Accel Entertainment Q4 Earnings Call Highlights

Key Points

• Record Q4 and FY2025 results: Q4 revenue rose 7.5% YoY to $341 million and Adjusted EBITDA grew 19% to $56 million, with FY2025 revenue topping $1.3 billion and Adjusted EBITDA of $210 million across more than 4,500 locations and ~28,000 machines.
• Chicago VGT seen as a major growth catalyst but timing unclear: Management expects to be a leading operator if video gaming terminals are introduced in Chicago (city estimate ~2,500 long‑term locations) but launch depends on city-level rules and could occur late Q4 2026 or Q1 2027.
• Capital allocation and leadership transition: Accel repurchased ~3.8 million shares in 2025, closed the year with $297 million cash and ~$311 million net debt with a $300 million revolver untapped, and is transitioning Andy Rubenstein to chairman while COO Mark Phelan will assume the CEO role in August.

Accel Entertainment NYSE: ACEL detailed record results for the fourth quarter and full year 2025, while highlighting continued route optimization in its core markets, growth in developing states, and what management described as a significant long-term opportunity tied to the potential introduction of video gaming terminals (VGTs) in Chicago.

Record fourth-quarter and full-year results

Chief Executive Officer Andy Rubenstein said Accel “delivered a strong finish to 2025,” closing the year with record financial results and what he characterized as continued operating momentum and an improved balance sheet. In the fourth quarter, total revenue rose 7.5% year over year to $341 million, while Adjusted EBITDA increased 19% to $56 million—both quarterly highs for the company.

For the full year 2025, Accel reported revenue of more than $1.3 billion and Adjusted EBITDA of $210 million. The company ended the year supporting more than 4,500 locations and nearly 28,000 gaming machines nationwide.

Chief Financial Officer Brett Summerer said fourth-quarter growth was driven by strength in core markets, incremental contributions from developing markets, and the ramp at Fairmount Park Casino & Racing. Summerer also emphasized that Adjusted EBITDA grew faster than revenue, citing expense discipline and operating leverage. Net income in the fourth quarter was $16 million, and Summerer noted results benefited from a $0.6 million gain tied to the change in fair value of contingent earnout shares, compared with a $3 million loss in the prior-year period. For the full year, net income was $51 million, translating to $0.61 basic EPS and $0.60 fully diluted.

Chicago VGT market: process underway, timing still uncertain

Rubenstein and President and COO Mark Phelan repeatedly pointed to Chicago as a potential growth catalyst following public announcements around the introduction of VGTs in licensed establishments. Rubenstein said Accel is “uniquely positioned” to participate as the leading operator in Illinois, citing regulatory relationships, operating infrastructure, and route management capabilities.

On the call, Rubenstein referenced the company’s January 8, 2026 press release, which cited a city estimate of 2,500 new locations in Chicago over the long term. In response to analyst questions, management said the Illinois Gaming Board beginning to accept applications was “a great sign,” but added that city-level procedures related to licensing and regulation still need to be finalized.

Management also discussed unit economics expectations for Chicago. Rubenstein said some establishments may have less square footage than typical Illinois locations, which could constrain the ability to reach six machines in certain venues, implying a lower average machine count per location than the rest of Accel’s portfolio. However, he said higher population density should support higher average play per machine. Rubenstein added that operating logistics in Chicago—such as parking and servicing—may increase costs, though Accel expects to offset much of that with its existing platform and will establish warehouse and support capabilities within the city.

When asked about potential market share in Chicago, Rubenstein said Accel expects to be a leader, but does not anticipate materially exceeding its current Illinois market share, which he described as “just shy of 30%.” He did say the company expects performance per location to be stronger than the broader portfolio given increased ability to select and equip locations after more than a decade operating in Illinois.

As for timing, Phelan said that if pressed for a launch estimate, he would expect the market to go live “more likely later in the Q4 for 2026 or potentially even Q1 of 2027,” citing a backlog of applications at the Illinois Gaming Board and the need for city rules to be promulgated.

Operational updates: Illinois optimization, TITO rollout, and new-market expansion

Phelan said 2025 operations focused on route quality, service performance, and targeted investment. In Illinois, Accel has continued improving location mix, redeploying underperforming assets, and investing in higher-yield placements, which he said has supported improvement in revenue per machine and margin performance even as location counts remain largely flat.

On Ticket-In, Ticket-Out (TITO) technology in Illinois, Phelan said 81% of Accel locations have all gaming machines fully TITO-enabled. Management said the rollout is still early, but expects TITO to improve player convenience and streamline cash handling, supporting operating efficiency. In the Q&A, Rubenstein said benefits should become more apparent as the company moves closer to the “90s” in penetration and as player behavior shifts. He described the initiative as around the “third inning” of implementation, with acceleration expected through the end of the year.

In Montana, Phelan highlighted the role of Accel’s proprietary content and systems, and said the company’s Grand Vision Gaming subsidiary continues to develop new content. He said this supports margins through exclusivity, while also lowering capital expenditures and increasing free cash flow.

In Nevada, the company emphasized both acquisitions and partnerships. Phelan said Accel completed the “accretive” acquisition of Dynasty Games, adding 20 locations and about 123 gaming machines across northern Nevada. He also said Accel entered a new route partnership with Rebel Convenience Stores that adds 55 locations and 424 gaming machines across southern Nevada beginning in January 2026, and that the rollout was completed in six days. Following these moves, Accel said its Nevada operations support more than 600 locations and about 3,000 gaming machines.

In Louisiana, management said integration of the Toucan Gaming platform has progressed well, with continued route optimization, machine refreshes, and bolt-on acquisitions. Rubenstein said Louisiana remains a priority market for consolidation with tuck-in opportunities that meet return thresholds.

Fairmount Park ramp and Illinois racing backdrop

At Fairmount Park Casino & Racing, Accel said it completed its first full racing season and continued ramping casino operations after the April 2025 opening. Rubenstein and Phelan said customer engagement has been healthy and performance has built monthly as awareness increases, while the company continues evaluating the timing and scope of future development phases. Phelan added that the team has gained insights into customer behavior, marketing effectiveness, and operating cadence that are informing development planning.

Asked about Hawthorne’s bankruptcy situation and what it could mean if Fairmount becomes the only operational track in Illinois, Phelan called it “a tough moment for Illinois horse racing” and said the pari-mutuel market faces headwinds nationally and in Illinois. He said Accel is “still standing” and excited about the season beginning in April, and is prepared to support the Illinois Racing Board as needed.

Capital allocation, liquidity, and leadership transition

Management reiterated a return-focused capital allocation approach spanning organic investment, M&A, balance sheet strength, and share repurchases. Rubenstein said Accel repurchased about 3.8 million shares in 2025, including 1.5 million shares in the fourth quarter. Summerer said the company ended 2025 with $297 million in cash and cash equivalents and net debt of about $311 million, down 1% year over year, and noted Accel’s $300 million revolving credit line remains untapped.

In Q&A, management described M&A as often the most attractive use of capital if pricing is right, while reiterating that the revolver would likely be reserved for a more significant transaction. Phelan said the company is not looking to “lever up substantially” absent a large deal.

Rubenstein also addressed a previously announced leadership transition: he has moved into the chairman role effective immediately and expects to transition out of the CEO role in August, with Phelan taking over day-to-day leadership.

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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