Reportable Segments

6 Months Ended

Jun. 30, 2025

Segment Reporting [Abstract]

Reportable Segments

We report our operations in three reportable business segments—Gaming, SciPlay and iGaming—representing 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 management’s 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 June 30, 2025
	Gaming		SciPlay		iGaming		Total Reportable Segments		Unallocated and Reconciling Items(1)		Total
Total revenue	$	528	$	200	$	81	$	809	$	—	$	809
Cost of revenue(2)	(139)		(53)		(27)		(219)		—		(219)
Payroll and related(3)	(83)		(24)		(17)		(124)		—		(124)
Other segment reconciling items(4)	(26)		(49)		(9)		(84)		(30)		(114)
AEBITDA(5)	280		74		28		382		(30)		352
Reconciling items to net income before income taxes:
Restructuring and other	(1)		—		(2)		(3)		(14)		(17)
D&A									(99)		(99)
Interest expense									(77)		(77)
Other income, net									(4)		(4)
Stock-based compensation									(31)		(31)
Net income before income taxes											$	124
Capital expenditures for the three months ended June 30, 2025	$	62	$	5	$	5	$	72	$	6	$	78
(1) Includes amounts not allocated to the reportable segments (including corporate costs) and items to reconcile the total reportable segments AEBITDA to our consolidated net income before income taxes.
(2) Excludes D&A.
(3) Excludes stock-based compensation.
(4) Primarily represents various other non-payroll related operating expenses, including but not limited to, professional and legal services, marketing, facilities and operating leases, maintenance and other operating expenses.
(5) AEBITDA is reconciled to net income before income taxes with the following adjustments, as applicable: (1) depreciation and amortization expense and impairment charges (including goodwill impairments); (2) restructuring and other, which 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; (3) interest expense; (4) gain (loss) on debt financing transactions; (5) change in fair value of investments and remeasurement of debt and other; (6) other income (expense), net, including foreign currency gains or losses and earnings from equity investments; and (7) stock-based compensation. AEBITDA is presented as our primary segment measure of profit or loss.

	Three Months Ended June 30, 2024
	Gaming		SciPlay		iGaming		Total Reportable Segments		Unallocated and Reconciling Items(1)		Total
Total revenue	$	539	$	205	$	74	$	818	$	—	$	818
Cost of revenue(2)	(156)		(57)		(23)		(236)		—		(236)
Payroll and related(3)	(80)		(25)		(19)		(124)		—		(124)
Other segment reconciling items(4)	(31)		(53)		(8)		(92)		(36)		(128)
AEBITDA(5)	272		70		24		366		(36)		330
Reconciling items to net income before income taxes:
Restructuring and other	(1)		—		1		—		(34)		(34)
D&A									(87)		(87)
Interest expense									(75)		(75)
Other income, net									5		5
Stock-based compensation									(31)		(31)
Net income before income taxes											$	108
Capital expenditures for the three months ended June 30, 2024	$	74	$	4	$	7	$	85	$	1	$	86
(1) Includes amounts not allocated to the reportable segments (including corporate costs) and items to reconcile the total reportable segments AEBITDA to our consolidated net income before income taxes.
(2) Excludes D&A.
(3) Excludes stock-based compensation.
(4) Primarily represents various other non-payroll related operating expenses, including but not limited to, professional and legal services, marketing, facilities and operating leases, maintenance and other operating expenses.
(5) AEBITDA is described in footnote (5) to the first table in this Note 3.

	Six Months Ended June 30, 2025
	Gaming		SciPlay		iGaming		Total Reportable Segments		Unallocated and Reconciling Items(1)		Total
Total revenue	$	1,022	$	402	$	158	$	1,582	$	—	$	1,582
Cost of revenue(2)	(269)		(108)		(53)		(430)		—		(430)
Payroll and related(3)	(166)		(51)		(33)		(250)		—		(250)
Other segment reconciling items(4)	(53)		(105)		(17)		(175)		(64)		(239)
AEBITDA(5)	534		138		55		727		(64)		663
Reconciling items to net income before income taxes:
Restructuring and other	(7)		(1)		(9)		(17)		(20)		(37)
D&A									(190)		(190)
Interest expense									(146)		(146)
Loss on debt financing transactions									(1)		(1)
Other income, net									(2)		(2)
Stock-based compensation									(59)		(59)
Net income before income taxes											$	228
Capital expenditures for the six months ended June 30, 2025	$	111	$	10	$	10	$	131	$	8	$	139
(1) Includes amounts not allocated to the reportable segments (including corporate costs) and items to reconcile the total reportable segments AEBITDA to our consolidated net income before income taxes.
(2) Excludes D&A.
(3) Excludes stock-based compensation.
(4) Primarily represents various other non-payroll related operating expenses, including but not limited to, professional and legal services, marketing, facilities and operating leases, maintenance, and other operating expenses.
(5) AEBITDA is described in footnote (5) to the first table in this Note 3.

	Six Months Ended June 30, 2024
	Gaming		SciPlay		iGaming		Total Reportable Segments		Unallocated and Reconciling Items(1)		Total
Total revenue	$	1,016	$	411	$	148	$	1,575	$	—	$	1,575
Cost of revenue(2)	(293)		(117)		(46)		(456)		—		(456)
Payroll and related(3)	(157)		(51)		(37)		(245)		—		(245)
Other segment reconciling items(4)	(62)		(111)		(17)		(190)		(74)		(264)
AEBITDA(5)	504		132		48		684		(74)		610
Reconciling items to net income before income taxes:
Restructuring and other	(1)		—		(2)		(3)		(37)		(40)
D&A									(173)		(173)
Interest expense									(150)		(150)
Other income, net									14		14
Stock-based compensation									(53)		(53)
Net income before income taxes											$	208
Capital expenditures for the six months ended June 30, 2024	$	126	$	8	$	13	$	147	$	6	$	153
(1) Includes amounts not allocated to the reportable segments (including corporate costs) and items to reconcile the total reportable segments AEBITDA to our consolidated net income before income taxes.
(2) Excludes D&A.
(3) Excludes stock-based compensation.
(4) Primarily represents various other non-payroll related operating expenses, including but not limited to, professional and legal services, marketing, facilities and operating leases, maintenance, and other operating expenses.
(5) AEBITDA is described in footnote (5) to the first table in this Note 3.

The following table summarizes the asset balances of each reportable business segment for the periods indicated:

	Gaming		SciPlay		iGaming		Total Reportable Segments		Unallocated and Reconciling Items(1)		Totals
Assets as of June 30, 2025	$	4,902	$	481	$	843	$	6,226	$	264	$	6,490
Assets as of December 31, 2024	3,964		444		735		5,143		278		5,421
(1) Includes amounts not allocated to the reportable segments (including corporate amounts) and items to reconcile the total reportable segments assets to our consolidated assets.