Accel Entertainment Q3 Net Income Jumps 55% as Revenue Sets Record

Accel Entertainment reported record third-quarter revenue of $363.6 million on November 3, 2026, as net income rose 55% to $20.6 million. The results covered the quarter ended September 30, 2026, and paired 10% year-over-year revenue growth with higher Adjusted EBITDA and an expanded gaming footprint.

Operating income increased to $28.8 million from $25.4 million a year earlier. Adjusted EBITDA, a company-defined measure that excludes interest, taxes, depreciation, amortization and other specified items from net income, rose 12% to $57.5 million from $51.2 million.

Net income included a $5.8 million gain from the change in fair value of contingent earnout shares, compared with a $2.2 million gain in the prior-year quarter. Adjusted net income, which adjusts for that fair-value movement and other specified items, was $18.2 million versus $16.3 million. That comparison shows the reported 55% net-income increase outpaced the improvement in adjusted earnings.

Illinois Grows Despite A Smaller Footprint

Illinois generated $257.9 million of net revenue, up from $239.0 million and equal to about 71% of the company total, calculated from the reported state and total figures. The state’s location count fell by 43 to 2,685 and its machine count fell by 122 to 15,519, but quarterly location hold-per-day increased 9.2% to $957 from $876. Accel defines that metric as net gaming revenue divided by average locations and then operational days, allowing comparisons across markets and locations on a normalized basis.

Chief executive Mark Phelan said Illinois revenue excluding Fairmount Park increased approximately 7%, while Fairmount Park gaming revenue rose approximately 84%. He described the Illinois strategy as “pruning lower-performing locations and allocating resources toward our strongest opportunities.”

Nevada Expansion And Cash Generation

Accel ended the quarter with 4,705 locations and 29,548 electronic gaming machines. Nevada added 183 locations and 1,342 machines year over year. Its revenue rose to $32.9 million from $26.2 million, but location hold-per-day fell 16.5% to $613 from $734. The larger Nevada estate therefore delivered revenue growth alongside lower productivity per location.

Operating cash flow increased to $79.4 million from $55.2 million, while free cash flow reached $62.0 million from $34.5 million. Accel defines free cash flow, when reconciled from operating cash flow, as operating cash minus purchases of property and equipment plus proceeds from asset sales.

The reconciliation included $20.0 million of net cash income-tax refunds. Accel received the related third-quarter refund on $18 million of federal tax credits purchased in the second quarter for $17 million. The cash-flow improvement therefore included a substantial tax-related benefit alongside the company’s operating performance.

As of September 30, 2026, Accel held $294 million in cash and cash equivalents and $271.7 million of net debt, down from $305.2 million a year earlier. The company also repurchased approximately 624,000 Class A-1 common shares during the quarter for $7.2 million.

Phelan said the Chicago rollout has begun after Accel received its first licenses there, while development continues at Fairmount Park. Accel has classified Chicago and Wyoming as emerging markets since July 2026, with a $0.6 million emerging-market adjustment in the third quarter. Developing non-core jurisdictions remain in that category until they reach at least 500 machines or 24 months from the first installation or acquisition, whichever comes first.

The quarter combines higher productivity from a smaller Illinois estate with rapid expansion in Nevada, where hold-per-day declined. Chicago and Fairmount Park extend that growth program, while the tax refund qualifies the cash-flow comparison. The central question for subsequent results is whether expansion markets can pair their larger footprints with stronger per-location performance.