Accel Entertainment Reports Record Third Quarter Revenue of $364 Million

Nine-month operating cash flow increased 18.7% to $142.137 million, while quarterly share repurchases totaled $7.2 million.

Rhea-AI Summary

Accel Entertainment (NYSE: ACEL) reported record third-quarter revenue of $364 million, up 10% year over year for the period ended September 30, 2026. Net income rose 55% to $20.604 million, including a $6 million gain from changes in the value of contingent earnout shares. Adjusted EBITDA, a non-GAAP earnings measure, increased 12% to $57.483 million.

Quarterly operating cash flow was $79 million and free cash flow was $62 million. Accel ended September with $294 million in cash, $566 million in debt and $272 million in net debt. It repurchased approximately 624,000 shares for $7.2 million. Illinois revenue excluding Fairmount Park increased 7%, while Nevada revenue grew despite lower daily gaming revenue per location. Accel received its first Chicago licenses and began its rollout there. Its network reached 4,705 locations and 29,548 electronic gaming machines.

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Positive

• Moderate pointThird-quarter revenue increased 10% year over year to $364 million, a third-quarter record.
• Moderate pointThird-quarter net income rose 55% year over year to $20.604 million.
• Moderate pointThird-quarter adjusted EBITDA, a non-GAAP earnings measure, increased 12% to $57.483 million year over year.
• Moderate pointThird-quarter operating income increased to $28.800 million from $25.361 million a year earlier.
• Moderate pointThird-quarter operating cash flow was $79 million; free cash flow was $62 million.

24 minor points

• Minor pointThird-quarter gross margin increased to 31.38% from 31.32% a year earlier.
• Minor pointShare repurchases totaled $7.2 million for approximately 624,000 Class A-1 shares in Q3 2026.
• Minor pointChicago expansion began with receipt of Accel’s first licenses.
• Minor pointFairmount Park gaming revenue increased approximately 84% year over year in the third quarter.
• Minor pointIllinois revenue excluding Fairmount Park increased 7% year over year in the third quarter.
• Minor pointIllinois total third-quarter revenue increased to $257.925 million from $239.041 million a year earlier.
• Minor pointNevada third-quarter revenue increased to $32.896 million from $26.238 million a year earlier.
• Minor pointNebraska third-quarter revenue increased to $12.057 million from $8.501 million a year earlier.
• Minor pointLouisiana third-quarter revenue increased to $11.341 million from $9.465 million a year earlier.
• Minor pointGeorgia third-quarter revenue increased to $7.247 million from $5.092 million a year earlier.
• Minor pointMontana third-quarter revenue increased to $41.051 million from $40.471 million a year earlier.
• Minor pointTotal locations increased 5.7% to 4,705 at September 30, 2026, versus a year earlier.
• Minor pointElectronic gaming machines increased 6.6% to 29,548 at September 30, 2026, versus a year earlier.
• Minor pointIllinois daily gaming revenue per location increased 9.2% to $957 in Q3 versus a year earlier.
• Minor pointMontana daily gaming revenue per location increased 1.9% to $633 in Q3 versus a year earlier.
• Minor pointNebraska daily gaming revenue per location increased 31.9% to $405 in Q3 versus a year earlier.
• Minor pointLouisiana daily gaming revenue per location increased 15.1% to $1,125 in Q3 versus a year earlier.
• Minor pointGeorgia daily gaming revenue per location increased 24.7% to $182 in Q3 versus a year earlier.
• Minor pointNine-month revenue increased to $1,083.238 million from $989.514 million a year earlier.
• Minor pointNine-month net income increased to $47.774 million from $35.180 million a year earlier.
• Minor pointNine-month operating income increased to $87.933 million from $78.187 million a year earlier.
• Minor pointNine-month adjusted EBITDA increased to $170.164 million from $153.864 million a year earlier.
• Minor pointNine-month operating cash flow increased 18.7% to $142.137 million versus a year earlier.
• Minor pointNine-month gross margin increased to 31.26% from 31.22% a year earlier.

Negative

• Minor pointNevada daily gaming revenue per location fell 16.5% to $613 in Q3 versus a year earlier.
• Minor pointNevada nine-month daily gaming revenue per location fell 11.3% to $675 versus a year earlier.
• Minor pointIllinois locations declined 1.6% to 2,685 at September 30, 2026, versus a year earlier.
• Minor pointIllinois electronic gaming machines declined 0.8% to 15,519 at September 30, 2026, versus a year earlier.
• Minor pointMontana manufacturing revenue fell to $0.9 million in Q3 from $1.7 million a year earlier.

2 minor points

• Minor pointMontana nine-month manufacturing revenue fell to $2.8 million from $7.3 million a year earlier.
• Minor pointAsset rationalization produced a $0.6 million loss on fixed-asset sales in Q3 2026.

News Explained

The third-quarter cash-flow figures include a tax-credit refund tied to an earlier purchase: Accel says it bought $18 million of federal credits for $17 million in Q2 and received the related refund in Q3.

Key Figures

Revenue: $364 million; up 10% year over year Net income: $21 million; up 55% year over year Adjusted EBITDA: $57 million; up 12% year over year +4 more

Revenue

$364 million; up 10% year over year

Q3 2026

Net income

$21 million; up 55% year over year

Q3 2026

Adjusted EBITDA

$57 million; up 12% year over year

Q3 2026

Operating cash flow

$79 million

Q3 2026

Free cash flow

$62 million

Q3 2026

Cash and cash equivalents

$294 million

As of September 30, 2026

Net debt

$272 million

As of September 30, 2026

Previous Earnings Reports

2 past events · Latest: Aug 04

Same Type 2 events

1. Aug 04

   Q2 earnings

   24h Move

   +2.2%

   Q2 revenue rose 10% to $368 million; Adjusted EBITDA increased 11%.

2. Nov 04

   Q3 earnings

   24h Move

   +2.1%

   Q3 revenue rose 9.1% to $329.7 million; Adjusted EBITDA increased 11.5%.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

gaap, non-gaap financial measures, weighted average diluted shares outstanding

3 terms

gaap financial

"not prepared in accordance with Generally Accepted Accounting Principles in the United States (“GAAP”)"

GAAP, or Generally Accepted Accounting Principles, are a set of standardized rules and guidelines that companies follow when preparing their financial statements. They ensure consistency, transparency, and comparability across different companies, making it easier for investors to understand and compare financial information accurately. This helps investors make informed decisions based on trustworthy and uniform financial reports.

View in glossary

non-gaap financial measures financial

"Adjusted EBITDA, Adjusted net income, Adjusted earnings per share, Net debt, and Free cash flow are non-GAAP financial measures"

Non-GAAP financial measures are numbers companies use to show their financial performance that exclude certain expenses or income. They help investors see how the company might perform without one-time costs or other unusual items, giving a different perspective from official reports. However, since they can be adjusted, they don’t always tell the full story and should be looked at alongside standard financial figures.

weighted average diluted shares outstanding financial

"adjusted net income divided by weighted average diluted shares outstanding"

The weighted average diluted shares outstanding is the average number of common shares that would exist during a reporting period after adding in all potential shares from options, warrants, convertible debt or other instruments that could be turned into stock, with each added only for the portion of the period it applies. Investors use it to show how earnings per share could be reduced if promises to issue more shares are fulfilled, similar to estimating how a pizza is split if some extra people might join partway through a meal.

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Net Income increases 55% and Adjusted EBITDA increases 12% year-over-year

CHICAGO, Nov. 03, 2026 (GLOBE NEWSWIRE) -- 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, 2026.

Third Quarter and Recent Highlights:

• Revenue increased 10% to $364 million compared to Q3 '25
  • Ended Q3 '26 with 4,705 locations; an increase of 6% compared to Q3 '25
  • Ended Q3 '26 with 29,548 electronic gaming machines; an increase of 7% compared to Q3 '25
• Net income of $21 million for Q3 '26; an increase of 55% compared to Q3 '25
  • Included in Net income is a $6 million gain on the change in the fair value of our contingent earnout shares, which is $3.6 million higher than the gain recognized in Q3 '25. Q3 '26 also includes a $0.6 million loss on the sale of fixed assets related to asset rationalization
• Adjusted EBITDA increased 12% to $57 million for Q3 '26 compared to Q3 '25
• In Q3 ’26, Operating cash flow was $79 million and Free cash flow was $62 million. We received the related refund in Q3 on the $18 million in federal tax credits that we purchased in Q2 ’26 for $17 million.
• Cash and cash equivalents of $294 million, Total debt of $566 million and Net debt of $272 million as of September 30, 2026
• Repurchased approximately 624,000 shares of Accel Class A-1 common stock in Q3 '26 for $7.2 million
• Illinois revenue, excluding Fairmount Park, increased 7% year-over-year, driven by continued hold-per-day improvement and higher performing location mix

Accel CEO Mark Phelan commented, “We delivered another period of double-digit revenue growth in the third quarter, marking another strong quarter with solid profitability. Third-quarter revenue increased 10% year-over-year a third-quarter record $364 million, while third-quarter net income rose 55% year-over-year. Adjusted EBITDA rose 12% to $57 million, a third quarter record. With the operating leverage inherent in our business model, Adjusted EBITDA again grew faster than revenue, reflecting the quality of our portfolio, disciplined capital deployment and strong execution across our markets.

“Notably, Accel’s core business continues to get stronger while our growth strategy becomes increasingly diversified. In Illinois, excluding Fairmount Park, revenue increased approximately 7% and hold-per-day increased approximately 9%, highlighting the benefits of our strategy to optimize the Illinois portfolio by pruning lower-performing locations and allocating resources toward our strongest opportunities. We also delivered strong third-quarter performances in Georgia, Nebraska and Louisiana, continued expansion in Nevada, and significant momentum at Fairmount Park, where gaming revenue increased approximately 84% year-over-year.

“Accel generates meaningful cash flow and maintains a strong balance sheet, with low leverage and substantial liquidity, which provides us with significant flexibility to invest organically, pursue disciplined acquisitions and return capital to shareholders when we believe doing so represents an effective use of capital. We ended the quarter with $294 million of cash and cash equivalents and net debt of approximately $272 million. We also repurchased approximately 624,000 shares of our common stock for $7.2 million during the third quarter as we believe our shares represent an attractive investment opportunity given our strong and growing fundamentals.

“Finally, we recently completed the build-out of our senior leadership team to execute against the growth opportunities that we see ahead of us, including Chicago, where the rollout has now begun with the receipt of our first licenses, and the continued development of Fairmount. We are very excited about Accel’s future and remain focused on executing initiatives that we believe can enhance long-term shareholder value.”

Condensed Consolidated Statements of Operations and Other Data

		Three Months Ended September 30,						Nine Months Ended September 30,
(in thousands)		2026			2025			2026			2025
Total net revenues		$	363,555		$	329,693		$	1,083,238		$	989,514
Operating income			28,800			25,361			87,933			78,187
Income before income tax expense			25,815			17,797			64,233			49,755
Net income			20,604			13,305			47,774			35,180
Other Financial Data:
Adjusted EBITDA(1)			57,483			51,170			170,164			153,864
(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,
		2026			2025			2026			2025
Net revenues by state:
	Illinois	$	257,925		$	239,041		$	775,198		$	717,954
	Montana(1)(2)		41,051			40,471			122,380			121,715
	Nevada		32,896			26,238			93,880			80,933
	Nebraska		12,057			8,501			35,662			23,612
	Louisiana		11,341			9,465			32,415			28,119
	Georgia		7,247			5,092			20,526			14,231
	Other		1,038			885			3,177			2,950
	Total net revenues	$	363,555		$	329,693		$	1,083,238		$	989,514
(1)	Includes $40.1 million of net gaming revenues and $0.9 million of manufacturing revenues for the three months ended September 30, 2026. In comparison, includes $38.8 million of net gaming revenues and $1.7 million of manufacturing revenues for the three months ended September 30, 2025.
(2)	Includes $119.6 million of net gaming revenues and $2.8 million of manufacturing revenues for the nine months ended September 30, 2026. In comparison, includes $114.4 million of net gaming revenues and $7.3 million of manufacturing revenues for the nine months ended September 30, 2025.

Gross Margin Percentage

		Three Months Ended September 30,						Nine Months Ended September 30,
		2026			2025			2026			2025
Gross margin percentage:
	Illinois - our regulated split percentage	32.50	%		32.50	%		32.50	%		32.50	%
	Georgia - our regulated split percentage	43.50	%		43.50	%		43.50	%		43.50	%
	All other state splits, revenues and fees	28.10	%		27.86	%		27.66	%		27.46	%
	Total gross margin percentage(1)	31.38	%		31.32	%		31.26	%		31.22	%
(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 September 30,				Increase / (Decrease)
	2026		2025		Change			Change (%)
Illinois	2,685		2,728		(43	)		(1.6	)%
Montana	631		625		6			1.0	%
Nevada	553		370		183			49.5	%
Nebraska	306		276		30			10.9	%
Louisiana	108		96		12			12.5	%
Georgia	422		356		66			18.5	%
Total locations	4,705		4,451		254			5.7	%

Electronic gaming machines (1)		As of September 30,				Increase / (Decrease)
		2026		2025		Change			Change (%)
Illinois		15,519		15,641		(122	)		(0.8	)%
Montana		6,805		6,628		177			2.7	%
Nevada		4,099		2,757		1,342			48.7	%
Nebraska		1,115		991		124			12.5	%
Louisiana		818		670		148			22.1	%
Georgia		1,192		1,027		165			16.1	%
Total electronic gaming machines		29,548		27,714		1,834			6.6	%
(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)
	2026			2025			Change ($)				Change (%)
Illinois	$	957		$	876		$	81			9.2	%
Montana		633			621			12			1.9	%
Nevada		613			734			(121	)		(16.5	)%
Nebraska		405			307			98			31.9	%
Louisiana		1,125			977			148			15.1	%
Georgia		182			146			36			24.7	%

Location hold-per-day (2)		Nine Months Ended September 30,						Increase / (Decrease)
		2026			2025			Change ($)				Change (%)
Illinois		$	968		$	888		$	80			9.0	%
Montana			637			614			23			3.7	%
Nevada			675			761			(86	)		(11.3	)%
Nebraska			418			284			134			47.2	%
Louisiana			1,110			988			122			12.3	%
Georgia			176			148			28			18.9	%
(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

	Nine Months Ended September 30,								Increase / (Decrease)
(in thousands)	2026				2025				Change ($)				Change (%)
Net cash provided by operating activities	$	142,137			$	119,795			$	22,342			18.7	%
Net cash used in investing activities		(70,241	)			(80,697	)			10,456			13.0	%
Net cash used in financing activities		(74,108	)			(30,168	)			(43,940	)		(145.7	)%

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”). Adjusted EBITDA, Adjusted net income, Adjusted earnings per share, Net debt, and Free cash flow are non-GAAP financial measures and are key metrics that Accel’s management uses to monitor ongoing core operations. Accel’s management believes these non-GAAP financial measures enhance the understanding of Accel’s underlying drivers of profitability and trends in Accel’s business and facilitate company-to-company and period-to-period comparisons because they 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:

• Interest expense, net
• Income tax expense
• Depreciation and amortization of property and equipment
• Amortization of intangible assets and route and customer acquisition costs
• Stock-based compensation expense
• (Gain) loss on change in fair value of contingent earnout shares
• Loss on debt extinguishment
• All other adjustments, which includes:
  • 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, iii) other non-recurring expenses, and beginning in 2026 iv) gain or loss on sale of fixed assets, which were previously presented in general and administrative expenses. Prior periods have not been recast to reflect this change.
  • Loss from unconsolidated affiliates
  • 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 electronic gaming machines in the jurisdiction, or when 24 months have elapsed from the date we first install or acquire electronic gaming machines in the jurisdiction, whichever occurs first.
    • Prior to June 2025, Pennsylvania was considered an emerging market.
    • From June 2025 through June 2026, we had no emerging markets.
    • As of July 2026, the City of Chicago and Wyoming are considered emerging markets.

Adjusted net income is defined as net income plus:

• (Gain) loss on change in fair value of contingent earnout shares, and
• All other adjustments, which includes:
  • All other adjustments for 2026 include one time expenses related to the our senior leadership transition; loss on the sales of assets, emerging market costs related to Chicago and Wyoming operations and cost related to incidents of theft, vandalism, and destruction of our electronic gaming machines.
  • All other adjustments for 2025 include stock based compensation expense, loss from unconsolidated affiliates, and other expenses, net.

Adjusted earnings per share is defined as adjusted net income divided by weighted average diluted shares outstanding.

Free cash flow is defined as Adjusted EBITDA:

• less Cash payments for interest, net
• less Cash payments for income taxes, net
• less Purchases of property and equipment
• plus Proceeds from sales of property and equipment
• plus All other cash flows from operations (primarily working capital)

Free cash flow is also defined as Net cash provided by operating activities:

• less Purchases of property and equipment
• plus Proceeds from sales of property and equipment

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 and Free cash flow

		Three Months Ended September 30,								Nine Months Ended September 30,
(in thousands)		2026				2025				2026				2025
Net income		$	20,604			$	13,305			$	47,774			$	35,180
Adjustments:
Interest expense, net			8,729				8,622				25,872				26,078
Income tax expense			5,211				4,492				16,459				14,575
Depreciation and amortization of property and equipment			14,098				13,339				41,787				38,735
Amortization of intangible assets and route and customer acquisition costs			6,974				6,389				20,587				19,001
Stock-based compensation expense			3,800				3,504				9,542				8,384
(Gain) loss on change in fair value of contingent earnout shares			(5,756	)			(2,170	)			(2,214	)			1,209
Loss on debt extinguishment			—				1,090				—				1,090
All other adjustments (1)			3,823				2,599				10,357				9,612
Adjusted EBITDA (2)			57,483				51,170				170,164				153,864
Cash payments for interest, net			(7,968	)			(8,300	)			(24,214	)			(24,310	)
Cash refunds (payments) for income taxes, net			19,999				(1	)			(9,072	)			(15,524	)
Purchases of property and equipment			(18,695	)			(21,017	)			(52,654	)			(73,814	)
Proceeds from sales of property and equipment			1,259				283				2,335				1,460
All other cash flows from operations (primarily working capital)			9,916				12,369				5,259				5,765
Free cash flow		$	61,994			$	34,504			$	91,818			$	47,441
(1)	Other expense, net was $3.2 million and $9.7 million; loss contributed from unconsolidated affiliates was less than $0.1 million; emerging markets was $0.6 million for both the three and nine months ended September 30, 2026, respectively. Other expense, net was $2.6 million and $9.5 million; loss contributed from unconsolidated affiliates and emerging markets was less than $0.1 million and $0.1 million for the three and nine months ended September 30, 2025, respectively.
(2)	Trailing twelve-month Adjusted EBITDA is $226.4 million for the twelve months ended September 30, 2026.

Reconciliation of Net cash provided by operating activities to Free cash flow

	Three Months Ended September 30,								Nine Months Ended September 30,
(in thousands, except percentages)	2026				2025				2026				2025
Net cash provided by operating activities	$	79,430			$	55,238			$	142,137			$	119,795
Less: Purchases of property and equipment		(18,695	)			(21,017	)			(52,654	)			(73,814	)
Plus: Proceeds from the sale of property and equipment		1,259				283				2,335				1,460
Free cash flow	$	61,994			$	34,504			$	91,818			$	47,441
Free cash flow conversion rate (Free cash flow / Adjusted EBITDA)		107.8	%			67.4	%			54.0	%			30.8	%

Reconciliation of Net Income to Adjusted net income and
Net income per share to Adjusted net income per share

		Three Months Ended September 30,								Nine Months Ended September 30,
(in thousands, except per share amounts)		2026				2025				2026				2025
Net income attributable to Accel Entertainment, Inc.		$	20,574			$	13,364			$	47,740			$	35,318
	Pretax adjustments:
	(Gain) loss on change in fair value of contingent earnout shares		(5,756	)			(2,170	)			(2,214	)			1,209
	All other adjustments (1)(2)		2,842				6,103				6,399				17,929
	Total adjustments		(2,914	)			3,933				4,185				19,138
	Income tax (benefit) expense on adjustments		(588	)			993				1,072				5,606
Adjusted net income		$	18,248			$	16,304			$	50,853			$	48,850
Earnings per common share, diluted		$	0.25			$	0.16			$	0.57			$	0.41
	Total adjustments per share		(0.03	)			0.05				0.05				0.22
	Income tax (benefit) expense on adjustments		(0.01	)			0.01				0.01				0.06
Adjusted earnings per common share, diluted		$	0.22			$	0.19			$	0.61			$	0.56
Weighted average diluted shares outstanding			83,400				86,087				83,635				86,563
(1)	All other adjustments for 2026 include one time expenses related to the our senior leadership transition; loss on the sales of assets, emerging market costs related to the City of Chicago and Wyoming operations, and cost related to incidents of theft, vandalism, and destruction of our electronic gaming machines.
(2)	All other adjustments for 2025 include stock based compensation expense, loss from unconsolidated affiliates, and other expenses, net.

Reconciliation of Debt, net of current maturities to Net debt

	As of September 30,
(in thousands)	2026				2025
Debt, net of current maturities	$	536,094			$	565,075
Plus: Current maturities of debt		30,000				30,333
Less: Cash and cash equivalents		(294,354	)			(290,235	)
Net debt	$	271,740			$	305,173

Conference Call

Accel will host a conference call and webcast at 4:30 PM ET / 3:30 PM CT today to review the results. To access the call, please use the following link: Accel Entertainment Third Quarter 2026 Earnings Call. After registering, an email will be sent, including dial-in details and a unique conference call access code required to join the live call. To ensure you are connected prior to the beginning of the call, please register a minimum of 15 minutes before the start of the call.

A simultaneous webcast of the conference call will be available at: Accel Entertainment Third Quarter 2026 Earnings Webcast, or via the Investor Relations page of the Accel Entertainment website at ir.accelentertainment.com. A replay will be available on the Company's Investor Relations website shortly after the event or at Accel Entertainment Third Quarter 2026 Earnings Webcast.

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 30,000 electronic gaming machines in over 4,700 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 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, features live racing, electronic gaming machines, live table games, food and beverage amenities, and pari-mutuel betting.

Contact:
Joseph Jaffoni, Norberto Aja
JCIR
212-835-8500
acel@jcir.com

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 invest organically and pursue disciplined acquisitions, estimates of number of electronic gaming machines, 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 expand operations in developing markets, 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 a concentrated network of key manufacturers, developers and third-party providers for electronic gaming machines, 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, including the physical security of our gaming terminals and cash at third-party locations; 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 (Unaudited)
(In thousands, except per share amounts)	Three Months Ended September 30,								Nine Months Ended September 30,
	2026				2025				2026				2025
Net revenues:
Net gaming	$	343,393			$	308,481			$	1,022,193			$	924,351
Amusement		4,992				4,977				16,067				16,402
Manufacturing		948				1,678				2,756				7,299
ATM fees and other		14,222				14,557				42,222				41,462
Total net revenues		363,555				329,693				1,083,238				989,514
Operating expenses:
Cost of revenue (exclusive of depreciation and amortization expense shown below)		248,985				225,511				743,221				676,741
Cost of manufacturing goods sold (exclusive of depreciation and amortization expense shown below)		499				916				1,403				3,878
General and administrative		60,954				55,600				178,558				163,482
Depreciation and amortization of property and equipment		14,098				13,339				41,787				38,735
Amortization of intangible assets and route and customer acquisition costs		6,974				6,389				20,587				19,001
Other expenses, net		3,245				2,577				9,749				9,490
Total operating expenses		334,755				304,332				995,305				911,327
Operating income		28,800				25,361				87,933				78,187
Interest expense, net		8,729				8,622				25,872				26,078
Loss from unconsolidated affiliates		12				22				42				55
(Gain) loss on change in fair value of contingent earnout shares		(5,756	)			(2,170	)			(2,214	)			1,209
Loss on debt extinguishment		—				1,090				—				1,090
Income before income tax expense		25,815				17,797				64,233				49,755
Income tax expense		5,211				4,492				16,459				14,575
Net income	$	20,604			$	13,305			$	47,774			$	35,180
Less: Net income (loss) attributed to redeemable noncontrolling interests		30				(59	)			34				(138	)
Net income attributable to Accel Entertainment, Inc.	$	20,574			$	13,364			$	47,740			$	35,318
Earnings per common share:
Basic	$	0.25			$	0.16			$	0.58			$	0.41
Diluted		0.25				0.16				0.57				0.41
Weighted average number of common shares outstanding:
Basic		81,944				84,719				82,180				85,289
Diluted		83,400				86,087				83,635				86,563

ACCEL ENTERTAINMENT, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)
(In thousands, except par value and share amounts)	September 30,				December 31,
	2026				2025
Assets
Current assets:
Cash and cash equivalents	$	294,354			$	296,566
Accounts receivable, net		13,557				14,198
Prepaid expenses		8,499				7,102
Inventories		10,248				8,231
Income taxes receivable		3,507				9,121
Interest rate hedging instruments		—				430
Other current assets		7,549				7,386
Total current assets		337,714				343,034
Property and equipment, net		363,324				350,304
Route and customer acquisition costs, net		32,227				31,147
Location contracts acquired, net		183,061				186,406
Goodwill		114,737				114,426
Other intangible assets, net		59,274				61,034
Interest rate hedging instruments, net of current		11,921				—
Other assets		21,612				17,042
Total assets	$	1,123,870			$	1,103,393
Liabilities, Temporary equity, and Stockholders’ equity
Current liabilities:
Current maturities of debt	$	30,000			$	37,583
Current portion of route and customer acquisition costs payable		3,104				2,473
Accrued location gaming expense		5,570				5,516
Accrued state gaming expense		34,697				21,065
Accounts payable and other accrued expenses		51,334				51,028
Accrued compensation and related expenses		15,243				9,946
Current portion of consideration payable		8,652				3,881
Total current liabilities		148,600				131,492
Debt, net of current maturities		536,094				569,837
Route and customer acquisition costs payable, less current portion		10,697				10,232
Consideration payable, less current portion		11,525				15,790
Contingent earnout share liability		31,463				33,676
Other long-term liabilities		13,046				9,373
Deferred income tax liability, net		63,277				59,230
Total liabilities		814,702				829,630
Temporary equity - Redeemable noncontrolling interest		4,114				4,080
Stockholders’ equity:
Preferred Stock, par value of $0.0001; 1,000,000 shares authorized; 0 shares issued and outstanding at September 30, 2026 and December 31, 2025		—				—
Class A-1 Common Stock, par value $0.0001; 250,000,000 shares authorized; 97,001,737 shares issued and 80,853,316 shares outstanding at September 30, 2026; 96,250,980 shares issued and 82,287,349 shares outstanding at December 31, 2025		8				8
Additional paid-in capital		233,387				229,028
Treasury stock, at cost		(170,874	)			(145,747	)
Accumulated other comprehensive income		8,587				188
Accumulated earnings		233,946				186,206
Total stockholders' equity		305,054				269,683
Total liabilities, temporary equity, and stockholders' equity	$	1,123,870			$	1,103,393

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

How much did Accel Entertainment’s revenue and net income grow in Q3 2026?

Accel’s third-quarter revenue increased 10% to $364 million, while net income increased 55% to $20.604 million year over year. Net income included a $6 million gain from changes in the fair value of contingent earnout shares, $3.6 million higher than the gain recognized in Q3 2025.

How much stock did Accel Entertainment repurchase in Q3 2026?

Accel repurchased approximately 624,000 Class A-1 common shares for $7.2 million during the third quarter of 2026.

What tax-credit refund did Accel Entertainment receive in Q3 2026?

Accel received the related refund in Q3 on $18 million in federal tax credits purchased in Q2 2026 for $17 million.

Did Accel Entertainment change its adjusted EBITDA calculation in 2026?

Beginning in 2026, Accel included gains or losses on fixed-asset sales within the other-expense adjustments used in adjusted EBITDA; these amounts were previously presented in general and administrative expenses. Prior periods were not recast to reflect the change.