Accel Entertainment 2025 Q2 Earnings Profitability Drops Despite Revenue Growth

Accel Entertainment reported Q2 2025 earnings results that showed strong revenue growth but a sharp decline in profitability. While the company’s net income fell 50.2% year-over-year to $7.26 million, management highlighted continued growth in core and developing markets. The CEO expressed confidence in long-term opportunities despite the near-term earnings challenges.

Revenue
Accel Entertainment’s total revenue for Q2 2025 increased by 8.6% to $335.91 million, up from $309.41 million in the prior-year period. Net gaming revenue contributed the bulk of the total, reaching $313.92 million, while amusement revenue totaled $5.52 million, and manufacturing revenue amounted to $1.76 million. ATM fees and other income added $14.71 million to the total net revenues. The growth reflects the company’s continued expansion and strong performance in both core and new markets.

Earnings/Net Income
Earnings per share for Q2 2025 declined 47.1% to $0.09 from $0.17 in the same quarter of the prior year. The company’s net income dropped by 50.2% to $7.26 million compared to $14.59 million in Q2 2024. Despite this decline, Accel has remained profitable for seven consecutive years, demonstrating a resilient business model. The decrease is largely attributed to a loss on the fair value change of contingent earnout shares compared to a gain in the prior period.

Price Action
Shares of Accel Entertainment edged up 0.24% during the latest trading day but have dropped 4.55% over the past full trading week. Month-to-date, the stock has gained 2.23%, reflecting mixed investor sentiment in the near term.

Post-Earnings Price Action Review
The historical strategy of buying Accel Entertainment shares after a revenue increase quarter-over-quarter and holding for 30 days has delivered moderate returns, but it underperformed the benchmark over the past three years. The strategy posted a compound annual growth rate of 7.84%, trailing the benchmark by 40.74 percentage points. With a maximum drawdown of 0% and a Sharpe ratio of 0.23, the strategy indicated a low-risk profile but lacked significant appreciation.

CEO Commentary
Andy Rubenstein, CEO of Accel Entertainment, attributed the strong revenue results to disciplined expansion and improved operating performance in new locations. He emphasized Illinois and Montana as core growth engines and highlighted rising profitability in developing markets like Nebraska, Georgia, and Nevada. Recent acquisitions, including Toucan Gaming in Louisiana and Fairmount Park Casino in Illinois, are expected to contribute meaningfully in the coming year. Rubenstein expressed confidence in the company’s ability to deliver long-term shareholder value in a resilient and untapped market.

Guidance
The company has not provided explicit numerical guidance for future performance, but management expressed optimism about continued growth and consistent financial performance from both core and new markets. Strategic focus remains on leveraging market leadership and enhancing profitability in developing regions, with recent acquisitions poised to play a larger role in the coming year.

Additional News
Accel Entertainment made several notable moves in its second quarter. The company commenced operations at Fairmount Park Casino & Racing in April 2025, marking a new chapter in its expansion strategy. Additionally, the company repurchased 0.6 million shares of its Class A-1 common stock for approximately $6.7 million, signaling confidence in its long-term value. These actions, combined with the recent acquisitions, underscore the company’s strategic commitment to enhancing shareholder value through disciplined growth and operational efficiency.