Breaking Down Everi Holdings Inc. (EVRI) Financial Health: Key Insights for Investors

You're looking at Everi Holdings Inc. (EVRI) right now, and honestly, the standard financial analysis is almost secondary to the massive corporate action underway; this isn't a long-term growth story anymore, but a near-term valuation puzzle. The analyst consensus for the full fiscal year 2025 pegs revenue at about $757.8 million and estimated earnings per share (EPS) around $0.24, which tells you the core business remains stable, but not spectacular, especially after the Q1 2025 EPS miss. Still, the real action is the pending acquisition by Apollo Global Management affiliates, which is the defintely the primary driver for the current $1.24 Billion market capitalization. You need to look past the high P/E ratio and the balance sheet's $1.14 billion in debt and focus on the merger terms-that's the clear action-because the stock's performance is now a function of the deal premium and regulatory approval, not just the daily win per unit in their Games segment.

Revenue Analysis

You need to know where the money is actually coming from, especially now that Everi Holdings Inc. (EVRI) has been acquired and taken private. The core takeaway for the 2025 fiscal year is a slight contraction in overall sales, driven by weakness in the Games segment, even as the FinTech side showed resilience.

The company's total TTM (Trailing Twelve Months) revenue as of November 2025 stood at $0.74 Billion USD. Here's the quick math: this represents a modest year-over-year decline of -1.06% from the 2024 fiscal year revenue of $0.75 Billion USD. That deceleration is a key signal-it tells you the growth engine was sputtering right before the acquisition closed.

The revenue structure is split into two primary, nearly equal segments: Games and Financial Technology Solutions (FinTech). The divergence in their Q1 2025 performance is what you need to focus on, as it maps the near-term risk. Total revenues for Q1 2025 were $181.3 million, a 4% decrease from the prior year's quarter.

The FinTech segment is defintely the bright spot. Its $95.6 million in Q1 2025 revenue grew 4% year-over-year, largely driven by higher hardware sales and a 6% rise in software revenue. This segment is all about facilitating cash access and digital payments for casinos.

• FinTech: Cash access services (ATMs, POS debit), kiosk hardware sales, and the digital wallet platform (CashClub Wallet®).
• Games: Leased gaming equipment (measured by daily win per unit, which was down 5% in Q1 2025), gaming machine sales (slot machines), and premium gaming content.

The Games segment is where the risk was concentrated, with revenue falling to $85.7 million in Q1 2025, a steep 12% decline year-over-year. This drop was due to an 8% reduction in the installed gaming unit base and that lower daily win per unit. You were seeing a clear slowdown in their physical machine business just as the acquisition was pending.

The most significant change in the revenue stream isn't a product shift, but the company's entire status. Everi Holdings Inc. was delisted on July 1, 2025, after being acquired by Apollo Global Management affiliates for $14.25 per share. This transaction fundamentally changes the investment thesis from a public equity play to a private equity integration story, merging Everi's assets with IGT's gaming and digital businesses. For a deeper dive into the valuation that led to this price, check out Breaking Down Everi Holdings Inc. (EVRI) Financial Health: Key Insights for Investors.

Profitability Metrics

You need to know if Everi Holdings Inc. (EVRI) is making money efficiently, especially given its dual focus on financial technology (fintech) and gaming. The short answer is yes, it's profitable, but those profits are thin compared to the broader financial services industry, and they've been under pressure recently. The Trailing Twelve Months (TTM) data ending around mid-2025 shows a net profit margin of only 3.89%.

Here's the quick math for the TTM period, which gives us the clearest picture of the 2025 fiscal year performance. With revenue at $667.26 million, the company generated a net income of $25.93 million. That's a tight conversion from sales to bottom-line profit, and it points directly to operational costs as the primary concern for investors.

The core profitability metrics for Everi Holdings Inc. (EVRI) are laid out clearly below. This shows how much of each revenue dollar is left after covering different cost layers.

Operational Efficiency and Cost Management

The drop from a 20.42% Gross Margin to a 6.81% Operating Margin is the first red flag for operational efficiency. This 13.61 percentage point gap is eaten up by selling, general, and administrative (SG&A) expenses and research and development (R&D) costs. While R&D is necessary for a technology company like Everi Holdings Inc., the sheer size of operating expenses suggests a need for tighter cost management, defintely in the Games segment, which has faced headwinds.

The further decline to a 3.89% Net Margin shows that interest expense and taxes take another significant bite out of profit. The company carries substantial debt-over $1.14 billion-so interest expense is a constant drag on the net income line. This is a structural issue that limits its ability to retain earnings and reinvest or return capital to shareholders.

• Gross Margin: Solid at 20.42%, showing good pricing power over cost of revenue.
• Operating Margin: Weak at 6.81%, indicating high overhead costs.
• Net Margin: Very thin at 3.89%, heavily impacted by debt service.

Profitability Trends and Industry Comparison

In terms of trends, the picture is mixed and requires a realist's view. While the Gross Profit has a strong 10-year Compound Annual Growth Rate (CAGR) of 12%, the more recent one-year trend shows a decline of -8%, which aligns with recent revenue pressures. More critically, the company's Net Income for the 2024 fiscal year was $15.0 million, an 82% decrease from the prior year, driven by increased operating expenses and transaction costs related to a pending acquisition. That's a massive profitability swing you cannot ignore.

When you compare Everi Holdings Inc.'s 3.89% Net Margin to its peers, the competitive pressure is clear. The broader financial services industry averages a Net Profit Margin closer to 18%. Even within the gaming and leisure sector, Everi Holdings Inc. is on the lower end, though it's not the worst:

• Everi Holdings Inc. (EVRI): 3.89% Net Margin
• Las Vegas Sands Corp. (LVS): 13% Net Margin
• Aristocrat Leisure Ltd. (ALL): 25% Net Margin
• DraftKings Inc. (DKNG): -6% Net Margin

The low margin means Everi Holdings Inc. has very little cushion against market volatility or unexpected costs. To improve this, management must either increase prices (not easy in the competitive gaming world) or, more likely, aggressively tackle the operating and interest expenses. For more on the company's strategic direction, you should review the Mission Statement, Vision, & Core Values of Everi Holdings Inc. (EVRI).

Debt vs. Equity Structure

If you look at how Everi Holdings Inc. (EVRI) was financing its operations right before the July 2025 acquisition, the picture is one of significant financial leverage. This isn't necessarily a red flag for a growth-focused company in a capital-intensive sector, but it defintely warrants a closer look.

The company's total debt, as measured in the trailing twelve months leading up to the delisting, stood at approximately $1.14 billion, with a cash position of only about $85.63 million. This heavy reliance on debt is reflected starkly in the Debt-to-Equity (D/E) ratio, which is a key measure of a company's financial leverage.

Here's the quick math on their capital structure:

• Debt-to-Equity Ratio: Everi Holdings Inc.'s D/E ratio was 3.48.
• Industry Comparison: This is substantially higher than the average D/E ratio for the broader Casinos & Gaming industry, which sits around 2.111.
• Leverage Target: Historically, the company aimed for a prudent long-term total net debt leverage target of roughly 2.5-to-3.0 times Adjusted EBITDA, suggesting the 3.48 ratio pushed the upper boundary of their comfort zone.

A ratio of 3.48 means that for every dollar of shareholder equity, the company had nearly $3.48 in debt. This shows that debt financing was the primary engine for funding assets and growth, a common strategy to boost Return on Equity (ROE) but one that also amplifies risk. You need to be comfortable with that level of financial risk when assessing a company like this.

The debt structure itself was primarily long-term. As of late 2023, the long-term debt (less current portion) was approximately $968.465 million. The company had a mix of a term loan and senior unsecured notes, a structure that was completely reshaped in 2025.

The most critical debt action in 2025 was the cleanup associated with the merger. On July 1, 2025, Everi Holdings Inc. repaid all outstanding indebtedness under its existing credit agreement. Crucially, it also initiated the full redemption of its 5.000% Senior Unsecured Notes due 2029 at a price of 101.250% of the principal amount, plus accrued interest. This action effectively wiped the slate clean on a significant portion of the company's long-term financing, translating the high pre-acquisition leverage into a de-risked balance sheet for the new combined entity.

The shift from a highly leveraged public company to a debt-free or newly-leveraged private entity is a classic move in a merger. It's the ultimate debt-to-equity rebalancing, replacing public equity with private capital and a new debt package. For more detail on the overall financial picture, check out the full post at Breaking Down Everi Holdings Inc. (EVRI) Financial Health: Key Insights for Investors.

Liquidity and Solvency

You need to know if Everi Holdings Inc. (EVRI) can cover its immediate bills, especially with the pending merger. The quick answer is that its liquidity is tight but supported by very strong cash flow generation, which is the real story here.

The company's near-term solvency, or its ability to meet short-term obligations, sits right on the edge. As of the trailing twelve months (TTM) ending November 2025, Everi Holdings Inc.'s Current Ratio is a tight 1.08. This means for every dollar of current liabilities (bills due within a year), the company has only $1.08 in current assets to cover it. Honestly, you want to see a Current Ratio closer to 1.5 or 2.0 for a comfortable cushion.

When you strip out inventory-which can be hard to liquidate quickly-the picture gets even tighter. The Quick Ratio is a low 0.19. That's a red flag on paper, suggesting the company relies heavily on selling inventory or generating new cash to pay its most immediate debts, but this is typical for a FinTech/Gaming company with high cash access volume. What this estimate hides, however, is the velocity of their cash generation.

Working Capital and Cash Flow Dynamics

Working capital (Current Assets minus Current Liabilities) is technically positive given the 1.08 Current Ratio, but it's minimal. The trend shows a business that operates with an efficient, but very lean, working capital structure. The real strength comes from the cash flow statement, which is defintely where a financial analyst should focus for Everi Holdings Inc. (EVRI).

The company's core business is a cash machine. Here's the quick math on their cash flow trends, which is the true measure of their liquidity strength:

• Operating Cash Flow (OCF): Net cash from continuing operating activities was a robust $342.3 million in Q1 2025 alone. This illustrates strong core cash generation.
• Free Cash Flow (FCF): Over the last twelve months, FCF was approximately $23.39 million, after accounting for capital expenditures (CapEx) of about $7.96 million.
• Cash & Equivalents: Cash on the balance sheet stood at about $712.5 million in Q1 2025, a strong near-term liquidity signal.

This OCF strength is critical. It means that while the balance sheet ratios are tight, the company is constantly replenishing its cash reserves from operations. They don't need a huge working capital buffer if cash is flowing in that fast. For a deeper dive into the valuation, check out Breaking Down Everi Holdings Inc. (EVRI) Financial Health: Key Insights for Investors.

Investing and Financing Cash Flow Overview

On the investing side, the negative cash flow is primarily due to CapEx-investing in new gaming machines and technology, which is healthy. The financing cash flow is dominated by their high leverage; the company maintains a long-term debt load in the neighborhood of roughly $0.95 billion. This high leverage is a significant solvency concern, even with strong cash flow. Their continued focus on debt reduction is essential for enhancing investor confidence, especially with the proposed acquisition by Apollo Global Management affiliates on the horizon.

The liquidity position is a classic case of strong cash flow offsetting a weak balance sheet ratio. The risk isn't immediate bankruptcy; the risk is the high debt load and the potential impact of the merger on future cash flow stability. Your next step is to model a stress test on their operating cash flow, assuming a 15% drop in casino foot traffic, to see how that $0.95 billion debt is affected.

Valuation Analysis

You're looking at Everi Holdings Inc. (EVRI) and wondering if the market has gotten ahead of itself, especially after a strong run. The quick answer is that Everi Holdings Inc. is priced for growth, not value, which puts it in a neutral-to-overvalued position based on traditional metrics, but analysts are currently calling a Hold on the stock.

The stock has seen a significant surge, climbing by a remarkable +76.33% over the past 365 days, closing recently at around $14.23 per share. This kind of momentum is great, but it pushes valuation multiples higher, which means you need to be defintely cautious about future earnings keeping pace. The market is betting heavily on the company's Financial Technology Solutions (FinTech) and Games segments to deliver outsized returns. Breaking Down Everi Holdings Inc. (EVRI) Financial Health: Key Insights for Investors will give you the full picture on their operations, but let's dive into the numbers.

Here's the quick math on the core valuation multiples as of late 2025, which tell a story of high expectations:

• Price-to-Earnings (P/E) Ratio: The trailing twelve-month (TTM) P/E ratio stands at a high 89.01. This is significantly elevated compared to the broader market and suggests investors are willing to pay almost 90 times the company's past year's earnings.
• Price-to-Book (P/B) Ratio: The TTM P/B is 4.68. This means the stock trades at almost five times its net asset value, which is common for a technology-driven company like Everi Holdings Inc., but still signals a premium price.
• Enterprise Value-to-EBITDA (EV/EBITDA): This ratio, which factors in debt, is a more reasonable 5.8x TTM. This is the one metric that suggests the company is not wildly overvalued, especially when considering its debt-heavy structure from growth acquisitions.

What this estimate hides is the potential impact of the company's strong cash flow generation, which the EV/EBITDA ratio captures better than the P/E ratio. The high P/E is a red flag, but the low EV/EBITDA suggests the market is pricing in the company's ability to service its debt and generate earnings before interest, taxes, depreciation, and amortization (EBITDA). Honestly, the valuation is a mixed bag, leaning toward overvalued on a pure earnings basis.

When we look at the analyst community, the consensus is squarely in the middle. Of the analysts covering Everi Holdings Inc., the average recommendation is a Hold. This neutral stance reflects the tension between the stock's strong recent performance and its stretched P/E multiple. The average 12-month price target is $14.47, which offers only a minimal upside from the current trading price. The lack of a dividend means this isn't a stock for income investors; the expected dividend for the coming 12 months is $0 USD, with a dividend yield of N/A.

Here is a summary of the key valuation metrics for Everi Holdings Inc. (EVRI) as of late 2025:

Your next step should be to look closely at the company's debt-to-equity ratio and free cash flow generation to see if the 5.8x EV/EBITDA is truly the more accurate measure of value. The high P/E is a warning sign; the low EV/EBITDA is an opportunity if the growth thesis holds.

Risk Factors

You need to understand that for Everi Holdings Inc. (EVRI) investors, the primary risk right now is not a slow market, but the binary outcome of the proposed acquisition. The largest near-term risk is the deal itself.

The strategic plan is clear: EVRI and International Game Technology PLC's (IGT) Gaming & Digital business are set to be acquired by affiliates of Apollo Global Management, with the deal expected to close by the end of the third quarter of 2025. The good news is that if the transaction closes, stockholders are slated to receive $14.25 per share in cash. But if the deal fails to close due to regulatory hurdles or financing issues, the stock's valuation will likely fall back to pre-announcement levels, which is a defintely material risk.

Operational and Financial Headwinds

Even setting the merger aside, the company faces internal operational and external financial pressures. The Games segment, which is a core revenue driver, continues to struggle with a slower-than-expected transition to its new cabinet family and content. This operational lag is a key reason why the company's Q1 2025 earnings per share (EPS) came in at only $0.04, a significant miss against the consensus estimate of $0.11, representing a -63.64% surprise.

The financial structure also presents a clear risk. Everi Holdings Inc. operates with a high debt load. The company's total debt stands at approximately $1.14 billion, resulting in a high Debt-to-Equity ratio of 3.48. This high leverage limits financial flexibility, especially when combined with a low current ratio of 0.80, which shows limited short-term liquidity. For the full fiscal year 2025, analysts project average revenue of $757.8 million and Adjusted EBITDA of $346.9 million, meaning debt servicing remains a constant priority.

• High Debt: $1.14 billion total debt.
• Low Liquidity: Current Ratio of 0.80.
• Games Segment: Slower customer adoption of new cabinets.

External and Competitive Risks

The business environment for gaming technology is highly competitive and heavily regulated. Everi Holdings Inc. must constantly innovate its FinTech solutions and gaming content to stay ahead of rivals. Plus, any change in casino patron discretionary spending-driven by broader economic factors like inflation or interest rate hikes-directly impacts the transaction volume in their high-margin financial access services.

Mitigation, in this case, is mostly about the merger. The strategic move to combine with IGT's gaming and digital assets is the ultimate mitigation strategy, creating a larger, more diversified entity with an enterprise value of around $6.2 billion at the time of the announcement. If you want to dive deeper into the players betting on this outcome, you should check out Exploring Everi Holdings Inc. (EVRI) Investor Profile: Who's Buying and Why?

Here's the quick math on the pre-merger financial position versus the analyst outlook:

The biggest limit to this estimate is the merger's expected Q3 2025 closing date; once that happens, all EVRI-specific financial forecasts become irrelevant to the common stock holder.

Growth Opportunities

You're looking for the future growth trajectory of Everi Holdings Inc. (EVRI), but the most critical near-term action has already happened: the company was acquired and delisted. The future growth story for the former Everi products and segments is now deeply integrated into the new, privately-held global gaming leader formed by Apollo Funds, which completed the $6.3 billion acquisition of Everi and International Game Technology PLC's (IGT) Gaming & Digital Business on July 1, 2025.

For investors who held shares until the delisting, the outcome was a concrete cash exit of $14.25 per share. For the business itself, this merger is the single biggest growth driver, creating a comprehensive 'one-stop shop' for casino operators that combines Everi's strong Financial Technology (FinTech) segment with IGT's extensive Gaming and Digital portfolio.

Here's the quick math on the pre-acquisition financial health that drove this value: Everi's first quarter of 2025 saw revenues of $181.3 million, which set the stage for a full-year 2025 consensus revenue estimate of $743.07 million before the deal closed. The FinTech business, in particular, is a competitive advantage, processing a massive volume of cash access transactions and offering crucial regulatory compliance tools.

The growth prospects for the combined Everi/IGT entity are now focused on three clear areas:

• FinTech Dominance: Expanding the high-margin financial access and software services.
• Digital Innovation: Launching new games and platforms for both land-based and digital casinos.
• Geographic Expansion: Entering new markets like Australia and placing Video Lottery Terminals (VLTs).

The strategic initiatives already underway in the second half of 2025 illustrate this focus. In October 2025, the FinTech segment secured a seven-year strategic relationship with Churchill Downs Incorporated (CDI) to deploy its CashClub® services and Everi Compliance anti-money laundering (AML) technology across CDI's venues. This is a concrete example of how the FinTech segment is leveraging its innovative cashless products and mobile engagement tools like the BeOn™ Mobile Services Platform to drive future revenue.

On the product innovation front, the Games segment is pushing out a robust lineup of new content. At the Indian Gaming Tradeshow and Convention in April 2025, Everi showcased over 40 diverse games across seven hardware platforms, including more than 10 fresh new themes like Leprechaun Fortunes™. This constant refresh of content is essential to maintaining the recurring revenue stream from their installed base of gaming machines. What this estimate hides, however, is the full synergy value of combining Everi's content with IGT's global distribution network, which is the real long-term opportunity for the new private owner. You can dive deeper into the valuation and risks of the former public company in this analysis: Breaking Down Everi Holdings Inc. (EVRI) Financial Health: Key Insights for Investors.