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. Accel Entertainment delivered a strong start to 2026 with the company's highest ever Q1 Adjusted EBITDA result. First quarter revenue increased 9% YoY to $352 million, marking an all-time quarterly record for the company. Adjusted EBITDA also grew 9% to $54 million, reflecting solid underlying performance across the business.
Total Illinois revenue, excluding Fairmount Park, increased 6% YoY to $242 million. Chicago represents one of the most exciting near-term growth opportunities we have seen in some time. Nebraska delivered outstanding results with revenue increasing 57% YoY, and total average location hold per day up 57%, supported by new machine placements. We continue to see the benefit of our operating leverage with the business growth and market density.
Georgia also delivered strong growth with revenue up 43% YoY and total average location hold per day up 14%. In Nevada, we grew locations 27% and terminals 28% YoY, reflecting the significant footprint expansion from the Dynasty Games acquisition and our new route partnership with Rebel Convenience Stores. Our $300 million revolving credit facility remains fully undrawn, providing significant financial flexibility as we continue to evaluate organic growth, tuck-in acquisitions, and capital return opportunities. Our cost to serve allows us to flex, which means we have the ability to manage our business efficiently, even in periods of softer consumer demand.
| Metric | Period | Current guidance |
|---|---|---|
| Full-year CapEx | FY2026 | $60 million-$70 million, mostly maintenance-oriented with growth capital concentrated in developing markets |
| Free cash flow | FY2026 and beyond | Expected to continue to grow as CapEx normalizes and developing markets scale profitably; now a key priority and a metric to be discussed more regularly (Q1 free cash flow was $20 million, 38% cash conversion) |
| Chicago VGT market launch | Late 2026 / Q1 2027 | First Chicago locations could go live in late 2026 or the first quarter of 2027, pending final regulatory approvals and city rulemaking |
| TITO benefit ramp | Remainder of 2026 | Benefit expected to build through the rest of 2026 as players grow accustomed to TITO; adoption ~13% and not yet tapered off |
| EBITDA margin seasonality | FY2026 | Not quantified (forward-looking); management pointed to prior-year pattern where Q4 was higher and Q1-Q3 were in the mid-15% range, with the non-regulated 'all other' gross margin increasing |
| Fairmount purse increase | FY2026 | Total purses increased $500,000 for the 2026 season (a full-year impact; the accrual-timing change is otherwise full-year neutral) |
| Metric | YoY | Note |
|---|---|---|
| Total revenue | +9% to $352 million | All-time quarterly record; broad-based strength across Illinois, Nebraska, Georgia, Nevada, and Louisiana. |
| Net gaming revenue | +10% to $331 million | Primary driver of top-line performance across the distributed gaming footprint. |
| Adjusted EBITDA | +9% to $54 million | Highest-ever Q1 result; growth essentially in line with revenue, dampened ~$2 million by the Fairmount purse-accrual timing shift. |
| Net income | Flat at $15 million | Higher operating income offset by higher D&A on the growing asset base and the timing of purse expense; diluted EPS $0.17 in both years. |
| Operating income | $27 million vs. $26 million prior year | Modest increase on revenue growth. |
| Locations / gaming terminals | +3% to 4,540 locations / +4% to 28,353 terminals | Growth in developing markets and Nevada expansion, partly offset by deliberate Illinois pruning. |
| Illinois revenue (ex-Fairmount) | +6% to $242 million; hold per day +9% | Strategic location optimization, new machine placements, and TITO rollout; VGT counts broadly flat in a mature market. |
| Developing markets (Nebraska / Georgia / Louisiana / Montana) | Nebraska revenue +57%, Georgia revenue +43%, Louisiana revenue +12%, Montana hold per day +5% | New machine placements, proprietary content, market density, and operating leverage; Georgia locations +20% and terminals +35%. |
| Topic | Previous mention | Current period | Trend |
|---|---|---|---|
| Chicago VGT market opportunity | Signing up locations while awaiting regulatory approvals | Called one of the most exciting near-term growth opportunities in company history; the Illinois Gaming Board is processing applications, first locations could go live late 2026 or Q1 2027, though the city has not yet promulgated VGT rules (management handicaps rules within about a quarter). | — |
| TITO rollout in Illinois | Rollout progressing; internal estimate of up to ~20% adoption | All terminals now TITO-enabled (reached 100% only weeks ago); adoption ~13% with potential upside, and benefit to cash handling and cost expected to build organically through 2026. | — |
| Gaming & hospitality repositioning | Viewed more as a logistics business competing on efficiency, scale, and cost | Increasingly framed as a gaming and hospitality business competing on experience, content, relationships, and differentiation, which commands better economics and is seen as the next phase of margin expansion (exclusive content, table games, higher purses, TITO, Rebel upgrades). | — |
| Capital allocation and free cash flow | Disciplined, return-focused framework across organic investment, M&A, debt reduction, and buybacks | Free cash flow elevated as a key priority and a metric to discuss more regularly ($20 million in Q1, 38% cash conversion); ~1.1 million shares bought back for $12 million; ~$151.2 million remaining on the buyback authorization; new interest rate collar (4% cap / 2.92% floor, matures Sept 2029). | — |
| Leadership transition | Announced in February 2026 | Andy Rubenstein has moved to Chairman and Mark Phelan will assume the CEO role effective August 7, 2026, after 17 years of building the business; full confidence expressed in the leadership team. | — |
| Macro resilience and trade-down tailwind | — | Amid tariffs, inflation, and geopolitical uncertainty, management stresses the hyper-local, community-rooted model as highly resilient and potentially benefiting from consumer trade-down toward local, affordable entertainment; no material impact observed into Q2 to date, and no noticeable gas-price effect on players. | — |
| M&A / bolt-on pipeline | Active and attractive pipeline | Louisiana remains the top focus with more favorable seller price expectations and Accel as buyer of choice; Illinois still offers accretive route acquisitions; all markets viewed as potential acquisition candidates, with any deal required to be accretive. | — |
| Fairmount Park evolution | Casino operations the primary driver; heavy construction investment in 2025 | Launched live dealer table games (Blackjack, Roulette, Ultimate Texas Hold'em, Baccarat, novelty games) in April 2026; new gaming revenue reinvested into racing with purses up $500,000; over 7,000 attendees on Derby Day; optimal size of 'The Permanent' still being evaluated. | — |