For reconciliations of the non-GAAP measures, as well as other information regarding these measures, please refer to our earnings release and other materials in the Investor Relations section of our website. Net income was $13 million, and adjusted EBITDA grew 11.5% to $51 million, reflecting consistent execution and expansion across our markets. Growth this quarter was supported by higher gaming turnover counts, stable machine performance, and improved efficiency in capital deployment. This demonstrates the strength and resilience of our distributed gaming model and our disciplined, return-focused approach to growth investments, including Fairmont Park.
In Illinois, top-line growth continues to be driven by same-store performance and new machine placements. Our focus on higher-yielding locations and disciplined capital management remains a key driver of consistent results. Nebraska and Georgia both delivered strong double-digit revenue growth driven by location expansion and market share gains. As previously discussed, this compensated for a modest decline in year-over-year revenue for Nevada due to the loss of a key customer in 2024, resulting from a change in ownership.
Across these markets, our capital investments are translating into stronger returns, with Nebraska and Georgia delivering the highest quarterly revenue growth within our developing portfolio. Both markets continue to experience significant profitable growth and are tracking toward market expansion through 2026, consistent with our expectations and long-term model. In Louisiana, which currently represents about three% of revenue, results continue to impress and scale, reflecting the successful integration of our Toucan Gaming acquisition. We look forward to developing a strong pipeline of bolt-on acquisitions of truck stops in Louisiana.
| Metric | Period | Current guidance |
|---|---|---|
| Full-year CapEx | FY2025 | $75–$80 million (affirmed) |
| TITO utilization | By late-February 2026 report | expected to reach double digits |
| Illinois machine count | Through 2026 | relatively stable with slight growth, rising average revenue per machine |
| Developing markets (Nebraska & Georgia) | Through 2026 | tracking toward market expansion, consistent with long-term model |
| Fairmount Park permanent facility feedback | Next ~6 months | expect to share feedback on permanent facility options |
| Metric | YoY | Note |
|---|---|---|
| Total revenue | +9.1% to $330 million | Growth in core markets plus incremental contributions from developing and new markets; higher gaming turnover counts and stable machine performance. |
| Adjusted EBITDA | +11.5% to $51 million | Top-line growth and strong cost discipline. |
| Operating income | +16.1% to $25 million | Top-line growth and improved capital deployment efficiency. |
| Net income | $13 million | Consistent execution and expansion across markets. |
| Illinois revenue | +7% to $239 million | Stable demand, same-store performance, new machine placements, and continued location optimization. |
| Montana revenue | +2.1% to $40 million | Proprietary gaming content and systems enhancing profitability per location. |
| Nebraska revenue | +30% to $9 million | Steady adoption and market share gains. |
| Georgia revenue | +49.3% to $5 million | Continued growth leveraging technology platform and route management expertise. |
| Nevada revenue | -7.4% to $26 million | Loss of a key customer in 2024 due to a change in ownership. |
| Louisiana revenue | $9 million contributed | Continued ramp-up and integration of the Toucan Gaming acquisition (670 terminals, nearly 100 locations). |
| Topic | Previous mention | Current period | Trend |
|---|---|---|---|
| Core-market leadership (Illinois & Montana) | Leading positions in Illinois and Montana | Together represent ~82% of revenue; leveraging scale to drive efficiencies, optimize location mix, and expand margins. | — |
| Distributed-gaming route optimization | Focus on higher-yielding locations | Signing locations that on average outperform those that close; stable-to-slightly-growing machine counts with rising revenue per machine. | — |
| TITO (ticket-in, ticket-out) rollout | Rollout underway | Mid-single-digit utilization, growing daily; reduces cash handling costs and improves player convenience; benefit noticeable well into Q2 2026. | — |
| Developing markets (Nebraska, Georgia, Nevada) | Building scale | Just over 12% of total revenue; Nebraska and Georgia double-digit growth, tracking toward expansion through 2026. | — |
| New markets — Louisiana / Toucan integration | Toucan Gaming acquisition | ~3% of revenue; 670 terminals across nearly 100 locations; primary market for a healthy bolt-on truck-stop acquisition pipeline. | — |
| Fairmount Park casino & racing | Casino opened April | Sequential monthly gaming revenue growth; casino, F&B, and FanDuel sports-betting partnership; evaluating phase two expansion timing and scope. | — |
| Capital structure & shareholder returns | Prior credit agreement | New $900M facility extends maturities to 2030; $290M cash, ~$305M net debt; opportunistic buybacks ($23.7M YTD); under-levered vs. peers. | — |
| M&A strategy | Disciplined, accretive approach | $15B+ fragmented local gaming market; transformational vs. bolt-on buckets; sellers becoming more realistic on pricing as multiples compress; capacity to absorb additions. | — |