In the third quarter of 2023, Everi Holdings, a fintech and gaming specialist, experienced a slowdown in revenue growth in its games segment, citing “near-term headwinds.” The company reported a 1.1% increase in revenue to $206.6m compared to $204.3m in Q3 2022. This represents a significant decrease from the 6% year-on-year revenue increase in the second quarter of this year.

In addition, net income for Q3 fell to $26.6m from $29.4m compared to the same period last year. Adjusted EBITDA for Q3 was relatively flat year-on-year at $96.2m versus $96.6m in 2022.

The decline in revenue growth was primarily attributed to the games segment, which saw a 1% decrease in sales to $111.5m. This decline was driven by an 11.7% decrease in gaming equipment and systems sales, which offset a 4.5% increase in gaming operations-related revenue.

Everi CEO, Randy Taylor, attributed these figures to “lower unit sales and lower daily win per unit” in games. However, over the first nine months of 2023, total games revenues increased from $323.2m to $332.0m year-on-year. Fintech sales also improved from $254.0m to $283.7m, driving an increase in total revenue from $577.2m to $615.8m.

Despite the slowdown in revenue growth, Taylor remains hopeful for a return to growth in the future. Everi has invested in research and development and has a “deep pipeline” of new cabinets and content. The company is introducing its next wave of for-sale and for-lease cabinets, supported by more than 80 new game themes, representing “the most diverse range of gaming content in the company’s history,” according to Taylor.

Looking ahead, Everi updated its outlook for 2023, with net income, earnings per share, and free cash flow expected to be at the lower end of previous guidance ranges. However, the company remains optimistic about its future prospects and the potential for a return to growth next year and beyond.

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