10-Q · May 5, 2026
Accel Entertainment reported Q1 2026 results with revenue of $351.6 million, up 8.5% from the previous year, while EPS increased modestly to $0.17, falling short of expectations. The company saw growth in net gaming…
Earnings analysis · 10-Q
ACEL earnings analysis
Filed August 4, 2026 · Our reading of the company's report
The latest report
Accel delivered Q2 revenue of $368.125 million, up 9.6% year over year and above the $355.907 million consensus estimate, with operating margin expanding to 8.7% from 8.0%. Net income rose 72.2% to $12.507 million and…
Read full summary
Accel delivered Q2 revenue of $368.125 million, up 9.6% year over year and above the $355.907 million consensus estimate, with operating margin expanding to 8.7% from 8.0%. Net income rose 72.2% to $12.507 million and adjusted EBITDA increased 10.8% to $58.924 million, although diluted EPS of $0.15 was below the $0.20 consensus estimate. Growth was led by Illinois, Nebraska, Georgia, and Nevada, while manufacturing revenue fell 67.8% and Nevada hold-per-day declined 15.8%. Cash was $255.5 million against $577.5 million of credit-facility borrowings, and management gave only a $60 million to $70 million 2026 capex outlook rather than revenue or EPS guidance.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $0.15
What stood out
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Revenue growth accelerated in Q2
Q2 net revenue was $368.125 million, up $32.216 million or 9.6% year over year and $16.125 million above Q1 2026 revenue of $352 million. Net gaming revenue rose $33.456 million, or 10.7%, to $347.375 million.
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Margins and operating income expanded
Operating income increased $5.179 million, or 19.3%, to $32.053 million. Operating margin expanded to 8.7% from 8.0% a year earlier and 7.7% in Q1 2026, while gross margin was 31.3% versus 31.1% in Q1 2026.
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Earnings and EBITDA rose sharply
Net income rose 72.2% to $12.507 million from $7.262 million, and diluted EPS was $0.15 versus $0.08 in Q2 2025. Adjusted EBITDA increased 10.8% to $58.924 million.
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Newer markets drove network growth
Nebraska revenue increased 55.1% to $12.224 million and Georgia increased 47.4% to $7.095 million; Nevada revenue grew 17.0% to $31.683 million. Total locations increased 249, or 5.6%, to 4,676 and terminals increased 1,893, or 6.9%, to 29,281.
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Liquidity supports capital needs
Liquidity remained substantial, with $255.5 million of cash and cash equivalents at June 30, 2026. The company had a $300.0 million revolver and $600.0 million term-loan facility maturing September 10, 2030, and reported covenant compliance.
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Operating cash flow remained resilient
Six-month operating cash flow was $62.707 million, only $1.850 million below the prior-year $64.557 million, despite working-capital pressure. Management anticipates 2026 capex of approximately $60 million to $70 million.
What to watch
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Manufacturing sales contracted sharply
Manufacturing revenue fell $1.195 million, or 67.8%, to $0.568 million in Q2 because of lower equipment and software sales; six-month manufacturing revenue likewise declined $3.813 million, or 67.8%, to $1.808 million.
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Nevada unit economics weakened
Nevada location hold-per-day declined $124, or 15.8%, to $660, despite Nevada revenue rising 17.0% to $31.683 million as locations expanded by 193 to 548.
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Material floating-rate debt exposure
Credit-facility borrowings were $577.5 million at June 30, 2026; a 100-basis-point increase in underlying rates would increase annual interest expense and reduce cash flow by approximately $5.8 million. The weighted-average borrowing rate was approximately 5.5%.
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No material risk-factor updates
The company stated that there were no material changes to risk factors in its 2025 Form 10-K. It nevertheless cites macro uncertainty, inflation, Iran-related economic effects, and tariffs; no material impact was observed in the first half of 2026.
Management's outlook
The 10-Q provided no revenue or EPS outlook. Management anticipates approximately $60 million to $70 million of capital expenditures in 2026 and expects to remain in compliance with debt covenants for the next 12 months.
Earlier filings 4
10-K · March 3, 2026
Accel Entertainment reported Q4 2025 revenue of $341,446,000 and diluted EPS of $0.19, both modestly above consensus, while gross margin expanded to 31.7% and operating margin improved to 8.7%. The company continued to…
10-Q · May 5, 2025
Accel reported Q1 2025 revenue of $323.9M (3 months ended March 31, 2025) and diluted EPS of $0.17, with operating income essentially flat at $25.95M. Revenue rose versus the prior year (Q1 2024 $301.8M) and cash flow…
10-Q · November 7, 2023
Accel reported Q3 revenue of $287.497M, up 7.7% year-over-year, and operating income of $25.120M, up 8.1% YoY. However, net income fell to $10.450M (down 53.4% YoY) and diluted EPS declined to $0.12 from $0.25, driven…
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