Andre Fromyhr

Andre Fromyhr focused on the gaming operations business, asking about the outlook for premium space net installs (500+ per quarter), comparing the 2026 game pipeline to 2025, and the demand for the LightWave cabinet.

Answer

Matt Wilson, President and CEO, highlighted the 22nd consecutive quarter of premium gaming operations install base growth, with 700 units added in Q4 and 2,600 year-on-year. He expects the 500+ units per quarter guidance to be a baseline, with RPDs expanding 9% year-on-year. He attributed this to improved game performance, with 11 of the top 25 Eilers games in the new premium segment. He also mentioned three new hardware catalysts for 2026: the LightWave rollout, Cosmic Sky, and the Landmark 7000 stepper with a wheel, all supported by strong brands.

Andre Fromyhr focused on the gaming operations business outlook, seeking clarification on the projected 500+ net installs per quarter in the premium space for 2026, how the game pipeline compares to 2025, and demand for the LightWave cabinet.

Answer

President and CEO Matt Wilson highlighted the 22nd consecutive quarter of premium gaming operations install base growth, with 700 units added in Q4 and 2,600 year-on-year, and set a modest guidance of 500+ units per quarter for 2026. He noted a 9% RPD expansion, strong game performance with 11 of the top 25 Eilers games, and three new hardware catalysts for 2026, including the well-received LightWave cabinet, Cosmic Sky, and LANDMARK 7000.

Andre Fromyhr of UBS Group asked about margin optimization, questioning the sustainability of lower R&D and corporate costs. He also inquired if there was pressure on gross margins, with costs potentially rising faster than the reported 2% increase in average sales price.

Answer

CFO Oliver Chow stated that margins are expected to remain relatively stable through 2025, supported by contributions from Grover, scaling in Gaming Ops, and growth in the high-margin D2C platform. President & CEO Matt Wilson emphasized there is no intention to scale back R&D, but rather to maximize ROI, pointing to the company's 44% share of new premium games as proof of the R&D engine's success. Chow also noted that lower corporate costs were partly due to the timing of legal expenses.

Andre Fromyhr of UBS asked about the drivers behind the decline in the international gaming business, specifically the sequential drop in the installed base and slower unit sales volumes.

Answer

CEO Matt Wilson explained that sales volumes faced tough comparisons against a large Asian transaction and record Australian market share in the prior year. CFO Oliver Chow clarified that the installed base decline was due to a "onetime event" involving the conversion of leased units to sales in Latin American markets, a commercial model used from time to time.

Andre Fromyhr asked about the drivers of iGaming growth, including the game pipeline cadence versus land-based and any updates on the U.S. legalization outlook.

Answer

CEO Matt Wilson explained that a new R&D operating model under a single leader will tighten the release cadence of games like Huff N' Puff between land-based and digital channels. Regarding legalization, he stated the company does not see new U.S. states coming online in 2025 and is not building it into plans, but they are prepared for any future expansion in 2026 and beyond.