Company: ACEL
Filing Date: 2025-11-04
Form Type: 10-Q
Source: 0001698991-25-000051
Chunk: 55

Company: Accel Entertainment, Inc.
Filing Date: 2025-11-04
Form: 10-Q
Item: Item 1
Chunk 55
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%

Nine Months EndedSeptember 30,Increase / (Decrease)20252024Change ($)Change (%)Illinois$888 $859 $29 3.4 %Montana614 608 6 1.0 %Nevada761 835 (74)(8.9)%Louisiana988 — 988 N/ANebraska284 244 40 16.4 %Georgia148 111 37 33.3 %

40

Non-GAAP Financial Measure

Adjusted EBITDA is a non-GAAP financial measure, but is a key metric management uses to monitor ongoing core operations. Adjusted EBITDA excludes the effects of certain non-cash items or represent certain nonrecurring items that are unrelated to core performance. Management believes this non-GAAP financial measure enhances the understanding of our underlying drivers of profitability and trends in our business and facilitates company-to-company and period-to-period comparisons. Management also believes that this non-GAAP financial measure is used by investors, analysts and other interested parties as a measure of financial performance and to evaluate our ability to fund capital expenditures, service debt obligations and meet working capital requirements. 

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

•(Gain) loss on change in fair value of contingent earnout shares

•Other expenses, net 

•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

•Loss on debt extinguishment

41

Adjusted EBITDA

(in thousands)Three Months EndedSeptember 30,Nine Months EndedSeptember 30,2025202420252024Net income$13,305 $