Accel Entertainment Q3 net income rises 55% to $20.6M
Nine-month operating cash flow rose 18.7% to $142.137 million from $119.795 million a year earlier.
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Form Type
8-K
Rhea-AI Filing Summary
Accel Entertainment, Inc. (ACEL) reported third-quarter 2026 revenue of $363.555 million, up 10% year over year. Net income was $20.604 million, up 55%, and Adjusted EBITDA, a non-GAAP measure, was $57.483 million, up 12%. Net income included a $5.756 million gain from a change in fair value of contingent earnout shares and a $0.6 million loss on fixed-asset sales.
Quarterly operating cash flow was $79.430 million and free cash flow was $61.994 million, compared with $55.238 million and $34.504 million, respectively, in 2025. As of September 30, 2026, cash and cash equivalents were $294.354 million and net debt was $271.740 million. Accel repurchased approximately 624,000 Class A-1 shares for $7.2 million during the quarter. At quarter-end, it operated 4,705 locations and 29,548 electronic gaming machines, up 5.7% and 6.6%, respectively, year over year. Illinois revenue, excluding Fairmount Park, rose 7%; Illinois location hold-per-day increased 9.2%. The Chicago rollout had begun after receipt of its first licenses.
3 points · 0 major0 major · 0 points
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Positive
- Moderate pointThird-quarter revenue reached $363.555 million, up 10% year over year.
- Moderate pointThird-quarter net income was $20.604 million, up 55% year over year.
- Moderate pointThird-quarter Adjusted EBITDA was $57.483 million, up 12% year over year.
Negative
- None.
Filing Explained
The reported Class A-1 shares outstanding were 80,853,316 at
8-K Event Classification
3 items: 2.02, 7.01, 9.01
3 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 7.01
Regulation FD Disclosure
Disclosure
Material non-public information disclosed under Regulation Fair Disclosure, often investor presentations or guidance.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, or exhibit attachments filed with this report.
Key Figures
Total net revenues: $363.555 million
Net income: $20.604 million
Adjusted EBITDA: $57.483 million
+5 more
8 metrics
Total net revenues
$363.555 million
Three months ended September 30, 2026
Net income
$20.604 million
Three months ended September 30, 2026
Adjusted EBITDA
$57.483 million
Three months ended September 30, 2026; non-GAAP measure
Operating cash flow
$79.430 million
Three months ended September 30, 2026
Free cash flow
$61.994 million
Three months ended September 30, 2026; non-GAAP measure
Net debt
$271.740 million
As of September 30, 2026; non-GAAP measure
Repurchased shares
Approximately 624,000 shares for $7.2 million
Third quarter 2026
Locations
4,705 locations
As of September 30, 2026
Key Terms
Adjusted EBITDA, Free cash flow, Net debt, Location hold-per-day
4 terms
Adjusted EBITDA financial
"Adjusted EBITDA increased 12% to $57 million"
Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.
Free cash flow financial
"Free cash flow is defined as Adjusted EBITDA"
Free cash flow is the amount of money a company has left over after paying all its expenses and investing in its business, like buying equipment or updating facilities. It shows how much cash is available to reward shareholders, pay down debt, or save for future growth. This helps investors understand if a company is financially healthy and able to grow.
Net debt financial
"Net debt of $272 million as of September 30, 2026"
Net debt is the total amount a company owes after subtracting the cash and assets it has that can be used to pay off that debt. It shows how much debt is truly a burden, helping investors understand if a company is financially healthy or heavily borrowed. Think of it like calculating how much money you owe after using your savings to pay part of it.
Location hold-per-day financial
"Location hold-per-day is calculated by dividing net gaming revenue"
Earnings Snapshot
Total net revenues: $363.555 million
Three months ended September 30, 2026
Total net revenues
$363.555 million
+10% year over year
Net income
$20.604 million
+55% year over year
Adjusted EBITDA
$57.483 million
+12% year over year
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
How much revenue did ACEL report in Q3 2026?
Accel Entertainment reported $363.555 million in total net revenues for the three months ended September 30, 2026, compared with $329.693 million in the prior-year quarter; the company described the increase as 10%.
What was ACEL's adjusted EPS in Q3 2026?
Accel reported adjusted earnings per diluted common share of $0.22 for Q3 2026, versus $0.19 in Q3 2025. Adjusted net income was $18.248 million, compared with $16.304 million.
AI-generated analysis. How Rhea-AI works. Not financial advice.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): November 3, 2026
(Exact name of registrant as specified in its charter)
| (State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) | ||||||||||||
| (Address of principal executive offices) | (Zip Code) | |||||||||||||
(630 ) 972-2235
(Registrant’s telephone number, including area code)
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading symbol(s) | Name of each exchange on which registered | ||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 Results of Operations and Financial Condition.
On November 3, 2026 , Accel Entertainment, Inc. (the "Company") issued a press release announcing its financial and operating results for the three months ended September 30, 2026. A copy of the Company’s press release is attached and furnished herewith as Exhibit 99.1 to this Form 8-K and is incorporated herein by reference.
Item 7.01 Regulation FD Disclosure.
On November 3, 2026, the Company posted an investor presentation (the “Presentation”) on the Investor Relations section of its website at www.accelentertainment.com. The Presentation may be used by the Company from time to time in meetings with investors, analysts and other stakeholders.
Information in this report (including Exhibit 99.1) contained in Item 2.02 and Item 7.01 shall not be deemed to be “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934 (the "Exchange Act") or otherwise subject to the liabilities of that Section, nor shall such information be deemed incorporated by reference in any filing under the Securities Act of 1933 or the Exchange Act, except as expressly set forth by specific reference in such filing.
The Company announces material information to the public through a variety of means, including filings with the Securities and Exchange Commission, press releases, public conference calls, and the Company’s investor relations website (https:// ir.accelentertainment.com). These communications serve to disclose material non-public information and comply with the Company's disclosure obligations under Regulation FD.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits
| Exhibit Number | Description | |||||||
| 99.1 | Press Release by Accel Entertainment, Inc. dated November 3, 2026 | |||||||
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) | |||||||
2
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| ACCEL ENTERTAINMENT, INC. | |||||||||||
Date: | By: | /s/ Brett Summerer | |||||||||
Brett Summerer | |||||||||||
Chief Financial Officer (Principal Financial Officer) | |||||||||||
3
Accel Entertainment Reports Record Third Quarter Revenue of $364 Million
Net Income increases 55% and Adjusted EBITDA increases 12% year-over-year
Chicago, IL – November 3, 2026 – 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.
1
“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.
2
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 | % | ||||||||||||||||||
3
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) | % | ||||||||||||||||||
4
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.
5
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
6
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% | |||||||||||||||||||
7
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 | |||||||
8
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
9
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.
10
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 | |||||||||||||||||||
11
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 | |||||||
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