Company: ACEL
Filing Date: 2025-11-04
Form Type: 10-Q
Source: 0001698991-25-000051
Chunk: 75

Company: Accel Entertainment, Inc.
Filing Date: 2025-11-04
Form: 10-Q
Item: Item 2
Chunk 75
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1.1 million was recorded for the three months ended September 30, 2025 in connection with the entry into a new Credit Agreement (as defined below). For more information on our new Credit Agreement and the related loss on debt extinguishment, see the discussion within the Liquidity and Capital Resources later in this section.

Income tax expense

Income tax expense for the three months ended September 30, 2025 was $4.5 million, an increase of $0.9 million, or 25.9%, compared to the prior-year period. The effective tax rate for the three months ended September 30, 2025 was 25.2% compared to 42.2% in the prior-year period. Our effective income tax rate can vary from period to period depending on, among other factors, the amount of permanent tax adjustments and discrete items. The change in the fair value of the contingent earnout shares is considered a discrete item for tax purposes and can be the primary driver for the fluctuations in the tax rate year over year.

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The following table summarizes our results of operations on a consolidated basis for the nine months ended September 30, 2025 and 2024:

(in thousands, except %'s)Nine Months EndedSeptember 30,Increase / (Decrease)20252024Change ($)Change (%)Net revenues:Net gaming$924,351 $871,300 $53,051 6.1 %Amusement16,402 16,772 (370)(2.2)%Manufacturing7,299 9,122 (1,823)(20.0)%ATM fees and other41,462 16,263 25,199 154.9 %Total net revenues989,514 913,457 76,057 8.3 %Operating expenses:Cost of revenue (exclusive of depreciation and amortization expense shown below)676,741 633,325 43,416 6.9 %Cost of manufacturing goods sold (exclusive of depreciation and amortization expense shown below)3,878 5,283 (1,405)(26.6)%General and administrative163,482 142,105 21,377 15.0 %Depreciation and amortization of property and equipment38,735 32,229 6,506 20.2 %Amortization of intangible assets and route and customer acquisition costs19,001 16,808 2,