Company: ACEL
Filing Date: 2025-08-05
Form Type: 10-Q
Source: 0001698991-25-000034
Chunk: 44

Company: Accel Entertainment, Inc.
Filing Date: 2025-08-05
Form: 10-Q
Item: Item 1
Chunk 44
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 operating expenses309,035 286,730 22,305 7.8 %Operating income26,874 22,683 4,191 18.5 %Interest expense, net8,771 8,906 (135)(1.5)%Loss from unconsolidated affiliates17 — 17 100.0 %Loss (gain) on change in fair value of contingent earnout shares5,734 (4,742)10,476 220.9 %Income before income tax expense12,352 18,519 (6,167)(33.3)%Income tax expense5,090 3,933 1,157 29.4 %Net income$7,262 $14,586 $(7,324)(50.2)%

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Net revenues

Total net revenues for the three months ended June 30, 2025 were $335.9 million, an increase of $26.5 million, or 8.6%, compared to the prior-year period. This increase was primarily driven by higher net gaming revenue of $20.7 million, which reflected an increase in gaming locations and terminals, and higher ATM fees and other revenue of $14.7 million, an increase of $9.3 million, or 171.1%, which included revenue from our casino & racing operations. Those amounts were partially offset by a decrease in manufacturing revenue of $3.4 million, or 66.1%, primarily due to timing on software sales. Net revenues by state are presented below:

(in thousands)Three Months EndedJune 30,Increase / (Decrease)20252024Change ($)Change (%)Net revenues by state:Illinois$245,434 $227,093 $18,341 8.1 %Montana40,107 42,583 (2,476)(5.8)%Nevada27,078 29,322 (2,244)(7.7)%Louisiana9,630 — 9,630 N/ANebraska7,881 6,249 1,632 26.1 %Georgia4,814 3,137 1,677 53.5 %Other965 1,029 (64)(6.2)%Total net revenues$335,909 $309,413 $26,496 8.6 %

Cost of revenue

Cost of revenue for