Company: ACEL
Filing Date: 2025-08-05
Form Type: 10-Q
Source: 0001698991-25-000034
Chunk: 31

Company: Accel Entertainment, Inc.
Filing Date: 2025-08-05
Form: 10-Q
Item: Item 1
Chunk 31
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 six months ended June 30, 2025. 

Note 14. Segment Reporting

The Company assesses its reportable segments on an annual basis or as changes in its business occur. As part of its assessment, the Company has determined its chief operating decision maker (“CODM”) to be its Chief Executive Officer, Andrew Rubenstein, who is ultimately responsible for the operating performance of the Company and the allocation of resources. The CODM assesses financial performance and allocates resources based on Adjusted EBITDA. Adjusted EBITDA is used by the CODM to understand the Company’s underlying drivers of profitability, trends in its business, and to facilitate company-to-company and period-to-period comparisons. Segment asset information is provided to the CODM to support the CODM’s assessment of performance but is not used to allocate resources. 

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Table of ContentsAccel Entertainment, Inc. and SubsidiariesNotes to Condensed Consolidated Financial Statements — (Continued)

The Company defines Adjusted EBITDA 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 •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 the Company’s operations are developing•Income tax expenseThe Company’s distributed gaming reportable segment consists of the installation, maintenance, and operation of gaming terminals, redemption devices that disburse winnings and contain ATM functionality and other amusement devises in authorized non-casino locations such as restaurants, bars, convenience stores, liquor stores, truck stops and grocery stores. The Company’s operations and services are consistent in the Company’s markets.The Company has determined that with the acquisition of Fairmount as of June 30, 2025, it has two operating segments: distributed gaming and casino and racing. In April 2025, the Fairmount casino opened and the racing season began. However, due to the fact Fairmount has had limited operations, the casino and racing operating segment does not reach the criteria of being a reportable segment primarily from a quantitative standpoint as of June 30, 2025. The Company will continue to evaluate the casino and racing operating segment from a quantitative standpoint and anticipates it will disclose a second reportable segment