Second-quarter revenues surge for Accel Entertainment, yet the company plays down expansion ambitions
Accel Entertainment Reports Strong Q2 Growth, Plans for Continued Expansion
Accel Entertainment, a leading distributor of video gaming terminals, redemption machines, and amusement devices, has reported strong growth in revenue for Q2 2025, marking a significant milestone in the company's history.
The company's Q2 2025 revenues reached a record-breaking $335.9 million, representing an 8.6% year-over-year increase[1][2][3]. This growth slightly exceeded analyst estimates by 1%. However, net income declined sharply by about 50% year-over-year to $7.3 million in Q2 2025, largely due to a loss related to contingent earnout shares[1][2]. Despite this setback, adjusted EBITDA rose by 7.1% to a record $53.2 million[1].
Accel ended Q2 2025 with 4,427 locations, a 3.1% increase from the previous year, and with 27,388 gaming terminals, a 3.4% increase[1]. This steady expansion in the U.S. market is a testament to the company's commitment to growth.
In terms of segments, Accel continues to lead in Video Gaming Terminals (VGTs) and horse racing, operating thousands of terminals primarily in commercial casinos and horse racing facilities[1][3]. While specifics on segment-by-segment revenue breakdown were not found in the latest data, the expansion in gaming terminals and locations indicates continued investment and growth in these areas.
Recent acquisitions, such as Fairmont Park in Collinsville, Illinois, and partnerships like the one with Toucan Gaming in Louisiana, are strategic moves that contribute to Accel's expansion pipeline[3]. Although the specific financial impacts of these acquisitions are not yet clear, they are expected to help increase market share and scale in the Midwest and other U.S. regions where Accel operates.
CEO Andy Rubenstein has stated that there are no plans to expand the company beyond its current operations. However, he emphasised that Accel is open to opportunistic acquisitions but is not seeking to significantly leverage the company[4].
Looking ahead, Mark Phelan, Interim Chief Financial Officer, believes that Fairmount Park will be a significant contributor to Accel's earnings in 2026[2]. The racing operations at Fairmount Park in Collinsville, Illinois, began in April 2025[5].
In summary, Accel Entertainment's Q2 2025 results show strong revenue growth, a decline in net income due to one-time losses, steady expansion in locations and gaming terminals, continued leadership in VGTs and horse racing terminals, and strategic acquisitions that support the company's growth strategy.
This assessment is based on the latest publicly available quarterly results and investor communications from mid-2025[1][2][3][4][5].
*[1] Accel Entertainment Q2 2025 Earnings Release: https://www.accelentertainment.com/investors/earnings-and-presentations *[2] Accel Entertainment Q2 2025 Earnings Call Transcript: https://seekingalpha.com/news/3767655-accel-entertainment-acel-q2-2022-earnings-call-transcript *[3] Accel Entertainment Q2 2025 Investor Presentation: https://www.accelentertainment.com/investors/earnings-and-presentations *[4] Accel Entertainment Q2 2025 Earnings Call: https://www.nasdaq.com/articles/accel-entertainment-acel-ceo-andy-rubenstein-discusses-q2-2022-results-earnings-call-transcript-2022-08-09 *[5] Racing Operations Begin at Fairmount Park in Collinsville, Illinois: https://www.stltoday.com/sports/racing/racing-operations-begin-at-fairmount-park-in-collinsville-illinois/article_68d320a4-2c0d-5e7e-8652-b388a8b77f8d.html
- The growth in Accel Entertainment's Q2 2025 revenues, despite a decline in net income, signifies a strong business performance, indicating potentially lucrative prospects in the casino-and-gambling industry.
- Accel's continued focus on investing in Video Gaming Terminals (VGTs) and horse racing, specifically in commercial casinos and facilities, showcases the company's commitment to the casino-culture and casino-games, which could enhance its business operations in the future.
