Accel Entertainment — Third Quarter 2026 Earnings Summary

Financial Performance:

• Total net revenues increased 10% year-over-year to $363.6 million for the three months ended September 30, 2026, compared to $329.7 million in Q3 2025; for the nine months ended September 30, 2026, revenues were $1.08 billion compared to $989.5 million in the prior year period.
• Net income for Q3 2026 was $20.6 million, a 55% increase from $13.3 million in Q3 2025; for the nine months ended September 30, 2026, net income was $47.8 million compared to $35.2 million in the prior year period.
• Adjusted EBITDA increased 12% year-over-year to $57.5 million for Q3 2026, compared to $51.2 million in Q3 2025; for the nine months ended September 30, 2026, Adjusted EBITDA was $170.2 million compared to $153.9 million in the prior year period.
• Operating cash flow for Q3 2026 was $79.4 million, and free cash flow was $62.0 million.
• Cash and cash equivalents were $294.4 million as of September 30, 2026; total debt was $566.1 million, resulting in net debt of $271.7 million.
• Gross margin percentage for the three months ended September 30, 2026, was 31.38%, compared to 31.32% in the prior year period; for the nine months ended September 30, 2026, it was 31.26% compared to 31.22% in the prior year period.
• Net cash provided by operating activities for the nine months ended September 30, 2026, was $142.1 million, an 18.7% increase from $119.8 million in the prior year period.
• Net cash used in investing activities for the nine months ended September 30, 2026, was $70.2 million, compared to $80.7 million in the prior year period.
• Net cash used in financing activities for the nine months ended September 30, 2026, was $74.1 million, compared to $30.2 million in the prior year period.

Guidance and Future Outlook:

• Management highlighted significant momentum in Chicago, where the rollout has begun with the receipt of the first licenses.
• The company expressed excitement about future growth opportunities and a focus on executing initiatives to enhance long-term shareholder value.
• The company maintains a strategy to invest organically, pursue disciplined acquisitions, and return capital to shareholders when deemed an effective use of capital.
• Chicago and Wyoming are classified as emerging markets as of July 2026.

Business Segments and Product Lines:

• The company ended Q3 2026 with 4,705 locations, a 6% increase from Q3 2025, and 29,548 electronic gaming machines, a 7% increase from Q3 2025.
• Illinois revenue, excluding Fairmount Park, increased 7% year-over-year in Q3 2026, driven by hold-per-day improvements and a higher-performing location mix.
• Fairmount Park gaming revenue increased approximately 84% year-over-year in Q3 2026.
• Strong third-quarter performances were reported in Georgia, Nebraska, and Louisiana, with continued expansion in Nevada.
• Location hold-per-day in Illinois increased 9.2% year-over-year in Q3 2026 to $957; for the nine months ended September 30, 2026, it increased 9.0% to $968.
• Location hold-per-day in Nebraska increased 31.9% year-over-year in Q3 2026 to $405; for the nine months ended September 30, 2026, it increased 47.2% to $418.
• Location hold-per-day in Louisiana increased 15.1% year-over-year in Q3 2026 to $1,125; for the nine months ended September 30, 2026, it increased 12.3% to $1,110.
• Location hold-per-day in Georgia increased 24.7% year-over-year in Q3 2026 to $182; for the nine months ended September 30, 2026, it increased 18.9% to $176.
• Location hold-per-day in Nevada decreased 16.5% year-over-year in Q3 2026 to $613; for the nine months ended September 30, 2026, it decreased 11.3% to $675.
• Net revenues by state for Q3 2026 were: Illinois ($257.9 million), Montana ($41.1 million), Nevada ($32.9 million), Nebraska ($12.1 million), Louisiana ($11.3 million), and Georgia ($7.2 million).

Market and Competitive Landscape:

• The company operates in ten states, serving nearly 30,000 electronic gaming machines in over 4,700 third-party local and regional establishments and 20 self-operated gaming locations.
• The company partners with small businesses, local communities, and state governments to provide gaming experiences in bars, restaurants, convenience stores, truck stops, gaming cafes, and fraternal and veteran establishments.
• The company's core business continues to strengthen while its growth strategy becomes increasingly diversified.

Risks and Challenges:

• Q3 2026 net income included a $6 million gain on the change in the fair value of contingent earnout shares, which was $3.6 million higher than the gain recognized in Q3 2025.
• Q3 2026 net income included a $0.6 million loss on the sale of fixed assets related to asset rationalization.
• Adjusted net income adjustments for 2026 include one-time expenses related to senior leadership transition, loss on sales of assets, emerging market costs related to Chicago and Wyoming operations, and costs related to incidents of theft, vandalism, and destruction of electronic gaming machines.
• The company received a refund in Q3 2026 on $18 million in federal tax credits purchased in Q2 2026 for $17 million.

Management Commentary and Tone:

• CEO Mark Phelan stated the company delivered another period of double-digit revenue growth, marking a strong quarter with solid profitability.
• Management noted that Adjusted EBITDA grew faster than revenue, reflecting operating leverage, portfolio quality, disciplined capital deployment, and strong execution.
• Management emphasized the company generates meaningful cash flow, maintains a strong balance sheet with low leverage and substantial liquidity, and has significant flexibility to invest and return capital.
• Management expressed confidence in the future, citing the completion of the senior leadership team build-out and the rollout of new markets.

Other Key Points:

• The company repurchased approximately 624,000 shares of Accel Class A-1 common stock in Q3 2026 for $7.2 million.
• Trailing twelve-month Adjusted EBITDA was $226.4 million for the twelve months ended September 30, 2026.
• The company completed the build-out of its senior leadership team to execute on growth opportunities.
• A conference call and webcast were held on November 3, 2026, at 4:30 PM ET to review results.