Accel Entertainment (ACEL) Q3 2026 earnings summary

Executive summary

• Q3 net revenue rose 10.3% YoY to $363.555M; net income increased to $20.604M from $13.305M, and Adjusted EBITDA rose 12.3% to $57.483M.

• Distributed gaming reached 4,705 locations and 29,548 machines at September 30, 2026, up 5.7% and 6.6% YoY, respectively.

• Chicago’s initial licensing launch, Fairmount development, and expansion across developing routes support further growth; strong cash generation and liquidity support investment and shareholder returns.

Financial highlights

• Q3 net gaming revenue was $343.4M versus $308.5M YoY; operating income was $28.8M versus $25.4M.

• Diluted EPS was $0.25 versus $0.16; nine-month revenue was $1.083B, net income $47.774M, and Adjusted EBITDA $170.164M.

• Q3 operating cash flow was $79.430M and free cash flow $61.994M; nine-month operating cash flow was $142.137M and free cash flow approximately $92M.

• Q3 free cash flow conversion was 107.8%; nine-month conversion was 54.0%. Cash flow benefited from refunds related to purchased tax credits.

Outlook and guidance

• Chicago had approvals for 25 of 78 establishments as of November 2; the rollout is expected to ramp over 12+ months, with ~4.5 machines per location and long-term share near 30% of Illinois.

• Permanent Fairmount development is expected to generate $20M–$25M of annualized EBITDA over time; construction costs may exceed the prior $80M estimate by 15%–20%, with no expected timing impact.

• 2026 capital expenditures are forecast at $75M–$85M; Wyoming operations began in October 2026, while the West Virginia wind-down is expected to finish in November 2028.

• Long-term cash conversion targets are ~70% for operating cash flow and ~45% for free cash flow as a share of Adjusted EBITDA; conversion should be assessed over multiple quarters.