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Investing.com -- Accel Entertainment, Inc. (NYSE:ACEL) shares fell 6.3% after the gaming terminal operator reported second quarter earnings that significantly missed analyst expectations, despite posting record quarterly revenue that exceeded forecasts.
The company reported adjusted earnings per share of $0.08 for the second quarter, falling well short of the $0.21 analyst consensus estimate. Revenue reached a record $335.9 million, surpassing the $328.85 million consensus and representing an 8.6% increase from the same period last year.
Net income dropped 50.2% to $7.3 million compared to Q2 2024, which the company attributed partially to a loss on the change in fair value of contingent earnout shares compared to a gain in the prior period.
"Our record second quarter results demonstrate continued progress and consistent execution with year-over-year revenue and Adjusted EBITDA growth in all of our core and developing markets," said CEO Andy Rubenstein. "Our results reflect the benefits of our disciplined expansion strategy and our successful improvement of the operating results in new and acquired locations."
The company reported record quarterly Adjusted EBITDA of $53.2 million, up 7.1% YoY. Accel ended the quarter with 4,427 locations, a 3.1% increase from the previous year, and 27,388 gaming terminals, up 3.4%.
Illinois remains Accel’s largest market, generating $245.4 million in revenue, an 8.1% increase from Q2 2024. The company also highlighted improving profitability in developing markets including Nebraska, Georgia and Nevada.
Accel commenced casino and racing operations at Fairmount Park Casino (EPA:CASP) & Racing in April 2025 and noted that recent results from this location and Toucan Gaming in Louisiana "reinforce our confidence that these acquisitions will contribute even more as we move into next year."
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