What Accel Entertainment (ACEL) Said on Its Q3 Earnings Call

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Key Points

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• Accel posted strong Q3 growth: Revenue rose 10% to $364 million, adjusted EBITDA climbed 12% to $57 million, and net income increased to $21 million. Illinois productivity improved despite operating fewer locations and machines.

• Chicago could be a substantial long-term growth opportunity: Accel expects to launch its first licensed locations in the coming weeks, adding roughly 100–200 locations annually and targeting about one-third of the market. The rollout could take four to eight years, depending on regulatory licensing capacity.

• Growth extended across several markets, including Nevada, Georgia, Nebraska and Louisiana, while Las Vegas demand softened. Fairmount’s projected annualized EBITDA increased to $20–$25 million, though construction costs are now expected to run 15%–20% above the prior estimate.

Accel Entertainment (NYSE:ACEL) reported third-quarter revenue of $364 million, up 10% from a year earlier, while adjusted EBITDA rose 12% to $57 million, as the company cited improving productivity in its core Illinois operations and growth across newer markets.

Net income increased to $21 million from $13 million in the prior-year quarter. Chief Financial Officer Brett Summerer said net income included a $6 million non-cash gain related to a change in the fair value of contingent earnout shares, partially offset by roughly $1 million in losses associated with fixed-asset sales.

Illinois optimization supports profitability

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Chief Executive Officer Mark Phelan said Accel continued to benefit from its route-optimization strategy in Illinois, its largest market. Excluding Fairmount Park, Illinois revenue increased approximately 7% year over year, while location hold per day increased 9%.

The company achieved those gains while operating 2% fewer locations and 1% fewer machines than a year earlier Management attributed the performance to pruning lower-performing locations, investing in stronger venues and deploying better-performing gaming content

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“We’re improving location quality, deploying better content, and putting capital behind these opportunities,” Phelan said, adding that the company had not seen a material impact from broader macroeconomic pressures through the first nine months of 2026.

During the question-and-answer session, Phelan said Accel has seen weaker demand in Las Vegas, but said the company’s other markets have remained resilient. He characterized the company’s distributed, local gaming model as a differentiator, given its presence across roughly 4,800 locations in eight states and markets.