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Accel Entertainment, Inc.: Q4 FY2025 earnings call

What management said about Q4 FY2025, from the documents filed with the SEC on 3 March 2026: press release. Guidance figures: 1 raised. The quarter’s numbers.

Key takeaways

  • Q4 revenue rose 7.5%: Q4 revenue was $341.4 million, up from $317.5 million a year earlier. Full-year revenue was $1.33 billion, up 8.1%. Source
  • Q4 Adjusted EBITDA rose 18.9%: Adjusted EBITDA was $56.3 million for Q4, up from $47.4 million. Full-year Adjusted EBITDA was $210.1 million, up 11.1%. Source
  • Diluted EPS rose to $0.60: Full-year diluted EPS was $0.60 against $0.41 in 2024, up 46.3%. Basic EPS was $0.61 for the year. Source
  • Nevada hold-per-day fell: Nevada hold-per-day was $731 in Q4, down 7.0%, and $728 for the year, down 11.5%. The release gives no management explanation for the decline. Source
  • Q4 gross margin rose 1.3 points: Total gross margin was 31.72% in Q4 against 30.41%, and 31.35% for the year against 30.17%. The release defines it as revenue left after cost of revenue and manufacturing cost. Source
  • Other-state split margins widened: Margin on all other state splits, revenues and fees was 30.32% in Q4 against 25.30%. Illinois and Georgia regulated split percentages were unchanged. Source
  • Year-end cash and net debt: Cash and cash equivalents were $296.6 million and net debt about $311 million at December 31, 2025, against $314.1 million a year earlier. Source
  • Chicago video gaming terminals possibility: Management said its balance sheet, fixed operating infrastructure, route management and fixed asset base position it to pursue a Chicago market if it opens. Source

“Accel delivered a strong finish to 2025, highlighted by 7.5% revenue growth and an 18.9% increase in Adjusted EBITDA in the fourth quarter.”

Accel CEO, Andy Rubenstein

Guidance

AreaPeriodFigureAgainst last quarter
Fairmount Park racing days Source2026approximately 57 racing daysRaised from 55 days of scheduled thoroughbred horse racing a year

What changed from last quarter

  • Guidance raised: Planned racing days for 2026 rose to about 57 from 55 days a year in the prior release. Source
  • New: Management said it sees potential to bring distributed gaming to Chicago if Video Gaming Terminals are introduced in licensed locations. The prior release did not mention Chicago. Source

Fourth quarter and full-year results

  • Q4 revenue rose 7.5%: Q4 revenue was $341.4 million, up from $317.5 million a year earlier. Full-year revenue was $1.33 billion, up 8.1%. Source
  • Q4 Adjusted EBITDA rose 18.9%: Adjusted EBITDA was $56.3 million for Q4, up from $47.4 million. Full-year Adjusted EBITDA was $210.1 million, up 11.1%. Source
  • Full-year net income rose 45.3%: Full-year net income was $51.3 million against $35.3 million in 2024, an increase of 45.3%. Source
  • Diluted EPS rose to $0.60: Full-year diluted EPS was $0.60 against $0.41 in 2024, up 46.3%. Basic EPS was $0.61 for the year. Source
  • Q4 earnout gain aided net income: Q4 net income was $16.2 million, up 91.7%. The release says the increase was partly due to a $0.6 million fair-value gain on earnout shares, against a $2.9 million loss a year earlier. Source

Segments and regions

  • Illinois remains the largest state: Illinois revenue was $245.2 million in Q4, up about 6.0%, and $963.2 million for the year. Montana revenue was $42.6 million in Q4, up 3.1%. Source
  • Nevada revenue declined for year: Nevada revenue was $108.9 million for the year, down about 4.9%, while Q4 revenue rose 1.0% to $28.0 million. Source
  • Louisiana revenue rose about 75%: Management attributed Nevada's terminal growth to accretive route expansions and Louisiana's revenue gain to its bolt-on acquisition strategy. Source
  • Nebraska and Georgia revenue climbed: Q4 revenue rose about 42% in Nebraska to $9.6 million and about 40% in Georgia to $5.7 million. Management described this as showing continued expansion of its platform. Source

“We believe our scalable platform and disciplined capital deployment position us to convert earnings into cash while investing in high-return growth opportunities and returning capital to shareholders.”

Accel CEO, Andy Rubenstein

Demand and location hold-per-day

  • Illinois and Montana hold-per-day improved: Management cited steady hold-per-day improvement in Illinois and Montana. Q4 Illinois hold-per-day was $905, up 4.3%; Montana was $621, up 1.1%. Source
  • Nevada hold-per-day fell: Nevada hold-per-day was $731 in Q4, down 7.0%, and $728 for the year, down 11.5%. The release gives no management explanation for the decline. Source
  • Nebraska and Georgia per-location gains: Nebraska hold-per-day rose 37.5% in Q4 to $348, and Georgia rose 9.2% to $155. Full-year Georgia hold-per-day was $149, up 25.2%. Source

Margins and operating costs

  • Q4 gross margin rose 1.3 points: Total gross margin was 31.72% in Q4 against 30.41%, and 31.35% for the year against 30.17%. The release defines it as revenue left after cost of revenue and manufacturing cost. Source
  • Other-state split margins widened: Margin on all other state splits, revenues and fees was 30.32% in Q4 against 25.30%. Illinois and Georgia regulated split percentages were unchanged. Source
  • Full-year cost of revenue grew: Full-year cost of revenue was $908.1 million, up from $852.4 million. General and administrative expense rose to $219.3 million from $194.7 million. Source
  • ATM fees and other revenue rose: ATM fees and other revenue was $54.9 million for the year, against $23.7 million in 2024. The release does not explain the change. Source

Fairmount Park and location base

  • Fairmount Park's first full year: Fairmount Park completed its first full year of operations. Management said customer engagement is steady as the property ramps. Source
  • Racino has about 260 machines: The racino opened in April 2025 with approximately 260 electronic gaming machines, food and beverage amenities, a sports book and pari-mutuel betting. Source
  • Third-party location model: Management describes its base as third-party local and regional establishments plus 20 self-operated locations across ten states. Source

Cash flow, debt and buybacks

  • Operating cash flow rose 24.5%: Net cash provided by operating activities was $150.9 million for 2025, up from $121.2 million. Net cash used in investing activities fell to $100.6 million. Source
  • Year-end cash and net debt: Cash and cash equivalents were $296.6 million and net debt about $311 million at December 31, 2025, against $314.1 million a year earlier. Source
  • Q4 buybacks of 1.5 million shares: The company repurchased 1.5 million Class A-1 shares in Q4 for about $16.2 million, and about 3.7 million shares for the year. Source
  • Share count fell during year: Class A-1 shares outstanding were 82.3 million at December 31, 2025, down from 85.7 million a year earlier. Source

Growth strategy and Chicago

  • Chicago video gaming terminals possibility: Management said its balance sheet, fixed operating infrastructure, route management and fixed asset base position it to pursue a Chicago market if it opens. Source
  • Focus on organic growth and tuck-ins: Management listed steady organic growth, efficiencies at scale, accretive tuck-in deals and free cash flow as its priorities. Source
  • Credit facility funds growth investment: The $900.0 million credit facility completed in September 2025 extends maturities to 2030 and lowers the cost of capital. Source

Interest, tax and operating income

  • Net interest expense eased: Net interest expense was $34.2 million for 2025, down from $35.9 million. The company also recorded a $1.1 million loss on debt extinguishment. Source
  • Income tax expense rose: Income tax expense was $20.7 million for 2025, up from $18.4 million, on pre-tax income of $71.9 million. Source
  • Operating income rose in both periods: Operating income was $29.7 million in Q4 against $20.8 million, and $107.9 million for the year against $90.9 million. Source

Coming up, as management said on 3 March 2026

  • Chicago strategy to follow developments: Management said it will set its Chicago strategy as developments are announced, with returns as the aim. Source

Figures management reported

FigureReported
Total locations Source4,501 at December 31, 2025, up 2.2%
Total gaming terminals Source27,950 at December 31, 2025, up 2.9%

Risks management discussed

  • Regulatory: The Chicago video gaming terminal introduction is described as possible and depends on public announcements that have not yet been made. Source

Earlier plans management reported on

  • On track: Management said the Illinois ticket-in, ticket-out rollout is progressing as planned, with benefits expected over time. Source

Other quarters

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.