Accel Entertainment Reports Third Quarter Results Highlighted by Strong Revenue and Earnings Growth

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 third quarter ended September 30, 2025.

Highlights:

Accel CEO Andy Rubenstein commented,

“Accel delivered strong results again this quarter, highlighted by 9.1% revenue growth and an 11.5% increase in Adjusted EBITDA. These results reflect our consistent execution and expansion across our markets and once again demonstrate the strength and resilience of our distributed gaming model and return-focused approach to growth.

“In the Illinois and Montana markets, which represent the majority of our revenue, we continue to build on our leading positions and leverage our scale to drive efficiencies, optimize location mix, and expand margins. In Illinois, our growth reflects further in-market expansion and the continued success from our efforts to optimize our portfolio. The roll out of ticket-in, ticket-out functionality is progressing as planned and will enhance player convenience and streamline operations.

“Across our developing markets – Nebraska, Georgia, and Nevada – we’re building scale and continue our profitability growth in these markets, while our newer markets, including Louisiana and Fairmount Park Casino & Racing in Illinois, continue to ramp and contribute to consolidated growth. Louisiana market performance continues to scale, reflecting our long-term belief in this market and our ability to grow through bolt-on acquisitions. At Fairmount Park, early results support our long-term confidence in this property’s contribution through the racino, food and beverage, and our sports betting partnership with FanDuel.

“With the completion of our new credit facility, we’ve strengthened our balance sheet, lowered our cost of capital, and extended our maturities to 2030. This new credit facility better positions Accel for continued growth investments and shareholder returns.

“Looking ahead, we see meaningful opportunities from the ongoing ramp of Fairmount Park, the continued expansion of the Louisiana market, and the potential for distributed gaming growth in new states and markets. We remain focused on disciplined execution, operational excellence, and our commitment to deliver long-term value for our shareholders.”

Condensed Consolidated Statements of Operations and Other Data

Three Months Ended

September 30,

Nine Months Ended

September 30,

(in thousands)

2025

2024

2025

2024

Total net revenues

329,693

302,227

989,514

913,457

Operating income

25,361

21,845

78,187

70,087

Income before income tax expense

17,797

8,464

49,755

39,166

Net income

13,305

4,895

35,180

26,897

Other Financial Data:

Adjusted EBITDA (1)

51,170

45,879

153,864

141,792

(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

September 30,

Nine Months Ended

September 30,

2025

2024

2025

2024

Net revenues by state:

Illinois

239,041

223,338

717,954

675,294

Montana (1)

40,471

39,648

121,715

120,372

Nevada

26,238

28,350

80,933

86,881

Louisiana

9,465

—

28,119

—

Nebraska

8,501

6,538

23,612

18,621

Georgia

5,092

3,410

14,231

9,171

Other

885

943

2,950

3,118

Total net revenues

329,693

302,227

989,514

913,457

(1)

Includes $38.8 million and $114.4 million of net gaming revenues and $1.7 million and $7.3 million of manufacturing revenues for the three and nine months ended September 30, 2025, respectively. In comparison, includes $37.9 million and $111.3 million of net gaming revenues and $1.7 million and $9.1 million of manufacturing revenues for the three and nine months ended September 30, 2024, respectively.

Key Business Metrics

Locations (1)

As of September 30,

Increase / (Decrease)

2025

2024

Change

Change (%)

Illinois

2,728

2,791

(63

)

(2.3

Montana

625

615

1.6

Nevada

370

356

3.9

Louisiana

—

N/A

Nebraska

276

252

9.5

Georgia

356

275

29.5

Total locations

4,451

4,289

162

3.8

Gaming terminals (1)

As of September 30,

Increase / (Decrease)

2025

2024

Change

Change (%)

Illinois

15,641

15,714

(73

)

(0.5

Montana

6,628

6,448

180

2.8

Nevada

2,757

2,685

2.7

Louisiana

670

—

670

N/A

Nebraska

991

882

109

12.4

Georgia

1,027

780

247

31.7

Total gaming terminals

27,714

26,509

1,205

4.5

(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

September 30,

Increase / (Decrease)

2025

2024

Change ($)

Change (%)

Illinois

876

839

4.4

Montana

621

613

1.3

Nevada

734

802

(68

)

(8.5

Louisiana

977

—

977

N/A

Nebraska

307

257

19.5

Georgia

146

121

20.7

Nine Months Ended

September 30,

Increase / (Decrease)

2025

2024

Change ($)

Change (%)

Illinois

888

859

3.4

Montana

614

608

1.0

Nevada

761

835

(74

)

(8.9

Louisiana

988

—

988

N/A

Nebraska

284

244

16.4

Georgia

148

111

33.3

(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

September 30,

Increase / (Decrease)

(in thousands)

2025

2024

Change ($)

Change (%)

Net cash provided by operating activities

119,795

107,666

12,129

11.3

Net cash used in investing activities

(80,697

)

(90,225

)

9,528

10.6

Net cash used in financing activities

(30,168

)

(13,967

)

(16,201

)

(116.0

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 used 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 to more fully assess Accel’s financial performance. 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

September 30,

Nine Months Ended

September 30,

(in thousands)

2025

2024

2025

2024

Net income

13,305

4,895

35,180

26,897

Adjustments:

Amortization of intangible assets and route and customer acquisition costs

6,389

5,781

19,001

16,808

Stock-based compensation expense

3,504

3,342

8,384

8,927

Loss from unconsolidated affiliates

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

(2,170

)

4,216

1,209

4,190

Other expenses, net

2,577

3,867

9,490

13,620

Depreciation and amortization of property and equipment

13,339

11,001

38,735

32,229

Interest expense, net

8,622

9,164

26,078

26,730

Emerging markets

—

121

Income tax expense

4,492

3,569

14,575

12,269

Loss on debt extinguishment

1,090

—

1,090

—

Adjusted EBITDA

51,170

45,879

153,864

141,792

Reconciliation of Debt, net of current maturities to Net debt

As of September 30,

(in thousands)

2025

2024

Debt, net of current maturities

565,075

525,572

Plus: Current maturities of debt

30,333

28,490

Less: Cash and cash equivalents

(290,235

)

(265,085

)

Net debt

305,173

288,977

Conference Call

Accel will host an investor conference call on November 4, 2025 at 4:00 p.m. Central time (5:00 p.m. Eastern time) to discuss these financial and operating results. Interested parties may join the live webcast by registering at https://www.netroadshow.com/events/login/LE9zwo3jqZ8OuqAGdgQdWs2muo6OtdVXI0d. 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 more than 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 over 270 electronic gaming machines, food and beverage amenities, a sports book, para-mutuel betting and 55 days of scheduled thoroughbred horse racing a year.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. 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 estimates of number of gaming terminals, locations, revenues, and Adjusted EBITDA, our ability to continue to generate strong and consistent revenue and returns on capital and improve profitability, the opportunities in local gaming within the broader gaming market, and our expansion into casino operations and horse racing, including at Fairmount. The words “predict,” “estimated,” “anticipates,” “believes,” “estimates,” “expects,” “intends,” “may,” “plans,” “projects,” “will,” “would,” “continue,” and similar expressions or the negatives thereof are intended to identify forward-looking statements. These forward-looking statements represent our current reasonable expectations and involve known and unknown 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. We cannot guarantee the accuracy of the forward-looking statements, and you should be aware that results and events could differ materially and adversely from those contained in the forward-looking statements due to a number of factors including, but not limited to: the significant variability and unpredictability in Accel’s operating results; Accel’s ability to offer new and innovative products and services that fulfill the needs of location partners and create strong and sustained player appeal; Accel’s dependence on relationships with key manufacturers, developers and third parties to obtain gaming terminals, amusement machines, and related supplies, programs, and technologies for its business on acceptable terms; the negative impact on Accel’s future results of operations by slow growth in demand for gaming terminals and by the slow growth of new gaming jurisdictions and related regulations; 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; unfavorable adverse economic conditions or decreased discretionary spending due to other factors such as terrorist activity or threat thereof, epidemics, pandemics or other public health issues, civil unrest or other economic or political uncertainties that could impact Accel’s business; Accel’s ability to operate in existing markets or expand into new jurisdictions; the geographical concentration of Accel’s business, which subjects it to greater risks from changes in local or regional conditions; Accel’s ability to maintain or improve its competitive advantages in a highly competitive industry; 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 protection of trademarks and other intellectual property; opponents’ persistence in efforts to curtail the expansion of legalized gaming; Accel’s dependence on the security and integrity of the systems and products offered, which, if breached or disrupted, could expose Accel to liability; 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, 2024 (the "Form 10-K").

Accordingly, forward-looking statements, including any projections or analysis, should not be viewed as factual and should not be relied upon as an accurate prediction of future results. 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, update or alter our forward-looking statements, whether as a result of new information, subsequent events or otherwise, except as required by law. In addition, the inclusion of any statement in this press release does not constitute an admission by us that the events or circumstances described in such statement are material. We qualify all of our forward-looking statements by these cautionary statements.

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 (Unaudited)

(In thousands, except per share amounts)

Three Months Ended

September 30,

Nine Months Ended

September 30,

2025

2024

2025

2024

Net revenues:

Net gaming

308,481

289,923

924,351

871,300

Amusement

4,977

5,104

16,402

16,772

Manufacturing

1,678

1,705

7,299

9,122

ATM fees and other

14,557

5,495

41,462

16,263

Total net revenues

329,693

302,227

989,514

913,457

Operating expenses:

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

225,511

210,841

676,741

633,325

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

916

962

3,878

5,283

General and administrative

55,600

47,930

163,482

142,105

Depreciation and amortization of property and equipment

13,339

11,001

38,735

32,229

Amortization of intangible assets and route and customer acquisition costs

6,389

5,781

19,001

16,808

Other expenses, net

2,577

3,867

9,490

13,620

Total operating expenses

304,332

280,382

911,327

843,370

Operating income

25,361

21,845

78,187

70,087

Interest expense, net

8,622

9,164

26,078

26,730

Loss from unconsolidated affiliates

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

(2,170

)

4,216

1,209

4,190

Loss on debt extinguishment

1,090

—

1,090

—

Income before income tax expense

17,797

8,464

49,755

39,166

Income tax expense

4,492

3,569

14,575

12,269

Net income

13,305

4,895

35,180

26,897

Less: Net loss attributed to redeemable noncontrolling interests

(59

)

—

(138

)

—

Net income attributable to Accel Entertainment, Inc.

13,364

4,895

35,318

26,897

Earnings per common share:

Basic

0.16

0.06

0.41

0.32

Diluted

0.16

0.06

0.41

0.32

Weighted average number of common shares outstanding:

Basic

84,719

82,952

85,289

83,718

Diluted

86,087

84,322

86,563

84,890

ACCEL ENTERTAINMENT, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)

(In thousands, except par value and share amounts)

September 30,

December 31,

2025

2024

Assets

Current assets:

Cash and cash equivalents

290,235

281,305

Accounts receivable, net

8,656

10,550

Prepaid expenses

8,033

8,950

Inventories

9,556

8,122

Income taxes receivable

7,744

1,632

Interest rate caplets

1,943

6,342

Other current assets

7,458

9,251

Total current assets

333,625

326,152

Property and equipment, net

340,683

307,997

Noncurrent assets:

Route and customer acquisition costs, net

29,655

23,258

Location contracts acquired, net

187,641

202,618

Goodwill

114,245

116,252

Other intangible assets, net

61,620

53,940

Other assets

17,909

18,181

Total noncurrent assets

411,070

414,249

Total assets

1,085,378

1,048,398

Liabilities, Temporary equity, and Stockholders’ equity

Current liabilities:

Current maturities of debt

30,333

34,443

Current portion of route and customer acquisition costs payable

2,559

2,197

Accrued location gaming expense

4,628

4,734

Accrued state gaming expense

32,241

19,802

Accounts payable and other accrued expenses

44,322

41,944

Accrued compensation and related expenses

12,312

12,117

Current portion of consideration payable

3,314

3,116

Total current liabilities

129,709

118,353

Long-term liabilities:

Debt, net of current maturities

565,075

560,936

Route and customer acquisition costs payable, less current portion

10,139

7,160

Consideration payable, less current portion

15,428

14,596

Contingent earnout share liability

34,312

33,103

Other long-term liabilities

7,327

7,571

Deferred income tax liability, net

52,131

47,372

Total long-term liabilities

684,412

670,738

Temporary equity - Redeemable noncontrolling interest

4,140

4,278

Stockholders’ equity:

Preferred Stock, par value of $0.0001; 1,000,000 shares authorized; 0 shares issued and outstanding at September 30, 2025 and December 31, 2024

—

Class A-1 Common Stock, par value $0.0001; 250,000,000 shares authorized; 96,185,619 shares issued and 83,765,542 shares outstanding at September 30, 2025; 95,865,026 shares issued and 85,670,255 shares outstanding at December 31, 2024

Additional paid-in capital

225,340

221,625

Treasury stock, at cost

(129,404

)

(105,485

)

Accumulated other comprehensive income

1,119

4,145

Accumulated earnings

170,054

134,736

Total stockholders' equity

267,117

255,029

Total liabilities, temporary equity, and stockholders' equity

1,085,378

1,048,398