ACEL

Let’s dig into the relative performance of Accel Entertainment (NYSE:ACEL) and its peers as we unravel the now-completed Q2 consumer discretionary - gaming solutions earnings season. The Consumer Discretionary sector, by definition, is made up of companies selling non-essential goods and services. When economic conditions deteriorate or tastes shift, consumers can easily cut back or eliminate these purchases. For long-term investors with five-year holding periods, this creates a structural challenge: the sector is inherently hit-driven, with low switching costs and fickle customers. As a result, only a handful of companies can reliably grow demand and compound earnings over long periods, which is why our bar is high and High Quality ratings are rare. Gaming solutions companies provide the technology infrastructure behind gambling—slot machines, table game systems, lottery terminals, sports-betting platforms, and back-end software for casinos and online operators. Tailwinds include the ongoing legalization of sports betting across U.S. states and international markets, growing adoption of digital and mobile wagering, and casino operators' demand for data-driven player engagement tools. However, headwinds include stringent and evolving regulatory requirements across jurisdictions, high upfront R&D costs to develop next-generation platforms, and customer concentration risk given the limited number of large casino operators. Increasing competition from in-house technology development by major operators also pressures demand. The 6 consumer discretionary - gaming solutions stocks we track reported a mixed Q2. As a group, revenues were in line with analysts’ consensus estimates. Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 8.5% since the latest earnings results. Established in Illinois, Accel Entertainment (NYSE:ACEL) is a provider of electronic gaming machines and interactive amusement terminals to bars and entertainment venues. Accel Entertainment reported revenues of $368.1 million, up 9.6% year on year. This print exceeded analysts’ expectations by 3.3%. Overall, it was a strong quarter for the company with a beat of analysts’ EPS estimates and a decent beat of analysts’ EBITDA estimates. Investor expectations, however, were likely higher than Wall Street’s published projections, leaving some wishing for even better results (analysts’ consensus estimates are those published by big banks and advisory firms, not the investors who make buy and sell decisions). The stock is down 1.8% since reporting and currently trades at $11.94. Is now the time to buy Accel Entertainment? Access our full analysis of the earnings results here, it’s free. Specializing in online casino gaming and sports betting, Rush Street Interactive (NYSE:RSI) is an operator of digital gaming platforms. Rush Street Interactive reported revenues of $393.8 million, up 46.3% year on year, outperforming analysts’ expectations by 7.1%. The business had a very strong quarter with full-year revenue guidance exceeding analysts’ expectations and full-year EBITDA guidance topping analysts’ expectations. Rush Street Interactive achieved the biggest analyst estimate beat, fastest revenue growth, and highest full-year guidance raise in the group. Although it had a fine quarter compared to its peers, the market seems unhappy with the results as the stock is down 20.2% since reporting. It currently trades at $24.55. Is now the time to buy Rush Street Interactive? Access our full analysis of the earnings results here, it’s free. Founded by a team of former gaming industry executives, PlayStudios (NASDAQ:MYPS) offers free-to-play digital casino games. PlayStudios reported revenues of $54.99 million, down 7.3% year on year, falling short of analysts’ expectations by 3.6%. It was a disappointing quarter as it posted a significant miss of analysts’ EPS estimates and a miss of analysts’ EBITDA estimates. As expected, the stock is down 23.6% since the results and currently trades at $0.51. Read our full analysis of PlayStudios’s results here. Getting its start in daily fantasy sports, DraftKings (NASDAQ:DKNG) is a digital sports entertainment and gaming company. DraftKings reported revenues of $1.44 billion, down 4.6% year on year. This print lagged analysts’ expectations by 4.5%. It was a slower quarter as it also logged a significant miss of analysts’ EBITDA estimates and a significant miss of analysts’ EPS estimates. DraftKings had the weakest performance against analyst estimates and weakest full-year guidance update among its peers. The company reported 3.6 million users, up 9.1% year on year. The stock is up 8.7% since reporting and currently trades at $24.09. Read our full, actionable report on DraftKings here, it’s free. Famous for hosting the Kentucky Derby, Churchill Downs (NASDAQ:CHDN) operates a horse racing, online wagering, and gaming entertainment business in the United States. Churchill Downs reported revenues of $980 million, up 4.9% year on year. This number met analysts’ expectations. More broadly, it was a mixed quarter as it underperformed in some other aspects of the business. The stock is flat since reporting and currently trades at $88.67. Read our full, actionable report on Churchill Downs here, it’s free. Over the past year, investors have been forced to repeatedly answer the same question: what is the market’s biggest risk? The answer has changed several times, and each shift has reshaped market leadership. Late in 2025 and early 2026, artificial intelligence became the market’s primary uncertainty. Investors questioned whether AI would erode software pricing power and weaken competitive moats as AI made it easier to replicate once-differentiated products. By the spring, technology took a back seat to geopolitics. The U.S. conflict with Iran briefly became the market’s dominant narrative, raising concerns about oil prices, inflation, and global growth. But as energy markets remained orderly and fears of a prolonged supply disruption faded, investors quickly turned their focus back to fundamentals. Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Growth Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

In the second quarter of 2026, Accel Entertainment, Inc. reported higher sales and revenue year on year, with net income rising to US$12.49 million and diluted EPS from continuing operations reaching US$0.15. Management also highlighted a strong balance sheet with about US$255 million in cash, an undrawn US$300 million credit facility, and recent share repurchases, positioning the company to pursue acquisitions while continuing its disciplined, returns-focused capital allocation approach. Next, we'll assess how Accel’s stronger earnings and sizable acquisition capacity may influence its existing investment narrative and future expectations. AI is about to change healthcare. These 42 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10b in market cap - there's still time to get in early. To own Accel Entertainment, you need to believe in its ability to convert a heavily regulated, local gaming footprint into consistent earnings while managing state and market concentration risks. The latest quarter’s higher revenue and earnings, coupled with significant cash and an undrawn US$300 million facility, support its capacity to pursue acquisitions, but do not materially change the near term focus on Illinois regulatory exposure as the key risk and disciplined capital deployment as the main catalyst. The most relevant update here is management’s emphasis on disciplined capital allocation alongside Q2 2026 results, including US$255 million in cash, low net leverage of about 1.4 times, and ongoing share repurchases. For investors watching acquisition led growth as a short term catalyst, this combination of balance sheet flexibility and returns focused messaging provides context for how Accel might fund new markets or assets without over stretching its financial position. Yet even with solid liquidity and acquisition capacity, investors should be aware that heavy reliance on Illinois could quickly amplify any shift in... Read the full narrative on Accel Entertainment (it's free!) Accel Entertainment's narrative projects $1.5 billion in revenue and $107.3 million in earnings by 2028. This requires 5.0% yearly revenue growth and a roughly $72 million earnings increase from $35.2 million today. Uncover how Accel Entertainment's forecasts yield a $15.17 fair value, a 22% upside to its current price. Two fair value estimates from the Simply Wall St Community span roughly US$15.17 to US$30.34, underscoring how far opinions can diverge. When you set those views against Accel’s concentration in Illinois and related regulatory risk, it becomes even more important to compare multiple perspectives on how resilient the earnings base might be over time. Explore 2 other fair value estimates on Accel Entertainment - why the stock might be worth over 2x more than the current price! Disagree with existing narratives? Extraordinary investment returns rarely come from following the herd, so go with your instincts. A great starting point for your Accel Entertainment research is our analysis highlighting 4 key rewards and 2 important warning signs that could impact your investment decision. Our free Accel Entertainment research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Accel Entertainment's overall financial health at a glance. Right now could be the best entry point. These picks are fresh from our daily scans. Don't delay: Capitalize on the AI infrastructure supercycle with our selection of the 56 best 'picks and shovels' of the AI gold rush converting record-breaking demand into massive cash flow. The latest GPUs need a type of rare earth metal called Dysprosium and there are only 28 companies in the world exploring or producing it. Find the list for free. We've uncovered the 8 dividend fortresses yielding 5%+ that don't just survive market storms, but thrive in them. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include ACEL. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Interested in Accel Entertainment, Inc.? Here are five stocks we like better. Record Q2 performance: Revenue increased 10% year over year to $368 million, while adjusted EBITDA rose 11% to a record $59 million. Net income nearly doubled to $13 million, and the company ended the quarter with nearly 4,700 locations and more than 29,000 terminals. Chicago expansion is the key near-term opportunity: Accel had approval for 17 of Chicago’s 39 licensed establishments and expects initial locations to begin operating in the coming weeks. Management estimates the market could eventually represent approximately $1 billion in annual revenue, although full deployment may take more than five years. Growth and capital allocation remain priorities: Nebraska, Georgia and Nevada delivered strong expansion, while Accel expects 2026 capital expenditures of $60 million to $70 million and repurchased $5.6 million of shares during the quarter. CEO Andy Rubenstein will become chairman on Aug. 7, with President Mark Phelan succeeding him as CEO. Accel Entertainment (NYSE:ACEL) reported record second-quarter revenue and adjusted EBITDA, citing higher productivity in Illinois, growth in developing markets and continued preparation for the opening of video gaming terminals in Chicago. Revenue rose 10% year over year to $368 million, while adjusted EBITDA increased 11% to a record $59 million. Operating income was $32 million, up from $27 million in the prior-year quarter. Net income increased to $13 million from $7 million, and diluted earnings per share rose to $0.15 from $0.08. → SpaceX’s First Earnings Report Could Decide Whether Shorts or Bulls Have Control The company ended the quarter operating nearly 4,700 locations and more than 29,000 gaming terminals, representing year-over-year increases of 6% and 7%, respectively. Founder, Chairman and Chief Executive Officer Andy Rubenstein said the results reflected the durability of Accel's distributed gaming model, growth in its largest market and contributions from developing markets. Illinois remained the foundation of Accel's business. Revenue from Illinois distributed gaming operations, excluding Fairmount Park, rose 6% year over year, supported by higher hold per day and a higher-performing customer mix. Average Illinois location hold per day increased 9% to $992, even as the company’s Illinois location and terminal counts declined modestly. → Why Rare Earth Processing Could Be the Real 2027 Opportunity President Mark Phelan said the company is prioritizing route quality rather than absolute machine or location growth. Locations added to the Illinois route generally have higher performance, while locations removed were often lower-volume, unprofitable or independently closed establishments, he said. Accel also completed the rollout of ticket-in, ticket-out technology, or TITO, across its Illinois installed base. Phelan said the technology has received encouraging customer feedback and is beginning to reduce the amount of cash held in the field, which could improve working capital over time. Rubenstein said it was difficult to isolate any revenue contribution from TITO but that the company believes it reduces friction for players. → TSMC Insiders Are Buying the Pullback—But Is the Signal as Bullish as It Looks? Chicago remained a central near-term opportunity. The Illinois Gaming Board issued establishment licenses for video gaming locations in June and July, and Accel had been approved for 17 of the 39 establishments licensed to date, or about 44%. The city’s Department of Business Affairs and Consumer Protection has begun accepting and processing city video gaming license applications. Rubenstein said Accel expects the first Chicago establishments could begin operating in the coming weeks, although the precise timing remains uncertain. The company has staged equipment, mapped routes and prepared logistics infrastructure for deployments. Phelan said Accel ultimately expects its Chicago share to be relatively close to its statewide market share. Management continues to estimate that Chicago could represent roughly $1 billion in total revenue at maturity, based on the city’s population and Illinois market trends, though Rubenstein said a full deployment could take more than five years. Outside Illinois, Nebraska and Georgia posted revenue growth of 55% and 47%, respectively. Phelan said both markets also generated significant adjusted EBITDA growth and are becoming more meaningful contributors to companywide earnings growth. In Nevada, quarterly revenue grew 17% year over year, while locations and terminals increased 54% and 53%, respectively. The expansion reflected the Dynasty Games acquisition and agreements involving Anabi Oil-owned Rebel and Green Valley Grocery convenience stores. Accel’s agreement with Green Valley Grocery added approximately 600 terminals in Southern Nevada, bringing its terminal count with Anabi Oil to more than 1,000. Nevada hold per day declined 15.8% year over year, which Phelan attributed primarily to a shift toward convenience-store locations, which produce lower hold per day than participation bars. He said the Rebel and Green Valley sites are in the early stages of upgrades that include improved equipment, refreshed gaming environments, payment technology and the AE Player Rewards loyalty program. Accel expects the transition process to take six to 12 months. In Louisiana, the company completed its acquisition of Rice Palace Truck Stop Casino, adding 50 gaming terminals with plans to expand the site to 60 terminals. Toucan revenue rose 14% year over year and terminal count increased 27%. Phelan said Accel sees additional acquisition opportunities in the state. Fairmount Park delivered its highest quarterly gross profit since Accel acquired the property, with gross profit rising 33% from the second quarter of 2025. Management said table games and slots continued to gain traction, while gaming revenue supported an approximately $500,000 increase in 2026 racing purses. The company remains committed to developing a permanent casino at the property and expects to provide further details on the scope and timing over the next quarter or two. Operating cash flow was $20 million in the second quarter, equal to 34% of adjusted EBITDA, compared with $43 million, or 80% of adjusted EBITDA, in the first quarter. Chief Financial Officer Brett Summerer said the company purchased a green tax credit that moved $17 million of operating cash flow from the second quarter into the third quarter. Excluding that purchase, operating cash flow would have been $37 million, or 63% of adjusted EBITDA. Free cash flow was $10 million, or 16% of adjusted EBITDA, during the quarter. Excluding the tax-credit purchase, free cash flow was $26 million, or 45% of adjusted EBITDA. Summerer cautioned that working-capital movements can materially affect quarterly free cash flow. Accel expects full-year capital expenditures of $60 million to $70 million, depending on year-end payment timing and Chicago licensing and deployment timing, compared with approximately $89 million in 2025. The company said most spending is replacement capital for newer equipment at existing locations, with expected paybacks generally between two and three years. The company ended the quarter with approximately $255 million in cash and cash equivalents, total debt of approximately $573 million and net debt of about $318 million. Net leverage was approximately 1.4 times trailing 12-month adjusted EBITDA, while its $300 million revolving credit facility was undrawn. Accel repurchased approximately 500,000 shares for $5.6 million during the quarter, bringing first-half repurchases to 1.6 million shares for $18 million. Since beginning its buyback program in late 2021, the company has repurchased about $201 million of shares and had approximately $146 million of remaining authorization. Rubenstein said the call was his final quarterly earnings call as chief executive. Phelan is scheduled to become CEO on Aug. 7, while Rubenstein will remain chairman. The company also promoted Stan Guidroz to chief operating officer. Phelan said he intends to emphasize Accel’s evolution from a logistics-focused business toward a gaming and hospitality company, with investments in player experience, exclusive content where allowed, hospitality and table games at Fairmount Park, and portfolio upgrades in Nevada. Accel Entertainment, Inc is a Chicago-based gaming and entertainment company specializing in the provision of regulated electronic gaming terminals and related management services to licensed establishments across the United States. The company’s core offerings include video gaming terminals (VGTs), digital payment solutions, player loyalty programs and compliance support, all designed to enhance customer engagement and operational efficiency for bars, restaurants, truck stops and convenience stores. Founded in 2005, Accel Entertainment has built a network that spans multiple states, including Illinois, Pennsylvania, Ohio, and Iowa. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Accel Entertainment Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

This article first appeared on GuruFocus. Release Date: August 04, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Accel Entertainment Inc (NYSE:ACEL) delivered record quarterly revenue of $368 million, up 10% year-over-year, and record adjusted EBITDA of $59 million, up 11%. Illinois, its core market, saw average location hold per day increase 9% to $992, driven by a successful strategy of optimizing route quality over quantity. The Chicago market is poised to open imminently, with Accel Entertainment Inc (NYSE:ACEL) already approved for 44% of licensed establishments and infrastructure in place to scale quickly. Developing markets are scaling profitably, with Nebraska and Georgia delivering exceptional revenue growth of 55% and 47%, respectively, and becoming meaningful contributors to earnings growth. The company maintains a strong balance sheet with net leverage of 1.4 times, $255 million in cash, and a fully undrawn $300 million revolver, providing ample flexibility for growth and capital returns. Fairmont Park delivered its highest quarterly gross profit since acquisition, up 33% year-over-year, with the investment thesis playing out as expected. Nevada's hold per day declined 15.8% year-over-year due to a rapid mix shift toward lower-yielding convenience store locations, which are still in a 6-12 month transition period. The company recorded a non-cash pre-tax charge of approximately $2.5 million related to disposing of legacy gaming equipment no longer part of its operating plan. A $5 million non-cash loss was recognized due to the change in fair value of Class A2 contingent earn-out shares, which is tied to the rising share price and impacts reported net income. Operating cash flow conversion was temporarily impacted by a $17 million green tax credit purchase, which shifted cash out of Q2 and into Q3, reducing quarterly free cash flow. The timeline for the full deployment of the Chicago market is expected to take five-plus years, meaning the significant opportunity will be realized gradually rather than immediately. The company's Illinois location and terminal counts declined modestly year-over-year, reflecting a strategic pruning of lower-performing locations that could limit top-line growth in the near term. Warning! GuruFocus has detected 5 Warning Signs with ACEL. Is ACEL fairly valued? Test your thesis with our free DCF calculator. Q: With Chicago's first establishments expected to go live in the coming weeks, do you believe the application and approval process will accelerate from here, or could there be any final political hurdles before a faster ramp?A: Andy Rubenstein, Founder, Chairman, and CEO, stated that once the "gates open," a more normal flow of applications is expected, as many are waiting to see how the market operates. He does not foresee additional hurdles, noting that the current licensing process is the last major step, though the exact timing (weeks or a couple of months) remains uncertain. Q: With Accel approved for 44% of the 39 licensed establishments in Chicago so far, which is higher than your statewide market share, do you expect to maintain this higher share or revert closer to your typical ~30% mark?A: Mark Phelan, President (incoming CEO), responded that he expects Accel's market share in Chicago to be relatively close to its statewide share over time. He noted that relationships in the city will develop gradually, and he doesn't anticipate a significant difference between the two metrics in the long run. Q: Can you provide an update on the total market size estimate for Chicago and the expected timeline for full deployment?A: Brett Sommer, CFO, reiterated that based on Chicago's population relative to the state, the market is likely worth about $1 billion in total revenue, with terminal operators receiving roughly a third of that. Andy Rubenstein added that the full deployment timeline is probably five-plus years, giving the company ample time to see the market evolve. Q: Illinois is seeing its first sequential location count growth in about two years. Are we at the end of the pruning cycle, and how should we think about location count going forward?A: Mark Phelan clarified that the company does not focus on absolute location count growth but rather on quality. He explained that locations closing independently tend to have lower gaming performance than newly added ones, which is driving margin expansion per gaming machine. He expressed optimism that this trend will continue to improve over time. Q: Can you provide more insight into the strategic rationale for owning the Rice Palace property outright in Louisiana, and is owning larger locations a priority in markets where it's permitted?A: Mark Phelan explained that Rice Palace is a truck stop in Louisiana, where gaming is limited to up to 60 machines per location with no table games. He stated that owning such properties outright is in the company's best interest, allowing them to manage according to their own plans. He expressed excitement about the acquisition and noted there are other opportunities in the state to leverage their scale for improved earnings power. Q: Are the statewide VGT growth trends you're seeing in early Q3 more in line with the historical GDP+ growth, or are they staying at the elevated 6%-8% levels seen recently?A: Mark Phelan declined to provide forward guidance but stated that July results were relatively consistent with what the company saw in the first half of the year, indicating sustained performance without a significant shift in growth trends. Q: Can you frame the opportunity in Pennsylvania following the Supreme Court decision on skill games, and what is the common denominator for political will when it comes to gaming expansion?A: Mark Phelan noted that Pennsylvania is still within the 120-day removal period for skill games, with multiple dynamics influencing the outcome. He is optimistic that either skill games will be legalized or VGTs will be expanded, but he couldn't handicap the specific outcome. On the broader question, he cited Chicago as an example of how difficult it is to predict new market openings, noting that states like North Carolina, Virginia, and Missouri should logically regulate route gaming, but it often takes just one influential person to block legislation. Q: With the TITO rollout now complete, where does player adoption stand, and what effects are you seeing on demand and operating costs?A: Brett Sommer stated that the rollout is fully complete and customer feedback has been positive. The primary benefit has been a reduction in cash held in the field, improving working capital. While they believe TITO lowers friction and may influence revenue, they are currently unable to isolate its specific incremental contribution from other growth drivers. Q: Can you provide more color on the Nevada hold per day decline of 15.8% year-over-year, given the rapid expansion in that market?A: Mark Phelan explained that the decline is primarily due to a mix shift. The Nevada portfolio now spans participation bars, which generate higher hold per day, and convenience stores, which have expanded much more rapidly. The Rebel and Green Valley locations are early in a six-to-12-month transition to higher-quality gaming experiences, involving equipment upgrades, refreshed environments, and loyalty program introductions, with early operating indicators remaining encouraging. Q: Can you elaborate on the non-cash charges affecting net income this quarter, specifically the equipment write-down and the contingent earn-out shares?A: Brett Sommer detailed a $2.5 million non-cash pre-tax charge related to disposing of legacy gaming equipment no longer part of the active operating plan, which improves balance sheet quality and eliminates carrying costs. He also noted a $5 million non-cash loss from the mark-to-market of Class A2 contingent earn-out shares, which is driven by the rising share price, is non-taxable, and is added back to adjusted EBITDA. Neither item affects cash or operating outlook. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Net Income rose 72% year-over-year CHICAGO, August 04, 2026--(BUSINESS WIRE)--Accel Entertainment, Inc. (NYSE: ACEL), a leading locals-focused gaming operator partnering with small businesses, local communities, and state governments to provide entertaining, convenient, and safe gaming experiences nationwide, today announced financial and operating results for the second quarter ended June 30, 2026. Second Quarter and Recent Highlights: Revenue increased 10% to $368 million compared to Q2 '25 Net income of $13 million for Q2 '26; an increase of 72% compared to Q2 '25 Adjusted EBITDA increased 11% to $59 million for Q2 '26 compared to Q2 '25 In Q2 ’26, Operating cash flow was $20 million and Free cash flow was $10 million. We purchased an $18 million tax credit in Q2 ’26 for $17 million, which resulted in a net $1 million tax savings, as reflected in our results. Excluding the tax credit purchase of $17 million, Operating cash flow and Free cash flow would have been $37 million and $26 million, respectively, representing a conversion from Adjusted EBITDA of 63% and 45%. Cash and cash equivalents of $255 million and Net debt of $318 million as of June 30, 2026 Repurchased approximately 500,000 shares of Accel Class A-1 common stock in Q2 '26 for $5.6 million Illinois revenue, excluding Fairmount Park, increased 6% year-over-year, driven by continued hold-per-day improvement and higher performing customer mix Fairmount Park Casino & Racing launched table games and commenced its second racing season in April 2026 Accel CEO, Andy Rubenstein, commented, "Accel delivered another strong quarter, with revenue increasing 10% year-over-year to a record of $368 million, and Adjusted EBITDA rising 11% to $59 million. We believe these results reflect the strength and resilience of our distributed gaming model, the disciplined execution of our team, and the ongoing success of our long-term strategy. "Illinois, our largest market, once again delivered impressive results. Revenue from our Illinois distributed gaming operations, excluding Fairmount Park, increased 6% year-over-year, reflecting our continued focus on improving route quality and maximizing revenue and profitability per location. With our entire Illinois installed base now ticket-in, ticket-out (TITO)-enabled, we are encouraged by early customer adoption and expect the benefits to build over time. Fairmount Park performed well in Q2 ’26, delivering its highest quarterly gross profit since the closing of the acquisition less than two years ago. Table games and slots continue to gain traction, our second racing season is underway, and we remain committed to developing a permanent casino at the property. "The operation of gaming terminals in Chicago remains one of Accel’s most compelling near-term growth opportunities. The Illinois Gaming Board has begun issuing approvals, and we are pleased that seventeen, or 44%, of the locations approved to date are Accel locations. The City of Chicago's Department of Business Affairs and Consumer Protection has begun accepting and processing applications for City video gaming licenses. Once a location receives its City video gaming license, the IGB will permit the terminal operator to schedule its connection to the Central Communications System and proceed to "go-live". Our infrastructure, operating platform and long-standing relationships position Accel to move quickly once the City of Chicago issues our licenses. "Beyond Illinois, we continued to build momentum in our developing markets during the second quarter. Adjusted EBITDA in each of Nebraska and Georgia increased significantly, highlighting the growing importance of these markets to our long-term earnings growth. In addition, we completed the accretive acquisition of Rice Palace Truck Stop Casino in Louisiana and announced a new route agreement and equipment purchase in Nevada which is adding approximately 600 terminals across Southern Nevada. "Our disciplined capital allocation strategy has provided Accel with a very strong balance sheet. During the quarter, we repurchased approximately 500,000 shares of our common stock for $5.6 million, and we ended the quarter with net leverage of approximately 1.4 times and an undrawn $300 million revolving credit facility. We believe this financial strength provides the flexibility to invest organically, pursue disciplined acquisitions and return capital to shareholders. "As I prepare to transition from Chief Executive Officer to Chairman, I am very confident in Accel's future. We have built a resilient business and assembled an exceptional leadership team, which I firmly believe positions Accel for its next chapter of growth. I look forward to continuing to support the company as Chairman and to building on that momentum in the years ahead." Condensed Consolidated Statements of Operations and Other Data Net Revenues Gross Margin Percentage Key Business Metrics Condensed Consolidated Statements of Cash Flows Data Non-GAAP Financial Information This press release includes certain financial information not prepared in accordance with Generally Accepted Accounting Principles in the United States ("GAAP"), including Adjusted EBITDA, Net debt, Net leverage and Free cash flow. Adjusted EBITDA, Net debt, Net leverage and Free cash flow are non-GAAP financial measures and are key metrics that Accel’s management uses to monitor ongoing core operations. Accel’s management believes these non-GAAP financial measures enhance the understanding of Accel’s underlying drivers of profitability and trends in Accel’s business and facilitate company-to-company and period-to-period comparisons because they exclude the effects of certain non-cash items or nonrecurring items that are unrelated to core operating performance. Accel’s management also believes that these non-GAAP financial measures are used by investors, analysts and other interested parties as measures of Accel’s financial performance and to evaluate Accel’s ability to fund capital expenditures, service debt obligations and meet working capital requirements. The non-GAAP financial measures presented in this press release should be viewed in addition to, and not as an alternative for, financial measures prepared in accordance with GAAP that are also presented in this press release. These measures are not substitutes for their comparable GAAP financial measures and there are limitations to using non-GAAP financial measures. For example, the non-GAAP financial measures presented in this press release may differ from similarly titled non-GAAP financial measures presented by other companies, and other companies may not define these non-GAAP financial measures the same way as Accel does. Adjusted EBITDA is defined as net income plus: Interest expense, net Income tax expense Depreciation and amortization of property and equipment Amortization of intangible assets and route and customer acquisition costs Stock-based compensation expense Loss on change in fair value of contingent earnout shares All other adjustments, which includes: Free cash flow is defined as Adjusted EBITDA: less Cash payments for interest, net less Cash payments for income taxes, net less Purchases of property and equipment plus Proceeds from sales of property and equipment less All other cashflows from operations (primarily working capital) Net debt is defined as debt, net of current maturities: plus Current maturities of debt less Cash and cash equivalents Net leverage is defined as Net debt divided by trailing twelve-month Adjusted EBITDA Free cash flow is also defined as Net cash provided by operating activities: less Purchases of property and equipment plus Proceeds from sales of property and equipment Reconciliation of Net income to Adjusted EBITDA and Free cash flow Reconciliation of Debt, net of current maturities to Net debt Reconciliation of Net cash provided by operating activities to Free cash flow Conference Call Accel will host a conference call and webcast at 4:30 PM ET / 3:30 PM CT today to review the results. Interested parties may join the live webcast by registering in advance at https://events.q4inc.com/analyst/652613287?pwd=Ty27oOlb. Registering in advance of the call will provide listeners with a personalized link to view the webcast and an individual dial-in for the call. This registration link to the live webcast, as well as a replay following the call, will also be available on Accel’s investor relations website at ir.accelentertainment.com. About Accel Accel Entertainment, Inc. (NYSE: ACEL) is a growing provider of locals-focused gaming and one of the largest terminal operators in the United States, supporting more than 29,000 electronic gaming terminals in nearly 4,700 third-party local and regional establishments and 20 self-operated gaming locations across ten states. Through exclusive long-term contracts, Accel serves licensed non-casino locations including bars, restaurants, convenience stores, truck stops, gaming cafes, and fraternal and veteran establishments. Accel provides its local partners with a turnkey, full-service, capital-efficient gaming solution that encompasses manufacturing, content, payments, loyalty, 24/7 customer service, data analysis and reporting, and cash logistics. The Company’s racino, Fairmount Park - Casino & Racing, features live racing, electronic gaming machines, live table games, food and beverage amenities, and pari-mutuel betting. Forward-Looking Statements This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical fact, contained in this press release are forward-looking statements, including, but not limited to, any statements regarding our ability to invest organically and pursue disciplined acquisitions, estimates of number of gaming terminals, locations, revenues, and Adjusted EBITDA, the opportunities in distributed gaming and local entertainment within the broader gaming market, including in the city of Chicago, our ability to expand operations in developing markets, our ability to roll out new technology to enhance player convenience and operational efficiency over time, and our expansion into casino operations and horse racing, including at Fairmount. The words "predict," "anticipates," "believes," "estimates," "expects," "intends," "may," "plans," "projects," "will," "would," "continue," and similar expressions are intended to identify forward-looking statements. These forward-looking statements represent our current reasonable beliefs, expectations and assumptions and involve inherent risks, uncertainties and other factors that may cause our actual results, performance and achievements, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. Important factors that could cause our results and financial condition to differ materially from those indicated in the forward-looking statements include, among others, the following: Accel’s ability to operate in existing markets and to expand into new jurisdictions; Accel’s ability to introduce new and appealing products and services amid uncertain market demand and regulatory outcomes; Accel’s ability to maintain or improve its competitive advantages in a highly competitive industry; Accel’s dependence on a concentrated network of key manufacturers, developers and third party providers for gaming terminals, amusement machines, and related software, content and technologies; Accel’s heavy dependency on its ability to win, maintain and renew contracts with location partners; Accel's expansion into casino operations and horse racing; decreased discretionary consumer spending due to broader macroeconomic and socio-political conditions; geographical concentration of Accel’s business, which heightens exposure to local or regional conditions; strict government regulations that are constantly evolving and may be amended, repealed, or subject to new interpretations, which may limit existing operations, have an adverse impact on Accel’s ability to grow or may expose Accel to fines or other penalties; Accel’s dependence on the security, integrity and regulatory compliance of products, services and systems offered, which, if breached or disrupted, could expose Accel to liability; Accel’s dependence on the protection of trademarks and other intellectual property; opponents’ efforts to curtail the expansion of legalized gaming; and other risks and uncertainties indicated from time to time in documents filed or to be filed with the U.S. Securities and Exchange Commission (the "SEC") including those described in the section entitled "Risk Factors" in the Annual Report on Form 10-K for the fiscal year ended December 31, 2025 (the "Form 10-K"). Any forward-looking statement made by us in this press release is based only on information currently available to us and speaks only as of the date on which it is made. We are under no obligation to, and expressly disclaim any obligation to, publicly update or alter any forward-looking statement, whether as a result of new information, subsequent events or otherwise, except as required by law. Industry and Market Data Unless otherwise indicated, information contained in this press release concerning our industry and the markets in which we operate, including our general expectations and market position, market opportunity, and market size, is based on information from various sources, on assumptions that we have made that are based on those data and other similar sources, and on our knowledge of the markets for our services. This information includes a number of assumptions and limitations, and you are cautioned not to give undue weight to such information. In addition, projections, assumptions, and estimates of our future performance and the future performance of the industry in which we operate are necessarily subject to a high degree of uncertainty and risk due to a variety of factors, including those described in the Form 10-K, as well as Accel's other filings with the SEC. These and other factors could cause results to differ materially from those expressed in the estimates made by third parties and by us. View source version on businesswire.com: https://www.businesswire.com/news/home/20260804216922/en/ Contacts Joseph Jaffoni, Norberto [email protected]

Accel Entertainment (ACEL) came out with quarterly earnings of $0.15 per share, missing the Zacks Consensus Estimate of $0.18 per share. This compares to earnings of $0.25 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -16.67%. A quarter ago, it was expected that this company would post earnings of $0.16 per share when it actually produced earnings of $0.17, delivering a surprise of +6.25%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. Accel Entertainment, which belongs to the Zacks Gaming industry, posted revenues of $368.13 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 3.78%. This compares to year-ago revenues of $335.91 million. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Accel Entertainment shares have added about 5.4% since the beginning of the year versus the S&P 500's gain of 11%. While Accel Entertainment has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Accel Entertainment was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.16 on $349 million in revenues for the coming quarter and $0.72 on $1.42 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Gaming is currently in the bottom 25% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the same industry, DraftKings (DKNG), is yet to report results for the quarter ended June 2026. The results are expected to be released on August 6. This company is expected to post quarterly earnings of $0.22 per share in its upcoming report, which represents a year-over-year change of -42.1%. The consensus EPS estimate for the quarter has been revised 1% lower over the last 30 days to the current level. DraftKings' revenues are expected to be $1.5 billion, down 0.8% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Accel Entertainment, Inc. (ACEL) : Free Stock Analysis Report DraftKings Inc. (DKNG) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Slot machine and terminal operator Accel Entertainment (NYSE:ACEL) will be reporting results this Tuesday after market close. Here’s what to expect. Accel Entertainment beat analysts’ revenue expectations last quarter, reporting revenues of $351.6 million, up 8.5% year on year. It was a strong quarter for the company, with a beat of analysts’ EPS estimates and EBITDA in line with analysts’ estimates. It reported 28,353 video gaming terminals sold, up 4.3% year on year. Is Accel Entertainment a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members. This quarter, the market is expecting Accel Entertainment’s revenue to grow 6.1% year on year, slowing from the 8.6% increase it recorded in the same quarter last year. Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Accel Entertainment has a history of exceeding Wall Street’s expectations. Looking at Accel Entertainment’s peers in the consumer discretionary segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Rush Street Interactive delivered year-on-year revenue growth of 46.3%, beating analysts’ expectations by 7.1%, and Churchill Downs reported revenues up 4.9%, in line with consensus estimates. Rush Street Interactive traded down 13.4% following the results while Churchill Downs was also down 6.6%. Read our full analysis of Rush Street Interactive’s results here and Churchill Downs’s results here. In the last year or so, investors have shifted their focus from one macro dynamic to the next (AI disintermediation and AI investment to geopolitical conflict, interest rates, and the health of the wider economy). While some of the consumer discretionary stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 2.4% on average over the last month. Accel Entertainment is down 2.9% during the same time and is heading into earnings with an average analyst price target of $15.50 (compared to the current share price of $12.04). ONE MORE THING: The $21 AI Application Stock Wall Street Forgot. While Wall Street obsesses over who’s building AI, one company is already using it to print money. And nobody’s paying attention. AI chip stocks trade at ridiculous valuations. This company processes a trillion consumer signals monthly using AI and trades at a third of the price. The gap won’t last. The institutions will figure it out. You need to see this first. Read the FREE Report Before They Notice.

CHICAGO, July 07, 2026--(BUSINESS WIRE)--Accel Entertainment, Inc. (NYSE: ACEL) ("Accel" or "the Company"), a leading locals-focused gaming operator partnering with small businesses, local communities, and state governments to provide entertaining, convenient, and safe gaming experiences nationwide, announced today it will release its financial and operating results for the second quarter ended June 30, 2026, after market close on Tuesday, August 4, 2026. The Company will host a conference call and webcast that day at 4:30 PM ET / 3:30 PM CT to review the results. During the conference call, Andrew Rubenstein, Accel's Chief Executive Officer, and senior management, will review the quarter’s results and performance, discuss recent developments, and host a question-and-answer session. Interested parties may join the live webcast by registering in advance at https://events.q4inc.com/analyst/652613287?pwd=Ty27oOlb. Registering in advance of the call will provide listeners with a personalized link to view the webcast and an individual dial-in for the call. This registration link to the live webcast, as well as a replay following the call, will also be available on Accel’s investor relations website: ir.accelentertainment.com. About Accel Accel Entertainment, Inc. (NYSE: ACEL) is a growing provider of locals-focused gaming and one of the largest terminal operators in the United States, supporting more than 28,000 electronic gaming terminals in over 4,500 third-party local and regional establishments and 20 self-operated gaming locations across ten states. Through exclusive long-term contracts, Accel serves licensed non-casino locations including bars, restaurants, convenience stores, truck stops, gaming cafes, and fraternal and veteran establishments. Accel also owns and operates a racino venue. Accel provides its local partners with a turnkey, full-service, capital-efficient gaming solution that encompasses manufacturing, content, payments, loyalty, 24/7 customer service, data analysis and reporting, and cash logistics. The Company’s racino, Fairmount Park - Casino & Racing, features approximately 250 electronic gaming machines, 7 live table games, food and beverage amenities, pari-mutuel betting, and approximately 57 racing days planned for 2026. View source version on businesswire.com: https://www.businesswire.com/news/home/20260707826554/en/ Contacts Joseph Jaffoni, Norberto [email protected]

Accel Entertainment trades at $12.76 per share and has stayed right on track with the overall market, gaining 12.2% over the last six months. At the same time, the S&P 500 has returned 9.3%. Is now the time to buy Accel Entertainment, or should you be careful about including it in your portfolio? See what our analysts have to say in our full research report, it’s free. We don’t have much confidence in Accel Entertainment. Here are three reasons we avoid ACEL, plus one stock we’d rather own. Revenue growth can be broken down into changes in price and volume (for companies like Accel Entertainment, our preferred volume metric is video gaming terminals sold). While both are important, the latter is the most critical to analyze because prices have a ceiling. Accel Entertainment’s video gaming terminals sold came in at 28,353 in the latest quarter, and over the last two years, averaged 6.1% year-on-year growth. This performance was underwhelming and suggests it might have to lower prices or invest in product improvements to accelerate growth, factors that can hinder near-term profitability. If you’ve followed StockStory for a while, you know we emphasize free cash flow. Why, you ask? We believe that in the end, cash is king, and you can’t use accounting profits to pay the bills. Accel Entertainment has shown poor cash profitability relative to peers over the last two years, giving the company fewer opportunities to return capital to shareholders. Its free cash flow margin averaged 4.9%, below what we’d expect for a consumer discretionary business. ROIC, or return on invested capital, is a metric showing how much operating profit a company generates relative to the money it has raised (debt and equity). Over the last few years, Accel Entertainment’s ROIC has unfortunately decreased. Paired with its already low returns, these declines suggest its profitable growth opportunities are few and far between. Accel Entertainment doesn’t pass our quality test. That said, the stock currently trades at 13.3× forward P/E (or $12.76 per share). This valuation is reasonable, but the company’s shaky fundamentals present too much downside risk. There are superior stocks to buy right now. Let us point you toward one of our top digital advertising picks. WHILE YOU’RE HERE: Top 9 Market-Beating Stocks. The best stocks don’t just beat the market once. They do it again. And again. Robust revenue growth, rising free cash flow, returns on capital that leave their competition in the dust. The market has already rewarded these businesses. But our AI platform says the party isn’t over. Find out which 9 stocks made the cut this week — FREE. Get Our Top 9 Market-Beating Stocks for Free HERE. Stocks that have made our list include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today.