Accel Entertainment Reports Quarterly Record Revenue of $368 Million in the Second Quarter of 2026

About this update from Accel Entertainment, Inc.

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 second quarter ended June 30, 2026. Second Quarter and Recent Highlights: Revenue increased 10% to $368 million compared to Q2 '25 Ended Q2 '26 with 4,676 locations; an increase of 6% compared to Q2 '25 Ended Q2 '26 with 29,281 gaming terminals; an increase of 7% compared to Q2 '25 Net income of $13 million for Q2 '26; an increase of 72% compared to Q2 '25 Included in Net income is $5 million of a loss on the change in the fair value of our contingent earnout shares and a $2.5 million loss on the sale of fixed assets related to asset rationalization Adjusted EBITDA increased 11% to $59 million for Q2 '26 compared to Q2 '25 In Q2 ’26, Operating cash flow was $20 million and Free cash flow was $10 million. We purchased an $18 million tax credit in Q2 ’26 for $17 million, which resulted in a net $1 million tax savings, as reflected in our results. Excluding the tax credit purchase of $17 million, Operating cash flow and Free cash flow would have been $37 million and $26 million, respectively, representing a conversion from Adjusted EBITDA of 63% and 45%. Cash and cash equivalents of $255 million and Net debt of $318 million as of June 30, 2026 Repurchased approximately 500,000 shares of Accel Class A-1 common stock in Q2 '26 for $5.6 million Illinois revenue, excluding Fairmount Park, increased 6% year-over-year, driven by continued hold-per-day improvement and higher performing customer mix Fairmount Park Casino & Racing launched table games and commenced its second racing season in April 2026 Accel CEO, Andy Rubenstein, commented, "Accel delivered another strong quarter, with revenue increasing 10% year-over-year to a record of $368 million, and Adjusted EBITDA rising 11% to $59 million. We believe these results reflect the strength and resilience of our distributed gaming model, the disciplined execution of our team, and the ongoing success of our long-term strategy. "Illinois, our largest market, once again delivered impressive results. Revenue from our Illinois distributed gaming operations, excluding Fairmount Park, increased 6% year-over-year, reflecting our continued focus on improving route quality and maximizing revenue and profitability per location. With our entire Illinois installed base now ticket-in, ticket-out (TITO)-enabled, we are encouraged by early customer adoption and expect the benefits to build over time. Fairmount Park performed well in Q2 ’26, delivering its highest quarterly gross profit since the closing of the acquisition less than two years ago. Table games and slots continue to gain traction, our second racing season is underway, and we remain committed to developing a permanent casino at the property. "The operation of gaming terminals in Chicago remains one of Accel’s most compelling near-term growth opportunities. The Illinois Gaming Board has begun issuing approvals, and we are pleased that seventeen, or 44%, of the locations approved to date are Accel locations. The City of Chicago's Department of Business Affairs and Consumer Protection has begun accepting and processing applications for City video gaming licenses. Once a location receives its City video gaming license, the IGB will permit the terminal operator to schedule its connection to the Central Communications System and proceed to "go-live". Our infrastructure, operating platform and long-standing relationships position Accel to move quickly once the City of Chicago issues our licenses. "Beyond Illinois, we continued to build momentum in our developing markets during the second quarter. Adjusted EBITDA in each of Nebraska and Georgia increased significantly, highlighting the growing importance of these markets to our long-term earnings growth. In addition, we completed the accretive acquisition of Rice Palace Truck Stop Casino in Louisiana and announced a new route agreement and equipment purchase in Nevada which is adding approximately 600 terminals across Southern Nevada. "Our disciplined capital allocation strategy has provided Accel with a very strong balance sheet. During the quarter, we repurchased approximately 500,000 shares of our common stock for $5.6 million, and we ended the quarter with net leverage of approximately 1.4 times and an undrawn $300 million revolving credit facility. We believe this financial strength provides the flexibility to invest organically, pursue disciplined acquisitions and return capital to shareholders. "As I prepare to transition from Chief Executive Officer to Chairman, I am very confident in Accel's future. We have built a resilient business and assembled an exceptional leadership team, which I firmly believe positions Accel for its next chapter of growth. I look forward to continuing to support the company as Chairman and to building on that momentum in the years ahead." Condensed Consolidated Statements of Operations and Other Data   Three Months Ended June 30,   Six Months Ended June 30, (in thousands)   2026     2025     2026     2025                 Total net revenues $ 368,125   $ 335,909   $ 719,683   $ 659,821 Operating income   32,053     26,874     59,133     52,826 Income before income tax expense   18,379     12,352     38,418     31,958 Net income   12,507     7,262     27,170     21,875 Other Financial Data:               Adjusted EBITDA (1)   58,924     53,180     112,681     102,694 (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 June 30,   Six Months Ended June 30,     2026     2025     2026     2025 Net revenues by state:               Illinois $ 264,476   $ 245,434   $ 517,273   $ 478,913 Montana (1)(2)   40,692     40,107     81,330     81,243 Nevada   31,683     27,078     60,984     54,695 Louisiana   10,931     9,630     21,074     18,655 Nebraska   12,224     7,881     23,605     15,111 Georgia   7,095     4,814     13,279     9,139 Other   1,024     965     2,138     2,065 Total net revenues $ 368,125   $ 335,909   $ 719,683   $ 659,821 (1) Includes $40.1 million of net gaming revenues and $0.6 million of manufacturing revenues for the three months ended June 30, 2026. In comparison, includes $38.3 million of net gaming revenues and $1.8 million of manufacturing revenues for the three months ended June 30, 2025.     (2) Includes $79.5 million of net gaming revenues and $1.8 million of manufacturing revenues for the six months ended June 30, 2026. In comparison, includes $75.6 million of net gaming revenues and $5.6 million of manufacturing revenues for the six months ended June 30, 2025. Gross Margin Percentage   Three Months Ended June 30,   2026     2025   Gross margin percentage:       Illinois - our regulated split percentage 32.50 %   32.50 % Georgia - our regulated split percentage 43.50 %   43.50 % All other state splits, revenues and fees 27.78 %   27.84 % Total gross margin percentage (1) 31.30 %   31.34 %   Six Months Ended June 30,   2026     2025   Gross margin percentage:       Illinois - our regulated split percentage 32.50 %   32.50 % Georgia - our regulated split percentage 43.50 %   43.50 % All other state splits, revenues and fees 27.43 %   27.25 % Total gross margin percentage (1) 31.20 %   31.16 % (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 June 30,   Increase / (Decrease)   2026   2025   Change   Change (%) Illinois 2,692   2,741   (49 )   (1.8 )% Montana 626   616   10     1.6 % Nevada 548   355   193     54.4 % Louisiana 105   98   7     7.1 % Nebraska 298   275   23     8.4 % Georgia 407   342   65     19.0 % Total locations 4,676   4,427   249     5.6 % Gaming terminals (1) As of June 30,   Increase / (Decrease)   2026   2025   Change   Change (%) Illinois 15,540   15,670   (130 )   (0.8 )% Montana 6,714   6,508   206     3.2 % Nevada 4,045   2,650   1,395     52.6 % Louisiana 792   626   166     26.5 % Nebraska 1,029   975   54     5.5 % Georgia 1,161   959   202     21.1 % Total gaming terminals 29,281   27,388   1,893     6.9 % (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 June 30,   Increase / (Decrease)     2026     2025   Change ($)   Change (%) Illinois $ 992   $ 910   $ 82     9.0 % Montana   642     622     20     3.2 % Nevada   660     784     (124 )   (15.8 )% Louisiana   1,145     994     151     15.2 % Nebraska   427     285     142     49.8 % Georgia   185     149     36     24.2 %                   Location hold-per-day (2) Six Months Ended June 30,   Increase / (Decrease)     2026     2025   Change ($)   Change (%) Illinois $ 973   $ 896   $ 77     8.6 % Montana   642     616     26     4.2 % Nevada   664     792     (128 )   (16.2 )% Louisiana   1,105     978     127     13.0 % Nebraska   422     271     151     55.7 % Georgia   175     146     29     19.9 % (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   Six Months Ended June 30,   Increase / (Decrease) (in thousands)   2026       2025     Change ($)   Change (%) Net cash provided by operating activities $ 62,707     $ 64,557     $ (1,850 )   (2.9 )% Net cash used in investing activities   (47,206 )     (59,963 )     12,757     21.3 % Net cash used in financing activities   (56,616 )     (21,269 )     (35,347 )   (166.2 )% Non-GAAP Financial Information This press release includes certain financial information not prepared in accordance with Generally Accepted Accounting Principles in the United States (“GAAP”), including Adjusted EBITDA, Net debt, Net leverage and Free cash flow. Adjusted EBITDA, Net debt, Net leverage 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 Loss on change in fair value of contingent earnout shares 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 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. As of June 2025, we no longer have any emerging markets. 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 less All other cashflows from operations (primarily working capital) Net debt is defined as debt, net of current maturities: plus Current maturities of debt less Cash and cash equivalents Net leverage is defined as Net debt divided by trailing twelve-month Adjusted EBITDA 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 Reconciliation of Net income to Adjusted EBITDA and Free cash flow   Three Months Ended June 30,   Six Months Ended June 30, (in thousands)   2026       2025       2026       2025   Net income $ 12,507     $ 7,262     $ 27,170     $ 21,875   Adjustments:               Interest expense, net   8,642       8,771       17,143       17,456   Income tax expense   5,872       5,090       11,248       10,083   Depreciation and amortization of property and equipment   13,827       13,095       27,689       25,396   Amortization of intangible assets and route and customer acquisition costs   6,823       6,322       13,613       12,612   Stock-based compensation   3,243       2,789       5,742       4,880   Loss on change in fair value of contingent earnout shares   5,018       5,734       3,542       3,379   All other adjustments (1)   2,992       4,117       6,534       7,013   Adjusted EBITDA (2)   58,924       53,180       112,681       102,694                   Cash payments for interest, net   (8,304 )     (7,945 )     (16,246 )     (16,010 ) Cash payments for income taxes, net   (29,071 )     (15,523 )     (29,071 )     (15,523 ) Purchases of property and equipment   (11,100 )     (26,042 )     (33,959 )     (52,797 ) Proceeds from sales of property and equipment   729       483       1,076       1,177   All other cashflows from operations (primarily working capital)   (1,585 )     (9,907 )     (4,657 )     (6,604 ) Free cash flow $ 9,593     $ (5,754 )   $ 29,824     $ 12,937   (1) Loss on sale of fixed assets was $2.5 million and $3.2 million for the three and six months ended June 30, 2026, respectively, and is included in Other expenses, net. Loss on sale of fixed assets was $0.1 million and $0.3 million for the three and six months ended June 30, 2025, respectively, and is presented in general and administrative expenses, which is not an adjustment for EBITDA. Also includes approximately $0.1 million for both the loss contributed from unconsolidated affiliates and emerging markets for the three and six months ended June 30, 2026, and 2025.     (2) Trailing twelve-month Adjusted EBITDA is $220.1 million for the twelve months ended June 30, 2026. Reconciliation of Debt, net of current maturities to Net debt   As of June 30, (in thousands)   2026       2025   Debt, net of current maturities $ 543,329     $ 561,450   Plus: Current maturities of debt   30,000       34,033   Less: Cash and cash equivalents   (255,451 )     (264,630 ) Net debt $ 317,878     $ 330,853   Reconciliation of Net cash provided by operating activities to Free cash flow   As of June 30, (in thousands)   2026       2025   Net cash provided by operating activities (1) $ 62,707     $ 64,557   Less: Purchases of property and equipment   (33,959 )     (52,797 ) Plus: Proceeds from the sale of property and equipment   1,076       1,177   Free cash flow $ 29,824     $ 12,937   Free cash flow conversion rate (Free cash flow / Adjusted EBITDA)   26.5 %     12.6 % (1) Includes the $17 million purchase of tax credits in Q2 ‘26 Conference Call Accel will host a conference call and webcast at 4:30 PM ET / 3:30 PM CT today to review the results. Interested parties may join the live webcast by registering in advance at https://events.q4inc.com/analyst/652613287?pwd=Ty27oOlb . 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 at ir.accelentertainment.com. About Accel Accel Entertainment, Inc. (NYSE: ACEL) is a growing provider of locals-focused gaming and one of the largest terminal operators in the United States, supporting more than 29,000 electronic gaming terminals in nearly 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. 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 gaming terminals, locations, revenues, and Adjusted EBITDA, the opportunities in distributed gaming and local entertainment within the broader gaming market, including in the city of Chicago, our ability to 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 gaming terminals, amusement machines, and related software, content and technologies; Accel’s heavy dependency on its ability to win, maintain and renew contracts with location partners; Accel's expansion into casino operations and horse racing; decreased discretionary consumer spending due to broader macroeconomic and socio-political conditions; geographical concentration of Accel’s business, which heightens exposure to local or regional conditions; strict government regulations that are constantly evolving and may be amended, repealed, or subject to new interpretations, which may limit existing operations, have an adverse impact on Accel’s ability to grow or may expose Accel to fines or other penalties; Accel’s dependence on the security, integrity and regulatory compliance of products, services and systems offered, which, if breached or disrupted, could expose Accel to liability; Accel’s dependence on the protection of trademarks and other intellectual property; opponents’ efforts to curtail the expansion of legalized gaming; and other risks and uncertainties indicated from time to time in documents filed or to be filed with the U.S. Securities and Exchange Commission (the "SEC") including those described in the section entitled “Risk Factors” in the Annual Report on Form 10-K for the fiscal year ended December 31, 2025 (the "Form 10-K"). Any forward-looking statement made by us in this press release is based only on information currently available to us and speaks only as of the date on which it is made. We are under no obligation to, and expressly disclaim any obligation to, publicly update or alter any forward-looking statement, whether as a result of new information, subsequent events or otherwise, except as required by law. Industry and Market Data Unless otherwise indicated, information contained in this press release concerning our industry and the markets in which we operate, including our general expectations and market position, market opportunity, and market size, is based on information from various sources, on assumptions that we have made that are based on those data and other similar sources, and on our knowledge of the markets for our services. This information includes a number of assumptions and limitations, and you are cautioned not to give undue weight to such information. In addition, projections, assumptions, and estimates of our future performance and the future performance of the industry in which we operate are necessarily subject to a high degree of uncertainty and risk due to a variety of factors, including those described in the Form 10-K, as well as Accel's other filings with the SEC. These and other factors could cause results to differ materially from those expressed in the estimates made by third parties and by us.   ACCEL ENTERTAINMENT, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)   (In thousands, except per share amounts) Three Months Ended June 30,   Six Months Ended June 30,     2026     2025       2026     2025   Net revenues:               Net gaming $ 347,375   $ 313,919     $ 678,800   $ 615,870   Amusement   5,250     5,517       11,075     11,425   Manufacturing   568     1,763       1,808     5,621   ATM fees and other   14,932     14,710       28,000     26,905   Total net revenues   368,125     335,909       719,683     659,821   Operating expenses:               Cost of revenue (exclusive of depreciation and amortization expense shown below)   252,620     229,758       494,236     451,230   Cost of manufacturing goods sold (exclusive of depreciation and amortization expense shown below)   268     886       904     2,962   General and administrative   59,556     54,878       117,604     107,882   Depreciation and amortization of property and equipment   13,827     13,095       27,689     25,396   Amortization of intangible assets and route and customer acquisition costs   6,823     6,322       13,613     12,612   Other expenses, net   2,978     4,096       6,504     6,913   Total operating expenses   336,072     309,035       660,550     606,995   Operating income   32,053     26,874       59,133     52,826   Interest expense, net   8,642     8,771       17,143     17,456   Loss from unconsolidated affiliates   14     17       30     33   Loss on change in fair value of contingent earnout shares   5,018     5,734       3,542     3,379   Income before income tax expense   18,379     12,352       38,418     31,958   Income tax expense   5,872     5,090       11,248     10,083   Net income $ 12,507   $ 7,262     $ 27,170   $ 21,875   Less: Net income (loss) attributed to redeemable noncontrolling interests   14     (53 )     4     (79 ) Net income attributable to Accel Entertainment, Inc. $ 12,493   $ 7,315     $ 27,166   $ 21,954                   Earnings per common share:               Basic $ 0.15   $ 0.09     $ 0.33   $ 0.26   Diluted   0.15     0.08       0.32     0.25   Weighted average number of common shares outstanding:               Basic   82,039     85,710       82,299     85,856   Diluted   83,415     86,943       83,753     87,082     ACCEL ENTERTAINMENT, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)   (In thousands, except par value and share amounts) June 30,   December 31,     2026       2025   Assets       Current assets:       Cash and cash equivalents $ 255,451     $ 296,566   Accounts receivable, net   13,854       14,198   Prepaid expenses   10,811       7,102   Inventories   9,611       8,231   Income taxes receivable   27,159       9,121   Interest rate hedging instruments   —       430   Other current assets   7,392       7,386   Total current assets   324,278       343,034   Property and equipment, net   359,567       350,304   Route and customer acquisition costs, net   32,860       31,147   Location contracts acquired, net   184,191       186,406   Goodwill   114,737       114,426   Other intangible assets, net   59,860       61,034   Interest rate hedging instruments, net of current   3,366       —   Other assets   18,139       17,042   Total assets $ 1,096,998     $ 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   3,180       2,473   Accrued location gaming expense   5,070       5,516   Accrued state gaming expense   20,343       21,065   Accounts payable and other accrued expenses   53,807       51,028   Accrued compensation and related expenses   14,433       9,946   Current portion of consideration payable   4,249       3,881   Total current liabilities   131,082       131,492   Debt, net of current maturities   543,329       569,837   Route and customer acquisition costs payable, less current portion   11,434       10,232   Consideration payable, less current portion   15,494       15,790   Contingent earnout share liability   37,218       33,676   Other long-term liabilities   10,194       9,373   Deferred income tax liability, net   60,299       59,230   Total liabilities   809,050       829,630           Temporary equity - Redeemable noncontrolling interest   4,084       4,080           Stockholders’ equity:       Preferred Stock, par value of $0.0001; 1,000,000 shares authorized; 0 shares issued and outstanding at June 30, 2026 and December 31, 2025   —       —   Class A-1 Common Stock, par value $0.0001; 250,000,000 shares authorized; 96,746,724 shares issued and 81,222,573 shares outstanding at June 30, 2026; 96,250,980 shares issued and 82,287,349 shares outstanding at December 31, 2025   8       8   Additional paid-in capital   231,752       229,028   Treasury stock, at cost   (163,648 )     (145,747 ) Accumulated other comprehensive income   2,380       188   Accumulated earnings   213,372       186,206   Total stockholders' equity   283,864       269,683   Total liabilities, temporary equity, and stockholders' equity $ 1,096,998     $ 1,103,393     View source version on businesswire.com: https://www.businesswire.com/news/home/20260804216922/en/

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