Capital Capital Return to Investment in Key Structure Shareholders(4) rsonal use only Growth Opportunities • Continue to target annual • Prioritize debt pay down to • Currently prioritizing R&D and capex spend of reduce net debt

  19. Slide 19: Outlook

    rsonal use only Outlook © 2026 LIGHT & WONDER 19

  20. Slide 20: Business Unit Outlook and Modeling Parameters For FY26

    Business Unit Outlook and Modeling Parameters For FY26 Gaming Grover SciPlay iGaming • >500 N.A. premium Gaming • 100 - 150 net adds / quarter, • Revenue growth to be below • Moderating YoY growth in 2H26 operations net adds/quarter excluding Indiana category growth forecast (-6% to - (1PP expansion

  21. Slide 21: Financial Outlook

    Financial Outlook • We expect FY26 Consolidated AEBITDA(1) growth to be toward the lower end of our previously announced range of mid-to- high single digits rsonal use only o Adjusted NPATA(1) to grow faster than Consolidated AEBITDA(1) o EPSa (1)(2) to grow faster than Adjusted NPATA(1) • From a ca

  22. Slide 22: Appendix

    rsonal use only Appendix © 2026 LIGHT & WONDER 22

  23. Slide 23: Operating in a Growing, Resilient Industry

    Operating in a Growing, Resilient Industry IN $BILLIONS U.S. Gross Gaming Revenue(1) rsonal use only $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 U.S. gross gaming revenue

  24. Slide 24: Executing on Our Strategy and Competitive Advantage

    Executing on Our Strategy and Competitive Advantage Comprehensive End-to-End Solutions Provider to Casino Operators rsonal use only 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 execut

  25. Slide 25: Disciplined Capital Allocation Strategy: Self-funded Investment Drives Future Growth

    Disciplined Capital Allocation Strategy: Self-funded Investment Drives Future Growth IN $MILLIONS 0.35 R&D + Capex as % of Consolidated Revenue rsonal use only $600 $562 3Q26 R&D + Capex: $146 0.3 $555 18% of Consolidated Revenue $470 $430 0.25 $400 0.2 17% 17% 18% $200 16% 0.15 $0 0.1 FY23 FY24 FY2

  26. Slide 26: 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 rsonal use only 0.2 %R&D % Capex R&D + Capex as % of Consolidated Revenue $160 0.195 $152 $153 $150 19% $146 0.19 $143 $144 $141 $141 0.185 $140 $137 $138 18% 18% 18% 0.18 $

  27. Slide 27: Proactive Share Repurchases drive long term shareholder value

    Disciplined Capital Allocation Strategy: Proactive Share Repurchases drive long term shareholder value(1) SHARES IN M ILLIONS Shares of Common Stock Outstanding(2) ~$2.1B rsonal use only 100 returned to shareholders 96.6 since programs’ inception(3) 95 91.1 ~26M 89.8 90 86.2 shares repurchased since

  28. Slide 28: Cash Generation Funding Value Creation and Deleveraging Capacity

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

  29. Slide 29: 3Q26 Segment Results Summary

    3Q26 Segment Results Summary $ Millions, Unaudited Q3 2026 Q3 2025 Change 9M 2026 9M 2025 Change Revenue by Segment rsonal use only Gaming $554 $558 (1%) $1,619 $1,581 2% SciPlay 173 197 (12%) 541 599 (10%) iGaming 97 86 13% 280 244 15% AEBITDA by Segment Gaming 312 305 2% 889 839 6% SciPlay 67 71 (

  30. Slide 30: Growing Our North America Gaming Operations Installed Base

    Growing Our North America Gaming Operations Installed Base North America Gaming Operations Installed Base (Units) rsonal use only 50000 48,326 11,634 48,600 12,294 48,639 12,571 49,750 12,776 $55.00 +4,787 +1,111 $53.00 40000 Net premium units N.A. Gaming Operations 34,004 $51.00 installed 2023 - 20

  31. Slide 31: Executing on our Hardware and Content Roadmap (Americas)

    Executing on our Hardware and Content Roadmap (Americas) LAUNCH LAUNCH RELEASE KEY ROADMAP THROUGH 1H27 RELEASE KEY ROADMAP THROUGH 1H27 CONTENT CONTENT COSMIC DUAL & COSMIC rsonal use only COSMIC SKYTM PROFILE 1Q26 thru 1Q26 / 1Q27 1Q27 LIGHTWAVE SOLARTM LATE 2Q26 LIGHTWAVETM 4Q25 thru 1Q27 COSMIC

  32. Slide 32: 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 2Q26 RELEASE RELEASE THEMES 1H27 rsonal use only FAMILIES THROUGH 1H27 COSMIC DUAL LAUNCH 4Q26 THROUGH 1H27 COSMIC DUAL LAUNCH 2Q26 THROUGH 1Q27 LIGHTWAVE SOLAR 2Q27 LAUN

  33. Slide 33: G2E Accolades and Game Performance

    G2E Accolades and Game Performance G2E Feedback Game Performance Rankings(1) rsonal use only Share of respondents naming L&W most impressive on game Share of Top New Core games, the largest of any mechanics at G2E 32.1% supplier 38% 19% #1 #1 ULTIMATE FIRE LINKTM BLAZING DRAGON - SHANGHAI: top New P

  34. Slide 34: 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

  35. Slide 35: Non-GAAP Financial Measures (continued)

    Non-GAAP Financial Measures (continued) Adjusted NPATA Per Share – Diluted (EPSa) measure, as set forth in the schedules titled “L&W Reconciliation of Consolidated AEBITDA, Normalized EBITDA, Normalized EBITA, Adjusted NPATA and Adjusted NPAT,” “L&W Reconciliation of Consolidated AEBITDA,” “L&W Adju

  36. Slide 36: Non-GAAP Financial Measures (continued)

    Non-GAAP Financial Measures (continued) AEBITDA from Discontinued Operations and strategic initiatives cash payments. Free cash flow and Adjusted free cash flow are non-GAAP financial measures that are presented as supplemental disclosures for illustrative purposes only and are reconciled to net AEB

  37. Slide 37: 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 rsonal use only 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) Incl

  38. Slide 38: Reconciliation of Adjusted NPATA Per Share

    L&W Reconciliation of Adjusted NPATA Per Share rsonal use only Note: Unaudited, U.S. Dollars in per share amounts. © 2026 LIGHT & WONDER 38

  39. Slide 39: Reconciliation of Consolidated AEBITDA, Discontinued Operations, Grover and Combined AEBITDA

    L&W Reconciliation of Consolidated AEBITDA, AEBITDA from Discontinued Operations, Grover Adjusted EBITDA and Combined AEBITDA rsonal use only Note: Unaudited, U.S. Dollars in millions. (1) EBITDA from equity investments is a non-GAAP financial measure reconciled to (loss) earnings from equity invest

  40. Slide 40: Reconciliation of Principal Face Value of Debt 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 rsonal use only Note: Unaudited, U.S. Dollars in millions. (1) Combined AEBITDA consists of Consolidated AEBITDA, Grover Adjusted EBITDA, AEBITDA from discontinued operation

  41. Slide 41: Reconciliation of Illustrative Gross Turns Equivalent Impact

    L&W Reconciliation of Illustrative Gross Turns Equivalent Impact rsonal use only Note: Unaudited, U.S. Dollars in millions. (1) Refer to slide 40 for a reconciliation of Consolidated AEBITDA. (2) Illustrative net debt adjustment represents total gross capital deployment consisting of $2,080 million

  42. Slide 42: Reconciliation of Net Cash from Operating Activities to Free Cash Flow

    L&W Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow and Adjusted Free Cash Flow rsonal use only 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 s

  43. Slide 43: Adjusted NPATA to Adjusted Free Cash Flow Conversion Illustration

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

  44. Slide 44: Reconciliation of Consolidated AEBITDA Margin

    L&W Reconciliation of Consolidated AEBITDA Margin rsonal use only 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 Adjus

  45. Slide 45: Reconciliation of Earnings from Equity Investments to EBITDA from Equity Investments

    L&W Reconciliation of Earnings from Equity Investments to EBITDA from Equity Investments rsonal use only 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 & WONDE

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