{"success":true,"data":{"pressRelease":{"id":"108634","rtpr_id":"nBw8cDkMLa","ticker":"ACEL","exchange":"NYSE","all_tickers":["ACEL"],"title":"Accel Entertainment Reports Quarterly Record Revenue of $368 Million in the Second Quarter of 2026","author":"Business Wire","published_at":"2026-08-04T20:15:00.632Z","article_body":"Accel Entertainment Reports Quarterly Record Revenue of $368 Million in the\nSecond Quarter of 2026\n\nNet Income rose 72% year-over-year\n\nAccel Entertainment, Inc. (NYSE: ACEL), a leading locals-focused gaming\noperator partnering with small businesses, local communities, and state\ngovernments to provide entertaining, convenient, and safe gaming experiences\nnationwide, today announced financial and operating results for the second\nquarter ended June 30, 2026.\n\n\n * Second Quarter and Recent Highlights:\n\n * Revenue increased 10% to $368 million compared to Q2 '25\n\n\n* Ended Q2 '26 with 4,676 locations; an increase of 6% compared to Q2 '25\n\n * Ended Q2 '26 with 29,281 gaming terminals; an increase of 7% compared to Q2\n'25\n\n\n\n\n * Net income of $13 million for Q2 '26; an increase of 72% compared to Q2 '25\n\n\n* Included in Net income is $5 million of a loss on the change in the fair\nvalue\nof our contingent earnout shares and a $2.5 million loss on the sale of fixed\nassets related to asset rationalization\n\n\n\n\n * Adjusted EBITDA increased 11% to $59 million for Q2 '26 compared to Q2 '25\n\n * In Q2 ’26, Operating cash flow was $20 million and Free cash flow was $10\nmillion. We purchased an $18 million tax credit in Q2 ’26 for $17 million,\nwhich resulted in a net $1 million tax savings, as reflected in our results.\nExcluding the tax credit purchase of $17 million, Operating cash flow and Free\ncash flow would have been $37 million and $26 million, respectively,\nrepresenting a conversion from Adjusted EBITDA of 63% and 45%.\n\n * Cash and cash equivalents of $255 million and Net debt of $318 million as of\nJune 30, 2026\n\n * Repurchased approximately 500,000 shares of Accel Class A-1 common stock in Q2\n'26 for $5.6 million\n\n * Illinois revenue, excluding Fairmount Park, increased 6% year-over-year,\ndriven by continued hold-per-day improvement and higher performing customer\nmix\n\n * Fairmount Park Casino & Racing launched table games and commenced its\nsecond racing season in April 2026\n\nAccel CEO, Andy Rubenstein, commented, \"Accel delivered another strong\nquarter, with revenue increasing 10% year-over-year to a record of $368\nmillion, and Adjusted EBITDA rising 11% to $59 million. We believe these\nresults reflect the strength and resilience of our distributed gaming model,\nthe disciplined execution of our team, and the ongoing success of our\nlong-term strategy.\n\n\"Illinois, our largest market, once again delivered impressive results.\nRevenue from our Illinois distributed gaming operations, excluding Fairmount\nPark, increased 6% year-over-year, reflecting our continued focus on improving\nroute quality and maximizing revenue and profitability per location. With our\nentire Illinois installed base now ticket-in, ticket-out (TITO)-enabled, we\nare encouraged by early customer adoption and expect the benefits to build\nover time. Fairmount Park performed well in Q2 ’26, delivering its highest\nquarterly gross profit since the closing of the acquisition less than two\nyears ago. Table games and slots continue to gain traction, our second racing\nseason is underway, and we remain committed to developing a permanent casino\nat the property.\n\n\"The operation of gaming terminals in Chicago remains one of Accel’s most\ncompelling near-term growth opportunities. The Illinois Gaming Board has begun\nissuing approvals, and we are pleased that seventeen, or 44%, of the locations\napproved to date are Accel locations. The City of Chicago's Department of\nBusiness Affairs and Consumer Protection has begun accepting and processing\napplications for City video gaming licenses. Once a location receives its City\nvideo gaming license, the IGB will permit the terminal operator to schedule\nits connection to the Central Communications System and proceed to \"go-live\".\nOur infrastructure, operating platform and long-standing relationships\nposition Accel to move quickly once the City of Chicago issues our licenses.\n\n\"Beyond Illinois, we continued to build momentum in our developing markets\nduring the second quarter. Adjusted EBITDA in each of Nebraska and Georgia\nincreased significantly, highlighting the growing importance of these markets\nto our long-term earnings growth. In addition, we completed the accretive\nacquisition of Rice Palace Truck Stop Casino in Louisiana and announced a new\nroute agreement and equipment purchase in Nevada which is adding approximately\n600 terminals across Southern Nevada.\n\n\"Our disciplined capital allocation strategy has provided Accel with a very\nstrong balance sheet. During the quarter, we repurchased approximately 500,000\nshares of our common stock for $5.6 million, and we ended the quarter with net\nleverage of approximately 1.4 times and an undrawn $300 million revolving\ncredit facility. We believe this financial strength provides the flexibility\nto invest organically, pursue disciplined acquisitions and return capital to\nshareholders.\n\n\"As I prepare to transition from Chief Executive Officer to Chairman, I am\nvery confident in Accel's future. We have built a resilient business and\nassembled an exceptional leadership team, which I firmly believe positions\nAccel for its next chapter of growth. I look forward to continuing to support\nthe company as Chairman and to building on that momentum in the years ahead.\"\n\nCondensed Consolidated Statements of Operations and Other Data\n   Three Months Ended   Six Months Ended \n \nJune 30, \nJune 30, \n (in thousands)   2026     2025     2026     2025 \n                 \n Total net revenues $ 368,125   $ 335,909   $ 719,683   $ 659,821 \n Operating income   32,053     26,874     59,133     52,826 \n Income before income tax expense   18,379     12,352     38,418     31,958 \n Net income   12,507     7,262     27,170     21,875 \n Other Financial Data:               \n Adjusted EBITDA((1))   58,924     53,180     112,681     102,694 \n\n ((1)) Adjusted EBITDA is a non-GAAP metric. See \"Non-GAAP Financial Measures\" for a \n reconciliation to the most directly comparable GAAP metric. \n\n\nNet Revenues\n (in thousands) Three Months Ended   Six Months Ended \n \nJune 30, \nJune 30, \n     2026     2025     2026     2025 \n Net revenues by state:               \n Illinois $ 264,476   $ 245,434   $ 517,273   $ 478,913 \n Montana((1)(2))   40,692     40,107     81,330     81,243 \n Nevada   31,683     27,078     60,984     54,695 \n Louisiana   10,931     9,630     21,074     18,655 \n Nebraska   12,224     7,881     23,605     15,111 \n Georgia   7,095     4,814     13,279     9,139 \n Other   1,024     965     2,138     2,065 \n Total net revenues $ 368,125   $ 335,909   $ 719,683   $ 659,821 \n\n ((1)) Includes $40.1 million of net gaming revenues and $0.6 million of \n manufacturing revenues for the three months ended June 30, 2026. In \n comparison, includes $38.3 million of net gaming revenues and $1.8 million of \n manufacturing revenues for the three months ended June 30, 2025. \n     \n ((2)) Includes $79.5 million of net gaming revenues and $1.8 million of \n manufacturing revenues for the six months ended June 30, 2026. In comparison, \n includes $75.6 million of net gaming revenues and $5.6 million of \n manufacturing revenues for the six months ended June 30, 2025. \n\n\nGross Margin Percentage\n   Three Months Ended \n \nJune 30, \n   2026     2025   \n Gross margin percentage:       \n Illinois - our regulated split percentage 32.50 %   32.50 % \n Georgia - our regulated split percentage 43.50 %   43.50 % \n All other state splits, revenues and fees 27.78 %   27.84 % \n Total gross margin percentage( (1)) 31.30 %   31.34 % \n\n   Six Months Ended \n \n \n \nJune 30, \n   2026     2025   \n Gross margin percentage:       \n Illinois - our regulated split percentage 32.50 %   32.50 % \n Georgia - our regulated split percentage 43.50 %   43.50 % \n All other state splits, revenues and fees 27.43 %   27.25 % \n Total gross margin percentage( (1)) 31.20 %   31.16 % \n\n ((1)) Gross margin percentage represents the percentage of total net revenue \n remaining after subtracting the cost of revenue and cost of manufacturing \n goods sold and is not adjusted to exclude or modify amounts recognized under \n GAAP. \n\n\nKey Business Metrics\n Locations ((1)) As of June 30,   Increase / (Decrease) \n   2026   2025   Change   Change (%) \n Illinois 2,692   2,741   (49 )   (1.8 )% \n Montana 626   616   10     1.6 % \n Nevada 548   355   193     54.4 % \n Louisiana 105   98   7     7.1 % \n Nebraska 298   275   23     8.4 % \n Georgia 407   342   65     19.0 % \n Total locations 4,676   4,427   249     5.6 % \n\n Gaming terminals ((1)) As of June 30,   Increase / (Decrease) \n   2026   2025   Change   Change (%) \n Illinois 15,540   15,670   (130 )   (0.8 )% \n Montana 6,714   6,508   206     3.2 % \n Nevada 4,045   2,650   1,395     52.6 % \n Louisiana 792   626   166     26.5 % \n Nebraska 1,029   975   54     5.5 % \n Georgia 1,161   959   202     21.1 % \n Total gaming terminals 29,281   27,388   1,893     6.9 % \n\n ((1)) Based on a combination of third-party portal data and data from our internal \n systems. This metric is utilized by Accel to continually monitor growth from \n existing locations, organic openings, acquired locations, and competitor \n conversions. \n\n Location hold-per-day ((2)) Three Months Ended   Increase / (Decrease) \n \nJune 30, \n     2026     2025   Change ($)   Change (%) \n Illinois $ 992   $ 910   $ 82     9.0 % \n Montana   642     622     20     3.2 % \n Nevada   660     784     (124 )   (15.8 )% \n Louisiana   1,145     994     151     15.2 % \n Nebraska   427     285     142     49.8 % \n Georgia   185     149     36     24.2 % \n                 \n\n   \n Location hold-per-day ((2)) Six Months Ended   Increase / (Decrease) \n \nJune 30, \n     2026     2025   Change ($)   Change (%) \n Illinois $ 973   $ 896   $ 77     8.6 % \n Montana   642     616     26     4.2 % \n Nevada   664     792     (128 )   (16.2 )% \n Louisiana   1,105     978     127     13.0 % \n Nebraska   422     271     151     55.7 % \n Georgia   175     146     29     19.9 % \n\n ((2)) Location hold-per-day is calculated by dividing net gaming revenue in the \n period by the average number of locations. We then divide the calculated \n amount by the number of operational days. We utilize this metric to compare \n market and location performance on a normalized basis. The percent change in \n location hold-per-day is the underlying metric used to determine the change in \n same-store sales. \n\n\nCondensed Consolidated Statements of Cash Flows Data\n   Six Months Ended   Increase / (Decrease) \n \nJune 30, \n (in thousands)   2026       2025     Change ($)   Change (%) \n Net cash provided by operating activities $ 62,707     $ 64,557     $ (1,850 )   (2.9 )% \n Net cash used in investing activities   (47,206 )     (59,963 )     12,757     21.3 % \n Net cash used in financing activities   (56,616 )     (21,269 )     (35,347 )   (166.2 )% \n\n\nNon-GAAP Financial Information\n\nThis press release includes certain financial information not prepared in\naccordance with Generally Accepted Accounting Principles in the United States\n(“GAAP”), including Adjusted EBITDA, Net debt, Net leverage and Free cash\nflow. Adjusted EBITDA, Net debt, Net leverage and Free cash flow are non-GAAP\nfinancial measures and are key metrics that Accel’s management uses to\nmonitor ongoing core operations. Accel’s management believes these non-GAAP\nfinancial measures enhance the understanding of Accel’s underlying drivers\nof profitability and trends in Accel’s business and facilitate\ncompany-to-company and period-to-period comparisons because they exclude the\neffects of certain non-cash items or nonrecurring items that are unrelated to\ncore operating performance. Accel’s management also believes that these\nnon-GAAP financial measures are used by investors, analysts and other\ninterested parties as measures of Accel’s financial performance and to\nevaluate Accel’s ability to fund capital expenditures, service debt\nobligations and meet working capital requirements. The non-GAAP financial\nmeasures presented in this press release should be viewed in addition to, and\nnot as an alternative for, financial measures prepared in accordance with GAAP\nthat are also presented in this press release. These measures are not\nsubstitutes for their comparable GAAP financial measures and there are\nlimitations to using non-GAAP financial measures. For example, the non-GAAP\nfinancial measures presented in this press release may differ from similarly\ntitled non-GAAP financial measures presented by other companies, and other\ncompanies may not define these non-GAAP financial measures the same way as\nAccel does.\n\nAdjusted EBITDA is defined as net income plus:\n\n\n * Interest expense, net\n\n * Income tax expense\n\n * Depreciation and amortization of property and equipment\n\n * Amortization of intangible assets and route and customer acquisition costs\n\n * Stock-based compensation expense\n\n * Loss on change in fair value of contingent earnout shares\n\n * All other adjustments, which includes:\n\n\n* Other expenses, net which consists of i) non-cash expenses including the\nremeasurement of contingent consideration liabilities, ii) non-recurring\nlobbying and legal expenses related to distributed gaming expansion in current\nor prospective markets, iii) other non-recurring expenses, and beginning in\n2026 iv) gain or loss on sale of fixed assets, which were previously presented\nin general and administrative expenses. Prior periods have not been recast to\nreflect this change.\n\n * Loss from unconsolidated affiliates\n\n * Emerging markets which reflects the results, on an Adjusted EBITDA basis, for\nnon-core jurisdictions where our operations are developing\n\n\n* Markets are no longer considered emerging when we have installed or acquired\nat least 500 gaming terminals in the jurisdiction, or when 24 months have\nelapsed from the date we first install or acquire gaming terminals in the\njurisdiction, whichever occurs first.\n\n * Prior to June 2025, Pennsylvania was considered an emerging market.\n\n * As of June 2025, we no longer have any emerging markets.\n\n\n\n\n\n\n\nFree cash flow is defined as Adjusted EBITDA:\n\n\n * less Cash payments for interest, net\n\n * less Cash payments for income taxes, net\n\n * less Purchases of property and equipment\n\n * plus Proceeds from sales of property and equipment\n\n * less All other cashflows from operations (primarily working capital)\n\nNet debt is defined as debt, net of current maturities:\n\n\n * plus Current maturities of debt\n\n * less Cash and cash equivalents\n\nNet leverage is defined as Net debt divided by trailing twelve-month Adjusted\nEBITDA\n\nFree cash flow is also defined as Net cash provided by operating activities:\n\n\n * less Purchases of property and equipment\n\n * plus Proceeds from sales of property and equipment\n\nReconciliation of Net income to Adjusted EBITDA and Free cash flow\n   Three Months Ended   Six Months Ended \n \nJune 30, \nJune 30, \n (in thousands)   2026       2025       2026       2025   \n Net income $ 12,507     $ 7,262     $ 27,170     $ 21,875   \n Adjustments:               \n Interest expense, net   8,642       8,771       17,143       17,456   \n Income tax expense   5,872       5,090       11,248       10,083   \n Depreciation and amortization of property and equipment   13,827       13,095       27,689       25,396   \n Amortization of intangible assets and route and customer acquisition costs   6,823       6,322       13,613       12,612   \n Stock-based compensation   3,243       2,789       5,742       4,880   \n Loss on change in fair value of contingent earnout shares   5,018       5,734       3,542       3,379   \n All other adjustments ((1))   2,992       4,117       6,534       7,013   \n Adjusted EBITDA ((2))   58,924       53,180       112,681       102,694   \n                 \n Cash payments for interest, net   (8,304 )     (7,945 )     (16,246 )     (16,010 ) \n Cash payments for income taxes, net   (29,071 )     (15,523 )     (29,071 )     (15,523 ) \n Purchases of property and equipment   (11,100 )     (26,042 )     (33,959 )     (52,797 ) \n Proceeds from sales of property and equipment   729       483       1,076       1,177   \n All other cashflows from operations (primarily working capital)   (1,585 )     (9,907 )     (4,657 )     (6,604 ) \n Free cash flow $ 9,593     $ (5,754 )   $ 29,824     $ 12,937   \n\n ((1)) Loss on sale of fixed assets was $2.5 million and $3.2 million for the three \n and six months ended June 30, 2026, respectively, and is included in Other \n expenses, net. Loss on sale of fixed assets was $0.1 million and $0.3 million \n for the three and six months ended June 30, 2025, respectively, and is \n presented in general and administrative expenses, which is not an adjustment \n for EBITDA. Also includes approximately $0.1 million for both the loss \n contributed from unconsolidated affiliates and emerging markets for the three \n and six months ended June 30, 2026, and 2025. \n     \n ((2)) Trailing twelve-month Adjusted EBITDA is $220.1 million for the twelve months \n ended June 30, 2026. \n\n\nReconciliation of Debt, net of current maturities to Net debt\n   As of June 30, \n (in thousands)   2026       2025   \n Debt, net of current maturities $ 543,329     $ 561,450   \n Plus: Current maturities of debt   30,000       34,033   \n Less: Cash and cash equivalents   (255,451 )     (264,630 ) \n Net debt $ 317,878     $ 330,853   \n\n\nReconciliation of Net cash provided by operating activities to Free cash flow\n   As of June 30, \n (in thousands)   2026       2025   \n Net cash provided by operating activities ((1)) $ 62,707     $ 64,557   \n Less: Purchases of property and equipment   (33,959 )     (52,797 ) \n Plus: Proceeds from the sale of property and equipment   1,076       1,177   \n Free cash flow $ 29,824     $ 12,937   \n Free cash flow conversion rate (Free cash flow / Adjusted EBITDA)   26.5 %     12.6 % \n\n ((1)) Includes the $17 million purchase of tax credits in Q2 ‘26 \n\n\nConference Call\n\nAccel will host a conference call and webcast at 4:30 PM ET / 3:30 PM CT today\nto review the results. Interested parties may join the live webcast by\nregistering in advance at\nhttps://events.q4inc.com/analyst/652613287?pwd=Ty27oOlb\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Fevents.q4inc.com%2Fanalyst%2F652613287%3Fpwd%3DTy27oOlb&esheet=54583311&newsitemid=20260804216922&lan=en-US&anchor=https%3A%2F%2Fevents.q4inc.com%2Fanalyst%2F652613287%3Fpwd%3DTy27oOlb&index=1&md5=4da5f03ca8fbd913924d1c10bbd3f32b)\n. Registering in advance of the call will provide listeners with a\npersonalized link to view the webcast and an individual dial-in for the call.\nThis registration link to the live webcast, as well as a replay following the\ncall, will also be available on Accel’s investor relations website at\nir.accelentertainment.com.\n\nAbout Accel\n\nAccel Entertainment, Inc. (NYSE: ACEL) is a growing provider of locals-focused\ngaming and one of the largest terminal operators in the United States,\nsupporting more than 29,000 electronic gaming terminals in nearly 4,700\nthird-party local and regional establishments and 20 self-operated gaming\nlocations across ten states. Through exclusive long-term contracts, Accel\nserves licensed non-casino locations including bars, restaurants, convenience\nstores, truck stops, gaming cafes, and fraternal and veteran establishments.\n\nAccel provides its local partners with a turnkey, full-service,\ncapital-efficient gaming solution that encompasses manufacturing, content,\npayments, loyalty, 24/7 customer service, data analysis and reporting, and\ncash logistics. The Company’s racino, Fairmount Park - Casino & Racing,\nfeatures live racing, electronic gaming machines, live table games, food and\nbeverage amenities, and pari-mutuel betting.\n\nForward-Looking Statements\n\nThis press release contains forward-looking statements within the meaning of\nthe Private Securities Litigation Reform Act of 1995. All statements, other\nthan statements of historical fact, contained in this press release are\nforward-looking statements, including, but not limited to, any statements\nregarding our ability to invest organically and pursue disciplined\nacquisitions, estimates of number of gaming terminals, locations, revenues,\nand Adjusted EBITDA, the opportunities in distributed gaming and local\nentertainment within the broader gaming market, including in the city of\nChicago, our ability to expand operations in developing markets, our ability\nto roll out new technology to enhance player convenience and operational\nefficiency over time, and our expansion into casino operations and horse\nracing, including at Fairmount. The words “predict,” “anticipates,”\n“believes,” “estimates,” “expects,” “intends,” “may,”\n“plans,” “projects,” “will,” “would,” “continue,” and\nsimilar expressions are intended to identify forward-looking statements. These\nforward-looking statements represent our current reasonable beliefs,\nexpectations and assumptions and involve inherent risks, uncertainties and\nother factors that may cause our actual results, performance and achievements,\nor industry results, to be materially different from any future results,\nperformance or achievements expressed or implied by such forward-looking\nstatements. Therefore, you should not rely on any of these forward-looking\nstatements. Important factors that could cause our results and financial\ncondition to differ materially from those indicated in the forward-looking\nstatements include, among others, the following: Accel’s ability to operate\nin existing markets and to expand into new jurisdictions; Accel’s ability to\nintroduce new and appealing products and services amid uncertain market demand\nand regulatory outcomes; Accel’s ability to maintain or improve its\ncompetitive advantages in a highly competitive industry; Accel’s dependence\non a concentrated network of key manufacturers, developers and third party\nproviders for gaming terminals, amusement machines, and related software,\ncontent and technologies; Accel’s heavy dependency on its ability to win,\nmaintain and renew contracts with location partners; Accel's expansion into\ncasino operations and horse racing; decreased discretionary consumer spending\ndue to broader macroeconomic and socio-political conditions; geographical\nconcentration of Accel’s business, which heightens exposure to local or\nregional conditions; strict government regulations that are constantly\nevolving and may be amended, repealed, or subject to new interpretations,\nwhich may limit existing operations, have an adverse impact on Accel’s\nability to grow or may expose Accel to fines or other penalties; Accel’s\ndependence on the security, integrity and regulatory compliance of products,\nservices and systems offered, which, if breached or disrupted, could expose\nAccel to liability; Accel’s dependence on the protection of trademarks and\nother intellectual property; opponents’ efforts to curtail the expansion of\nlegalized gaming; and other risks and uncertainties indicated from time to\ntime in documents filed or to be filed with the U.S. Securities and Exchange\nCommission (the \"SEC\") including those described in the section entitled\n“Risk Factors” in the Annual Report on Form 10-K for the fiscal year ended\nDecember 31, 2025 (the \"Form 10-K\").\n\nAny forward-looking statement made by us in this press release is based only\non information currently available to us and speaks only as of the date on\nwhich it is made. We are under no obligation to, and expressly disclaim any\nobligation to, publicly update or alter any forward-looking statement, whether\nas a result of new information, subsequent events or otherwise, except as\nrequired by law.\n\nIndustry and Market Data\n\nUnless otherwise indicated, information contained in this press release\nconcerning our industry and the markets in which we operate, including our\ngeneral expectations and market position, market opportunity, and market size,\nis based on information from various sources, on assumptions that we have made\nthat are based on those data and other similar sources, and on our knowledge\nof the markets for our services. This information includes a number of\nassumptions and limitations, and you are cautioned not to give undue weight to\nsuch information. In addition, projections, assumptions, and estimates of our\nfuture performance and the future performance of the industry in which we\noperate are necessarily subject to a high degree of uncertainty and risk due\nto a variety of factors, including those described in the Form 10-K, as well\nas Accel's other filings with the SEC. These and other factors could cause\nresults to differ materially from those expressed in the estimates made by\nthird parties and by us.\n   \n ACCEL ENTERTAINMENT, INC. \n CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) \n   \n (In thousands, except per share amounts) Three Months Ended   Six Months Ended \n \nJune 30, \nJune 30, \n     2026     2025       2026     2025   \n Net revenues:               \n Net gaming $ 347,375   $ 313,919     $ 678,800   $ 615,870   \n Amusement   5,250     5,517       11,075     11,425   \n Manufacturing   568     1,763       1,808     5,621   \n ATM fees and other   14,932     14,710       28,000     26,905   \n Total net revenues   368,125     335,909       719,683     659,821   \n Operating expenses:               \n Cost of revenue (exclusive of depreciation and amortization expense shown   252,620     229,758       494,236     451,230   \n below) \n Cost of manufacturing goods sold (exclusive of depreciation and amortization   268     886       904     2,962   \n expense shown below) \n General and administrative   59,556     54,878       117,604     107,882   \n Depreciation and amortization of property and equipment   13,827     13,095       27,689     25,396   \n Amortization of intangible assets and route and customer acquisition costs   6,823     6,322       13,613     12,612   \n Other expenses, net   2,978     4,096       6,504     6,913   \n Total operating expenses   336,072     309,035       660,550     606,995   \n Operating income   32,053     26,874       59,133     52,826   \n Interest expense, net   8,642     8,771       17,143     17,456   \n Loss from unconsolidated affiliates   14     17       30     33   \n Loss on change in fair value of contingent earnout shares   5,018     5,734       3,542     3,379   \n Income before income tax expense   18,379     12,352       38,418     31,958   \n Income tax expense   5,872     5,090       11,248     10,083   \n Net income $ 12,507   $ 7,262     $ 27,170   $ 21,875   \n Less: Net income (loss) attributed to redeemable noncontrolling interests   14     (53 )     4     (79 ) \n Net income attributable to Accel Entertainment, Inc. $ 12,493   $ 7,315     $ 27,166   $ 21,954   \n                 \n Earnings per common share:               \n Basic $ 0.15   $ 0.09     $ 0.33   $ 0.26   \n Diluted   0.15     0.08       0.32     0.25   \n Weighted average number of common shares outstanding:               \n Basic   82,039     85,710       82,299     85,856   \n Diluted   83,415     86,943       83,753     87,082   \n\n   \n ACCEL ENTERTAINMENT, INC. \n CONDENSED CONSOLIDATED BALANCE SHEETS \n (Unaudited) \n   \n (In thousands, except par value and share amounts) June 30,   December 31, \n     2026       2025   \n Assets       \n Current assets:       \n Cash and cash equivalents $ 255,451     $ 296,566   \n Accounts receivable, net   13,854       14,198   \n Prepaid expenses   10,811       7,102   \n Inventories   9,611       8,231   \n Income taxes receivable   27,159       9,121   \n Interest rate hedging instruments   —       430   \n Other current assets   7,392       7,386   \n Total current assets   324,278       343,034   \n Property and equipment, net   359,567       350,304   \n Route and customer acquisition costs, net   32,860       31,147   \n Location contracts acquired, net   184,191       186,406   \n Goodwill   114,737       114,426   \n Other intangible assets, net   59,860       61,034   \n Interest rate hedging instruments, net of current   3,366       —   \n Other assets   18,139       17,042   \n Total assets $ 1,096,998     $ 1,103,393   \n Liabilities, Temporary equity, and Stockholders’ equity       \n Current liabilities:       \n Current maturities of debt $ 30,000     $ 37,583   \n Current portion of route and customer acquisition costs payable   3,180       2,473   \n Accrued location gaming expense   5,070       5,516   \n Accrued state gaming expense   20,343       21,065   \n Accounts payable and other accrued expenses   53,807       51,028   \n Accrued compensation and related expenses   14,433       9,946   \n Current portion of consideration payable   4,249       3,881   \n Total current liabilities   131,082       131,492   \n Debt, net of current maturities   543,329       569,837   \n Route and customer acquisition costs payable, less current portion   11,434       10,232   \n Consideration payable, less current portion   15,494       15,790   \n Contingent earnout share liability   37,218       33,676   \n Other long-term liabilities   10,194       9,373   \n Deferred income tax liability, net   60,299       59,230   \n Total liabilities   809,050       829,630   \n         \n Temporary equity - Redeemable noncontrolling interest   4,084       4,080   \n         \n Stockholders’ equity:       \n Preferred Stock, par value of $0.0001; 1,000,000 shares authorized; 0 shares   —       —   \n issued and outstanding at June 30, 2026 and December 31, 2025 \n Class A-1 Common Stock, par value $0.0001; 250,000,000 shares authorized;   8       8   \n 96,746,724 shares issued and 81,222,573 shares outstanding at June 30, 2026; \n 96,250,980 shares issued and 82,287,349 shares outstanding at December 31, \n 2025 \n Additional paid-in capital   231,752       229,028   \n Treasury stock, at cost   (163,648 )     (145,747 ) \n Accumulated other comprehensive income   2,380       188   \n Accumulated earnings   213,372       186,206   \n Total stockholders' equity   283,864       269,683   \n Total liabilities, temporary equity, and stockholders' equity $ 1,096,998     $ 1,103,393   \n\n\n \n\n\n\nView source version on businesswire.com:\nhttps://www.businesswire.com/news/home/20260804216922/en/\n(https://www.businesswire.com/news/home/20260804216922/en/)\n\nJoseph Jaffoni, Norberto Aja\n\nJCIR\n\n212-835-8500\n\nacel@jcir.com (mailto:acel@jcir.com)\n\n\nCopyright Business Wire 2026","article_body_html":"","raw_payload":{"data":{"id":"nBw8cDkMLa","title":"Accel Entertainment Reports Quarterly Record Revenue of $368 Million in the Second Quarter of 2026","author":"Business Wire","ticker":"ACEL","created":"2026-08-04T20:15:00.632Z","tickers":["ACEL"],"exchange":"NYSE","article_body":"Accel Entertainment Reports Quarterly Record Revenue of $368 Million in the\nSecond Quarter of 2026\n\nNet Income rose 72% year-over-year\n\nAccel Entertainment, Inc. (NYSE: ACEL), a leading locals-focused gaming\noperator partnering with small businesses, local communities, and state\ngovernments to provide entertaining, convenient, and safe gaming experiences\nnationwide, today announced financial and operating results for the second\nquarter ended June 30, 2026.\n\n\n * Second Quarter and Recent Highlights:\n\n * Revenue increased 10% to $368 million compared to Q2 '25\n\n\n* Ended Q2 '26 with 4,676 locations; an increase of 6% compared to Q2 '25\n\n * Ended Q2 '26 with 29,281 gaming terminals; an increase of 7% compared to Q2\n'25\n\n\n\n\n * Net income of $13 million for Q2 '26; an increase of 72% compared to Q2 '25\n\n\n* Included in Net income is $5 million of a loss on the change in the fair\nvalue\nof our contingent earnout shares and a $2.5 million loss on the sale of fixed\nassets related to asset rationalization\n\n\n\n\n * Adjusted EBITDA increased 11% to $59 million for Q2 '26 compared to Q2 '25\n\n * In Q2 ’26, Operating cash flow was $20 million and Free cash flow was $10\nmillion. We purchased an $18 million tax credit in Q2 ’26 for $17 million,\nwhich resulted in a net $1 million tax savings, as reflected in our results.\nExcluding the tax credit purchase of $17 million, Operating cash flow and Free\ncash flow would have been $37 million and $26 million, respectively,\nrepresenting a conversion from Adjusted EBITDA of 63% and 45%.\n\n * Cash and cash equivalents of $255 million and Net debt of $318 million as of\nJune 30, 2026\n\n * Repurchased approximately 500,000 shares of Accel Class A-1 common stock in Q2\n'26 for $5.6 million\n\n * Illinois revenue, excluding Fairmount Park, increased 6% year-over-year,\ndriven by continued hold-per-day improvement and higher performing customer\nmix\n\n * Fairmount Park Casino & Racing launched table games and commenced its\nsecond racing season in April 2026\n\nAccel CEO, Andy Rubenstein, commented, \"Accel delivered another strong\nquarter, with revenue increasing 10% year-over-year to a record of $368\nmillion, and Adjusted EBITDA rising 11% to $59 million. We believe these\nresults reflect the strength and resilience of our distributed gaming model,\nthe disciplined execution of our team, and the ongoing success of our\nlong-term strategy.\n\n\"Illinois, our largest market, once again delivered impressive results.\nRevenue from our Illinois distributed gaming operations, excluding Fairmount\nPark, increased 6% year-over-year, reflecting our continued focus on improving\nroute quality and maximizing revenue and profitability per location. With our\nentire Illinois installed base now ticket-in, ticket-out (TITO)-enabled, we\nare encouraged by early customer adoption and expect the benefits to build\nover time. Fairmount Park performed well in Q2 ’26, delivering its highest\nquarterly gross profit since the closing of the acquisition less than two\nyears ago. Table games and slots continue to gain traction, our second racing\nseason is underway, and we remain committed to developing a permanent casino\nat the property.\n\n\"The operation of gaming terminals in Chicago remains one of Accel’s most\ncompelling near-term growth opportunities. The Illinois Gaming Board has begun\nissuing approvals, and we are pleased that seventeen, or 44%, of the locations\napproved to date are Accel locations. The City of Chicago's Department of\nBusiness Affairs and Consumer Protection has begun accepting and processing\napplications for City video gaming licenses. Once a location receives its City\nvideo gaming license, the IGB will permit the terminal operator to schedule\nits connection to the Central Communications System and proceed to \"go-live\".\nOur infrastructure, operating platform and long-standing relationships\nposition Accel to move quickly once the City of Chicago issues our licenses.\n\n\"Beyond Illinois, we continued to build momentum in our developing markets\nduring the second quarter. Adjusted EBITDA in each of Nebraska and Georgia\nincreased significantly, highlighting the growing importance of these markets\nto our long-term earnings growth. In addition, we completed the accretive\nacquisition of Rice Palace Truck Stop Casino in Louisiana and announced a new\nroute agreement and equipment purchase in Nevada which is adding approximately\n600 terminals across Southern Nevada.\n\n\"Our disciplined capital allocation strategy has provided Accel with a very\nstrong balance sheet. During the quarter, we repurchased approximately 500,000\nshares of our common stock for $5.6 million, and we ended the quarter with net\nleverage of approximately 1.4 times and an undrawn $300 million revolving\ncredit facility. We believe this financial strength provides the flexibility\nto invest organically, pursue disciplined acquisitions and return capital to\nshareholders.\n\n\"As I prepare to transition from Chief Executive Officer to Chairman, I am\nvery confident in Accel's future. We have built a resilient business and\nassembled an exceptional leadership team, which I firmly believe positions\nAccel for its next chapter of growth. I look forward to continuing to support\nthe company as Chairman and to building on that momentum in the years ahead.\"\n\nCondensed Consolidated Statements of Operations and Other Data\n   Three Months Ended   Six Months Ended \n \nJune 30, \nJune 30, \n (in thousands)   2026     2025     2026     2025 \n                 \n Total net revenues $ 368,125   $ 335,909   $ 719,683   $ 659,821 \n Operating income   32,053     26,874     59,133     52,826 \n Income before income tax expense   18,379     12,352     38,418     31,958 \n Net income   12,507     7,262     27,170     21,875 \n Other Financial Data:               \n Adjusted EBITDA((1))   58,924     53,180     112,681     102,694 \n\n ((1)) Adjusted EBITDA is a non-GAAP metric. See \"Non-GAAP Financial Measures\" for a \n reconciliation to the most directly comparable GAAP metric. \n\n\nNet Revenues\n (in thousands) Three Months Ended   Six Months Ended \n \nJune 30, \nJune 30, \n     2026     2025     2026     2025 \n Net revenues by state:               \n Illinois $ 264,476   $ 245,434   $ 517,273   $ 478,913 \n Montana((1)(2))   40,692     40,107     81,330     81,243 \n Nevada   31,683     27,078     60,984     54,695 \n Louisiana   10,931     9,630     21,074     18,655 \n Nebraska   12,224     7,881     23,605     15,111 \n Georgia   7,095     4,814     13,279     9,139 \n Other   1,024     965     2,138     2,065 \n Total net revenues $ 368,125   $ 335,909   $ 719,683   $ 659,821 \n\n ((1)) Includes $40.1 million of net gaming revenues and $0.6 million of \n manufacturing revenues for the three months ended June 30, 2026. In \n comparison, includes $38.3 million of net gaming revenues and $1.8 million of \n manufacturing revenues for the three months ended June 30, 2025. \n     \n ((2)) Includes $79.5 million of net gaming revenues and $1.8 million of \n manufacturing revenues for the six months ended June 30, 2026. In comparison, \n includes $75.6 million of net gaming revenues and $5.6 million of \n manufacturing revenues for the six months ended June 30, 2025. \n\n\nGross Margin Percentage\n   Three Months Ended \n \nJune 30, \n   2026     2025   \n Gross margin percentage:       \n Illinois - our regulated split percentage 32.50 %   32.50 % \n Georgia - our regulated split percentage 43.50 %   43.50 % \n All other state splits, revenues and fees 27.78 %   27.84 % \n Total gross margin percentage( (1)) 31.30 %   31.34 % \n\n   Six Months Ended \n \n \n \nJune 30, \n   2026     2025   \n Gross margin percentage:       \n Illinois - our regulated split percentage 32.50 %   32.50 % \n Georgia - our regulated split percentage 43.50 %   43.50 % \n All other state splits, revenues and fees 27.43 %   27.25 % \n Total gross margin percentage( (1)) 31.20 %   31.16 % \n\n ((1)) Gross margin percentage represents the percentage of total net revenue \n remaining after subtracting the cost of revenue and cost of manufacturing \n goods sold and is not adjusted to exclude or modify amounts recognized under \n GAAP. \n\n\nKey Business Metrics\n Locations ((1)) As of June 30,   Increase / (Decrease) \n   2026   2025   Change   Change (%) \n Illinois 2,692   2,741   (49 )   (1.8 )% \n Montana 626   616   10     1.6 % \n Nevada 548   355   193     54.4 % \n Louisiana 105   98   7     7.1 % \n Nebraska 298   275   23     8.4 % \n Georgia 407   342   65     19.0 % \n Total locations 4,676   4,427   249     5.6 % \n\n Gaming terminals ((1)) As of June 30,   Increase / (Decrease) \n   2026   2025   Change   Change (%) \n Illinois 15,540   15,670   (130 )   (0.8 )% \n Montana 6,714   6,508   206     3.2 % \n Nevada 4,045   2,650   1,395     52.6 % \n Louisiana 792   626   166     26.5 % \n Nebraska 1,029   975   54     5.5 % \n Georgia 1,161   959   202     21.1 % \n Total gaming terminals 29,281   27,388   1,893     6.9 % \n\n ((1)) Based on a combination of third-party portal data and data from our internal \n systems. This metric is utilized by Accel to continually monitor growth from \n existing locations, organic openings, acquired locations, and competitor \n conversions. \n\n Location hold-per-day ((2)) Three Months Ended   Increase / (Decrease) \n \nJune 30, \n     2026     2025   Change ($)   Change (%) \n Illinois $ 992   $ 910   $ 82     9.0 % \n Montana   642     622     20     3.2 % \n Nevada   660     784     (124 )   (15.8 )% \n Louisiana   1,145     994     151     15.2 % \n Nebraska   427     285     142     49.8 % \n Georgia   185     149     36     24.2 % \n                 \n\n   \n Location hold-per-day ((2)) Six Months Ended   Increase / (Decrease) \n \nJune 30, \n     2026     2025   Change ($)   Change (%) \n Illinois $ 973   $ 896   $ 77     8.6 % \n Montana   642     616     26     4.2 % \n Nevada   664     792     (128 )   (16.2 )% \n Louisiana   1,105     978     127     13.0 % \n Nebraska   422     271     151     55.7 % \n Georgia   175     146     29     19.9 % \n\n ((2)) Location hold-per-day is calculated by dividing net gaming revenue in the \n period by the average number of locations. We then divide the calculated \n amount by the number of operational days. We utilize this metric to compare \n market and location performance on a normalized basis. The percent change in \n location hold-per-day is the underlying metric used to determine the change in \n same-store sales. \n\n\nCondensed Consolidated Statements of Cash Flows Data\n   Six Months Ended   Increase / (Decrease) \n \nJune 30, \n (in thousands)   2026       2025     Change ($)   Change (%) \n Net cash provided by operating activities $ 62,707     $ 64,557     $ (1,850 )   (2.9 )% \n Net cash used in investing activities   (47,206 )     (59,963 )     12,757     21.3 % \n Net cash used in financing activities   (56,616 )     (21,269 )     (35,347 )   (166.2 )% \n\n\nNon-GAAP Financial Information\n\nThis press release includes certain financial information not prepared in\naccordance with Generally Accepted Accounting Principles in the United States\n(“GAAP”), including Adjusted EBITDA, Net debt, Net leverage and Free cash\nflow. Adjusted EBITDA, Net debt, Net leverage and Free cash flow are non-GAAP\nfinancial measures and are key metrics that Accel’s management uses to\nmonitor ongoing core operations. Accel’s management believes these non-GAAP\nfinancial measures enhance the understanding of Accel’s underlying drivers\nof profitability and trends in Accel’s business and facilitate\ncompany-to-company and period-to-period comparisons because they exclude the\neffects of certain non-cash items or nonrecurring items that are unrelated to\ncore operating performance. Accel’s management also believes that these\nnon-GAAP financial measures are used by investors, analysts and other\ninterested parties as measures of Accel’s financial performance and to\nevaluate Accel’s ability to fund capital expenditures, service debt\nobligations and meet working capital requirements. The non-GAAP financial\nmeasures presented in this press release should be viewed in addition to, and\nnot as an alternative for, financial measures prepared in accordance with GAAP\nthat are also presented in this press release. These measures are not\nsubstitutes for their comparable GAAP financial measures and there are\nlimitations to using non-GAAP financial measures. For example, the non-GAAP\nfinancial measures presented in this press release may differ from similarly\ntitled non-GAAP financial measures presented by other companies, and other\ncompanies may not define these non-GAAP financial measures the same way as\nAccel does.\n\nAdjusted EBITDA is defined as net income plus:\n\n\n * Interest expense, net\n\n * Income tax expense\n\n * Depreciation and amortization of property and equipment\n\n * Amortization of intangible assets and route and customer acquisition costs\n\n * Stock-based compensation expense\n\n * Loss on change in fair value of contingent earnout shares\n\n * All other adjustments, which includes:\n\n\n* Other expenses, net which consists of i) non-cash expenses including the\nremeasurement of contingent consideration liabilities, ii) non-recurring\nlobbying and legal expenses related to distributed gaming expansion in current\nor prospective markets, iii) other non-recurring expenses, and beginning in\n2026 iv) gain or loss on sale of fixed assets, which were previously presented\nin general and administrative expenses. Prior periods have not been recast to\nreflect this change.\n\n * Loss from unconsolidated affiliates\n\n * Emerging markets which reflects the results, on an Adjusted EBITDA basis, for\nnon-core jurisdictions where our operations are developing\n\n\n* Markets are no longer considered emerging when we have installed or acquired\nat least 500 gaming terminals in the jurisdiction, or when 24 months have\nelapsed from the date we first install or acquire gaming terminals in the\njurisdiction, whichever occurs first.\n\n * Prior to June 2025, Pennsylvania was considered an emerging market.\n\n * As of June 2025, we no longer have any emerging markets.\n\n\n\n\n\n\n\nFree cash flow is defined as Adjusted EBITDA:\n\n\n * less Cash payments for interest, net\n\n * less Cash payments for income taxes, net\n\n * less Purchases of property and equipment\n\n * plus Proceeds from sales of property and equipment\n\n * less All other cashflows from operations (primarily working capital)\n\nNet debt is defined as debt, net of current maturities:\n\n\n * plus Current maturities of debt\n\n * less Cash and cash equivalents\n\nNet leverage is defined as Net debt divided by trailing twelve-month Adjusted\nEBITDA\n\nFree cash flow is also defined as Net cash provided by operating activities:\n\n\n * less Purchases of property and equipment\n\n * plus Proceeds from sales of property and equipment\n\nReconciliation of Net income to Adjusted EBITDA and Free cash flow\n   Three Months Ended   Six Months Ended \n \nJune 30, \nJune 30, \n (in thousands)   2026       2025       2026       2025   \n Net income $ 12,507     $ 7,262     $ 27,170     $ 21,875   \n Adjustments:               \n Interest expense, net   8,642       8,771       17,143       17,456   \n Income tax expense   5,872       5,090       11,248       10,083   \n Depreciation and amortization of property and equipment   13,827       13,095       27,689       25,396   \n Amortization of intangible assets and route and customer acquisition costs   6,823       6,322       13,613       12,612   \n Stock-based compensation   3,243       2,789       5,742       4,880   \n Loss on change in fair value of contingent earnout shares   5,018       5,734       3,542       3,379   \n All other adjustments ((1))   2,992       4,117       6,534       7,013   \n Adjusted EBITDA ((2))   58,924       53,180       112,681       102,694   \n                 \n Cash payments for interest, net   (8,304 )     (7,945 )     (16,246 )     (16,010 ) \n Cash payments for income taxes, net   (29,071 )     (15,523 )     (29,071 )     (15,523 ) \n Purchases of property and equipment   (11,100 )     (26,042 )     (33,959 )     (52,797 ) \n Proceeds from sales of property and equipment   729       483       1,076       1,177   \n All other cashflows from operations (primarily working capital)   (1,585 )     (9,907 )     (4,657 )     (6,604 ) \n Free cash flow $ 9,593     $ (5,754 )   $ 29,824     $ 12,937   \n\n ((1)) Loss on sale of fixed assets was $2.5 million and $3.2 million for the three \n and six months ended June 30, 2026, respectively, and is included in Other \n expenses, net. Loss on sale of fixed assets was $0.1 million and $0.3 million \n for the three and six months ended June 30, 2025, respectively, and is \n presented in general and administrative expenses, which is not an adjustment \n for EBITDA. Also includes approximately $0.1 million for both the loss \n contributed from unconsolidated affiliates and emerging markets for the three \n and six months ended June 30, 2026, and 2025. \n     \n ((2)) Trailing twelve-month Adjusted EBITDA is $220.1 million for the twelve months \n ended June 30, 2026. \n\n\nReconciliation of Debt, net of current maturities to Net debt\n   As of June 30, \n (in thousands)   2026       2025   \n Debt, net of current maturities $ 543,329     $ 561,450   \n Plus: Current maturities of debt   30,000       34,033   \n Less: Cash and cash equivalents   (255,451 )     (264,630 ) \n Net debt $ 317,878     $ 330,853   \n\n\nReconciliation of Net cash provided by operating activities to Free cash flow\n   As of June 30, \n (in thousands)   2026       2025   \n Net cash provided by operating activities ((1)) $ 62,707     $ 64,557   \n Less: Purchases of property and equipment   (33,959 )     (52,797 ) \n Plus: Proceeds from the sale of property and equipment   1,076       1,177   \n Free cash flow $ 29,824     $ 12,937   \n Free cash flow conversion rate (Free cash flow / Adjusted EBITDA)   26.5 %     12.6 % \n\n ((1)) Includes the $17 million purchase of tax credits in Q2 ‘26 \n\n\nConference Call\n\nAccel will host a conference call and webcast at 4:30 PM ET / 3:30 PM CT today\nto review the results. Interested parties may join the live webcast by\nregistering in advance at\nhttps://events.q4inc.com/analyst/652613287?pwd=Ty27oOlb\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Fevents.q4inc.com%2Fanalyst%2F652613287%3Fpwd%3DTy27oOlb&esheet=54583311&newsitemid=20260804216922&lan=en-US&anchor=https%3A%2F%2Fevents.q4inc.com%2Fanalyst%2F652613287%3Fpwd%3DTy27oOlb&index=1&md5=4da5f03ca8fbd913924d1c10bbd3f32b)\n. Registering in advance of the call will provide listeners with a\npersonalized link to view the webcast and an individual dial-in for the call.\nThis registration link to the live webcast, as well as a replay following the\ncall, will also be available on Accel’s investor relations website at\nir.accelentertainment.com.\n\nAbout Accel\n\nAccel Entertainment, Inc. (NYSE: ACEL) is a growing provider of locals-focused\ngaming and one of the largest terminal operators in the United States,\nsupporting more than 29,000 electronic gaming terminals in nearly 4,700\nthird-party local and regional establishments and 20 self-operated gaming\nlocations across ten states. Through exclusive long-term contracts, Accel\nserves licensed non-casino locations including bars, restaurants, convenience\nstores, truck stops, gaming cafes, and fraternal and veteran establishments.\n\nAccel provides its local partners with a turnkey, full-service,\ncapital-efficient gaming solution that encompasses manufacturing, content,\npayments, loyalty, 24/7 customer service, data analysis and reporting, and\ncash logistics. The Company’s racino, Fairmount Park - Casino & Racing,\nfeatures live racing, electronic gaming machines, live table games, food and\nbeverage amenities, and pari-mutuel betting.\n\nForward-Looking Statements\n\nThis press release contains forward-looking statements within the meaning of\nthe Private Securities Litigation Reform Act of 1995. All statements, other\nthan statements of historical fact, contained in this press release are\nforward-looking statements, including, but not limited to, any statements\nregarding our ability to invest organically and pursue disciplined\nacquisitions, estimates of number of gaming terminals, locations, revenues,\nand Adjusted EBITDA, the opportunities in distributed gaming and local\nentertainment within the broader gaming market, including in the city of\nChicago, our ability to expand operations in developing markets, our ability\nto roll out new technology to enhance player convenience and operational\nefficiency over time, and our expansion into casino operations and horse\nracing, including at Fairmount. The words “predict,” “anticipates,”\n“believes,” “estimates,” “expects,” “intends,” “may,”\n“plans,” “projects,” “will,” “would,” “continue,” and\nsimilar expressions are intended to identify forward-looking statements. These\nforward-looking statements represent our current reasonable beliefs,\nexpectations and assumptions and involve inherent risks, uncertainties and\nother factors that may cause our actual results, performance and achievements,\nor industry results, to be materially different from any future results,\nperformance or achievements expressed or implied by such forward-looking\nstatements. Therefore, you should not rely on any of these forward-looking\nstatements. Important factors that could cause our results and financial\ncondition to differ materially from those indicated in the forward-looking\nstatements include, among others, the following: Accel’s ability to operate\nin existing markets and to expand into new jurisdictions; Accel’s ability to\nintroduce new and appealing products and services amid uncertain market demand\nand regulatory outcomes; Accel’s ability to maintain or improve its\ncompetitive advantages in a highly competitive industry; Accel’s dependence\non a concentrated network of key manufacturers, developers and third party\nproviders for gaming terminals, amusement machines, and related software,\ncontent and technologies; Accel’s heavy dependency on its ability to win,\nmaintain and renew contracts with location partners; Accel's expansion into\ncasino operations and horse racing; decreased discretionary consumer spending\ndue to broader macroeconomic and socio-political conditions; geographical\nconcentration of Accel’s business, which heightens exposure to local or\nregional conditions; strict government regulations that are constantly\nevolving and may be amended, repealed, or subject to new interpretations,\nwhich may limit existing operations, have an adverse impact on Accel’s\nability to grow or may expose Accel to fines or other penalties; Accel’s\ndependence on the security, integrity and regulatory compliance of products,\nservices and systems offered, which, if breached or disrupted, could expose\nAccel to liability; Accel’s dependence on the protection of trademarks and\nother intellectual property; opponents’ efforts to curtail the expansion of\nlegalized gaming; and other risks and uncertainties indicated from time to\ntime in documents filed or to be filed with the U.S. Securities and Exchange\nCommission (the \"SEC\") including those described in the section entitled\n“Risk Factors” in the Annual Report on Form 10-K for the fiscal year ended\nDecember 31, 2025 (the \"Form 10-K\").\n\nAny forward-looking statement made by us in this press release is based only\non information currently available to us and speaks only as of the date on\nwhich it is made. We are under no obligation to, and expressly disclaim any\nobligation to, publicly update or alter any forward-looking statement, whether\nas a result of new information, subsequent events or otherwise, except as\nrequired by law.\n\nIndustry and Market Data\n\nUnless otherwise indicated, information contained in this press release\nconcerning our industry and the markets in which we operate, including our\ngeneral expectations and market position, market opportunity, and market size,\nis based on information from various sources, on assumptions that we have made\nthat are based on those data and other similar sources, and on our knowledge\nof the markets for our services. This information includes a number of\nassumptions and limitations, and you are cautioned not to give undue weight to\nsuch information. In addition, projections, assumptions, and estimates of our\nfuture performance and the future performance of the industry in which we\noperate are necessarily subject to a high degree of uncertainty and risk due\nto a variety of factors, including those described in the Form 10-K, as well\nas Accel's other filings with the SEC. These and other factors could cause\nresults to differ materially from those expressed in the estimates made by\nthird parties and by us.\n   \n ACCEL ENTERTAINMENT, INC. \n CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) \n   \n (In thousands, except per share amounts) Three Months Ended   Six Months Ended \n \nJune 30, \nJune 30, \n     2026     2025       2026     2025   \n Net revenues:               \n Net gaming $ 347,375   $ 313,919     $ 678,800   $ 615,870   \n Amusement   5,250     5,517       11,075     11,425   \n Manufacturing   568     1,763       1,808     5,621   \n ATM fees and other   14,932     14,710       28,000     26,905   \n Total net revenues   368,125     335,909       719,683     659,821   \n Operating expenses:               \n Cost of revenue (exclusive of depreciation and amortization expense shown   252,620     229,758       494,236     451,230   \n below) \n Cost of manufacturing goods sold (exclusive of depreciation and amortization   268     886       904     2,962   \n expense shown below) \n General and administrative   59,556     54,878       117,604     107,882   \n Depreciation and amortization of property and equipment   13,827     13,095       27,689     25,396   \n Amortization of intangible assets and route and customer acquisition costs   6,823     6,322       13,613     12,612   \n Other expenses, net   2,978     4,096       6,504     6,913   \n Total operating expenses   336,072     309,035       660,550     606,995   \n Operating income   32,053     26,874       59,133     52,826   \n Interest expense, net   8,642     8,771       17,143     17,456   \n Loss from unconsolidated affiliates   14     17       30     33   \n Loss on change in fair value of contingent earnout shares   5,018     5,734       3,542     3,379   \n Income before income tax expense   18,379     12,352       38,418     31,958   \n Income tax expense   5,872     5,090       11,248     10,083   \n Net income $ 12,507   $ 7,262     $ 27,170   $ 21,875   \n Less: Net income (loss) attributed to redeemable noncontrolling interests   14     (53 )     4     (79 ) \n Net income attributable to Accel Entertainment, Inc. $ 12,493   $ 7,315     $ 27,166   $ 21,954   \n                 \n Earnings per common share:               \n Basic $ 0.15   $ 0.09     $ 0.33   $ 0.26   \n Diluted   0.15     0.08       0.32     0.25   \n Weighted average number of common shares outstanding:               \n Basic   82,039     85,710       82,299     85,856   \n Diluted   83,415     86,943       83,753     87,082   \n\n   \n ACCEL ENTERTAINMENT, INC. \n CONDENSED CONSOLIDATED BALANCE SHEETS \n (Unaudited) \n   \n (In thousands, except par value and share amounts) June 30,   December 31, \n     2026       2025   \n Assets       \n Current assets:       \n Cash and cash equivalents $ 255,451     $ 296,566   \n Accounts receivable, net   13,854       14,198   \n Prepaid expenses   10,811       7,102   \n Inventories   9,611       8,231   \n Income taxes receivable   27,159       9,121   \n Interest rate hedging instruments   —       430   \n Other current assets   7,392       7,386   \n Total current assets   324,278       343,034   \n Property and equipment, net   359,567       350,304   \n Route and customer acquisition costs, net   32,860       31,147   \n Location contracts acquired, net   184,191       186,406   \n Goodwill   114,737       114,426   \n Other intangible assets, net   59,860       61,034   \n Interest rate hedging instruments, net of current   3,366       —   \n Other assets   18,139       17,042   \n Total assets $ 1,096,998     $ 1,103,393   \n Liabilities, Temporary equity, and Stockholders’ equity       \n Current liabilities:       \n Current maturities of debt $ 30,000     $ 37,583   \n Current portion of route and customer acquisition costs payable   3,180       2,473   \n Accrued location gaming expense   5,070       5,516   \n Accrued state gaming expense   20,343       21,065   \n Accounts payable and other accrued expenses   53,807       51,028   \n Accrued compensation and related expenses   14,433       9,946   \n Current portion of consideration payable   4,249       3,881   \n Total current liabilities   131,082       131,492   \n Debt, net of current maturities   543,329       569,837   \n Route and customer acquisition costs payable, less current portion   11,434       10,232   \n Consideration payable, less current portion   15,494       15,790   \n Contingent earnout share liability   37,218       33,676   \n Other long-term liabilities   10,194       9,373   \n Deferred income tax liability, net   60,299       59,230   \n Total liabilities   809,050       829,630   \n         \n Temporary equity - Redeemable noncontrolling interest   4,084       4,080   \n         \n Stockholders’ equity:       \n Preferred Stock, par value of $0.0001; 1,000,000 shares authorized; 0 shares   —       —   \n issued and outstanding at June 30, 2026 and December 31, 2025 \n Class A-1 Common Stock, par value $0.0001; 250,000,000 shares authorized;   8       8   \n 96,746,724 shares issued and 81,222,573 shares outstanding at June 30, 2026; \n 96,250,980 shares issued and 82,287,349 shares outstanding at December 31, \n 2025 \n Additional paid-in capital   231,752       229,028   \n Treasury stock, at cost   (163,648 )     (145,747 ) \n Accumulated other comprehensive income   2,380       188   \n Accumulated earnings   213,372       186,206   \n Total stockholders' equity   283,864       269,683   \n Total liabilities, temporary equity, and stockholders' equity $ 1,096,998     $ 1,103,393   \n\n\n \n\n\n\nView source version on businesswire.com:\nhttps://www.businesswire.com/news/home/20260804216922/en/\n(https://www.businesswire.com/news/home/20260804216922/en/)\n\nJoseph Jaffoni, Norberto Aja\n\nJCIR\n\n212-835-8500\n\nacel@jcir.com (mailto:acel@jcir.com)\n\n\nCopyright Business Wire 2026"},"type":"article","timestamp":"2026-08-04T20:15:01.18590892Z","server_sent_at_ms":1785874501185},"received_at":"2026-08-04T20:15:01.261Z","source_url":"https://www.businesswire.com/news/home/20260804216922/en/"},"analysis":{"id":"97641","press_release_id":"108634","analysis_json":{"industry":{"label":"Hotels, Restaurants & Leisure","sector":"Consumer Discretionary"},"redFlags":[],"eventType":"earnings","narrative":"Accel Entertainment reported record second-quarter revenue of $368 million, up 10% year-over-year, with net income surging 72% to $13 million.\n\nAdjusted EBITDA increased 11% to $59 million, driven by a 7% expansion in gaming terminals to 29,281 and improved hold-per-day metrics across several states.\n\nThe company repurchased approximately 500,000 shares for $5.6 million and ended the quarter with $255 million in cash, while CEO Andy Rubenstein announced his upcoming transition to 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