Management’s Discussion and Analysis The following discussion and analysis of Brightstar’s financial condition and results of operations should be read in conjunction with the Consolidated Financial Statements, including the notes thereto, included in this annual report, as well as “Presentation of Financial and Certain Other Information,” “Item 3. Key Information – D. Risk Factors,” and “Item 4. Information on the Company – B. Business Overview.” The following discussion includes information for the fiscal years ended December 31, 2025 and 2024. For a discussion and analysis of Brightstar’s consolidated operating results and non-operating results for the year ended December 31, 2024, compared to the year ended December 31, 2023, please refer to the disclosure under “Item 5. Operating and Financial Review and Prospects - A. Operating Results” in the Company’s Annual Report on Form 20-F for the fiscal year ended December 31, 2024, filed with the SEC on February 25, 2025 (the “2024 Form 20-F”). A. Operating Results Business Overview Brightstar is a global leader in lottery focused on innovation and forward-thinking strategies and solutions, building on our renowned expertise in delivering secure technology and producing reliable, comprehensive solutions for our customers. As a pure-play global lottery company, our best-in-class lottery operations, retail, and digital solutions, and award-winning lottery games enable our customers to achieve their goals, responsibly entertain players, and distribute meaningful benefits to communities. Brightstar has a well‑established local presence and is a trusted partner to governments and regulators around the world, creating value by adhering to the highest standards of service, integrity and responsibility. The Company operates and provides an integrated portfolio of innovative lottery solutions, including lottery management services and instant lottery systems. The Company operates a worldwide land-based lottery and iLottery business, including sales, operations, product development, technology, and support, and is a leading iLottery platform provider globally. The Company is supported by central corporate support functions including finance, people and culture, legal, corporate communications, and strategy and corporate development. During 2025, Brightstar Lottery completed its transformation into a pure‑play global lottery operator following the sale of IGT Gaming on July 1, 2025. Our results of operations for the year were principally influenced by (i) the renewal of the Italian Lotto license and the resulting increase in upfront license fee amortization, (ii) lower LMA incentive revenues driven by U.S. multi‑state jackpot activity, (iii) continued growth in instant ticket and draw game sales, and (iv) the execution of the OPtiMa 3 restructuring programs to realign our cost structure. We ended 2025 with a strong liquidity position, reflecting disciplined capital allocation, debt reduction following the divestiture, and the return of capital to shareholders through dividends and share repurchases. Key Factors Affecting Operations and Financial Condition The Company’s worldwide operations can be affected by industrial, economic, and political factors on both a regional and global level. Geopolitical instability such as the ongoing conflict between Russia and Ukraine and the conflict in Gaza, the tightening of monetary policy by central banks and other macroeconomic factors have caused disruptions and uncertainty in the global economy, including rising interest rates, increased inflationary pressures, foreign exchange rate fluctuations, cybersecurity risks, changes in consumer sentiment and exacerbated supply chain challenges. The extent to which our business, or the business of our suppliers or manufacturers, will be impacted by these factors in the future is unknown. We will continue to monitor the effects of these events on our business, as well as the prospect of trade wars involving the U.S. and other countries, which could raise the prices of certain consumer goods, on our business and our results of operations. The following 31 Table of Contents are the principal factors which have affected the Company’s results of operations and financial condition and/or which may affect results of operations and financial condition for future periods. Sale of IGT Gaming: On July 1, 2025, the Company completed the previously announced sale of IGT Gaming, pursuant to the Transaction Agreements entered into on July 26, 2024. IGT Gaming and Everi were simultaneously acquired in the Transaction. Product Sales: Product sales fluctuate from year to year due to the mix, volume, and timing of the transactions. Product sales amounted to $151 million, $149 million, and $171 million, or approximately 6%, 6%, and 7% of total revenues for the years ended December 31, 2025, 2024, and 2023, respectively. Jackpots: The Company believes that the performance of lottery products is influenced by the size of advertised multi-state or multi-jurisdictional jackpots. Typically, as jackpots increase, sales of lottery tickets also increase, further increasing the advertised jackpot level. However, in a rising interest rate environment, advertised jackpot levels will increase more rapidly than they previously did given the annuity basis of the displayed jackpots. Therefore, in a higher interest rate environment, jackpot game ticket sales may be increasing at a relatively slower rate than the corresponding jackpot levels. In a lower interest rate environment, advertised jackpot levels are slower to increase which can negatively impact the sales of lottery tickets. Effects of Foreign Exchange Rates: The Company is affected by fluctuations in foreign exchange rates (i) through translation of foreign currency financial statements into U.S. dollars for consolidation, which is referred to as the translation impact, and (ii) through transactions by subsidiaries in currencies other than their own functional currencies, which is referred to as the transaction impact. Translation impacts arise in the preparation of the Consolidated Financial Statements; in particular, the Consolidated Financial Statements are prepared in U.S. dollars while the financial statements of each of the Company’s subsidiaries are generally prepared in the functional currency of that subsidiary. In preparing Consolidated Financial Statements, assets and liabilities measured in the functional currency of the subsidiaries are translated into U.S. dollars using the exchange rate prevailing at the balance sheet date, while income and expenses are translated using the average exchange rates for the period covered. Accordingly, fluctuations in the exchange rate of the functional currencies of the Company’s subsidiaries against the U.S. dollar impacts the Company’s results of operations. The Company is particularly exposed to movements in the Euro/U.S. dollar exchange rate. Although the fluctuations in exchange rates have had a significant impact on the Company’s revenues, net income, and net debt, the impact on operating income and cash flows is less significant as revenues are typically matched to costs denominated in the same currency. Given the impact of foreign exchange rates on our consolidated results, certain key performance indicators (such as same-store sales) and financial fluctuations are reported on a constant-currency basis in order to facilitate period-to-period comparisons of our results without regard to the impact of fluctuating foreign currency exchange rates. Legal Proceedings From time to time, the Parent and/or one or more of its subsidiaries are party to legal, regulatory, or administrative proceedings regarding, among other matters, claims by and against us, and injunctions by third parties arising out of the ordinary course of business or its other business activities. Licenses are also subject to legal challenges by competitors seeking to annul awards made to the Company. The Parent and/or one or more of its subsidiaries are also, from time to time, subjects of, or parties to, ethics and compliance inquiries and investigations related to the Company’s ongoing operations. There are no new material legal, regulatory, or administrative proceedings. Please refer to “Notes to the Consolidated Financial Statements - “18. Commitments and Contingencies” included in “Item 18. Financial Statements” for additional information. 32 Table of Contents Results of Operations Comparison of the years ended December 31, 2025 and 2024 Revenues and Key Performance Indicators For the year ended December 31, 2025 2024 Change ($ in millions) $ $ $ % Operating and facilities management contracts 2,530 2,506 24 +1 Upfront license fee amortization (223) (198) (25) -12 Operating and facilities management contracts (includes amortization of upfront license fees) 2,307 2,307 (1) — Systems, software, and other 54 55 (2) -3 Service revenue (includes amortization of upfront license fees) 2,360 2,363 (2) — Product sales 151 149 1 +1 Total revenue 2,511 2,512 (1) — Total revenue for the year ended December 31, 2025 decreased $1 million, primarily driven by lower revenue from operating and facilities management contracts attributable to reduced LMA incentive revenues and incremental upfront license fee amortization, primarily reflecting one additional month of incremental amortization related to the €2,230 million upfront fee for the new nine (9) year Italian Lotto license. These declines were partially offset by increased revenues from Instant ticket and draw games, as well as U.S. multi‑state jackpot (“U.S. MSJP”) games (Mega Millions® and Powerball®), as discussed in further detail below. For the year ended December 31, (% on a constant-currency basis) 2025 2024 Global same-store sales growth Instant ticket & draw games +1.6 % +1.1 % U.S. MSJP +3.4 % -22.1 % Total +1.7 % -0.8 % U.S. same-store sales growth Instant ticket & draw games +0.3 % -0.5 % U.S. MSJP +3.4 % -22.1 % Total +0.6 % -3.3 % Rest of world same-store sales growth Instant ticket & draw games +8.0 % +3.3 % Italy same-store sales growth Instant ticket & draw games +2.0 % +4.1 % 33 Table of Contents Service revenue for the year ended December 31, 2025 decreased slightly, primarily due to a $51 million reduction in LMA revenue and an incremental $25 million ($14 million when excluding the impact of currency translation) of upfront license fee amortization. The reduction in LMA revenue is primarily related to the recognition of an incentive shortfall in the first and second quarters triggered by the lack of significant U.S. MSJP activity during the second half of the LMA’s fiscal year. The increase in upfront license fee amortization was due to the higher upfront fee paid for the new nine (9) year Italian Lotto license. These decreases were partially offset by higher revenues generated from Instant ticket & draw games, including currency translation benefits, and the U.S. MSJP game (Powerball®). Product sales for the year ended December 31, 2025 decreased slightly from the prior corresponding period, mainly due to timing of software deliveries. Cost of Revenue For the year ended December 31, Change ($ in millions) 2025 2024 $ % Cost of services (excluding D&A) 1,116 1,068 48 +4 Cost of product sales (excluding D&A) 128 111 17 +15 Cost of services (excluding Depreciation and amortization (“D&A”)) for the year ended December 31, 2025 increased by $48 million, compared to the prior corresponding period. The increase was primarily driven by higher activity‑related costs, including an $11 million increase in postage and freight and a $9 million increase in point‑of‑sale consumables associated with higher instant ticket and draw game volumes, as well as a combined $7 million increase in payroll and benefit costs and higher outside services and occupancy costs. Cost of product sales (excluding D&A) increased by $17 million as compared to the prior corresponding period, and the cost of product sales as a percentage of product sales increased, primarily due to higher costs associated with instant ticket reprinting and expedited shipping in connection with new production initiatives at our Lakeland printing facility. Other Expenses For the year ended December 31, Change ($ in millions) 2025 2024 $ % General and administrative 215 235 (20) -8 General and administrative expenses decreased primarily due to expense recoveries and lower payroll and benefit costs reflecting structural savings from OPtiMa 3 headcount reductions, as well as a period‑over‑period decrease in long‑term incentive compensation compared to the prior corresponding period. 34 Table of Contents For the year ended December 31, Change ($ in millions) 2025 2024 $ % Research and development 47 43 4 +9 Research and development expenses increased $4 million compared to the prior corresponding period, primarily reflecting the impact of foreign currency, while core research and development activity levels remained consistent year over year. For the year ended December 31, Change ($ in millions) 2025 2024 $ % Sales and marketing 123 122 — — Sales and marketing expenses remained stable compared to the prior corresponding period, reflecting consistent levels of activity year over year. For the year ended December 31, Change ($ in millions) 2025 2024 $ % Depreciation and amortization 221 204 18 +9 Depreciation and amortization expenses increased $18 million compared to the prior corresponding period, primarily due to higher depreciation associated with contract renewals and capitalized assets placed into service with a higher cost basis. For the year ended December 31, Change ($ in millions) 2025 2024 $ % Restructuring 28 39 (11) -28 Restructuring expenses decreased $11 million compared to the prior corresponding period. Restructuring costs during 2025 primarily related to Phase 2 of the OPtiMa 3 restructuring plan, while costs during 2024 primarily related to Phase 1. Costs incurred in both periods were principally comprised of severance and related employee costs. For the year ended December 31, Change ($ in millions) 2025 2024 $ % Interest expense, net 172 206 (34) -16 Net interest expense decreased $34 million compared to the prior corresponding period, primarily due to debt reductions executed in connection with the sale of IGT Gaming and interest income earned on invested cash, partially offset by borrowings under the new senior facilities agreement entered into during 2025 as described in “Item 18. Financial Statements – Notes to the Consolidated Financial Statements—Note 15. Debt.” For the year ended December 31, Change ($ in millions) 2025 2024 $ % Foreign exchange loss (gain), net 124 (52) 176 > 200.0 Foreign exchange loss, net, increased $176 million compared to the prior corresponding period, primarily reflecting non‑cash remeasurement of euro‑denominated debt as a result of movements in the euro‑to‑U.S. dollar exchange rate, as well as the loss recognized upon settlement of a short‑duration foreign exchange forward contract in order to preserve the U.S. Dollar purchasing power of the Euro debt issued in September 2024, resulting in a $7.4 million loss on settlement. For the year ended December 31, Change ($ in millions) 2025 2024 $ % Other expense, net 39 16 23 +145 Other expense, net, increased $23 million compared to the prior corresponding period, primarily driven by debt extinguishment costs of $8 million and higher professional advisory fees and other costs related to rebranding and separation activities. 35 Table of Contents For the year ended December 31, Change ($ in millions) 2025 2024 $ % Provision for income taxes 165 250 (86) -34 Provision for income taxes for the year ended December 31, 2025, decreased $85.0 million compared to the prior corresponding period. The decrease was primarily due to lower pre-tax income. The increase in the effective tax rate was primarily related to non-deductible foreign exchange losses in the Parent. Income from discontinued operations For the year ended December 31, Change ($ in millions) 2025 2024 $ % Income from discontinued operations, net of tax 75 238 (162) -68 Gain on sale of discontinued operations, net of tax 77 — 77 — On July 1, 2025, we completed the sale of IGT Gaming, and its results have been presented in discontinued operations for all periods presented, Income from discontinued operations, net of tax decreased primarily due to the sale, with a gain on sale recorded in the third quarter. See “Notes to the Consolidated Financial Statements—Note 3. Discontinued Operations and Assets Held for Sale” included in “Item 18. Financial Statements.” B. Liquidity and Capital Resources Overview The Company’s business is capital intensive and requires liquidity to meet its obligations and fund growth. Historically, the Company’s primary sources of liquidity have been cash flows from operations and, to a lesser extent, cash proceeds from financing activities, including amounts available under the Revolving Credit Facilities. In addition to general working capital and operational needs, the Company’s liquidity requirements arise primarily from its need to meet debt service obligations and to fund capital expenditures and upfront license fee payments. In 2025, the Company’s upfront license fee payments included the first two installments of the Italian Lotto license of $926 million in the aggregate, with the balance to be paid in 2026. For more information regarding the Italian Lotto license, refer to “Notes to the Consolidated Financial Statements—7. Other Assets” included in “Item 18. Financial Statements.” The Company also requires liquidity to fund acquisitions and associated costs. The Company’s cash flows generated from operating activities together with cash flows generated from financing activities have historically been sufficient to meet the Company's liquidity needs. The Company believes its ability to generate cash from operations to reinvest in its business is one of its fundamental financial strengths. Combined with funds currently available and committed borrowing capacity, the Company expects to have sufficient liquidity to meet its financial obligations in the ordinary course of business for the 12 months following the date of issuance of this report and for the longer-term period thereafter. The cash management activities, funding of operations, and investment of excess liquidity are centrally coordinated by a dedicated treasury team with the objective of ensuring effective and efficient management of funds. At December 31, 2025 and 2024, the Company’s total available liquidity was as follows, respectively: December 31, ($ in millions) 2025 2024 Revolving Credit Facilities 1,590 1,364 Cash and cash equivalents 1,446 584 Total Liquidity 3,036 1,948 The Revolving Credit Facilities are subject to customary covenants (including maintaining a minimum ratio of EBITDA to total net interest costs and a maximum ratio of total net debt to EBITDA) and events of default, none of which are expected to impact the Company’s liquidity or capital resources. At December 31, 2025, the issuers were in compliance with such covenants. 36 Table of Contents Refer to the “Notes to the Consolidated Financial Statements—15. Debt” included in “Item 18. Financial Statements” for information regarding the Company’s debt obligations, including the maturity profile of borrowings and committed borrowing facilities. The following table summarizes the Company’s USD equivalent cash and cash equivalent balances by currency: December 31, 2025 December 31, 2024 ($ in millions) $ % $ % Euros 1,004 69 296 51 U.S. dollars 326 23 182 31 Other currencies 117 8 105 18 Total Cash and cash equivalents 1,446 100 584 100 The Company maintains its cash deposits in a diversified portfolio of global banks, the majority of which are considered Global Systemically Important Banks. The Company holds $50 million in cash where there may be legal or economic restrictions on the ability of subsidiaries to transfer funds in the form of cash dividends, loans, or advances. Approximately $30 million of this cash is held in Trinidad and Tobago where there are certain regulatory restrictions due to the shortage of foreign exchange reserves. These legal or economic restrictions do not impact the Company’s ability to meet its cash obligations. Cash Flow Summary The following tables summarize the Consolidated Statements of Cash Flows. A complete statement of cash flows is provided in the Consolidated Financial Statements included in “Item 18. Financial Statements.” Continuing Operations Discontinued Operations Total ($ in millions) 2025 2024(1) 2025 2024 2025 2024(1) Net cash (used in) provided by operating activities (193) 709 94 341 (99) 1,050 Net cash provided by (used in) investing activities (367) (150) 3,868 (207) 3,502 (357) Net cash used in financing activities (2,573) (556) (143) (50) (2,716) (606) Effect of exchange rate changes on cash and cash equivalents and restricted cash and cash equivalents 39 (51) Net increase in cash and cash equivalents and restricted cash and cash equivalents 686 87 (1) As discussed in “Notes to the Consolidated Financial Statements-2.Changes in Presentation included in “Item 18. Financial Statements” during 2025, we reclassified certain cash flow activity related to funds held on behalf of others from operating to financing and recast prior periods. Net cash used in operating activities from continuing operations was $193 million for the year ended December 31, 2025, compared with net cash provided of $709 million for the same period in 2024. The decrease was primarily due to payment of the first two installments of the Italian Lotto license of $926 million. Excluding the impact of the Italian Lotto upfront license payments, net cash generated from operating activities would have been $733 million primarily due to net income of $135 million, as well as adjustments for non-cash expenses including depreciation and amortization of $444 million and foreign exchange losses of $124 million. Net cash used in investing activities from continuing operations for the year ended December 31, 2025 was $367 million, compared with net cash used of $150 million for the year ended December 31, 2024. This change was primarily due to a $166 million increase in capital expenditures, primarily for systems, equipment and other assets related to contracts in California, Colorado, Kentucky, and Italy. Net cash used in financing activities from continuing operations for the year ended December 31, 2025 was $2,573 million, compared with net cash used of $556 million in the same period of 2024. The change was primarily due to debt reductions, resulting in a $1,455 million net decrease as payments on debt exceeded proceeds from new debt issuances in the year ended December 31, 2025 compared to the same period in 2024. In addition, financing cash outflows during 2025 reflected the return of capital to shareholders as part of the Company’s capital allocation strategy following the completion of the divestiture. See “Notes to the Consolidated Financial Statements – 15. Debt” included in “Item 18. Financial Statements.” 37 Table of Contents Net cash provided by operating activities from discontinued operations was $94 million in the year ended December 31, 2025, compared with $341 million for the same period in 2024, decreased primarily due to the sale of IGT Gaming on July 1, 2025. Net cash provided by investing activities from discontinued operations was $3,868 million in the year ended December 31, 2025, compared with net cash used in investing activities of $207 million for the same period in 2024. The change was primarily due to cash proceeds received for the sale of IGT Gaming of $4.0 billion. Net cash used for financing activities from discontinued operations was $143 million in the year ended December 31, 2025, compared with $50 million for the same period in 2024. Net cash used for financing activities primarily related to a $125 million payment on the Sony deferred license obligation. Cash Returned to Shareholders ($ in millions) In 2025, the Company returned an additional $880 million of cash to shareholders compared to the year ended December 31, 2024, reflecting the portion completed during the year of the Company’s previously announced plan to return $1.1 billion of net cash proceeds from the IGT Gaming divestiture to shareholders. Capital Expenditures For the year ended December 31, 2025, capital expenditures are principally composed of: Capital expenditures for 2025 of $316 million principally consisted of $235 million for investments in systems, equipment and other assets related to contracts, including systems and equipment deployed in California, Colorado, Kentucky, and Italy; investments in intangible assets of $53 million primarily in Italy and global iLottery; and investments in property, plant and equipment of $27 million primarily for our global printing operations and equipment required to complete the separation of IGT Gaming. Capital expenditures for 2024 of $149 million principally consisted of $108 million for investments in systems, equipment and other assets related to contracts, including systems and equipment deployed in Georgia, California, and Texas; investments in intangible assets of $21 million; and investments in property, plant and equipment of $20 million. 38 Table of Contents Tabular Disclosure of Cash Requirements At December 31, 2025, the Company’s material cash requirements are as follows: Payments due by period ($ in millions) Total Less than 1 year 1-3 years 3-5 years More than 5 years Long-term debt (1) 4,203 118 1,293 2,043 750 Italy Lotto upfront fee 1,680 1,680 — — — Operating leases (2) 112 30 39 23 20 Total 5,994 1,827 1,331 2,065 770 (1) Long-term debt consists of the principal amount of long-term debt, including current portion, as included in “Notes to the Consolidated Financial Statements—15. Debt” included in “Item 18. Financial Statements.” Certain of the Company’s long-term debt is denominated in euros. (2) Operating leases principally relate to leases for facilities and equipment used in the Company’s business. The amounts presented include the imputed interest to the counterparties. Unconditional Purchase Obligations The Company’s principal commitments consist of unconditional purchase obligations resulting from agreements to purchase goods and services in the ordinary course of business. Unconditional purchase obligations exclude agreements that are cancellable without penalty. As of December 31, 2025, the Company had unconditional purchase obligations of approximately $64 million with various terms of up to eight (8) years. For more information on our unconditional purchase obligations, see “Notes to the Consolidated Financial Statements—18. Commitments and Contingencies” included in “Item 18. Financial Statements.” The Company expects to have sufficient cash flows from the above cited sources to meet the material cash requirements of these commitments as they become settleable in the ordinary course of business. Off-Balance Sheet Arrangements The Company has the following off-balance sheet arrangements: Performance and other bonds Certain contracts require us to provide a surety bond as a guarantee of performance for the benefit of customers and bid and litigation bonds for the benefit of potential customers. These bonds give beneficiaries the right to obtain payment and/or performance from the issuer of the bond if certain specified events occur. In the case of performance bonds, which generally have a term of one year, such events include our failure to perform our obligations under the applicable contract(s). In general, we would only be liable for these guarantees in the event of default in our performance of our obligations under each contract, the probability of which we believe is remote. Letters of Credit The Parent and certain of its subsidiaries obtain letters of credit under the Revolving Credit Facilities and under senior unsecured uncommitted demand credit facilities. These letters of credit secure various obligations, including obligations arising under customer contracts and real estate leases. The following table summarizes the letters of credit outstanding at December 31, 2025 and 2024 and the weighted-average annual cost of such letters of credit: ($ in millions) Letters of Credit Outstanding (1) Weighted- Average Annual Cost December 31, 2025 263 0.71 % December 31, 2024 111 1.06 % (1) There were no letters of credit outstanding under the Revolving Credit Facilities. 39 Table of Contents C. Research and Development, Patents and Licenses, etc. To remain competitive, the Company invests resources toward its R&D efforts to introduce new and innovative products to attract new customers and retain existing customers. The Company’s R&D efforts cover multiple creative and engineering disciplines, including innovative retail solutions, hardware and software development, creative lottery games and game content, and instant ticket printing technology and design. These products are created primarily by employee designers, engineers, and artists, as well as third-party content creators. R&D costs, which principally include employee compensation costs and outside services, are expensed as incurred, with the exception of certain costs incurred in the development of our externally-sold software products, software for services provided to customers, and software for internal use. Once technological feasibility is established, all software development costs are capitalized until the externally-sold software product is available for general release to customers, while software for services provided to customers and software for internal use are capitalized during the application development phase. The Company devotes continued investment in R&D to create new and enhanced lottery products and services, as set forth below: For the year ended December 31, ($ in millions) 2025 2024 2023 Research and development expenses, gross 188 168 161 Amounts charged to customer deliveries or capitalized 142 126 125 Research and development expenses, net 47 43 36 Research and development expenses, gross represented approximately 8% of total revenue in 2025, approximately 7% of total revenue in 2024, and approximately 6% of total revenue in 2023. After attributing research and development expenses to customer deliveries or capital projects, net research and development expenses represented approximately 2% of total revenue in 2025 and 2024, and approximately 1% of total revenue in 2023. The Company expects to continue to make investments in research and development. See “Item 4. Information on the Company — B. Business Overview — Intellectual Property” and “Item 4. Information on the Company — B. Business Overview — Regulatory Framework” for further information on our material intellectual property and licenses. D. Trend Information See “Item 5. Operating and Financial Review and Prospects — A. Operating Results” and “Item 5. Operating and Financial Review and Prospects — B. Liquidity and Capital Resources.” E. Critical Accounting Estimates The Company’s Consolidated Financial Statements are prepared in conformity with GAAP which require the use of estimates, judgments, and assumptions that affect the carrying amount of assets and liabilities and the amounts of income and expenses recognized. The estimates and underlying assumptions are based on information available at the date that the financial statements are prepared, on historical experience, judgments, and assumptions considered to be reasonable and realistic. The Company periodically reviews estimates and assumptions. Actual results for those areas requiring management judgment or estimates may differ from those recorded in the Consolidated Financial Statements due to the occurrence of events and the uncertainties which characterize the assumptions and conditions on which the estimates are based. The areas that require greater subjectivity of management in making estimates and judgments and where a change in such underlying assumptions could have a significant impact on the Company’s Consolidated Financial Statements are fully described in “Notes to the Consolidated Financial Statements—2. Summary of Significant Accounting Policies” included in “Item 18. Financial Statements.” Certain critical accounting estimates are discussed below. Revenue Recognition Application of GAAP related to the measurement and recognition of revenue requires us to make judgments and estimates. Specifically, complex arrangements with nonstandard terms and conditions may require significant contract interpretation to 40 Table of Contents determine the appropriate accounting, including whether promised goods and services specified in an arrangement are distinct performance obligations. Other significant judgments include determining whether the Company is acting as the principal in a transaction and whether separate contracts should be combined and considered part of one arrangement. Revenue recognition is also impacted by our ability to determine when a contract is probable of collection and to estimate variable consideration, including, for example, rebates, volume discounts, service-level penalties, and performance bonuses. We consider various factors when making these judgments, including a review of specific transactions, historical experience, and market and economic conditions. Evaluations are conducted each quarter to assess the adequacy of the estimates. The Company recognized service and product revenues of $2.4 billion and $151 million, respectively, for the year ended December 31, 2025. The Company often enters into contracts with customers that consist of a combination of services and products that are accounted for as one or more distinct performance obligations. Management applies judgment in identifying and evaluating the contractual terms and conditions that impact the identification of performance obligations and the pattern of revenue recognition. The Company’s revenue recognition policy, which requires significant judgments and estimates, is fully described in “Notes to the Consolidated Financial Statements—2. Summary of Significant Accounting Policies” included in “Item 18. Financial Statements.”