Company: ACEL
Filing Date: 2025-08-05
Form Type: 10-Q
Source: 0001698991-25-000034
Chunk: 34

Company: Accel Entertainment, Inc.
Filing Date: 2025-08-05
Form: 10-Q
Item: Item 1
Chunk 34
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 Inc. Long Term Incentive Plan, the Company issued 159,105 restricted stock units (“RSUs”) to certain eligible employees during the first quarter of 2025, which will vest over a period of 3 years. The Company also issued 242,230 performance-based restricted stock units (“PSUs”) to certain eligible employees during the first quarter of 2025, which will vest after 3 years. The numbers of shares earned upon vesting of the PSUs, if any, is based on the attainment of performance goals over the performance period, subject to continued service, except for employees who are retirement eligible and in certain other limited circumstances. The estimated grant date fair value of these RSUs and PSUs totaled $4.0 million. The Company issued 752,530 RSUs to the members of the Board and certain eligible employees during the second quarter of 2025, which will vest over a period of less than 1 year to 4 years, as applicable. The estimated grant date fair value of these RSUs totaled $8.2 million.Stock-based compensation expense, which pertains to the Company’s RSUs and PSUs, was $2.8 million and $4.9 million for the three and six months ended June 30, 2025, respectively. In comparison, stock-based compensation expense was $3.2 million and $5.6 million for the three and six months ended June 30, 2024, respectively. Stock-based compensation expense is included within general and administrative expenses in the condensed consolidated statements of operations and other comprehensive income.

Note 16. Income Taxes

The Company recognized income tax expense of $5.1 million and $10.1 million for the three and six months ended June 30, 2025, respectively. In comparison, the Company recognized income tax expense of $3.9 million and $8.7 million for the three and six months ended June 30, 2024, respectively.The Company calculates its provision for income taxes during interim reporting periods by applying an estimate of the annual effective tax rate to its year-to-date pretax book income or loss. The effective tax rate (income taxes as a percentage of income before income taxes) was 41.2% and 31.6% for the three and six months ended June 30, 2025, respectively, compared to 21.2% and 28.3% for the three and six months ended June 30, 2024