Mon, May 12, 8:03 PM (37 days ago)
**Everi Holdings Inc. (EVRI) Q1 2025 Financial Summary** **Financial Health & Performance:** - **Revenue:** $181.3 million, down 4% YoY due to a decline in Games revenues. - **Profit Margins:** Operating income margin decreased to 11% from 13% YoY. - **Net Income:** $3.9 million, down 14% YoY. - **Cash Flow:** Net cash provided by operating activities increased by $287.1 million YoY. **Segment Performance:** - **Games:** Revenues declined by 12% YoY to $85.7 million due to reduced daily win per unit and a decline in the average number of units in the installed base. - **FinTech:** Revenues increased by 4% YoY to $95.6 million, driven by higher kiosk and loyalty unit sales. **Key Metrics & Trends:** - **Daily Win per Unit:** Decreased by 5% YoY. - **Units Sold:** Decreased by 16% YoY. - **Financial Access Transactions:** Increased by 3% YoY. **Uncertainties & Future Operations:** - **Proposed Transaction:** Everi is expected to be acquired by Buyer, a newly formed holding company owned by funds managed by affiliates of Apollo Global Management, in an all-cash transaction. The transaction is subject to regulatory approvals and is expected to close in Q2 or Q3 2025. - **Legal Proceedings:** Everi is involved in various legal proceedings, including complaints related to the proposed transaction. While the company believes these will not have a material adverse impact, litigation is inherently unpredictable. - **Interest Rate Risk:** Everi is exposed to interest rate risk due to its debt obligations and commercial arrangements with third-party vendors. A 100 basis points increase in the target federal funds rate would have a $2.6 million impact on income before tax over a 12-month period. **Management's Outlook:** Everi's management expects that cash provided by operating activities will be sufficient to meet operating and debt servicing needs. However, the proposed transaction and related uncertainties may impact future operations and financial performance.