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]