Everi (EVRI) Stock Forecast & Price Target

Everi Holdings Inc demonstrated strong growth in its financial access services, with a notable 10% increase in funds delivered to casino floors, reaching a record $11.9 billion, supported by a 12% rise in the number of transactions. The company's cashless transaction volume surged by 51% year-over-year, while the overall shift towards cashless gaming presents a significant revenue growth opportunity for Everi as it remains early in this trend, representing less than 5% of funding transactions. Additionally, the firm reported revenue of $95 million for the quarter, reflecting a modest 3% year-over-year increase and improved margins, further supporting a positive outlook for its financial performance across both Games and Financial Technology segments.

Everi Holdings Inc has experienced a series of negative financial indicators, including a 2% decline in EBITDA amid weaker game sales and a third consecutive quarter of reduction in its installed gaming units, totaling a drop of 136 units. The company's guidance has been lowered, projecting a net income of approximately $98 million, which represents a 4% decrease from prior estimates, alongside adjusted net revenues approximately 1%-3% below expectations and consolidated EBITDA margins declining by 285 basis points year-over-year. Additionally, persistent decreases in margins, attributed to rising labor costs, and a notable decline in both the installed base and revenue per unit per day further underscore the financial challenges Everi is facing, leading to a negative outlook on its stock performance.