8-K: Everi Holdings Announces Preliminary Q1 2025 Financial Results Amid Acquisition by Apollo Global Management

Everi Holdings releases preliminary estimates for Q1 2025 financial results, showing a decrease in revenue and adjusted EBITDA compared to the previous year, amidst its pending acquisition by Apollo Global Management.

Summary

• Everi Holdings Inc. has released preliminary estimates of its unaudited financial results for the quarter ended March 31, 2025.
• The company is currently undergoing a proposed transaction where it will be acquired by a newly formed holding company owned by funds managed by Apollo Global Management, Inc.
• For Q1 2025, Everi estimates total revenues between $176 million and $186 million, compared to $189 million in Q1 2024.
• Pro Forma Adjusted EBITDA is estimated to be between $66 million and $72 million, down from $80 million in the same period last year.
• Capital expenditures are expected to be between $30 million and $32 million, a decrease from $43 million in Q1 2024.
• As of March 31, 2025, cash and cash equivalents are estimated at $677 million to $749 million, compared to $749 million as of December 31, 2024.
• Total debt is estimated to be between $904 million and $1 billion as of March 31, 2025.

Sentiment

Score: 4

Explanation: The sentiment is slightly negative due to the decrease in revenue and adjusted EBITDA, despite the ongoing acquisition.

Positives

• The company maintains a substantial cash balance, estimated between $677 million and $749 million as of March 31, 2025.

Negatives

• Total revenues are expected to decrease to between $176 million and $186 million, compared to $189 million in the same period last year.
• Pro Forma Adjusted EBITDA is also expected to decrease to between $66 million and $72 million, down from $80 million in Q1 2024.
• Games total revenues decreased from $97 million to between $83 million and $88 million.
• Settlement liabilities increased from $461 million to between $693 million and $766 million.

Risks

• The preliminary financial results are subject to change upon completion of Everi's financial and accounting review procedures.
• The forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially.
• The company's financial performance could be affected by factors described in its Annual Report on Form 10-K and other filings with the SEC.

Future Outlook

The company does not intend to update or revise any forward-looking statements as the result of new information or future events or developments, except as required by law.

Industry Context

The announcement comes as Everi is in the process of being acquired, reflecting a trend of consolidation in the gaming and financial technology sectors.

Comparison to Industry Standards

• Without specific details on Everi's segment performance (Games vs. FinTech) and profitability margins, it's challenging to provide a detailed comparison.
• However, companies like Aristocrat Leisure and Scientific Games are key competitors in the gaming technology space, and their financial results and growth rates would be relevant benchmarks.
• In the FinTech sector, companies like Global Payments Inc. and FIS provide payment processing solutions for various industries, and their performance metrics could be used for comparison.

Stakeholder Impact

• Shareholders may be impacted by the pending acquisition and the preliminary financial results.
• Employees may experience uncertainty during the transition period related to the acquisition.
• Customers may see changes in products and services as a result of the acquisition.

Key Dates

Keywords

Everi Holdings, financial results, preliminary estimates, Q1 2025, Apollo Global Management, acquisition, revenues, EBITDA, capital expenditures