Core Insights - Everi has entered a seven-year agreement with Churchill Downs Incorporated (CDI) to provide a range of FinTech solutions, including CashClub® services, across CDI's gaming properties [1][2] - The partnership aims to enhance financial technology capabilities, improve compliance with Title 31, and optimize operational efficiency for CDI [2] - The collaboration builds on existing relationships, leveraging Everi's BeOn™ Venue Platform and IGT's historical horse racing games [2][3] Company Overview - IGT is a leading global provider of gaming, digital, and financial technology solutions, formed from the merger of International Game Technology PLC's Gaming & Digital Business and Everi Holdings Inc. [4] - IGT's offerings include gaming machines, game content, iGaming, sports betting, cash access, and loyalty solutions, aimed at delivering integrated experiences across various environments [4] - Churchill Downs Incorporated has been a key player in entertainment for over 150 years, known for the Kentucky Derby and expanding into live and historical racing, online wagering, and regional casino gaming [5]

Company Performance - Everi Holdings reported quarterly earnings of $0.04 per share, missing the Zacks Consensus Estimate of $0.11 per share, and down from $0.05 per share a year ago, representing an earnings surprise of -63.64% [1] - The company posted revenues of $181.3 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 0.03%, but down from $189.35 million year-over-year [2] - Over the last four quarters, Everi Holdings has not surpassed consensus EPS estimates and has topped consensus revenue estimates only twice [2] Stock Outlook - Everi Holdings shares have increased by approximately 4.1% since the beginning of the year, contrasting with the S&P 500's decline of -3.8% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The current consensus EPS estimate for the coming quarter is $0.09 on revenues of $184.85 million, and $0.24 on revenues of $743.07 million for the current fiscal year [7] Industry Context - The Business - Services industry, to which Everi Holdings belongs, is currently ranked in the top 18% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact Everi Holdings' stock performance [5] - The estimate revisions trend for Everi Holdings is currently unfavorable, resulting in a Zacks Rank 4 (Sell) for the stock, indicating expected underperformance in the near future [6]

PART I: FINANCIAL INFORMATION [Item 1: Financial Statements](index=4&type=section&id=Item%201%3A%20Financial%20Statements) For the three months ended March 31, 2025, Everi Holdings Inc. reported total revenues of $181.3 million, a 4% decrease year-over-year, primarily driven by a 12% decline in the Games segment, partially offset by a 4% increase in the FinTech segment, with net income at $3.9 million and diluted EPS at $0.04, while cash and cash equivalents significantly increased to $712.5 million, amidst a proposed all-cash acquisition by Voyager Parent, LLC expected to close in mid-2025 Q1 2025 vs Q1 2024 Statement of Operations Highlights (In thousands, except EPS) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | **Total Revenues** | **$181,296** | **$189,346** | | Games Revenues | $85,726 | $97,122 | | FinTech Revenues | $95,570 | $92,224 | | Operating Income | $19,990 | $24,752 | | **Net Income** | **$3,923** | **$4,554** | | Diluted EPS | $0.04 | $0.05 | Balance Sheet Highlights (In thousands) | Metric | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $712,525 | $400,677 | | Total Assets | $2,204,060 | $1,921,909 | | Long-term debt, less current portion | $951,552 | $950,935 | | Total Liabilities | $1,939,860 | $1,665,973 | | Total Stockholders' Equity | $264,200 | $255,936 | Cash Flow Highlights (In thousands) | Metric | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $342,252 | $55,126 | | Net cash used in investing activities | ($30,751) | ($42,676) | | Net cash provided by (used in) financing activities | $512 | ($9,951) | - The company operates through two business segments: **Games** (supplying gaming machines, systems, and content) and **FinTech** (providing financial access, loyalty, and compliance solutions for casinos)[19](index=19&type=chunk)[20](index=20&type=chunk) - On July 26, 2024, Everi entered into a definitive agreement to be acquired by Voyager Parent, LLC in an all-cash transaction at **$14.25 per share**, cross-conditioned with the acquisition of IGT's Gaming & Digital business and subject to regulatory approvals[45](index=45&type=chunk) [Item 2: Management's Discussion and Analysis of Financial Condition and Results of Operations](index=30&type=section&id=Item%202%3A%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes the 4% year-over-year revenue decline to a 12% decrease in the Games segment, caused by a reduction in the installed base and lower daily win per unit, partially offset by a 4% revenue increase in the FinTech segment driven by higher hardware sales and software solutions, while operating expenses decreased by 10% primarily due to reduced transaction costs related to the now-terminated 'Original Proposed Transaction' with IGT, maintaining strong liquidity with a net cash available position of $201.7 million as of March 31, 2025, with cash from operations expected to be sufficient for operating and debt servicing needs - Games revenues decreased by **$11.4 million (12%)** due to a reduction in daily win per unit and a decline in the average number of installed gaming units[119](index=119&type=chunk) - FinTech revenues increased by **$3.3 million (4%)**, primarily from higher sales of kiosks and loyalty units, along with growth in support-related software solutions[120](index=120&type=chunk) - Operating expenses fell by **$7.1 million (10%)**, mainly due to a **$10.6 million reduction** in transaction and related costs compared to the prior year, which included expenses for the original IGT merger proposal[124](index=124&type=chunk) - Depreciation expense increased by **$1.5 million**, including a **$1.0 million charge** from shortening the useful lives of certain end-of-life electronic gaming devices[105](index=105&type=chunk)[126](index=126&type=chunk) Liquidity Position (in thousands) | Metric | At March 31, 2025 | At December 31, 2024 | | :--- | :--- | :--- | | Net cash position | $76,710 | $49,804 | | Undrawn revolving credit facility | $125,000 | $125,000 | | **Net cash available** | **$201,710** | **$174,804** | - Cash flow from operating activities increased significantly to **$342.3 million** from **$55.1 million** in the prior-year period, primarily due to timing differences in settlement activities within the FinTech segment[140](index=140&type=chunk) [Item 3: Quantitative and Qualitative Disclosures About Market Risk](index=44&type=section&id=Item%203%3A%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risks are related to interest rate fluctuations stemming from its variable-rate senior secured term loan and commercial arrangements with third-party cash providers for its ATMs, while foreign currency exchange risk is considered immaterial and no hedges are currently used for interest rate exposure - A **100 basis point increase** in the applicable SOFR would result in an approximate **$5.6 million impact** on annual interest expense for the **$560.5 million Term Loan**[156](index=156&type=chunk) - For the third-party cash funding arrangements (**$258.4 million outstanding**), a **100 basis point increase** in the target federal funds rate would impact pre-tax income by approximately **$2.6 million** over a 12-month period[154](index=154&type=chunk) - The company's **$400 million senior unsecured notes** have a **fixed interest rate of 5.00%** and are not subject to interest rate fluctuation risk[68](index=68&type=chunk)[157](index=157&type=chunk) [Item 4: Controls and Procedures](index=44&type=section&id=Item%204%3A%20Controls%20and%20Procedures) Management, including the CEO and CFO, evaluated the company's disclosure controls and procedures and concluded they were effective as of March 31, 2025, with no material changes in the company's internal control over financial reporting during the quarter - The CEO and CFO concluded that the company's disclosure controls and procedures were **effective** as of the end of the period covered by the report[158](index=158&type=chunk) - No changes occurred during the quarter that have materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting[159](index=159&type=chunk) PART II: OTHER INFORMATION [Item 1: Legal Proceedings](index=45&type=section&id=Item%201%3A%20Legal%20Proceedings) The company is involved in various legal proceedings, including ongoing antitrust litigation with NRT Technology Corp. and a contract dispute with Zenergy Systems, LLC, and following the proposed acquisition, three stockholder complaints were filed alleging omissions in the proxy statement, though one has been dismissed and the others were not served, with the company believing resolution of these claims will not have a material adverse impact - Ongoing litigation includes an antitrust case with NRT Technology Corp. scheduled for trial in **October 2025** and a breach of contract case with Zenergy Systems, LLC set for trial in **June 2025**[72](index=72&type=chunk)[73](index=73&type=chunk) - Three stockholder complaints were filed related to the Proposed Transaction, alleging inadequate disclosures, with one case voluntarily dismissed and the other two never served upon Everi[70](index=70&type=chunk)[146](index=146&type=chunk) [Item 1A: Risk Factors](index=45&type=section&id=Item%201A%3A%20Risk%20Factors) There have been no material changes to the risk factors previously disclosed in the company's most recently filed Annual Report on Form 10-K - The risk factors included in the company's most recently filed Annual Report have not materially changed[161](index=161&type=chunk) [Item 2: Unregistered Sales of Equity Securities and Use of Proceeds](index=45&type=section&id=Item%202%3A%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) There were no unregistered sales of equity securities or use of proceeds to report for the period - None[162](index=162&type=chunk)

Core Viewpoint - Wall Street anticipates a year-over-year increase in earnings for Everi Holdings despite lower revenues, with a focus on how actual results compare to estimates impacting stock price [1][2]. Earnings Expectations - Everi Holdings is expected to report quarterly earnings of $0.11 per share, reflecting a year-over-year increase of +120%, while revenues are projected to be $181.25 million, a decrease of 4.3% from the previous year [3]. Estimate Revisions - The consensus EPS estimate has been revised down by 41.94% over the last 30 days, indicating a reassessment by analysts [4]. Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that the Most Accurate Estimate aligns with the Zacks Consensus Estimate, resulting in an Earnings ESP of 0%, indicating no recent differing analyst views [10][11]. Historical Performance - Everi Holdings has not exceeded consensus EPS estimates in the last four quarters, with a notable -50% surprise in the last reported quarter [12][13]. Investment Considerations - The combination of a 0% Earnings ESP and a Zacks Rank of 4 suggests that Everi Holdings may not be a strong candidate for an earnings beat, highlighting the importance of considering other factors before making investment decisions [11][16].

Core Insights - Everi Holdings Inc. has integrated its CashClub Wallet technology into Penn Entertainment's PENN Wallet at M Resort Spa Casino in Nevada, marking Everi's first mobile wallet installation in the state [1][2] Group 1: Cashless Payment Solutions - The PENN Wallet allows M Resort guests to make cashless payments throughout the gaming floor, leveraging existing loyalty and payment systems [2] - CashClub Wallet enhances patron engagement by providing frictionless, omni-channel payment solutions, which drive additional volume and improve operational efficiencies [3] - The CashClub Wallet is the most widely adopted land-based digital gaming wallet in the U.S., incorporating various funding sources such as PayPal and Apple Pay [4] Group 2: Consumer Trends and Company Strategy - There is a growing consumer preference for self-service capabilities across spending experiences, and Everi aims to enhance casino player engagement through comprehensive mobile funding solutions [5] - Everi's mission is to lead the gaming industry by developing innovative products and services that improve patron engagement and operational efficiency for casino operators [6]

[FORM 8-K Filing Information](index=1&type=section&id=FORM%208-K%20Filing%20Information) This section provides registrant identification, jurisdiction, filing date, and contact details for the Form 8-K [Registrant and Filing Details](index=1&type=section&id=Registrant%20and%20Filing%20Details) Provides basic identification details for the Form 8-K filing, including registrant, jurisdiction, and filing date - Registrant: **Everi Holdings Inc.**[1](index=1&type=chunk) - Jurisdiction of Incorporation: **Delaware**[1](index=1&type=chunk) - Date of Report: **April 29, 2025**[1](index=1&type=chunk) [Securities Registered](index=1&type=section&id=Securities%20Registered) Identifies securities registered under Section 12(b) of the Act, specifically Common Stock traded on the NYSE Securities Registered | Title of each class | Trading Symbol(s) | Name of each exchange on which registered | | :------------------ | :---------------- | :--------------------------------------- | | Common Stock, $0.001 par value | EVRI | New York Stock Exchange | [Item 2.02 Results of Operations and Financial Condition](index=2&type=section&id=Item%202.02%20Results%20of%20Operations%20and%20Financial%20Condition) Discloses preliminary unaudited Q1 2025 financial estimates, explicitly stating their non-filed status for Section 18 liability [Preliminary Financial Estimates Disclosure](index=2&type=section&id=Preliminary%20Financial%20Estimates%20Disclosure) Everi provides preliminary unaudited Q1 2025 financial estimates in Exhibit 99.1, not deemed 'filed' for Section 18 liability - **Everi Holdings Inc.** provided preliminary estimates of unaudited selected financial results as of March 31, 2025, and for the three months ended March 31, 2025[4](index=4&type=chunk) - The preliminary financial results are included in **Exhibit 99.1** to this Current Report on Form 8-K[4](index=4&type=chunk) - The information in Item 2.02 and Exhibit 99.1 is not deemed 'filed' for purposes of Section 18 of the Securities Exchange Act of 1934, limiting liability[5](index=5&type=chunk) [Item 7.01 Regulation FD Disclosure](index=2&type=section&id=Item%207.01%20Regulation%20FD%20Disclosure) Provides Regulation FD disclosure regarding a proposed transaction and the purpose of preliminary financial estimates [Proposed Transaction Overview](index=2&type=section&id=Proposed%20Transaction%20Overview) Reiterates definitive agreements for a Proposed Transaction involving Everi, IGT Gaming & Digital, and Apollo funds - On **July 26, 2024**, Everi entered into definitive agreements for a Proposed Transaction with International Game Technology PLC (IGT) and affiliates of Apollo Global Management, Inc[6](index=6&type=chunk) - The Proposed Transaction involves the simultaneous acquisition of Everi and IGT's Gaming & Digital business by a newly formed holding company (Newco) owned by Apollo-managed funds[6](index=6&type=chunk) [Purpose of Financial Disclosure](index=2&type=section&id=Purpose%20of%20Financial%20Disclosure) Preliminary Q1 2025 financial estimates support financing discussions for the Proposed Transaction, not deemed 'filed' for liability - The preliminary estimates of unaudited selected financial results are being disclosed in connection with the Buyer's anticipated discussions with prospective lenders for financing the Proposed Transaction[7](index=7&type=chunk) - The information in Item 7.01 and Exhibit 99.1 is not deemed 'filed' for purposes of Section 18 of the Exchange Act, limiting liability[8](index=8&type=chunk) [Forward-Looking Statements](index=2&type=section&id=Forward-Looking%20Statements) Provides a cautionary statement regarding forward-looking information, including Q1 2025 estimates, and associated risks [Disclaimer and Risk Factors](index=2&type=section&id=Disclaimer%20and%20Risk%20Factors) Warns that the report contains forward-looking statements with substantial risks and uncertainties, disclaiming update obligations - This Current Report contains forward-looking statements, including Everi's preliminary estimates of unaudited selected financial results for the three months ended **March 31, 2025**[9](index=9&type=chunk) - These forward-looking statements involve substantial risks and uncertainties that could significantly affect financial or operating results and cause actual results to differ materially[9](index=9&type=chunk) - Everi does not intend to update or revise any forward-looking statements as a result of new information or future events, except as required by law[9](index=9&type=chunk) [Item 9.01 Financial Statements and Exhibits](index=3&type=section&id=Item%209.01%20Financial%20Statements%20and%20Exhibits) Lists the exhibits filed with the Form 8-K, including preliminary financial disclosures and interactive data files [Exhibits List](index=3&type=section&id=Exhibits%20List) Lists Exhibit 99.1 (Disclosures with preliminary financial estimates) and Exhibit 104 (Cover Page Interactive Data File) Exhibits to Form 8-K | Exhibit Number | Description | | :------------- | :---------- | | 99.1 | Disclosures | | 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) | [Signatures](index=4&type=section&id=Signatures) Confirms the report's authorization and signature by Everi Holdings Inc.'s Senior Vice President and Chief Accounting Officer [Report Authorization](index=4&type=section&id=Report%20Authorization) Confirms the report's authorization and signature by Everi Holdings Inc.'s Senior Vice President and Chief Accounting Officer - The report was signed on behalf of **Everi Holdings Inc.** by **Todd A. Valli**, Senior Vice President, Chief Accounting Officer[14](index=14&type=chunk) - Date of signature: **April 29, 2025**[14](index=14&type=chunk)

Core Viewpoint - Value investing remains a preferred strategy for identifying strong stocks, utilizing fundamental analysis and traditional valuation metrics to find undervalued stocks in the market [2][3] Company Summary: Everi (EVRI) - Everi currently holds a Zacks Rank of 2 (Buy) and has received an "A" grade in the Value category, indicating it is among the strongest value stocks available [3] - The company's price-to-book (P/B) ratio is 4.66, which is favorable compared to the industry average of 5.71. Over the past 52 weeks, EVRI's P/B ratio has fluctuated between 2.32 and 4.66, with a median of 4.51 [4] - Everi's price-to-cash flow (P/CF) ratio stands at 6.71, significantly lower than the industry average of 17.34. The P/CF ratio has ranged from 2.62 to 6.72 over the past year, with a median of 6.37 [5] - The metrics suggest that Everi is likely undervalued, and its strong earnings outlook positions it as one of the market's strongest value stocks [6]

Core Video Products and Innovations - Everi Holdings Inc. will showcase over 40 diverse games across seven hardware platforms at the IGA 2025, highlighting its commitment to the Native American gaming sector [1][2] - The company will present more than 10 new game themes on its Dynasty Sol™ video portrait cabinet, including titles like Leprechaun Fortunes™ and Fire Lion™ [3][4] FinTech Solutions - Everi's FinTech offerings will focus on mobile engagement and operational efficiency, featuring the BeOn™ Mobile Services Platform and a suite of financial access and loyalty solutions [5][6] - The BeOn™ Casino platform enhances player engagement by extending casino functionalities to mobile devices, integrating gamification, loyalty, and payments [6][8] Cashless Gaming Innovations - Everi's BeOn Pay2Game™ is a cashless payment solution that allows players to deposit funds directly from their bank accounts to slot machines, improving operational efficiency for casino operators [10] - The Vi® mobile gaming solution enables patrons to play popular Class II games beyond the casino floor, integrating Everi Digital games and compliance solutions [11][12] Regulatory Technology (RegTech) - Everi's RegTech solutions assist gaming operators in maintaining compliance with regulatory requirements, including AML compliance, with new integrations to enhance data management [13][15] - The introduction of "Form Manager" will help operators manage the tax form lifecycle, working alongside Everi Compliance and Jackpot Xpress® [14][15] Company Overview - Everi is a leading provider of gaming technology solutions, focusing on enhancing patron engagement and operational efficiency for land-based, iGaming, and bingo operators [16]

Company Performance - Everi Holdings (EVRI) has returned approximately 1.7% since the beginning of the calendar year, outperforming the average loss of 1% in the Business Services sector [4] - The Zacks Consensus Estimate for EVRI's full-year earnings has increased by 2.9% over the past quarter, indicating improved analyst sentiment and a stronger earnings outlook [3] Industry Context - Everi Holdings is part of the Business Services sector, which consists of 290 individual stocks and currently holds a Zacks Sector Rank of 9 [2] - Within the Business - Services industry, which includes 25 companies, Everi Holdings ranks 152 in the Zacks Industry Rank, slightly underperforming its industry average return of 2.9% this year [5] Comparison with Peers - Fluent (FLNT), another stock in the Business Services sector, has returned 2.4% year-to-date and has a consensus EPS estimate that increased by 13.9% over the past three months [4][5] - The Advertising and Marketing industry, to which Fluent belongs, has seen a decline of 8.3% this year, contrasting with the performance of Everi Holdings [6]

Core Viewpoint - The article emphasizes the importance of value investing and highlights Everi (EVRI) as a strong candidate for value investors due to its favorable valuation metrics and earnings outlook [2][3][6]. Valuation Metrics - Everi has a Price-to-Book (P/B) ratio of 4.70, which is attractive compared to the industry average of 5.14. The P/B ratio has fluctuated between 2.32 and 4.73 over the past 52 weeks, with a median of 4.46 [4]. - The Price-to-Cash Flow (P/CF) ratio for Everi is 6.61, significantly lower than the industry average of 13.87. This ratio has ranged from 2.62 to 6.65 in the past year, with a median of 5.75 [5]. Investment Outlook - Everi holds a Zacks Rank of 2 (Buy) and an "A" grade in the Value category, indicating it is among the strongest value stocks currently available in the market [3][6].