Reportable Segments

9 Months Ended

Sep. 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 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 on debt financing transactions									(4)		(4)
Other income, net									(6)		(6)
Stock-based compensation									(28)		(28)
Net income before income taxes											$	139
Capital expenditures for the three months ended September 30, 2025	$	64	$	5	$	6	$	75	$	4	$	79
(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 September 30, 2024
	Gaming		SciPlay		iGaming		Total Reportable Segments		Unallocated and Reconciling Items(1)		Total
Total revenue	$	537	$	206	$	74	$	817	$	—	$	817
Cost of revenue(2)	(166)		(57)		(23)		(246)		—		(246)
Payroll and related(3)	(82)		(26)		(18)		(126)		—		(126)
Other segment reconciling items(4)	(22)		(57)		(9)		(88)		(38)		(126)
AEBITDA(5)	267		66		24		357		(38)		319
Reconciling items to net income before income taxes:
Restructuring and other	—		(1)		—		(1)		(35)		(36)
D&A									(90)		(90)
Interest expense									(73)		(73)
Loss on debt financing transactions									(2)		(2)
Other expense, net									(8)		(8)
Stock-based compensation									(29)		(29)
Net income before income taxes											$	81
Capital expenditures for the three months ended September 30, 2024	$	56	$	4	$	5	$	66	$	5	$	71
(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.

	Nine Months Ended September 30, 2025
	Gaming		SciPlay		iGaming		Total Reportable Segments		Unallocated and Reconciling Items(1)		Total
Total revenue	$	1,581	$	599	$	244	$	2,424	$	—	$	2,424
Cost of revenue(2)	(407)		(159)		(81)		(647)		—		(647)
Payroll and related(3)	(252)		(76)		(48)		(376)		—		(376)
Other segment reconciling items(4)	(83)		(155)		(26)		(264)		(99)		(363)
AEBITDA(5)	839		209		89		1,137		(99)		1,038
Reconciling items to net income before income taxes:
Restructuring and other	(7)		(2)		(10)		(19)		(24)		(43)
D&A									(298)		(298)
Interest expense									(229)		(229)
Loss on debt financing transactions									(5)		(5)
Other income, net									(9)		(9)
Stock-based compensation									(87)		(87)
Net income before income taxes											$	367
Capital expenditures for the nine months ended September 30, 2025	$	175	$	15	$	16	$	206	$	12	$	218
(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.

	Nine Months Ended September 30, 2024
	Gaming		SciPlay		iGaming		Total Reportable Segments		Unallocated and Reconciling Items(1)		Total
Total revenue	$	1,552	$	617	$	222	$	2,391	$	—	$	2,391
Cost of revenue(2)	(457)		(175)		(69)		(701)		—		(701)
Payroll and related(3)	(239)		(77)		(54)		(370)		—		(370)
Other segment reconciling items(4)	(85)		(167)		(26)		(278)		(113)		(391)
AEBITDA(5)	771		198		73		1,042		(113)		929
Reconciling items to net income before income taxes:
Restructuring and other	(1)		(1)		(2)		(4)		(72)		(76)
D&A									(264)		(264)
Interest expense									(223)		(223)
Loss on debt financing transactions									(2)		(2)
Other income, net									7		7
Stock-based compensation									(82)		(82)
Net income before income taxes											$	289
Capital expenditures for the nine months ended September 30, 2024	$	182	$	13	$	18	$	213	$	11	$	224
(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 September 30, 2025	$	4,832	$	476	$	901	$	6,209	$	300	$	6,509
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.