Accel Entertainment Reports Record Fourth Quarter Results Including 7.5% Revenue Increase and Full-Year Revenue of $1.3 Billion
Key Terms
adjusted ebitda financial
net debt financial
non-gaap financial
restricted stock units financial
rsus financial
rule 10b5-1 trading plan regulatory
spac transaction financial
emerging markets financial
Highlights:
-
Record revenue of
for Q4 '25; an increase of$341.4 million 7.5% compared to Q4 '24-
Ended Q4 '25 with 4,501 locations; an increase of
2.2% compared to Q4 '24 -
Ended Q4 '25 with 27,950 gaming terminals; an increase of
2.9% compared to Q4 '24
-
Ended Q4 '25 with 4,501 locations; an increase of
-
Record revenues of
for YE 2025; an increase of$1.3 billion 8.1% compared to YE 2024 -
Net income of
for Q4 '25; an increase of$16.2 million 91.7% compared to Q4 '24, partially attributable to a gain of on the change in the fair value of the contingent earnout shares (Accel Class A-2 common stock) compared to a loss of$0.6 million in the prior period$2.9 million -
Net income of
for YE 2025; an increase of$51.3 million 45.3% compared to YE 2024 -
Diluted earnings per share of
for YE 2025, an increase of$0.60 46% compared to in YE 2024$0.41 -
Record Adjusted EBITDA of
for Q4 '25; an increase of$56.3 million 18.9% compared to Q4 '24 -
Record Adjusted EBITDA of
for YE 2025; an increase of$210.1 million 11.1% compared to YE 2024 -
Cash and cash equivalents of
and net debt of approximately$296.6 million at December 31, 2025$311 million -
Repurchased 1.5 million shares of Accel Class A-1 common stock in Q4 '25 for approximately
$16.2 million -
Completed new
credit facility in September 2025, extending maturities to 2030, lowering cost of capital and further enhancing growth capital flexibility$900.0 million - First full year of racing operations and almost nine months of casino operations at Fairmount Park Casino & Racing
Accel CEO, Andy Rubenstein, commented, “Accel delivered a strong finish to 2025, highlighted by
“In Illinois and
“Across our developing markets, we are seeing meaningful scale and momentum.
“With the completion of our previously-announced
“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: |
|
|
|
|
|
|
|
||||
|
$ |
245,212 |
|
$ |
231,278 |
|
$ |
963,165 |
|
$ |
906,572 |
|
|
42,608 |
|
|
41,326 |
|
|
164,323 |
|
|
161,698 |
|
|
27,951 |
|
|
27,670 |
|
|
108,884 |
|
|
114,551 |
|
|
9,461 |
|
|
5,445 |
|
|
37,580 |
|
|
5,445 |
|
|
9,622 |
|
|
6,763 |
|
|
33,233 |
|
|
25,384 |
|
|
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 |
Gross Margin Percentage
|
Three Months Ended December 31, |
|||||||
|
2025 |
|
2024 |
|
2023 |
|||
Gross margin percentage: |
|
|
|
|
|
|||
|
32.04 |
% |
|
32.04 |
% |
|
32.54 |
% |
|
43.50 |
% |
|
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: |
|
|
|
|
|
|||
|
32.04 |
% |
|
32.04 |
% |
|
32.54 |
% |
|
43.50 |
% |
|
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 (%) |
||
|
2,705 |
|
2,775 |
|
(70 |
) |
|
(2.5 |
)% |
|
624 |
|
619 |
|
5 |
|
|
0.8 |
% |
|
408 |
|
357 |
|
51 |
|
|
14.3 |
% |
|
100 |
|
96 |
|
4 |
|
|
4.2 |
% |
|
275 |
|
270 |
|
5 |
|
|
1.9 |
% |
|
389 |
|
286 |
|
103 |
|
|
36.0 |
% |
Total locations |
4,501 |
|
4,403 |
|
98 |
|
|
2.2 |
% |
Gaming terminals (1) |
As of December 31, |
|
Increase / (Decrease) |
||||||
|
2025 |
|
2024 |
|
Change |
|
Change (%) |
||
|
15,534 |
|
15,693 |
|
(159 |
) |
|
(1.0 |
)% |
|
6,598 |
|
6,467 |
|
131 |
|
|
2.0 |
% |
|
2,996 |
|
2,650 |
|
346 |
|
|
13.1 |
% |
|
684 |
|
588 |
|
96 |
|
|
16.3 |
% |
|
1,019 |
|
948 |
|
71 |
|
|
7.5 |
% |
|
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 (%) |
|||||
|
$ |
905 |
|
$ |
868 |
|
$ |
37 |
|
|
4.3 |
% |
|
|
621 |
|
|
614 |
|
|
7 |
|
|
1.1 |
% |
|
|
731 |
|
|
786 |
|
|
(55 |
) |
|
(7.0 |
)% |
|
|
1,011 |
|
|
979 |
|
|
32 |
|
|
3.3 |
% |
|
|
348 |
|
|
253 |
|
|
95 |
|
|
37.5 |
% |
|
|
155 |
|
|
142 |
|
|
13 |
|
|
9.2 |
% |
|
|
|
|
|
|
|
|
|||||
|
Twelve Months Ended December 31, |
|
Increase / (Decrease) |
|||||||||
|
2025 |
|
2024 |
|
Change ($) |
|
Change (%) |
|||||
|
$ |
894 |
|
$ |
864 |
|
$ |
30 |
|
|
3.5 |
% |
|
|
617 |
|
|
609 |
|
|
8 |
|
|
1.3 |
% |
|
|
728 |
|
|
823 |
|
|
(95 |
) |
|
(11.5 |
)% |
|
|
979 |
|
|
979 |
|
|
— |
|
|
— |
% |
|
|
301 |
|
|
241 |
|
|
60 |
|
|
24.9 |
% |
|
|
149 |
|
|
119 |
|
|
30 |
|
|
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
Adjusted EBITDA is defined as net income plus:
- Amortization of intangible assets and route and customer acquisition costs
- Stock-based compensation expense
- Loss from unconsolidated affiliates
- (Gain) loss on change in fair value of contingent earnout shares
- Gain on expiration of warrants
- Other expenses, net which consists of (i) non-cash expenses including the remeasurement of contingent consideration liabilities, (ii) non-recurring lobbying and legal expenses related to distributed gaming expansion in current or prospective markets, and (iii) other non-recurring expenses
- Depreciation and amortization of property and equipment
- Interest expense, net
-
Emerging markets, which reflects the results, on an Adjusted EBITDA basis, for non-core jurisdictions where our operations are developing
- Markets are no longer considered emerging when we have installed or acquired at least 500 gaming terminals in the jurisdiction, or when 24 months have elapsed from the date we first install or acquire gaming terminals in the jurisdiction, whichever occurs first.
-
Prior to June 2025,
Pennsylvania was considered an emerging market. -
Prior to January 2024,
Iowa was considered an emerging market. - As of June 2025, we no longer have any emerging markets.
- Income tax expense
- Loss on debt extinguishment
Net debt is defined as debt, net of current maturities:
- plus Current maturities of debt
- less Cash and cash equivalents
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 |
|
4 |
|
|
|
(1 |
) |
|
|
59 |
|
|
— |
|
(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 |
|
— |
|
|
|
44 |
|
|
|
67 |
|
|
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
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
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.
|
||||||||||
(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 |
|
59 |
|
|
|
— |
|
|
|
— |
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 |
) |
|
|
39 |
|
|
$ |
— |
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.
|
|||||||
(In thousands, except par value and share amounts) |
December 31, |
|
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 |
|
— |
|
|
|
— |
|
Class A-1 Common Stock, par value |
|
8 |
|
|
|
8 |
|
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 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20260303273196/en/
Joseph Jaffoni, Norberto Aja
JCIR
212-835-8500
acel@jcir.com
Source: Accel Entertainment, Inc.