Welcome to Accel Entertainment's 2025 Fourth Quarter and Full Year Earnings Call. For reconciliation 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. We closed the year with record financial results, continued operating momentum, new growth opportunities, and an enhanced balance sheet. In the fourth quarter, total revenue increased 7.5% year-over-year to $341 million, and Adjusted EBITDA grew 19% to $56 million, both all-time quarterly highs.
For the full year, we also generated records in revenue of over $1.3 billion and Adjusted EBITDA of $210 million. These results reflect the resilience of our distributed gaming model, growth from our new acquisitions, and our disciplined operating measures and capital deployment. We ended the year supporting more than 4,500 locations and nearly 28,000 gaming machines nationwide, demonstrating the breadth and durability of our platform and its predictable revenue profile. In Illinois and Montana, we continue to optimize our footprint and terminal base, driving steady hold-per-day improvement and margin expansion.
Turning to our developing and strategic growth markets, we continue to generate positive momentum. After adjusting for the stub period in 2024, Louisiana revenue increased significantly in the fourth quarter. We continue to execute our bolt-on acquisition strategy and optimize the Toucan Gaming platform. Louisiana remains a priority market for consolidation with many tuck-in opportunities that clearly fit our return thresholds.
| Metric | Period | Current guidance |
|---|---|---|
| Formal financial guidance | 2026 | Company does not guide ("we don't guide") |
| Chicago VGT go-live timing | 2026-2027 | Likely later Q4 2026 or potentially Q1 2027, depending on city rules and IGB backlog |
| Chicago market size (long term) | Long term | City estimates ~2,500 new locations |
| Expected Chicago market share | Long term | ~30% (in line with current statewide share), at higher performance per location |
| 2026 capital expenditure mix | 2026 | Mostly maintenance capital in Illinois (large market); growth capital concentrated in smaller developing markets |
| Other-state route legalization (PA/VA/MO/NC) | 2026 | Not expected in 2026; not built into budget/expectations |
| W-2G jackpot-limit benefit | 2026 | Not expected in 2026; eventual longer-term tailwind |
| Metric | YoY | Note |
|---|---|---|
| Total revenue (Q4) | +7.5% to $341 million (highest Q4 in company history) | Continued strength in core markets, incremental contributions from developing markets, and the continued ramp at Fairmount Park. |
| Adjusted EBITDA (Q4) | +19% to a record $56 million | Expense discipline and operating leverage; grew faster than revenue on route optimization, density, and cost discipline. |
| Revenue (full-year 2025) | +8% to a record ~$1.3 billion | Resilient distributed-gaming model, growth from new acquisitions, and disciplined operating measures. |
| Adjusted EBITDA (full-year 2025) | +11% to $210 million | Continued margin expansion and scalability of the operating model. |
| Net income (Q4) | $16 million | Included a $0.6 million gain on change in fair value of contingent earnout shares vs. a $3 million loss in the prior-year period; underlying growth consistent with Adjusted EBITDA. |
| Net income / EPS (full-year 2025) | $51 million net income; $0.61 basic / $0.60 diluted EPS | Top-line growth and stable overhead driving improved operating income. |
| Nevada terminal count (Q4) | +13% year-over-year | Recent strategic and accretive route expansions (Dynasty Games acquisition and Rebel Convenience partnership). |
| Locations & machines / net debt | 4,500+ locations and ~28,000 gaming machines nationwide; net debt ~$311 million, down 1% YoY | Breadth of platform plus disciplined capital deployment and share repurchases; Louisiana revenue also up significantly after adjusting for the 2024 stub period. |
| Topic | Previous mention | Current period | Trend |
|---|---|---|---|
| Chicago video gaming terminal (VGT) expansion | — | New emerging market now becoming reality; IGB accepting applications, city estimates ~2,500 locations, Accel positioned as leading operator to scale quickly on its existing platform. | — |
| Leadership transition (Rubenstein to Phelan) | — | Andy Rubenstein moved to Chairman effective immediately and will transition out of CEO in August as Mark Phelan takes over day-to-day leadership. | — |
| Illinois route optimization and margin expansion | Ongoing pruning and redeployment | Continued location-mix improvement, redeployment of underperforming assets, and higher-yielding placements driving revenue-per-machine and margin gains despite flat/declining location counts. | — |
| TITO (Ticket-In, Ticket-Out) rollout | Early rollout | 81% of locations fully TITO-enabled; still 'third inning,' expected to improve player convenience, cash handling, and operating efficiency as adoption grows. | — |
| Bolt-on / tuck-in M&A and consolidation | Toucan/Louisiana platform build-out | Healthy acquisition pipeline (Louisiana priority for consolidation; Dynasty Games in Nevada); M&A viewed as the most attractive capital use when price is right. | — |
| Fairmount Park Casino & Racing diversification | April 2025 grand opening | Completed first full racing season and ramped casino operations; consistent month-over-month engagement growth; evaluating timing/scope of future development phases. | — |
| Disciplined, return-based capital allocation | Conservative leverage | Framework balances organic investment, bolt-on/strategic M&A, debt optimization, and buybacks; ~3.8M shares repurchased; untapped $300M revolver reserved for potential large M&A. | — |
| Repositioning route business toward entertainment/hospitality | — | Phelan's strategic aim to shift from a logistics-heavy route model to a more nuanced, differentiated, higher-margin entertainment and hospitality business via content, payments, and loyalty. | — |