Accel Entertainment NYSE: ACEL reported first-quarter 2026 results that management said reflected “a strong start to 2026,” highlighted by record quarterly revenue and the company’s highest-ever first-quarter adjusted EBITDA.
Q1 results set records as distributed gaming model drives growth
On the call, the company reported first-quarter revenue increased 9% year over year to $352 million, which it called an all-time quarterly record. Adjusted EBITDA also rose 9% to $54 million, which management described as the company’s highest-ever Q1 adjusted EBITDA result. Accel ended the quarter operating 4,540 locations and 28,353 gaming terminals nationwide, representing year-over-year increases of 3% and 4%, respectively.
Chief Financial Officer Brett Summerer said net gaming revenue increased 10% year over year to $331 million, driving the top-line performance. Operating income was $27 million versus $26 million a year earlier, while net income was $15 million, which Summerer said was “essentially flat” year over year due to higher depreciation and amortization tied to the growing asset base and the timing of Fairmount Park purse expense. Diluted EPS was $0.17 in both Q1 2026 and Q1 2025.
Summerer noted that both adjusted EBITDA and net income were impacted by a $2 million timing shift related to the accrual of Fairmount Park purse expense. He said the company changed its approach in 2026 to accrue purse expense in line with revenue recognition throughout the year rather than recognizing it primarily as races were conducted, as it did in 2025. Summerer added that the change affects quarterly timing but not full-year results, aside from a $500,000 strategic increase in purses referenced by management.
Illinois remains the foundation; TITO adoption begins to build
Management repeatedly emphasized Illinois as the company’s core market. Chief Executive Officer Andy Rubenstein said total Illinois revenue, excluding Fairmount Park, increased 6% year over year to $242 million. He attributed performance to strategic location optimization and new machine placements, noting that average location hold per day increased 9% to $962 as Accel concentrated investment in higher-yielding placements while keeping VGT counts broadly flat in the mature market.
President and COO Mark Phelan said Illinois location count declined modestly year over year as part of an intentional pruning strategy focused on route quality. Phelan reported Illinois location hold per day increased 9% year over year to $662 per location and said the strategy is “opportunistic,” with the company exiting locations that “burn our cash” while balancing that with new organic revenue coming online.
On the rollout of ticket-in, ticket-out technology (TITO) in Illinois, Rubenstein said all terminals are now TITO-enabled and that the company is beginning to realize benefits that it expects to build through 2026 as players adopt the system. In the Q&A, Summerer said early adoption was around 13% so far, compared to internal estimates that had contemplated “potentially up to around that 20% mark.” He cautioned that isolating specific cost reductions is difficult because overall play levels also influence cash handling needs, but said TITO should provide a benefit over time, including “additional cash in our banks as well as our cost structure.”
Chicago seen as major near-term catalyst, but timing depends on rules and approvals
Management described Chicago as one of its most significant near-term growth opportunities. Rubenstein said the Illinois Gaming Board is actively processing applications from Chicago establishments and that Accel is signing up locations while awaiting final regulatory approvals. He said the company anticipates the first Chicago locations could go live in late 2026 or the first quarter of 2027.
In the Q&A, Phelan said the company feels good about the Gaming Board’s processing of applications, but noted the city “is yet to promulgate any rules around VGT gaming,” calling it a “wild card.” He suggested, as his own estimate, that city rules could be done in the next quarter, but framed that as “handicapping.”
Asked about Illinois vertical integration rules recently approved by JCAR, Rubenstein said the rule has been contested by some operators in circuit court and that the company would wait to see how it plays out before drawing conclusions.
Developing markets expand; Nevada integration and Fairmount table games highlighted
Outside Illinois, management pointed to continued growth across developing markets. Rubenstein cited results that included:
- Nebraska: Revenue up 57% year over year, with total average location hold per day up 57%, supported by new machine placements.
- Georgia: Revenue up 43% year over year, with total average location hold per day up 14%.
- Nevada: Locations up 27% and terminals up 28% year over year, reflecting expansion from the Dynasty Games acquisition and a new route partnership with Rebel Convenience Stores.
- Louisiana: Revenue up 12% year over year.
Phelan provided additional color on Nevada, saying Accel acquired Dynasty Games in December 2025, adding 20 locations and about 120 terminals in northern Nevada, and launched its Rebel Convenience Stores route partnership in January 2026, adding 55 locations and more than 400 machines in southern Nevada. He said the rollout was executed efficiently and that the company is encouraged by early increases in play as it upgrades machines and adds proprietary content. Accel now operates in Nevada across 450 locations and 3,348 terminals, he said.
At Fairmount Park Casino & Racing, Rubenstein and Phelan highlighted the launch of live dealer table games in April 2026, including Blackjack, Roulette, and other games. Phelan added Ultimate Texas Hold’em and Baccarat to the list and said revenue from the new table game positions is being reinvested in the racing product. For the 2026 season, he said total purses were increased by $500,000, which is “already attracting larger field sizes and more competitive racing.” He also said the company is still evaluating the timing and scope of its overall Fairmount investment as it gains more operating experience.
Capital allocation: share repurchases, lower CapEx outlook, and strong liquidity
Rubenstein said the company repurchased about 1.1 million shares for $12 million during the first quarter, citing confidence in Accel’s long-term value and a commitment to returning capital to shareholders. Summerer said that as of March 31, 2026, Accel had repurchased a total of 18.7 million shares since November 2021 for about $195.6 million, with $151.2 million remaining under the current authorization.
Capital expenditures totaled $23 million in the quarter, down from $27 million a year earlier. Summerer reiterated the company’s full-year 2026 CapEx expectation of $60 million to $70 million, compared with about $89 million in 2025, which included elevated Fairmount Park investment. He said the year-over-year decline largely reflects reduced Fairmount construction spending and that most 2026 capital is maintenance-oriented, with growth capital concentrated in developing markets.
Operating cash flow was $43 million in the quarter, while the company used about $23 million in investing activities (primarily CapEx) and $42 million in financing activities, which Summerer said reflected debt repayment, share repurchases, and other items. He also introduced free cash flow as a metric the company intends to discuss more regularly, defining it as net cash provided by operating activities less CapEx, net of PP&E disposals. Based on adjusted EBITDA of $54 million and free cash flow of $20 million, Summerer said cash conversion was 38%.
Accel ended the quarter with $274 million in cash and net debt of about $306 million, representing net leverage of about 1.4x trailing 12-month adjusted EBITDA, according to management. Rubenstein and Summerer also noted the company’s $300 million revolving credit facility remained fully undrawn. Summerer added that Accel entered into a new interest rate collar on Jan. 30, 2026, establishing a cap rate of 4% and a floor of 2.92% on its term loan through September 2029.
Management also discussed the macro environment, with Rubenstein citing uncertainty from tariffs, inflation, and geopolitical instability, but arguing Accel’s “hyper-local” distributed gaming model has proven resilient. He said the company had not observed any material business impact through early second quarter and that volumes remained strong.
Finally, Rubenstein reiterated a previously announced leadership transition: he has stepped into the chairman role, and Phelan is set to become CEO effective Aug. 7.
About Accel Entertainment NYSE: ACEL
Accel Entertainment, Inc is a Chicago-based gaming and entertainment company specializing in the provision of regulated electronic gaming terminals and related management services to licensed establishments across the United States. The company’s core offerings include video gaming terminals (VGTs), digital payment solutions, player loyalty programs and compliance support, all designed to enhance customer engagement and operational efficiency for bars, restaurants, truck stops and convenience stores.
Founded in 2005, Accel Entertainment has built a network that spans multiple states, including Illinois, Pennsylvania, Ohio, and Iowa.
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