Company: ACEL
Filing Date: 2025-08-05
Form Type: 10-Q
Source: 0001698991-25-000034
Chunk: 76

Company: Accel Entertainment, Inc.
Filing Date: 2025-08-05
Form: 10-Q
Item: Item 2
Chunk 76
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•Amortization of intangible assets and route and customer acquisition costs 

•Stock-based compensation expense

•Loss from unconsolidated affiliates

•Loss (gain) on change in fair value of contingent earnout shares

•Other expenses, net which consists of i) non-cash expenses including the remeasurement of contingent consideration liabilities, ii) non-recurring lobbying and legal expenses related to distributed gaming expansion in current or prospective markets, and iii) other non-recurring expenses

•Tax effect of adjustments

Adjusted EBITDA is defined as net income plus:

•Amortization of intangible assets and route and customer acquisition costs 

•Stock-based compensation expense

•Loss from unconsolidated affiliates

•Loss (gain) on change in fair value of contingent earnout shares

•Other expenses, net 

•Tax effect of adjustments

•Depreciation and amortization of property and equipment

•Interest expense, net

•Emerging markets which reflects the results, on an Adjusted EBITDA basis, for non-core jurisdictions where our operations are developing

◦Markets are no longer considered emerging when we have installed or acquired at least 500 gaming terminals in the jurisdiction, or when 24 months have elapsed from the 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 (