Everi Holdings 2025 Q1 Earnings Misses Targets as Net Income Falls 13.9%

Everi Holdings (EVRI) reported its fiscal 2025 Q1 earnings on May 12th, 2025. Everi Holdings missed revenue expectations for the quarter, as total revenue declined 4.3% year-over-year to $181.30 million. The company maintained its EPS at $0.05, in line with the previous year's Q1, despite a notable decline in net income. Looking forward, Everi Holdings raised its EPS guidance to $0.11 for the upcoming quarters, indicating a significant year-over-year growth of 120%.

Revenue

Everi Holdings recorded a total revenue of $181.30 million for the first quarter of 2025, reflecting a 4.3% decrease compared to the same period last year. The Games segment generated $85.73 million, while Gaming operations contributed $63.49 million. Revenue from Gaming equipment and systems amounted to $22.23 million. In its FinTech division, Everi Holdings achieved $95.57 million, with Financial access services accounting for $55.45 million, Software and other for $27.29 million, and Hardware for $12.83 million.

Earnings/Net Income

Everi Holdings maintained its EPS at $0.05 in 2025 Q1, consistent with the prior year, although net income decreased by 13.9% to $3.92 million. The EPS performance indicates stability amidst revenue challenges.

Price Action

The stock price of Everi Holdings has moved up slightly, gaining 0.14% during the latest trading day and 0.36% over the most recent full trading week. Month-to-date, the stock has climbed 4.22%, reflecting positive market sentiment despite the earnings miss.

Post Earnings Price Action Review

The strategy of purchasing Everi Holdings shares during a revenue miss and holding for 30 days has historically yielded strong returns, achieving an impressive 183.42% return and a compound annual growth rate (CAGR) of 23.31%. Although the strategy includes a significant maximum drawdown of -78.45%, the Sharpe ratio of 0.41 suggests favorable risk-adjusted results. However, it's important to consider the high volatility rate of 56.40%, which could affect the strategy's performance in turbulent markets. This approach indicates potential opportunities for investors willing to accept the risks associated with market fluctuations.

CEO Commentary

In the recent earnings call, Mr. Randy Taylor, CEO of Everi Holdings, emphasized that the company faced challenges but remains focused on growth drivers such as innovative product offerings and expanding market share. He highlighted the importance of strategic investments in technology to enhance service delivery and operational efficiency. Taylor noted that while the current economic landscape presents obstacles, the leadership team is committed to navigating these challenges through a clear vision and adaptability, maintaining an optimistic outlook on the company's ability to achieve its long-term goals.

Guidance

For the upcoming quarters, Everi Holdings guides to a revenue target of approximately $181.3 million and an EPS of $0.11, reflecting a year-over-year growth of 120%. The company also anticipates continued focus on operational investments to drive future growth, while cautiously addressing market challenges.

Additional News

Recently, Everi Holdings has been involved in significant M&A activity with Apollo Funds, which aims to acquire the company by the end of Q3 2025. This merger has been approved by 71.56% of Everi's stockholders, marking a crucial step towards completion, pending regulatory and gaming approvals. Additionally, the company has showcased its latest FinTech solutions at the Indian Gaming Tradeshow & Convention 2025, highlighting digital transformations and expanded cashless products. Everi Holdings was also recently involved in powering the "PENN Wallet" at M Resort Spa Casino with its CashClub Wallet® technology, marking a notable advancement in its digital offerings.