What Management Said
Read the full Q3 2025 transcript ↗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. Net income was $13 million, and adjusted EBITDA grew 11.5% to $51 million, reflecting consistent execution and expansion across our markets. Growth this quarter was supported by higher gaming turnover counts, stable machine performance, and improved efficiency in capital deployment. This demonstrates the strength and resilience of our distributed gaming model and our disciplined, return-focused approach to growth investments, including Fairmont Park.
In Illinois, top-line growth continues to be driven by same-store performance and new machine placements. Our focus on higher-yielding locations and disciplined capital management remains a key driver of consistent results. Nebraska and Georgia both delivered strong double-digit revenue growth driven by location expansion and market share gains. As previously discussed, this compensated for a modest decline in year-over-year revenue for Nevada due to the loss of a key customer in 2024, resulting from a change in ownership.
Across these markets, our capital investments are translating into stronger returns, with Nebraska and Georgia delivering the highest quarterly revenue growth within our developing portfolio. Both markets continue to experience significant profitable growth and are tracking toward market expansion through 2026, consistent with our expectations and long-term model. In Louisiana, which currently represents about three% of revenue, results continue to impress and scale, reflecting the successful integration of our Toucan Gaming acquisition. We look forward to developing a strong pipeline of bolt-on acquisitions of truck stops in Louisiana.
What went well
- Total revenue increased 9.1% year-over-year to $330 million, driven by growth in core markets and incremental contributions from developing and new markets.
- Adjusted EBITDA grew 11.5% year-over-year to $51 million, driven by top-line growth and strong cost discipline; operating income was $25 million, up 16.1% year-over-year.
- Nebraska revenue grew 30% to $9 million and Georgia revenue rose 49.3% to $5 million, the highest quarterly revenue growth within the developing portfolio on location expansion and market share gains.
- Completed a new $900 million Senior Secured Credit Facility ($600 million term loan + $300 million revolver, five-year maturity), extending maturities to 2030, enhancing liquidity and lowering cost of capital.
- Repurchased $6.8 million of common stock during the quarter, bringing year-to-date buybacks to roughly 2.2 million shares or $23.7 million.
- Fairmount Park casino (opened April) delivered strong player engagement with monthly gaming revenue increasing sequentially through the summer, with October consistent and showing good growth.
- Louisiana continued to scale following the Toucan Gaming acquisition, reaching 670 gaming terminals across nearly 100 locations and contributing $9 million of revenue.
What went wrong
- Nevada revenue declined 7.4% to $26 million due to the loss of a key customer in 2024 resulting from a change in ownership.
- TITO (ticket-in, ticket-out) is still at only mid-single-digit utilization; management said the benefit will not be noticeable in cash balances or performance until well into the second quarter of 2026.
- Montana revenue grew just 2.1% to $40 million, a modest gain relative to the double-digit growth in developing markets.
- Illinois showed continued location optimization with locations down (offset by higher win per day), reflecting the ongoing route rationalization headwind on location count.
- Fairmount Park remains in the development stage with the permanent facility still under review; management is still evaluating timing and scope of the phase two expansion.
Guidance Changes
| Metric | Period | Current guidance |
|---|---|---|
| Full-year CapEx | FY2025 | $75–$80 million (affirmed) |
| TITO utilization | By late-February 2026 report | expected to reach double digits |
| Illinois machine count | Through 2026 | relatively stable with slight growth, rising average revenue per machine |
| Developing markets (Nebraska & Georgia) | Through 2026 | tracking toward market expansion, consistent with long-term model |
| Fairmount Park permanent facility feedback | Next ~6 months | expect to share feedback on permanent facility options |
Performance Breakdown
| Metric | YoY | Note |
|---|---|---|
| Total revenue | +9.1% to $330 million | Growth in core markets plus incremental contributions from developing and new markets; higher gaming turnover counts and stable machine performance. |
| Adjusted EBITDA | +11.5% to $51 million | Top-line growth and strong cost discipline. |
| Operating income | +16.1% to $25 million | Top-line growth and improved capital deployment efficiency. |
| Net income | $13 million | Consistent execution and expansion across markets. |
| Illinois revenue | +7% to $239 million | Stable demand, same-store performance, new machine placements, and continued location optimization. |
| Montana revenue | +2.1% to $40 million | Proprietary gaming content and systems enhancing profitability per location. |
| Nebraska revenue | +30% to $9 million | Steady adoption and market share gains. |
| Georgia revenue | +49.3% to $5 million | Continued growth leveraging technology platform and route management expertise. |
| Nevada revenue | -7.4% to $26 million | Loss of a key customer in 2024 due to a change in ownership. |
| Louisiana revenue | $9 million contributed | Continued ramp-up and integration of the Toucan Gaming acquisition (670 terminals, nearly 100 locations). |
Earnings Call Themes & Trends
| Topic | Previous mention | Current period | Trend |
|---|---|---|---|
| Core-market leadership (Illinois & Montana) | Leading positions in Illinois and Montana | Together represent ~82% of revenue; leveraging scale to drive efficiencies, optimize location mix, and expand margins. | — |
| Distributed-gaming route optimization | Focus on higher-yielding locations | Signing locations that on average outperform those that close; stable-to-slightly-growing machine counts with rising revenue per machine. | — |
| TITO (ticket-in, ticket-out) rollout | Rollout underway | Mid-single-digit utilization, growing daily; reduces cash handling costs and improves player convenience; benefit noticeable well into Q2 2026. | — |
| Developing markets (Nebraska, Georgia, Nevada) | Building scale | Just over 12% of total revenue; Nebraska and Georgia double-digit growth, tracking toward expansion through 2026. | — |
| New markets — Louisiana / Toucan integration | Toucan Gaming acquisition | ~3% of revenue; 670 terminals across nearly 100 locations; primary market for a healthy bolt-on truck-stop acquisition pipeline. | — |
| Fairmount Park casino & racing | Casino opened April | Sequential monthly gaming revenue growth; casino, F&B, and FanDuel sports-betting partnership; evaluating phase two expansion timing and scope. | — |
| Capital structure & shareholder returns | Prior credit agreement | New $900M facility extends maturities to 2030; $290M cash, ~$305M net debt; opportunistic buybacks ($23.7M YTD); under-levered vs. peers. | — |
| M&A strategy | Disciplined, accretive approach | $15B+ fragmented local gaming market; transformational vs. bolt-on buckets; sellers becoming more realistic on pricing as multiples compress; capacity to absorb additions. | — |
Q&A Summary
Steve Pizzella (Deutsche Bank) asked about the Illinois optimization strategy (locations down, win per day up) into Q4 and 2026, and the potential upside from the TITO rollout.
Andy Rubenstein said Accel will keep optimizing the Illinois route — new locations average significantly better than those closing, so machine counts stay stable to slightly up while average revenue per machine grows through 2026. TITO is early (mid-single-digit utilization), rising daily toward double digits by the late-February report, but the real effect on cash balances or performance likely won't be noticeable until well into Q2 2026.
Steve Pizzella (Deutsche Bank) asked how management thinks about uses of free cash flow given the sizable cash balance, even with Fairmount CapEx.
Mark Phelan noted a large amount of cash is used to load redemption terminals on bigger routes like Illinois, and that Accel is under-levered versus peers. On M&A he split it into transformational vs. bolt-on — staying patient on transformational deals as they get cheaper, while seeing a lot of interesting bolt-ons in growth markets with capacity to absorb them. Brett Summerer added they run a rigorous ROI process weighing buybacks vs. debt payoff vs. M&A case by case.
Samir Ghafir (Macquarie) asked whether seller M&A expectations have shifted over the last couple of months given the pullback in gaming-sector public equities.
Andy Rubenstein said nothing significant yet, but sellers are recognizing that multiples have come down and adjusting to what is acceptable in today's environment; changes usually lag.
Samir Ghafir (Macquarie) asked about the uptick in Nevada locations and whether anything specific drove it.
Andy Rubenstein said they are transitioning new locations into the portfolio, including a group called Fuel Brothers, and expect to keep growing the Nevada market as Accel wins business more frequently than in the past.
Samir Ghafir (Macquarie) asked which states could make headway on route-gaming expansion heading into 2026.
Andy Rubenstein named Pennsylvania, Missouri, North Carolina, and Virginia as the four most probable new VGT markets, while noting existing markets (Georgia, Louisiana, Nebraska) have been enacting favorable legislative enhancements that benefit operators and Accel's performance.
Greg Gibas (Northland) asked for the priority of markets for bolt-on M&A — whether it is primarily Louisiana-focused.
Mark Phelan confirmed Louisiana is the primary bolt-on market with a healthy pipeline (the original thesis for entering the state), with Illinois always a good target given the number of operators for sale; price is the key criteria and sellers are getting more realistic. The number one priority is scaling the Louisiana investment.
Greg Gibas (Northland) asked whether the company discloses a same-store sales growth number.
Mark Phelan said they do not disclose same-store sales in the quarter.
Greg Gibas (Northland) asked whether anything has changed regarding the opportunity, timing, or future development plans for the Fairmount Park ramp.
Mark Phelan said it remains in the development stage; adjusted gross gaming revenue is increasing every month (October consistent with good growth, verifiable on the Illinois Gaming Board site). Several options for the permanent facility are under review, with feedback expected in the next six months while they focus on acquiring customers and delivering a great experience.
More on Accel Entertainment, Inc.
Reported 2025-11-04 · figures from the Accel Entertainment, Inc. Q3 2025 earnings call.
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