Accel Entertainment Reports Record Fourth Quarter Results Including 7.5% Revenue Increase and Full-Year Revenue of $1.3 Billion

Accel Entertainment Reports Record Fourth Quarter Results Including 7.5% Revenue Increase and Full-Year Revenue of $1.3 Billion CHICAGO--( BUSINESS WIRE)--Accel Entertainment, Inc. (NYSE: ACEL), a leading locals-focused gaming operator partnering with small businesses, local communities, and state governments to provide entertaining, convenient, and safe gaming experiences nationwide, today announced financial and operating results for the fourth quarter and year ended December 31, 2025.

Highlights:

Accel CEO, Andy Rubenstein, commented, “Accel delivered a strong finish to 2025, highlighted by 7.5% revenue growth and an 18.9% increase in Adjusted EBITDA in the fourth quarter. For the full year, we generated record revenue of $1.3 billion and $210 million in Adjusted EBITDA, reflecting the growth and resilience of our distributed gaming model combined with our disciplined capital deployment. We ended the year supporting more than 4,500 locations and nearly 28,000 gaming terminals, underscoring the scale and durability of our platform.

“In Illinois and Montana, we continue to optimize our footprint and machine base, driving steady hold-per-day improvement and margin expansion. The Illinois rollout of ticket-in, ticket-out technology is progressing as planned and is expected to enhance player convenience and operational efficiency over time. We are excited by the potential to bring our distributed gaming and local entertainment model to the city of Chicago following public announcements regarding the possible introduction of Video Gaming Terminals in licensed locations. We believe we are well positioned to leverage our strong balance sheet, existing fixed operating infrastructure, route management capabilities, and fixed asset base to capitalize on opportunities in a Chicago Video Gaming Terminals market, and we continue to monitor developments as we establish our strategies for maximizing returns from this possible opportunity.

“Across our developing markets, we are seeing meaningful scale and momentum. Nevada terminal count increased 13% year-over-year, supported by recent strategic accretive route expansions, while Louisiana revenue increased approximately 75% compared to the prior year as we execute on our bolt-on acquisition strategy. Nebraska and Georgia also delivered strong growth, demonstrating the continued expansion and increased leverage of our operating platform. At Fairmount Park Casino & Racing, we completed our first full year of operations and continue to see steady customer engagement as the property ramps.

“With the completion of our previously-announced $900 million credit facility, we strengthened our balance sheet, extended maturities to 2030, and enhanced our growth capital flexibility. Reflecting our commitment to shareholder returns and our view that Accel shares remain undervalued, during 2025, we repurchased approximately 3.7 million shares of our common stock, including 1.5 million shares in the fourth quarter.

“Looking ahead, we remain focused on driving steady organic growth, capturing efficiencies at scale, executing accretive tuck-in opportunities, and delivering strong free cash flow. We believe our scalable platform and disciplined capital deployment position us to convert earnings into cash while investing in high-return growth opportunities and returning capital to shareholders.”

Condensed Consolidated Statements of Operations and Other Data

Three Months Ended

December 31,

Twelve Months Ended

December 31,

(in thousands)

2025

2024

2025

2024

Total net revenues

341,446

317,515

1,330,960

1,230,972

Operating income

29,664

20,797

107,851

90,884

Income before income tax expense

22,176

14,563

71,931

53,729

Net income

16,092

8,394

51,272

35,291

Other Financial Data:

Adjusted EBITDA (1)

56,284

47,355

210,148

189,147

(1)

Adjusted EBITDA is a non-GAAP metric. See "Non-GAAP Financial Measures" for a reconciliation to the most directly comparable GAAP metric.

Net Revenues

(in thousands)

Three Months Ended

December 31,

Twelve Months Ended

December 31,

2025

2024

2025

2024

Net revenues by state:

Illinois

245,212

231,278

963,165

906,572

Montana (1)

42,608

41,326

164,323

161,698

Nevada

27,951

27,670

108,884

114,551

Louisiana

9,461

5,445

37,580

5,445

Nebraska

9,622

6,763

33,233

25,384

Georgia

5,660

4,038

19,891

13,209

Other

932

995

3,884

4,113

Total net revenues

341,446

317,515

1,330,960

1,230,972

(1)

Includes $39.1 million and $153.5 million of net gaming revenues and $3.6 million and $10.9 million of manufacturing revenues for the three and twelve months ended December 31, 2025, respectively. In comparison, includes $38.2 million and $149.5 million of net gaming revenues and $3.1 million and $12.2 million of manufacturing revenues for the three and twelve months ended December 31, 2024, respectively.

Gross Margin Percentage

Three Months Ended

December 31,

2025

2024

2023

Gross margin percentage:

Illinois - our regulated split percentage

32.04

32.54

Georgia - our regulated split percentage

43.50

45.00

All other state splits, revenues and fees

30.32

25.30

23.48

Total gross margin percentage (1)

31.72

30.41

30.33

Twelve Months Ended

December 31,

2025

2024

2023

Gross margin percentage:

Illinois - our regulated split percentage

32.04

32.54

Georgia - our regulated split percentage

43.50

45.00

All other state splits, revenues and fees

29.04

24.20

22.81

Total gross margin percentage (1)

31.35

30.17

30.18

(1)

Gross margin percentage represents the percentage of total net revenue remaining after subtracting the cost of revenue and cost of manufacturing goods sold and is not adjusted to exclude or modify amounts recognized under GAAP.

Key Business Metrics

Locations (1)

As of December 31,

Increase / (Decrease)

2025

2024

Change

Change (%)

Illinois

2,705

2,775

(70

)

(2.5

Montana

624

619

0.8

Nevada

408

357

14.3

Louisiana

100

4.2

Nebraska

275

270

1.9

Georgia

389

286

103

36.0

Total locations

4,501

4,403

2.2

Gaming terminals (1)

As of December 31,

Increase / (Decrease)

2025

2024

Change

Change (%)

Illinois

15,534

15,693

(159

)

(1.0

Montana

6,598

6,467

131

2.0

Nevada

2,996

2,650

346

13.1

Louisiana

684

588

16.3

Nebraska

1,019

948

7.5

Georgia

1,119

808

311

38.5

Total gaming terminals

27,950

27,154

796

2.9

(1)

Based on a combination of third-party portal data and data from our internal systems. This metric is utilized by Accel to continually monitor growth from existing locations, organic openings, acquired locations, and competitor conversions.

Location hold-per-day (2)

Three Months Ended

December 31,

Increase / (Decrease)

2025

2024

Change ($)

Change (%)

Illinois

905

868

4.3

Montana

621

614

1.1

Nevada

731

786

(55

)

(7.0

Louisiana

1,011

979

3.3

Nebraska

348

253

37.5

Georgia

155

142

9.2

Twelve Months Ended

December 31,

Increase / (Decrease)

2025

2024

Change ($)

Change (%)

Illinois

894

864

3.5

Montana

617

609

1.3

Nevada

728

823

(95

)

(11.5

Louisiana

979

—

Nebraska

301

241

24.9

Georgia

149

119

25.2

(2)

Location hold-per-day is calculated by dividing net gaming revenue in the period by the average number of locations. We then divide the calculated amount by the number of operational days. We utilize this metric to compare market and location performance on a normalized basis. The percent change in location hold-per-day is the underlying metric used to determine the change in same-store sales.

Condensed Consolidated Statements of Cash Flows Data

Year Ended

December 31,

Increase / (Decrease)

(in thousands)

2025

2024

Change ($)

Change (%)

Net cash provided by operating activities

150,875

121,194

29,681

24.5

Net cash used in investing activities

(100,554

)

(124,151

)

23,597

19.0

Net cash (used in) provided by financing activities

(35,060

)

22,651

(57,711

)

(254.8

Non-GAAP Financial Information

This press release includes certain financial information not prepared in accordance with Generally Accepted Accounting Principles in the United States (“GAAP”), including Adjusted EBITDA and Net debt. Adjusted EBITDA and Net debt are non-GAAP financial measures and are key metrics that Accel’s management uses to monitor ongoing core operations. Accel’s management believes Adjusted EBITDA and Net debt enhance the understanding of Accel’s underlying drivers of profitability and trends in Accel’s business and facilitates company-to-company and period-to-period comparisons because these non-GAAP financial measures exclude the effects of certain non-cash items or nonrecurring items that are unrelated to core operating performance. Accel’s management also believes that these non-GAAP financial measures are used by investors, analysts and other interested parties as measures of Accel’s financial performance and to evaluate Accel’s ability to fund capital expenditures, service debt obligations and meet working capital requirements. The non-GAAP financial measures presented in this press release should be viewed in addition to, and not as an alternative for, financial measures prepared in accordance with GAAP that are also presented in this press release. These measures are not substitutes for their comparable GAAP financial measures and there are limitations to using non-GAAP financial measures. For example, the non-GAAP financial measures presented in this press release may differ from similarly titled non-GAAP financial measures presented by other companies, and other companies may not define these non-GAAP financial measures the same way as Accel does.

Adjusted EBITDA is defined as net income plus:

Net debt is defined as debt, net of current maturities:

Reconciliation of Net income to Adjusted EBITDA

Three Months Ended

December 31,

Twelve Months Ended

December 31,

(in thousands)

2025

2024

2025

2024

Net income

16,092

8,394

51,272

35,291

Adjustments:

Amortization of intangible assets and route and customer acquisition costs

6,424

5,769

25,425

22,577

Stock-based compensation expense

3,821

3,277

12,205

12,204

Loss from unconsolidated affiliates

)

—

(Gain) loss on change in fair value of contingent earnout shares

(636

)

(2,914

)

573

1,276

Gain on expiration of warrants

—

(13

)

—

(13

)

Other expenses, net

2,385

5,719

11,875

19,339

Depreciation and amortization of property and equipment

13,990

11,749

52,725

43,978

Interest expense, net

8,120

9,162

34,198

35,892

Emerging markets

—

165

Income tax expense

6,084

6,169

20,659

18,438

Loss on debt extinguishment

—

1,090

—

Adjusted EBITDA

56,284

47,355

210,148

189,147

Reconciliation of Debt, net of current maturities to Net debt

As of December 31,

(in thousands)

2025

2024

Debt, net of current maturities

569,837

560,936

Plus: Current maturities of debt

37,583

34,443

Less: Cash and cash equivalents

(296,566

)

(281,305

)

Net debt

310,854

314,074

Conference Call

Accel will host a conference call and webcast at 5:00 PM ET / 4:00 PM CT today to review the results. Interested parties may join the live webcast by registering at https://events.q4inc.com/attendee/820426147. Registering in advance of the call will provide listeners with a personalized link to view the webcast and an individual dial-in for the call. This registration link to the live webcast, as well as a replay following the call, will also be available on Accel’s investor relations website: ir.accelentertainment.com.

About Accel

Accel Entertainment, Inc. (NYSE: ACEL) is a growing provider of locals-focused gaming and one of the largest terminal operators in the United States, supporting nearly 28,000 electronic gaming terminals in over 4,500 third-party local and regional establishments and 20 self-operated gaming locations across ten states. Through exclusive long-term contracts, Accel serves licensed non-casino locations including bars, restaurants, convenience stores, truck stops, gaming cafes, and fraternal and veteran establishments. Accel also owns and operates a racino venue.

Accel provides its local partners with a turnkey, full-service, capital-efficient gaming solution that encompasses manufacturing, content, payments, loyalty, 24/7 customer service, data analysis and reporting, and cash logistics. The Company’s racino, Fairmount Park - Casino & Racing, opened in April 2025 and features approximately 260 electronic gaming machines, food and beverage amenities, a sports book, pari-mutuel betting, and approximately 57 racing days planned for 2026.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical fact, contained in this press release are forward-looking statements, including, but not limited to, any statements regarding our ability to continue to drive steady organic growth, capture efficiencies at scale, execute accretive tuck-in opportunities, and deliver strong cash flow, estimates of number of gaming terminals, locations, revenues, and Adjusted EBITDA, the opportunities in distributed gaming and local entertainment within the broader gaming market, including in the city of Chicago, our ability to roll out new technology to enhance player convenience and operational efficiency over time, and our expansion into casino operations and horse racing, including at Fairmount. The words “predict,” “anticipates,” “believes,” “estimates,” “expects,” “intends,” “may,” “plans,” “projects,” “will,” “would,” “continue,” and similar expressions are intended to identify forward-looking statements. These forward-looking statements represent our current reasonable beliefs, expectations and assumptions and involve inherent risks, uncertainties and other factors that may cause our actual results, performance and achievements, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. Important factors that could cause our results and financial condition to differ materially from those indicated in the forward-looking statements include, among others, the following: Accel’s ability to operate in existing markets and to expand into new jurisdictions; Accel’s ability to introduce new and appealing products and services amid uncertain market demand and regulatory outcomes; Accel’s ability to maintain or improve its competitive advantages in a highly competitive industry; Accel’s dependence on with a concentrated network of key manufacturers, developers and third party providers for gaming terminals, amusement machines, and related software, content and technologies; Accel’s heavy dependency on its ability to win, maintain and renew contracts with location partners; Accel's expansion into casino operations and horse racing; decreased discretionary consumer spending due to broader macroeconomic and socio-political conditions; geographical concentration of Accel’s business, which heightens exposure to local or regional conditions; strict government regulations that are constantly evolving and may be amended, repealed, or subject to new interpretations, which may limit existing operations, have an adverse impact on Accel’s ability to grow or may expose Accel to fines or other penalties; Accel’s dependence on the security, integrity and regulatory compliance of products, services and systems offered, which, if breached or disrupted, could expose Accel to liability; Accel’s dependence on the protection of trademarks and other intellectual property; opponents’ efforts to curtail the expansion of legalized gaming; and other risks and uncertainties indicated from time to time in documents filed or to be filed with the U.S. Securities and Exchange Commission (the "SEC") including those described in the section entitled “Risk Factors” in the Annual Report on Form 10-K for the fiscal year ended December 31, 2025 (the "Form 10-K").

Any forward-looking statement made by us in this press release is based only on information currently available to us and speaks only as of the date on which it is made. We are under no obligation to, and expressly disclaim any obligation to, publicly update or alter any forward-looking statement, whether as a result of new information, subsequent events or otherwise, except as required by law.

Industry and Market Data

Unless otherwise indicated, information contained in this press release concerning our industry and the markets in which we operate, including our general expectations and market position, market opportunity, and market size, is based on information from various sources, on assumptions that we have made that are based on those data and other similar sources, and on our knowledge of the markets for our services. This information includes a number of assumptions and limitations, and you are cautioned not to give undue weight to such information. In addition, projections, assumptions, and estimates of our future performance and the future performance of the industry in which we operate are necessarily subject to a high degree of uncertainty and risk due to a variety of factors, including those described in the Form 10-K, as well as Accel's other filings with the SEC. These and other factors could cause results to differ materially from those expressed in the estimates made by third parties and by us.

ACCEL ENTERTAINMENT, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share amounts)

Twelve Months Ended

December 31,

2025

2024

2023

Net revenues:

Net gaming

1,243,471

1,172,777

1,113,573

Amusement

21,685

22,244

23,973

Manufacturing

10,857

12,235

13,353

ATM fees and other

54,947

23,716

19,521

Total net revenues

1,330,960

1,230,972

1,170,420

Operating expenses:

Cost of revenue (exclusive of depreciation and amortization expense shown below)

908,121

852,373

809,524

Cost of manufacturing goods sold (exclusive of depreciation and amortization expense shown below)

5,627

7,100

7,671

General and administrative

219,336

194,721

180,248

Depreciation and amortization of property and equipment

52,725

43,978

37,906

Amortization of intangible assets and route and customer acquisition costs

25,425

22,577

21,211

Other expenses, net

11,875

19,339

6,453

Total operating expenses

1,223,109

1,140,088

1,063,013

Operating income

107,851

90,884

107,407

Interest expense, net

34,198

35,892

33,144

Loss from unconsolidated affiliates

—

Loss on change in fair value of contingent earnout shares

573

1,276

8,539

Gain on expiration of warrants

—

(13

)

—

Loss on debt extinguishment

1,090

—

Income before income tax expense

71,931

53,729

65,724

Income tax expense

20,659

18,438

20,121

Net income

51,272

35,291

45,603

Less: Net (loss) income attributed to redeemable noncontrolling interests

(198

)

—

Net income attributable to Accel Entertainment, Inc.

51,470

35,252

45,603

Earnings per common share:

Basic

0.61

0.42

0.53

Diluted

0.60

0.41

0.53

Weighted average number of common shares outstanding:

Basic

85,020

83,747

85,949

Diluted

86,367

84,977

86,803

ACCEL ENTERTAINMENT, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, except par value and share amounts)

December 31,

2025

2024

Assets

Current assets:

Cash and cash equivalents

296,566

281,305

Accounts receivable, net

14,198

10,550

Prepaid expenses

7,102

8,950

Inventories

8,231

8,122

Income taxes receivable

9,121

1,632

Interest rate caplets

430

6,342

Other current assets

7,386

9,251

Total current assets

343,034

326,152

Property and equipment, net

350,304

307,997

Noncurrent assets:

Route and customer acquisition costs, net

31,147

23,258

Location contracts acquired, net

186,406

202,618

Goodwill

114,426

116,252

Other intangible assets, net

61,034

53,940

Interest rate caplets, net of current

—

479

Other assets

17,042

17,702

Total noncurrent assets

410,055

414,249

Total assets

1,103,393

1,048,398

Liabilities, Temporary equity, and Stockholders’ equity

Current liabilities:

Current maturities of debt

37,583

34,443

Current portion of route and customer acquisition costs payable

2,473

2,197

Accrued location gaming expense

5,516

4,734

Accrued state gaming expense

21,065

19,802

Accounts payable and other accrued expenses

51,028

41,944

Accrued compensation and related expenses

9,946

12,117

Current portion of consideration payable

3,881

3,116

Total current liabilities

131,492

118,353

Long-term liabilities:

Debt, net of current maturities

569,837

560,936

Route and customer acquisition costs payable, less current portion

10,232

7,160

Consideration payable, less current portion

15,790

14,596

Contingent earnout share liability

33,676

33,103

Other long-term liabilities

9,373

7,571

Deferred income tax liability, net

59,230

47,372

Total long-term liabilities

698,138

670,738

Temporary equity - Redeemable noncontrolling interest

4,080

4,278

Stockholders’ equity:

Preferred Stock, par value of $0.0001; 1,000,000 shares authorized; 0 shares issued and outstanding at December 31, 2025 and December 31, 2024

—

Class A-1 Common Stock, par value $0.0001; 250,000,000 shares authorized; 96,250,980 shares issued and 82,287,349 shares outstanding at December 31, 2025; 95,865,026 shares issued and 85,670,255 shares outstanding at December 31, 2024

Additional paid-in capital

229,028

221,625

Treasury stock, at cost

(145,747

)

(105,485

)

Accumulated other comprehensive income

188

4,145

Accumulated earnings

186,206

134,736

Total stockholders' equity

269,683

255,029

Total liabilities, temporary equity, and stockholders' equity

1,103,393

1,048,398