Financial Data and Key Metrics Changes - Total revenue increased by 9.1% year-over-year to $330 million, with net income at $13 million and adjusted EBITDA growing by 11.5% to $51 million, reflecting strong execution and market expansion [6][18] - Operating income for the quarter was $25 million, up 16.1% year-over-year, while capital expenditures were approximately $21 million for the quarter and $72 million year-to-date [18] Business Line Data and Key Metrics Changes - Illinois revenue increased by 7% year-over-year to $239 million, driven by stable demand and location optimization [16] - Montana revenue grew by 2.1% to $40 million, while Nebraska revenue surged by 30% to $9 million, and Georgia revenue rose by 49.3% to $5 million [17] - Nevada revenue declined by 7.4% to $26 million due to the loss of a key customer [17] Market Data and Key Metrics Changes - Developing markets, including Nebraska and Georgia, contributed significantly to revenue growth, representing just over 12% of total revenue [8] - Louisiana, contributing about 3% of revenue, showed impressive results with 670 terminals across nearly 100 locations [9] Company Strategy and Development Direction - The company aims to drive steady growth and efficiency in core markets while scaling profitability in developing and new markets [12] - Focus on disciplined capital management and opportunistic share repurchases, with a strong emphasis on M&A opportunities in the fragmented local gaming market [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term strategy and highlighted the importance of optimizing routes and enhancing player convenience through technology [23][24] - The company is well-positioned to deliver steady top-line growth and improving returns as it moves into 2026, supported by strong free cash flow generation [12][19] Other Important Information - A $900 million Senior Secured Credit Facility was completed, enhancing liquidity and lowering the cost of capital [11][19] - The company repurchased $6.8 million of common stock during the quarter, totaling approximately $23.7 million year-to-date [11] Q&A Session Summary Question: Illinois strategy and TITO rollout impact - Management indicated that the strategy involves optimizing routes and that TITO utilization is expected to grow, enhancing revenue and reducing costs [21][23] Question: Future uses of free cash flow - Management noted that cash is primarily used for loading redemption terminals and that they are under-levered compared to peers, with a focus on both bolt-on and transformational M&A opportunities [25][26] Question: M&A environment and seller expectations - Management observed no significant changes in seller expectations but noted a recognition of reduced transaction multiples in the current market [29][30] Question: Nevada market performance - Management confirmed that new locations are being added and that the market is expected to continue growing [31][32] Question: Potential for route gaming expansion in 2026 - Management highlighted states like Pennsylvania, Missouri, North Carolina, and Virginia as potential markets for future gaming expansion [33][34] Question: Priorities for bolt-on M&A - The primary focus for bolt-on M&A is Louisiana, with Illinois also being a target market due to available operators [37][38]