Accel Entertainment, Inc. Q1 FY2026 earnings call

• Accel Entertainment had strong Q1 2026 with highest ever Q1 adjusted EBITDA. - Continued strength of distributed gaming model, momentum in developing markets, and disciplined execution. - Illinois saw continued strength, TITO rollout progress. - Chicago has exciting near-term growth opportunities. - Montana had steady performance, Grand Vision Gaming developing new content. - Nevada focused on integration and expanding footprint from Dynasty Games acquisition and Rebel Convenience Stores partnership. - Nebraska and Georgia delivered strong growth. - Fairmont Park launched live dealer table games and increased racing purses. - Operational approach includes disciplined capital deployment, service excellence, data-driven decision-making, and strong local relationships.

First quarter revenue increased 9% year-over-year to $352 million, an all-time quarterly record. Adjusted EBITDA grew 9% to $54 million. Illinois: total revenue excluding Fairmont Park increased 6% year-over-year to $242 million, average location hold per day up 9% to $962. Nebraska: revenue up 57% year-over-year. Georgia: revenue up 43% year-over-year. Nevada: locations grew 27% and terminals 28% year-over-year. Louisiana: revenue up 12% year-over-year. Fairmont Park Casino and Racing launched live dealer table games.

• Projected full-year 2026 CapEx in range of $60 to $70 million. - Expect free cash flow to continue to grow as CapEx normalizes and developing markets scale profitably. - Board will evaluate next steps in share repurchase program context of broader capital allocation priorities.

• Business subject to risk and uncertainties due to forward-looking statements. - Actual results may differ materially from discussed. - Macroeconomic environment with tariffs, inflation, geopolitical instability could impact business. - Legislative movement in video gaming terminal or skill game legalization may be limited. - Illinois Gaming Control Board's vertical integration rules contested and outcome uncertain.

Q: Early days with Tito in Illinois, color on early player adoption metrics and cash handling costs impact.

A: Player adoption around 30-13%, still early, cash handling costs not a one-time impact.

Q: JCAR approved Illinois Gaming Control Board's vertical integration rules, impact.

A: Rule contested in circuit court, wait to see outcome.

Q: Recent trends in Illinois, impact of trade-down effect and gas prices on customer base.

A: No noticeable gas price impact, players benefit from staying closer to home.

Q: Pruning in Illinois, update and impact.

A: Pruning opportunistic, balance between new revenue and costly revenue.

Q: Plans for Fairmont Park permanent plans.

A: Still in maturation stage, will update when optimal size figured out.

Q: Legislative momentum in states for video gaming terminals.

A: Not much legislative progress expected in 2026.

Q: Nevada opportunities and acquisitions.

A: All markets aligned for potential growth through acquisitions.

Q: Chicago licensing process and Illinois M&A valuations.

A: Illinois Gaming Board processing applications, but city yet to promulgate rules; excited about Illinois as M&A market.

Q: Gas prices impact on truck stop business in Louisiana.

A: Truck stops in Louisiana thrive as local people stay closer to home, not vulnerable.

Q: EBITDA margins and future outlook.

A: Seasonality in EBITDA margins, non-regulated markets' gross margin movement to consider.

Q: Capital expenditures for Fairmont and maintenance vs growth.

A: Most capital this year in maintenance bucket with good payback.

Q: Louisiana acquisition strategy and pipeline.

A: Louisiana is focus for M&A, pipeline good