Core Viewpoint - Accel Entertainment, Inc. will release its financial and operating results for Q3 2025 on November 4, 2025, after market close [1] Company Summary - Accel Entertainment is a leading gaming operator focused on local markets, partnering with small businesses, local communities, and state governments [1] - The company aims to provide entertaining, convenient, and safe gaming experiences nationwide [1] Event Summary - A conference call and webcast will be held on November 4, 2025, at 5:00 PM ET to discuss the financial results [1]

Group 1 - The article does not provide any specific content or key points related to a company or industry [1]

Core Viewpoint - Accel Entertainment, Inc. has appointed Brett Summerer as the new Chief Financial Officer, effective September 22, 2025, indicating a strategic move in leadership to enhance financial management [1] Company Summary - Accel Entertainment is a leading gaming operator focused on local markets, partnering with small businesses, local communities, and state governments to provide safe and convenient gaming experiences nationwide [1] - The new CFO, Brett Summerer, will report directly to the CEO, Andy Rubenstein, suggesting a streamlined leadership structure [1]

Core Points - Accel Entertainment, Inc. announced a $900 million senior secured credit facility, which includes a $300 million revolving credit facility and a $600 million term loan, both with a five-year term [1] - The initial borrowings from the credit facility were utilized to repay existing debts in full [1]

CHICAGO--(BUSINESS WIRE)--Accel Entertainment, Inc. (NYSE: ACEL) ("Accel†), a growing provider of locals-focused gaming and one of the largest terminal operators in the United States, announced today that it entered into a $900 million senior secured credit facility (the "Credit Facility†). The Credit Facility consists of a $300 million Revolving Credit Facility and a $600 million Term Loan, each with a five- year term. Initial borrowings from the Credit Facility were used to repay in full and t. ...

Group 1 - Accel Entertainment (ACEL) has experienced a significant downtrend, with a stock decline of 14.2% over the past four weeks, but it is now in oversold territory, indicating a potential for a turnaround [1] - The Relative Strength Index (RSI) for ACEL is currently at 25.84, suggesting that the heavy selling pressure may be exhausting itself, which could lead to a reversal in the stock's trend [5] - Analysts have raised earnings estimates for ACEL by 2% over the last 30 days, indicating a positive outlook for the company's earnings, which typically correlates with price appreciation [7] Group 2 - ACEL holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises, further supporting the potential for a near-term turnaround [8]

Group 1 - Accel Entertainment operates in the distributed gaming industry, which is less popular compared to tech or consumer sectors, yet it shows strong fundamentals and is somewhat undervalued compared to competitors [1] - The company is perceived to have a significant competitive advantage and potential for growth, making it an attractive investment opportunity [1] - The analysis emphasizes a long-term perspective on businesses, focusing on those with a broad moat or deep-rooted competitive advantages that can persist over the years [1] Group 2 - The article highlights the importance of evaluating quarterly developments in the context of a company's long-term strategy, indicating that significant deviations from this strategy may warrant buy or sell recommendations [1]

Core Insights - Accel Entertainment reported quarterly earnings of $0.25 per share, exceeding the Zacks Consensus Estimate of $0.22 per share, with an earnings surprise of +13.64% [1] - The company generated revenues of $335.91 million for the quarter ended June 2025, slightly missing the Zacks Consensus Estimate by 0.49%, but showing an increase from $309.41 million year-over-year [2] - The stock has gained approximately 15.4% since the beginning of the year, outperforming the S&P 500's gain of 7.6% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.20 on revenues of $330.85 million, and for the current fiscal year, it is $0.86 on revenues of $1.33 billion [7] - The estimate revisions trend for Accel Entertainment was favorable ahead of the earnings release, resulting in a Zacks Rank 2 (Buy) for the stock, indicating expected outperformance in the near future [6] Industry Context - The Gaming industry, to which Accel Entertainment belongs, is currently ranked in the top 41% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% [8] - Another company in the same industry, Century Casinos, is expected to report a quarterly loss of $0.37 per share, with revenues projected at $153 million, reflecting a year-over-year increase of 4.5% [9]

Financial Data and Key Metrics Changes - In Q2 2025, Xcel generated record quarterly revenue of $336 million, representing a year-over-year growth of 9% [5][13] - Adjusted EBITDA for the second quarter was $53 million, a year-over-year increase of 7% compared to Q2 2024 [13] - Total revenue without the Fairmont Park acquisition was $317 million, reflecting a year-over-year growth of 2.4% [13] Business Line Data and Key Metrics Changes - Revenue from the Illinois distributed gaming market was $245 million, up over 8% year-over-year [6] - Montana's distributed gaming route grew revenue by 2.6% [7] - Revenue from developing markets, Nebraska and Georgia, increased by 26% and 35.5% respectively, while Nevada's revenue declined by 7.7% due to the loss of a key customer [7][8] Market Data and Key Metrics Changes - Xcel operated approximately 27,400 terminals across more than 4,400 locations, representing year-over-year increases of 3.4% and 3.1% respectively [13] - The local gaming market is estimated at over $15 billion nationally, with Xcel focusing on smaller, less professional operators for acquisition opportunities [11][30] Company Strategy and Development Direction - Xcel aims to leverage its competitive position and healthy balance sheet to pursue a multi-pronged growth strategy, focusing on overlooked M&A opportunities [6][11] - The company plans to enhance its operating expertise and expand its footprint while maintaining strong financial discipline [11][30] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the local gaming segment's resilience and growth potential, expecting continued revenue and EBITDA growth [6][22] - The company is optimistic about the contributions from the Fairmont Park Casino and Racing, as well as the revenue-sharing agreement with FanDuel [10][22] Other Important Information - Capital expenditures for Q2 totaled approximately $26 million, with a full-year forecast of $75 million to $80 million [19][20] - The company repurchased 634,000 shares at an average price of $10.58 per share, totaling $6.7 million in Q2 [20] Q&A Session Summary Question: Growth in Illinois market - Management noted consistent growth throughout the quarter without significant peaks or valleys [26] Question: M&A opportunities and leverage - Management stated they are opportunistic in acquisitions but will not leverage the company excessively, maintaining a conservative approach [28][29] Question: Impact of Tito implementation in Illinois - Management indicated it is too early to assess the impact of Tito, with expectations for improved player experience and reduced collection costs in the future [38] Question: Nevada market growth post key customer loss - Management reported slight revenue growth year-over-year despite the loss of a key customer, focusing on higher-margin locations [40][41] Question: Performance expectations for Fairmont Park - Management expressed positive indicators for Fairmont Park, aligning with internal expectations, and anticipates significant contributions in 2026 [44][45]

Financial Performance - Q2 2025 revenue reached a record of $336 million, an 8.6% increase compared to Q2 2024[24] - Excluding the acquisition of Fairmount Park and Toucan Gaming (Louisiana), revenue was $317 million, a 2.4% increase compared to Q2 2024[24] - Adjusted EBITDA for Q2 2025 was a record $53 million, a 7.1% increase compared to Q2 2024, driven by an increase in locations and gaming terminals[24] - Net income decreased by 50.2% to $7 million, partially due to a $6 million loss on the change in the fair value of contingent earnout shares[24] Capital Allocation - Capital expenditures (CapEx) totaled $26 million in Q2 2025 and $53 million year-to-date, with a full-year forecast of $75-80 million[27] - The company repurchased $7 million of Accel Class A-1 Common Stock in Q2 2025, bringing the total to $160 million since November 2021[27] - Since fourth quarter 2021, Accel repurchased 16% of its shares outstanding at an average price of $10.37[21] Operational Growth - As of June 30, 2025, Accel operated 27,388 gaming terminals across 4,427 locations in Illinois, Montana, Nevada, Louisiana, Nebraska and Georgia[13] - Locations increased to 4,427, a 3% increase compared to 4,294 in Q2 2024[34] - Terminals increased to 27,388, a 3% increase compared to 26,481 in Q2 2024[34]