Financial Analysis

We account for business combinations in accordance with ASC 805, which requires us to recognize all (and only) the assets acquired and liabilities assumed in the transaction and establishes the acquisition-date fair value as the measurement objective for all assets acquired and liabilities assumed in a business combination, with certain exceptions for contract assets and contract liabilities in accordance with ASC 606. Certain provisions of this standard prescribe, among other things, the determination of acquisition-date fair value of consideration paid in a business combination (including contingent consideration) and the exclusion of transaction- and acquisition-related costs from acquisition accounting. If the assets acquired do not meet the definition of a business under the acquisition method of accounting, the transaction is accounted for as an acquisition of assets rather than a business combination. In an asset acquisition, we allocate the cost of the group of assets acquired to the individual assets acquired or liabilities assumed based on the relative fair values of net identifiable assets acquired and no goodwill is recorded. Acquisition of Grover On May 16, 2025, we completed the acquisition of Grover for an upfront consideration of $850 million, subject to certain customary purchase price adjustments as set forth in the purchase agreement, and up to $200 million in cash in the aggregate in the form of contingent acquisition consideration payments based on achiev …

BusinessCombinationDisclosureTextBlock · excerpt; the full note is in the filing

Outstanding Debt The following table reflects our outstanding debt: As of December 31, 2025 2024 Final Maturity Rate(s) Face Value Unamortized debt discount/premium and deferred financing costs, net Book Value Book Value Senior Secured Credit Facilities: LNWI Revolver 2030 variable $ 230 $ $ 230 $ LNWI Term Loan A 2028 variable 790 (2) 788 LNWI Term Loan B 2029 variable 2,134 (18) 2,116 2,133 LNWI Senior Notes: 2028 Unsecured Notes 2028 7.000% 695 2029 Unsecured Notes 2029 7.250% 500 (3) 497 496 2031 Unsecured Notes 2031 7.500% 550 (6) 544 543 2033 Unsecured Notes 2033 6.250% 1,000 (15) 985 Other 3 3 3 Total long-term debt outstanding $ 5,207 $ (44) $ 5,163 $ 3,870 Less: current portion of long-term debt (53) (23) Long-term debt, excluding current portion $ 5,110 $ 3,847 Fair value of debt (1) $ 5,269 (1) Fair value of our fixed rate and variable interest rate debt is classified within Level 2 in the fair value hierarchy and has been calculated based on the quoted market prices of our securities. The following reflects the principal amount of debt payments due over the next five years and beyond as of December 31, 2025: Due Total Principal Due Series of Debt Principal Due per Series of Debt 2026 $ 53 Term Loan A $ 30 Term Loan B 22 Other 1 2027 63 Term Loan A 40 Term Loan B 22 Other 1 2028 743 Term Loan A 720 Term Loan B 22 Other 1 2029 2,568 Term Loan B 2,068 2029 Unsecured Notes 500 2030 230 Drawn Revolving Credit Facility 230 2031 and beyond 1,550 2031 Unsecured Notes 550 …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset and liability in an orderly transaction between market participants at the measurement date. We estimate the fair value of our assets and liabilities when required using an established three-level hierarchy in accordance with ASC 820. The fair value of our financial assets and liabilities is determined by reference to market data and other valuation techniques as appropriate. We believe the fair value of our financial instruments, which are principally cash and cash equivalents, restricted cash, receivables, other current assets, accounts payable and accrued liabilities, approximates their recorded values. Our assets and liabilities measured at fair value on a recurring basis are described below. Derivative Financial Instruments As of and for the year ended December 31, 2025, we held the following derivative instruments that were accounted for pursuant to ASC 815: Interest Rate Swap Contracts We use interest rate swap contracts as described below to manage exposure to interest rate fluctuations by reducing the uncertainty of future cash flows on a portion of our variable rate debt. In April 2022, we entered into interest rate swap contracts to hedge a portion of our interest expense associated with our variable rate debt to effectively fix the interest rate that we pay. These interest rate sw …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

Intangible Assets, net Intangible assets with finite useful lives are amortized on a straight-line basis over their estimated useful lives of two to fifteen years with no estimated residual values, which materially approximates the expected pattern of use. Factors considered when assigning useful lives include legal, regulatory and contractual provisions, product obsolescence, demand, competition and other economic factors. The following tables present certain information regarding our intangible assets as of December 31, 2025 and 2024. As of December 31, 2025 2024 Gross Carrying Value Accumulated Amortization Net Balance Gross Carrying Value Accumulated Amortization Net Balance Amortizable intangible assets: Customer relationships $ 1,252 $ (703) $ 549 $ 898 $ (624) $ 274 Intellectual property 1,044 (873) 171 924 (801) 123 Licenses 312 (258) 54 290 (242) 48 Brand names 129 (127) 2 128 (125) 3 Trade names 190 (163) 27 161 (159) 2 Patents and other 12 (7) 5 11 (7) 4 Total intangible assets $ 2,939 $ (2,131) $ 808 $ 2,412 $ (1,958) $ 454 The following reflects intangible amortization expense included within D&A: Year Ended December 31, 2025 2024 2023 Amortization expense (1) $ 147 $ 149 $ 199 (1) The year ended December 31, 2023 includes $29 million in incremental expense related to a change in estimate that accelerated amortization related to certain legacy trade names and an intangible assets non-cash impairment charge of $4 million related to SciPlay restructuring of a c …

GoodwillAndIntangibleAssetsDisclosureTextBlock · excerpt; the full note is in the filing

"Income taxes are determined using the liability method of accounting for income taxes, under which deferred tax assets (DTAs) and deferred tax liabilities (DTLs) are recognized for the expected future tax consequences of temporary differences between the financial reporting and tax basis of assets and liabilities. If, based upon all available evidence, both positive and negative, it is more likely than not that such DTAs will not be realized, a valuation allowance is recorded. Management assessed the available positive and negative evidence to estimate whether sufficient future taxable income will be generated to permit use of existing DTAs in each taxpaying jurisdiction. On the basis of this evaluation, as of December 31, 2025, a valuation allowance of $71 million has been recorded to recognize only the portion of the DTAs that are more likely than not to be realized; however, the amount of the DTAs considered realizable could be adjusted if estimates of future taxable income during the carry forward period change or if objective negative evidence in the form of cumulative losses is no longer present and additional weight is given to subjective evidence such as projections for future growth. We apply a recognition threshold and measurement attribute related to uncertain tax positions taken or expected to be taken on our tax returns. We recognize a tax benefit for financial reporting of an uncertain income tax position when it has a greater than 50% likelihood of being susta …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

We are involved in various legal proceedings, including those discussed below. We record an accrual for legal contingencies when it is both probable that a liability has been incurred and the amount or range of the loss can be reasonably estimated (although, as discussed below, there may be an exposure to loss in excess of the accrued liability). We evaluate our accruals for legal contingencies at least quarterly and, as appropriate, establish new accruals or adjust existing accruals to reflect (1) the facts and circumstances known to us at the time, including information regarding negotiations, settlements, rulings and other relevant events and developments, (2) the advice and analyses of counsel and (3) the assumptions and judgment of management. Legal costs associated with our legal proceedings are expensed as incurred. We had accrued liabilities of $144 million and $89 million for all of our legal matters that were contingencies as of December 31, 2025 and 2024, respectively. Substantially all of our legal contingencies are subject to significant uncertainties and, therefore, determining the likelihood of a loss and/or the measurement of any loss involves a series of complex judgments about future events. Consequently, the ultimate outcomes of our legal contingencies could result in losses in excess of amounts we have accrued. We may be unable to estimate a range of possible losses for some matters pending against us or our subsidiaries, even when the amount of damages cl …

LegalMattersAndContingenciesTextBlock · excerpt; the full note is in the filing

Leases Our operating leases primarily consist of real estate leases such as offices, warehouses and game development studios. Our leases have remaining lease terms ranging from one to nine years, some of which include options to extend the leases for up to three years or to terminate the leases within one year. Our finance leases are immaterial. Our total operating lease expense was $26 million, $24 million and $23 million for the years ended December 31, 2025, 2024 and 2023, respectively. The total amount of variable and short-term lease payments was immaterial for all periods presented. Supplemental balance sheet and cash flow information related to operating leases is as follows: As of December 31, 2025 2024 Operating lease right-of-use assets $ 43 $ 44 Accrued liabilities 18 16 Operating lease liabilities 29 31 Total operating lease liabilities $ 47 $ 47 Weighted average remaining lease term, years 3 3 Weighted average discount rate 6 % 6 % Year Ended December 31, 2025 2024 2023 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows for operating leases $ 22 $ 23 $ 22 Right-of-use assets obtained in exchange for new lease liabilities: Operating leases $ 19 $ 12 $ 16 Lease liability maturities are as follows: 2026 2027 2028 2029 2030 Thereafter Less Imputed Interest Total Operating leases $ 21 $ 14 $ 9 $ 4 $ 2 $ 2 $ (5) $ 47 As of December 31, 2025, we did not have material additional operating leases that have not yet commenced. Other …

LesseeOperatingLeasesTextBlock · excerpt; the full note is in the filing

New Accounting Guidance The FASB issued ASU No. 2023-09, Income Taxes (Topic 740) in December 2023. The new guidance establishes new income tax disclosure requirements, in addition to modifying and eliminating certain existing requirements. Under the new guidance, entities must consistently categorize, and provide greater disaggregation of information in, the rate reconciliation. They must also further disaggregate income taxes paid. The standard is intended to provide more detailed income tax disclosures that will be useful in capital allocation decisions. The new guidance applies to all entities subject to income taxes and is in effect for annual periods beginning after December 15, 2024. We prospectively adopted this standard during the current fiscal year, and the adoption of this guidance did not have a material effect on our consolidated financial statements. The FASB issued ASU No. 2024-03, Income StatementReporting Comprehensive IncomeExpense Disaggregation Disclosures (Subtopic 220-40) in November 2024. This new guidance requires public companies to disclose, in the notes to the financial statements, specified information about certain costs and expenses at each interim and annual reporting period, including purchases of inventory, employee compensation, depreciation and intangible asset amortization that is included in each relevant expense caption. This guidance also requires a qualitative description of the amounts remaining in relevant expense captions that are n …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

Restructuring and other includes charges or expenses attributable to: (i) employee severance; (ii) management restructuring and related costs; (iii) restructuring and integration; (iv) cost savings initiatives; (v) major litigation; and (vi) acquisition- and disposition-related costs, strategic initiatives and other unusual items. The following table summarizes pre-tax restructuring and other costs for the periods presented: Year Ended December 31, 2025 2024 2023 Employee severance and related $ 15 $ 6 $ 16 Legal and related (see Note 19) 130 79 Strategic review, acquisition and related (1) 37 1 40 Contingent acquisition considerations (2) 25 19 Restructuring, integration and other 12 8 17 Total $ 219 $ 94 $ 92 (1) Includes costs associated with the SciPlay Merger, ASX listing, Grover acquisition, sale of discontinued operations (including ongoing separation activities), rebranding and related activities. (2) Represents contingent consideration fair value adjustment (see Note 15). …

RestructuringAndRelatedActivitiesDisclosureTextBlock · excerpt; the full note is in the filing

The following table disaggregates our revenues by type within each of our business segments: Year Ended December 31, 2025 2024 2023 Gaming Gaming operations $ 860 $ 690 $ 661 Gaming machine sales 821 865 708 Gaming systems 285 302 268 Table products 217 211 213 Total $ 2,183 $ 2,068 $ 1,850 SciPlay Third-party platforms and other (1) $ 644 $ 733 $ 768 Direct-to-consumer platforms 150 88 9 Total $ 794 $ 821 $ 777 iGaming $ 337 $ 299 $ 275 (1) Other primarily represents advertising revenue, which was not material in the periods presented. General We evaluate the recognition of revenue and rental income based on the criteria set forth in ASC 606 or ASC 842, as appropriate. Revenue is recognized net of incentive rebates and discounts when control of the promised goods or services is transferred to our customers, in an amount that reflects the consideration we expect to be entitled to in exchange for those goods or services. Sales taxes and all other items of a similar nature are excluded from the measurement of the transaction price, and shipping and handling activities are treated as a fulfillment of our promise to transfer the goods and are, hence, included in cost of products. Our credit terms are predominately short term in nature. We also grant extended payment terms under certain Gaming contracts, with financing terms of more than 12 months, generally where the sale is secured by the related equipment sold. For these contracts with customers for which the financing componen …

RevenueFromContractWithCustomerTextBlock · excerpt; the full note is in the filing

We report our operations in three reportable business segmentsGaming, SciPlay and iGamingrepresenting our different products and services. Our Gaming reportable business segment generally sells game content and gaming machines, VGTs and VLTs (including conversion kits and parts), and leases or otherwise provides gaming content, gaming machines and server-based systems, as well as electronic pull-tabs and related services to charitable gaming entities. It also sells and supports CMS-based software and hardware, licenses PTG content and supplies Shufflers and other table products utilities to commercial, tribal and governmental gaming operators. Our SciPlay reportable business segment develops, markets and operates a portfolio of social games played on various online platforms. Our iGaming reportable business segment provides a comprehensive suite of digital gaming content, distribution platforms and player account management systems, as well as various other iGaming content and services. See Note 3 for the products and services from which each reportable segment derives its revenues. In evaluating financial performance, our CODM (defined as our Chief Executive Officer) focuses on adjusted earnings before interest, taxes, depreciation and amortization (AEBITDA) as managements primary segment measure of profit or loss, which is described in footnote (5) to the below table. Our CODM uses reportable business segment AEBITDA to evaluate the performance of each reportable business s …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

The following reflects total stock-based compensation expense recognized under all programs: Year Ended December 31, 2025 2024 2023 Related to L&W RSUs $ 121 $ 110 $ 89 Related to SciPlay RSUs (1) 29 Total (2) $ 121 $ 110 $ 118 (1) Stock-based compensation expense related to SciPlay RSUs was for awards granted prior to the SciPlay Merger. Upon completion of the SciPlay Merger in 2023, these RSUs were converted to awards denominated in L&W shares. (2) The years ended December 31, 2025, 2024 and 2023 include $50 million, $43 million and $63 million, respectively, classified as liability awards. The following table sets forth the change in the number of shares of common stock outstanding during the fiscal years ended December 31, 2025 and 2024: December 31, 2025 2024 Shares outstanding as of beginning of period 86 90 Shares issued as part of equity-based compensation plans and the employee stock purchase plan (ESPP), net of shares surrendered 2 1 Shares repurchased into treasury stock (11) (5) Shares outstanding as of end of period 77 86 L&W Stock-Based and Other Incentive Compensation Pursuant to our incentive stock plans, we offer stock-based compensation in the form of stock options and RSUs to employees and our non-employee directors. The terms of such stock option and RSU awards, including the vesting schedule of such awards, are determined at our discretion and subject to the terms of the applicable equity-based compensation plan. We also offer an ESPP, which a …

StockholdersEquityNoteDisclosureTextBlock · excerpt; the full note is in the filing

The following table reflects our outstanding debt (in order of priority and maturity): As of September 30, 2025 December 31, 2024 Final Maturity Rate(s) Face Value Unamortized debt discount/premium and deferred financing costs, net Book Value Book Value Senior Secured Credit Facilities: LNWI Revolver 2030 variable $ $ $ $ LNWI Term Loan A 2028 variable 795 (2) 793 LNWI Term Loan B 2029 variable 2,140 (20) 2,120 2,133 LNWI Senior Notes: 2028 Unsecured Notes 2028 7.000% 695 2029 Unsecured Notes 2029 7.250% 500 (3) 497 496 2031 Unsecured Notes 2031 7.500% 550 (6) 544 543 2033 Unsecured Notes 2033 6.250% 1,000 (15) 985 Other 3 3 3 Total long-term debt outstanding $ 4,988 $ (46) $ 4,942 $ 3,870 Less: current portion of long-term debt (49) (23) Long-term debt, excluding current portion $ 4,893 $ 3,847 Fair value of debt (1) $ 5,029 (1) Fair value of our fixed rate and variable interest rate debt is classified within Level 2 in the fair value hierarchy and has been calculated based on the quoted market prices of our securities. LNWI Credit Agreement Amendment - Revolver Upsizing On February 10, 2025, we entered into an amendment to the LNWI Credit Agreement. The amendment, among other things, (i) provided for new revolving commitments under the LNWI Revolver in an amount of $1.0 billion, which replaced the existing revolving commitments (which were in an amount of $750 million), (ii) extended the maturity of the revolving commitments to the earlier of (x) February 10, 2030 and (y) s …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

The fair value of our financial assets and liabilities is determined by reference to market data and other valuation techniques as appropriate. We believe the fair value of our financial instruments, which are principally cash and cash equivalents, restricted cash, receivables, other current assets, accounts payable and accrued liabilities, approximates their recorded values. Our assets and liabilities measured at fair value on a recurring basis are described below. Derivative Financial Instruments As of September 30, 2025, we held the following derivative instruments that were accounted for pursuant to ASC 815: Interest Rate Swap Contracts We use interest rate swap contracts as described below to manage exposure to interest rate fluctuations by reducing the uncertainty of future cash flows on a portion of our variable rate debt. In April 2022, we entered into interest rate swap contracts to hedge a portion of our interest expense associated with our variable rate debt to effectively fix the interest rate that we pay. These interest rate swap contracts were designated as cash flow hedges under ASC 815. We pay interest at a weighted-average fixed rate of 2.8320% and receive interest at a variable rate equal to one-month Chicago Mercantile Exchange Term SOFR. The total notional amount of these interest rate swaps was $700 million as of September 30, 2025. These hedges mature in April 2027. All gains and losses from these hedges are recorded in other comprehensive income (loss) …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

Intangible Assets, net The following tables present certain information regarding our intangible assets as of September 30, 2025 and December 31, 2024. As of September 30, 2025 December 31, 2024 Gross Carrying Value Accumulated Amortization Net Balance Gross Carrying Value Accumulated Amortization Net Balance Amortizable intangible assets: Customer relationships $ 1,250 $ (682) $ 568 $ 898 $ (624) $ 274 Intellectual property 1,041 (857) 184 924 (801) 123 Licenses 313 (258) 55 290 (242) 48 Brand names 131 (128) 3 128 (125) 3 Trade names 189 (162) 27 161 (159) 2 Patents and other 12 (7) 5 11 (7) 4 Total intangible assets $ 2,936 $ (2,094) $ 842 $ 2,412 $ (1,958) $ 454 The following reflects intangible amortization expense included within D&A: Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 Amortization expense $ 39 $ 38 $ 107 $ 113 Estimated intangible asset amortization expense for the remainder of the year ending December 31, 2025 and each of the subsequent four years is as follows: Remainder of 2025 2026 2027 2028 2029 Amortization expense $ 40 $ 151 $ 145 $ 118 $ 93 Goodwill The table below reconciles the change in the carrying value of goodwill, by reportable segment, for the period from December 31, 2024 to September 30, 2025. Gaming (1) SciPlay iGaming Totals Balance as of December 31, 2024 $ 2,357 $ 209 $ 324 $ 2,890 Acquired goodwill (2) 392 392 Foreign currency adjustments 34 5 40 79 Balance as of September 30, 2025 $ 2,783 $ 2 …

GoodwillAndIntangibleAssetsDisclosureTextBlock · excerpt; the full note is in the filing

We consider new evidence (both positive and negative) at each reporting date that could affect our view of the future realization of deferred tax assets. We evaluate information such as historical financial results, historical taxable income, projected future taxable income, expected timing of the reversals of existing temporary differences and available prudent and feasible tax planning strategies in our analysis. Based on the available evidence, valuation allowances in certain U.S. and non-U.S. jurisdictions remain consistent with the prior year as of September 30, 2025. Our income tax expense (including discrete items) was $25 million and $76 million for the three and nine months ended September 30, 2025, respectively, and $17 million and $61 million for the three and nine months ended September 30, 2024, respectively. For the three and nine months ended September 30, 2025, our effective tax rate differed from the U.S. statutory rate of 21%, primarily as a result of foreign earnings and the impact of worldwide tax rates on foreign earnings. In all periods, we recorded tax expense relative to pre-tax earnings in jurisdictions without valuation allowances. On July 4, 2025, the One Big Beautiful Bill Act (OBBBA) was enacted in the U.S. The OBBBA includes significant provisions, such as the permanent extension of certain expiring provisions of the Tax Cuts and Jobs Act, modifications to the international tax framework and the restoration of favorable tax treatment for certain …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

We are involved in various legal proceedings, including those discussed below. We record an accrual for legal contingencies when it is both probable that a liability has been incurred and the amount or range of the loss can be reasonably estimated (although, as discussed below, there may be an exposure to loss in excess of the accrued liability). We evaluate our accruals for legal contingencies at least quarterly and, as appropriate, establish new accruals or adjust existing accruals to reflect (1) the facts and circumstances known to us at the time, including information regarding negotiations, settlements, rulings and other relevant events and developments, (2) the advice and analyses of counsel and (3) the assumptions and judgment of management. Legal costs associated with our legal proceedings are expensed as incurred. We had accrued liabilities of $18 million and $89 million for all of our legal matters that were contingencies as of September 30, 2025 and December 31, 2024. In April 2025, the Company paid $73 million to resolve the TCS John Huxley legal matter, and the court dismissed the case with prejudice. Substantially all of our legal contingencies are subject to significant uncertainties and, therefore, determining the likelihood of a loss and/or the measurement of any loss involves a series of complex judgments about future events. Consequently, the ultimate outcomes of our legal contingencies could result in losses in excess of amounts we have accrued. We may be …

LegalMattersAndContingenciesTextBlock · excerpt; the full note is in the filing

Our total operating lease expense for the three and nine months ended September 30, 2025 was $7 million and $20 million, respectively, and $6 million and $18 million for the three and nine months ended September 30, 2024, respectively. The total amount of variable and short-term lease payments was immaterial for all periods presented. Supplemental balance sheet and cash flow information related to operating leases is as follows: As of September 30, 2025 December 31, 2024 Operating lease right-of-use assets $ 48 $ 44 Accrued liabilities 20 16 Operating lease liabilities 32 31 Total operating lease liabilities $ 52 $ 47 Weighted average remaining lease term, years 3 3 Weighted average discount rate 6 % 6 % Nine Months Ended September 30, 2025 2024 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows for operating leases $ 16 $ 17 Right-of-use assets obtained in exchange for new lease liabilities: Operating leases $ 19 $ 9 Lease liability maturities: Remainder of 2025 2026 2027 2028 2029 Thereafter Less Imputed Interest Total Operating leases $ 6 $ 21 $ 14 $ 10 $ 3 $ 4 $ (6) $ 52 As of September 30, 2025, we did not have material additional operating leases that have not yet commenced.

LesseeOperatingLeasesTextBlock

New Accounting Guidance - Not Yet Adopted The FASB issued ASU No. 2025-06, under Subtopic 350-40, Intangibles Goodwill and Other Internal-Use Software in September 2025. The new guidance aims to modernize the accounting for internal-use capitalized software costs and removes all references to prescriptive and sequential software development stages (referred to as project stages) throughout Subtopic 350-40. An entity is therefore required to start capitalizing internal-use software costs when management has authorized and committed to funding the software project, and when it is probable that the project will be completed and the software will be used to perform the function intended (the probable-to-complete recognition threshold). The amendments in ASU No. 2025-06 are effective for all public entities for fiscal years beginning after December 15, 2027, and early adoption as of the beginning of an annual period is permitted. We are currently evaluating the impact of adopting this guidance. There have been no other recent accounting pronouncements or changes in accounting pronouncements since those described within Note 1 of our 2024 10-K that are expected to have a material impact on our consolidated financial statements. …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

Restructuring and other includes charges or expenses attributable to: (i) employee severance; (ii) management restructuring and related costs; (iii) restructuring and integration; (iv) cost savings initiatives; (v) major litigation; and (vi) acquisition- and disposition-related costs, strategic review and other unusual items. The following table summarizes pre-tax restructuring and other costs for the periods presented: Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 Employee severance and related $ 1 $ 1 $ 13 $ 2 Legal and related 1 34 1 66 Strategic review, acquisitions and related 2 18 1 Restructuring, integration and other 2 1 11 7 Total $ 6 $ 36 $ 43 $ 76 …

RestructuringAndRelatedActivitiesDisclosureTextBlock · excerpt; the full note is in the filing

The following table disaggregates our revenues by type within each of our reportable business segments: Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 Gaming Gaming operations $ 241 $ 175 $ 624 $ 515 Gaming machine sales 189 238 587 670 Gaming systems 72 71 208 213 Table products 56 53 162 154 Total $ 558 $ 537 $ 1,581 $ 1,552 SciPlay Third-party platforms and other (1) $ 157 $ 181 $ 496 $ 556 Direct-to-consumer platforms 40 25 103 61 Total $ 197 $ 206 $ 599 $ 617 iGaming $ 86 $ 74 $ 244 $ 222 (1) Other primarily represents advertising revenue, which was not material for the periods presented. Grover revenues are generated by providing customers with access to proprietary electronic pull tabs equipment and content for which consideration is based upon a revenue participation model, with variability generally resolved in the reporting period. For these contracts with customers, we generally transfer control and recognize revenue over time based on the amount we expect to receive and classify such revenue as gaming operations revenue. Payments from customers under these contracts are typically due on a monthly or more frequent basis. The amount of rental income revenue included in services revenue within the consolidated statement of operations that is outside the scope of ASC 606 was $160 million and $449 million for the three and nine months ended September 30, 2025, respectively, and $138 million and $401 million for the three and nine m …

RevenueFromContractWithCustomerTextBlock · excerpt; the full note is in the filing

We report our operations in three reportable business segmentsGaming, SciPlay and iGamingrepresenting our different products and services. A detailed discussion regarding the products and services from which each reportable business segment derives its revenue is included in Notes 2 and 3 in our 2024 10-K. In evaluating financial performance, our Chief Operating Decision Maker (defined as our Chief Executive Officer) focuses on AEBITDA as managements primary segment measure of profit or loss, which is described in footnote (5) to the below table. Our CODM uses reportable business segment AEBITDA to evaluate the performance of each reportable business segment and to allocate resources. Additionally, AEBITDA is one of the key metrics used in our incentive compensation program. The accounting policies for our reportable segments are the same as those described within the Notes in our 2024 10-K. The following tables present our reportable segment information: Three Months Ended September 30, 2025 Gaming SciPlay iGaming Total Reportable Segments Unallocated and Reconciling Items (1) Total Total revenue $ 558 $ 197 $ 86 $ 841 $ $ 841 Cost of revenue (2) (138) (51) (28) (217) (217) Payroll and related (3) (86) (25) (14) (125) (125) Other segment reconciling items (4) (29) (50) (10) (89) (35) (124) AEBITDA (5) 305 71 34 410 (35) 375 Reconciling items to net income before income taxes: Restructuring and other (1) (1) (1) (3) (3) (6) D&A (108) (108) Interest expense (84) (84) Loss …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

There have been no changes to our significant accounting policies described within the Notes of our 2024 10-K.

SignificantAccountingPoliciesTextBlock

Changes in Stockholders Equity The following tables present certain information regarding our stockholders equity for the nine months ended September 30, 2025 and 2024: Nine Months Ended September 30, 2025 Common Stock Additional Paid in Capital Retained Earnings Treasury Stock Accumulated Other Comprehensive Loss Total January 1, 2025 $ 1 $ 1,200 $ 1,016 $ (1,216) $ (365) $ 636 Settlement of liability awards 44 44 Vesting of RSUs, net of tax withholdings and other (36) (36) Purchase of treasury stock (1) (167) (167) Stock-based compensation 18 18 Net income 82 82 Other comprehensive income 43 43 March 1, 2025 $ 1 $ 1,226 $ 1,098 $ (1,383) $ (322) $ 620 Vesting of RSUs, net of tax withholdings and other 2 2 Purchase of treasury stock (1) (101) (101) Stock-based compensation 14 14 Net income 95 95 Other comprehensive income 72 72 June 30, 2025 $ 1 $ 1,242 $ 1,193 $ (1,484) $ (250) $ 702 Vesting of RSUs, net of tax withholdings and other (4) (4) Purchase of treasury stock (1) (112) (112) Stock-based compensation 17 17 Net income 114 114 Other comprehensive income 6 6 September 30, 2025 $ 1 $ 1,255 $ 1,307 $ (1,596) $ (244) $ 723 (1) Includes excise taxes of $1 million and $3 million for the three and nine months ended September 30, 2025, respectively. Nine Months Ended September 30, 2024 Common Stock Additional Paid in Capital Retained Earnings Treasury Stock Accumulated Other Comprehensive Loss Total January 1, 2024 $ 1 $ 1,118 $ 680 $ (751) $ (283) $ 765 Settlement of liabili …

StockholdersEquityNoteDisclosureTextBlock · excerpt; the full note is in the filing