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- **Revenue Resilience**: 9.1% YoY growth to $330M, driven by core and developing markets. Illinois and Montana (82% of revenue) show stable expansion.
- **Efficiency Gains**: TITO rollout in Illinois reduces costs and boosts convenience, with adoption set to accelerate.
- **Balance Sheet Strength**: $900M credit facility lowers cost of capital, enabling disciplined growth and $23.7M in share buybacks YTD.
- **Strategic Focus**: Prioritizing high-return investments, bolt-on M&A in Louisiana and Illinois, and evaluating new market opportunities in Pennsylvania, Missouri, and others.
- **Fairmount Momentum**: Sequential revenue growth since April launch, with Phase 2 expansion under review.


**【CEO Summary Section】**
- **Revenue Growth**: Q3 2025 revenue rose 9.1% YoY to $330 million, driven by core markets (Illinois, Montana) and developing markets (Nebraska, Georgia). Illinois revenue increased 7% to $239 million, Montana by 2.1% to $40 million.
- **Market Expansion**: Developing markets (12% of revenue) saw Nebraska grow 30% and Georgia 49.3%. Louisiana (3% of revenue) expanded with 670 terminals post-Toucan acquisition.
- **Efficiency Initiatives**: TITO rollout in Illinois reduced cash handling costs and improved player convenience. Fairmount Park, opened in April, showed sequential revenue growth.
- **Balance Sheet Strength**: Completed $900M credit facility, reducing cost of capital and extending maturities to 2030. Repurchased $6.8M in shares, totaling $23.7M YTD.
- **Future Focus**: Capital allocation prioritizes high-return investments, disciplined M&A, and share buybacks.

**【CFO Financial Commentary】**
- **Financial Performance**: GAAP net income $13M, adjusted EBITDA $51M (11.5% YoY growth). Operating income up 16.1% to $25M.
- **Revenue Breakdown**: Illinois ($239M), Montana ($40M), Nebraska ($9M), Georgia ($5M), Nevada ($26M), Louisiana ($9M). Fairmount Park contributed steadily.
- **Capital Management**: Q3 CapEx $21M, YTD $72M, aligned with $75-80M full-year forecast. 40% of CapEx supports growth (e.g., Fairmount Park).
- **Liquidity**: $290M cash, net debt $305M. New credit facility enhances flexibility for growth and shareholder returns.

**【Q&A Highlights】**
- **Illinois Strategy**: Location optimization (closing underperforming sites, adding higher-yield machines) supports stable terminal counts and rising win per day. TITO adoption expected to grow into double digits by next report.
- **M&A Outlook**: Focus on bolt-on acquisitions in Louisiana and Illinois. Patient approach to transformational deals amid shifting seller expectations.
- **Fairmount Park**: Sequential revenue growth since April, with Phase 2 expansion evaluation ongoing. Sports betting partnership with FanDuel enhances offerings.
- **Market Expansion Potential**: Monitoring Pennsylvania, Missouri, North Carolina, and Virginia for new VGT market opportunities. Existing markets (Georgia, Louisiana, Nebraska) may see legislative enhancements.


Accel Entertainment, Inc. (ACEL) Q3 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

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Other Comprehensive Income

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Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

ACEL

ACEL fundamentals

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