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. Adjusted EBITDA increased 11% to $59 million, also an all-time quarterly record. We believe these strong results reflect the durability of our distributed gaming model, the strength and ongoing growth of our largest market, and growing contributions from our developing markets. We're managing it to maximize revenue and profitability per location, and our results reflect that.
Customer engagement continues to ramp, and the property delivered its highest quarterly gross profit since we acquired it, which represents 33% growth compared to the second quarter of last year. Chicago remains one of our most significant near-term growth opportunities, and I want to provide an update on where things stand. Nebraska and Georgia both delivered exceptional double-digit revenue growth and are becoming meaningful drivers of Accel's overall earnings growth, not simply contributors to revenue growth. Elsewhere across our footprint, in Louisiana, we completed the acquisition of Rice Palace Truck Stop Casino during the quarter, and our pipeline remains active and attractive.
During the second quarter, we continued to execute our disciplined capital allocation strategy. We believe the strength of our balance sheet gives us the flexibility to continue investing organically, pursue disciplined acquisitions, and return capital to shareholders while maintaining a solid financial profile. This will be my final quarterly earnings call as Chief Executive Officer. Stan built Toucan into one of the premier operators in Louisiana, and he brings that same operational discipline, focus on growth and leadership to our broader organization.
| Metric | Period | Current guidance |
|---|---|---|
| Full-year capital expenditure | FY2026 | $60 million-$70 million (vs approximately $89 million in 2025), depending on year-end payment timing and Chicago license approvals/deployment timing |
| Nevada Rebel/Green Valley quality transition | Ongoing | Expected to be a 6-to-12-month process; early operating indicators encouraging |
| Chicago full market deployment | Long-term | Roughly $1 billion total market revenue (terminal operators ~one-third), expected to take five-plus years to fully deploy; first establishments could go live within weeks |
| Fairmount Park permanent casino details | Next quarter or two | Additional details on scope and timing to be provided over the next quarter or two |
| Replacement capital payback | Ongoing | Generally expected to be between two and three years |
| Metric | YoY | Note |
|---|---|---|
| Total revenue | +10% to $368 million (all-time quarterly record) | Durability of the distributed-gaming model, growth in Illinois, and growing contributions from developing markets. |
| Adjusted EBITDA | +11% to $59 million (all-time quarterly record) | Improved route quality, higher hold per location, and scaling profitability in developing markets. |
| Net income | $13 million vs $7 million prior year | Higher operating income ($32 million vs $27 million), partly offset by non-cash charges to equipment and earn-out fair value. |
| Diluted EPS | $0.15 vs $0.08 prior year | Higher net income and ongoing share repurchases. |
| Locations / gaming terminals | Nearly 4,700 locations (+6%) and more than 29,000 terminals (+7%) | Acquisitions (Dynasty Games, Rice Palace) and route partnerships (Rebel, Green Valley) across the footprint. |
| Illinois location hold per day | +9% to $992 | Stronger portfolio mix (higher-performing locations added, lower-volume/unprofitable locations off the route) plus better route productivity. |
| Fairmount Park gross profit | +33% (highest quarterly gross profit since acquisition) | Ramping customer engagement, traction in table games and slots, and the second racing season. |
| Nevada hold per day | -15.8% | Business-mix shift toward lower-hold convenience stores growing faster than higher-hold participation bars; new Rebel/Green Valley locations early in their quality transition. |
| Topic | Previous mention | Current period | Trend |
|---|---|---|---|
| CEO / leadership transition | Andy Rubenstein serving as Founder, Chairman and CEO | This is Rubenstein's final earnings call as CEO after 17 years; Mark Phelan becomes CEO on August 7, 2026 while Rubenstein stays on as Chairman; Stan Guidroz (who built Toucan) promoted to Chief Operating Officer. | — |
| Location quality over quantity in Illinois | Pruning lower-volume, unprofitable locations, with counts declining | Strategy managed to maximize revenue and profitability per location, not machine count; hold per day up 9% to $992 despite modest count declines; first sequential location-count growth in about two years. | — |
| Chicago market opening | Awaiting Illinois Gaming Board and City of Chicago licensing | State issued first establishment licenses in June and a second round in July; Accel approved for 17 of 39 (~44%); City now processing applications; first establishments could go live within weeks; ~$1 billion market, ~5+ years to fully deploy. | — |
| Developing markets as earnings drivers | Nebraska and Georgia viewed as incremental revenue contributors | Nebraska revenue +55%, Georgia +47%, both with significant adjusted EBITDA growth — now meaningful contributors to earnings growth; company plans to deploy additional capital behind them. | — |
| TITO (ticket-in / ticket-out) technology | Rolling out across the Illinois installed base | Rollout complete across the installed base; player adoption increasing; delivering a reduction in cash held in the field and improved working capital, with expected productivity and player-experience gains. | — |
| Fairmount Park permanent casino | Committed to developing a permanent casino at the property | Planning around scope and timing continues to advance; additional details expected over the next quarter or two; gaming revenue funding ~$500,000 increase in racing purses for the 2026 season. | — |
| From logistics company to gaming and hospitality company | Business historically framed as a distributed-gaming logistics operation | Phelan reframes Accel as a gaming and hospitality company competing on experience, content, relationships and differentiation — the source of the next phase of margin expansion. | — |
| Disciplined capital allocation | Buybacks, disciplined M&A, strong balance sheet | ~500,000 shares repurchased for $5.6 million in Q2 (1.6 million for $18 million in H1; ~$201 million since late 2021, ~$146 million capacity remaining); net leverage ~1.4x; $300 million revolver undrawn; full-year capex guided to $60-70 million vs ~$89 million in 2025. | — |