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Accel Entertainment Inc (NYSE:ACEL) reported record quarterly revenue and nearly doubled its net income in its first quarter 2025 earnings presentation released on May 5. The gaming terminal operator continued its multi-state expansion strategy while maintaining its share repurchase program.
Quarterly Performance Highlights
Accel Entertainment achieved record revenues of $324 million for Q1 2025, representing a 7% increase compared to the same period last year. More impressively, the company’s net income soared to $15 million, marking a 97% year-over-year increase from Q1 2024’s $7 million.
Adjusted EBITDA reached $50 million for the quarter, up 7% from the prior year, maintaining pace with revenue growth. The company’s operational footprint expanded to 4,391 locations (up 3%) with 27,180 gaming terminals (up 4%) compared to Q1 2024.
As shown in the following chart of quarterly KPIs, Accel has demonstrated consistent growth across its key metrics:
The company’s strong performance builds on momentum from the previous quarter. In Q4 2024, Accel reported a 6.9% revenue increase, reaching $318 million, with full-year 2024 revenue totaling $1.2 billion.
Geographic Expansion and Revenue Breakdown
Accel’s revenue growth was driven by expansion across multiple states, with particularly strong performance in its newer markets. The company now operates across six states: Illinois, Montana, Nevada, Nebraska, Georgia, and Louisiana.
The following breakdown shows revenue performance by state, with Illinois remaining the company’s largest market at $233 million (72% of total revenue):
Notable growth came from Georgia (65% increase) and Nebraska (24% increase), while Louisiana contributed $9 million as a new market entry. Only Nevada showed a decline, with revenue decreasing by 5% year-over-year.
A significant milestone in the company’s expansion strategy was reached in April 2025 with the commencement of casino and racing operations at Fairmount Park Casino (EPA:CASP) & Racing. This development aligns with the company’s previously announced plans for a Phase One opening in Q2 2025.
Capital Allocation Strategy
Accel continued its balanced approach to capital allocation, investing in growth while returning capital to shareholders. The company repurchased $10 million of Accel Class A-1 Common Stock during Q1 2025, bringing total repurchases to $154 million since the program was announced in November 2021.
Capital expenditures increased significantly to $27 million in Q1 2025, up 30% from $21 million in Q1 2024, reflecting the company’s investment in expansion initiatives, particularly the Fairmount Park Casino development.
As illustrated in the company’s historical financial summary, Accel has maintained consistent growth in its financial metrics over recent years:
The company’s balance sheet remained relatively stable, with total assets of $1.047 billion as of March 31, 2025, compared to $1.048 billion at the end of 2024. Net debt increased to $309 million, up 8% from $286 million in Q1 2024, though the company describes its leverage as "conservative."
Long-Term Growth Trajectory
Accel has demonstrated consistent growth in its gaming operations over the past several years, as highlighted in its corporate overview:
Average Daily Net Gaming Revenue has shown steady growth from $882,000 in 2018 to $3.599 million in 2025 YTD, representing a compound annual growth rate of approximately 26.5% over this period.
The company attributes its success to its position as a high-quality service company in the gaming vertical, with contracted recurring revenue streams and disciplined capital management.
Forward Outlook
While the presentation did not provide specific forward guidance, Accel’s recent expansion into Louisiana and the opening of Fairmount Park Casino & Racing position the company for continued growth in 2025.
The significant increase in capital expenditures suggests ongoing investment in growth initiatives, while the company’s share repurchase program demonstrates confidence in its financial position and commitment to shareholder returns.
Based on the fundamentals data provided, Accel’s stock price showed a modest increase of 1.03% to $10.76 in the most recent trading session, with a more substantial 4.74% gain in after-hours trading following the earnings presentation.
The reconciliation of non-GAAP to GAAP measures provides additional context for understanding the company’s adjusted performance metrics:
With its multi-state presence, expanding footprint, and diversification into casino operations, Accel appears well-positioned to continue its growth trajectory in the competitive gaming market.
Full presentation:
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