Company: ACEL
Filing Date: 2025-08-05
Form Type: 10-Q
Source: 0001698991-25-000034
Chunk: 52

Company: Accel Entertainment, Inc.
Filing Date: 2025-08-05
Form: 10-Q
Item: Item 1
Chunk 52
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 date we first install or acquire gaming terminals in the jurisdiction, whichever occurs first

◦Prior to June 2025, Pennsylvania was considered an emerging market

◦Prior to January 2024, Iowa was considered an emerging market

◦As of June 2025, we no longer have any emerging markets. 

•Income tax expense

38

Adjusted net income and Adjusted EBITDA

(in thousands)Three Months EndedJune 30,Six Months EndedJune 30,2025202420252024Net income$7,262 $14,586 $21,875 $22,002 Adjustments:Amortization of intangible assets and route and customer acquisition costs6,322 5,589 12,612 11,027 Stock-based compensation expense2,789 3,235 4,880 5,585 Loss from unconsolidated affiliates17 — 33 — Loss (gain) on change in fair value of contingent earnout shares5,734 (4,742)3,379 (26)Other expenses, net 4,096 7,327 6,913 9,753 Tax effect of adjustments (3,729)(4,612)(6,983)(7,453)Adjusted net income22,491 21,383 42,709 40,888 Depreciation and amortization of property and equipment13,095 10,794 25,396 21,228 Interest expense, net8,771 8,906 17,456 17,566 Emerging markets 4 38 67 78 Income tax expense8,819 8,544 17,066 16,152 Adjusted EBITDA$53,180 $49,665 $102,694 $95,912 

Adjusted EBITDA for the three months ended June 30, 2025, was $53.2 million, an increase of $3.5 million, or 7.1%, compared to the prior-year period. Adjusted EBITDA for the six months ended June 30, 2025, was $102.7 million, an increase of $6.8 million, or 7.1%, compared to the prior-year period. The increase was attributable to an increase in the number of locations and gaming terminals.

Liquidity and Capital Resources

We believe that our cash and cash equivalents