Accel Entertainment Reports $323.9 Million Revenue, 7.3% Increase in Q1 2025

Accel Entertainment, Inc. reported a total net revenue of $323.9 million for the three months ended March 31, 2025, marking a 7.3% increase from $301.8 million in the same period last year. The growth was primarily driven by a $13.8 million rise in net gaming revenue, which reached $302 million, and a significant increase in ATM fees and other revenues, which surged by 128.3% to $12.2 million. The company also saw a notable increase in manufacturing revenue, which rose 74.6% to $3.9 million. Net income for the quarter was $14.6 million, nearly doubling from $7.4 million in the prior year, resulting in earnings per share of $0.17, up from $0.09.

Operating expenses increased to $298 million, up 7.9% from $276.3 million in the previous year. This rise was attributed to higher costs across various categories, including a 5.9% increase in the cost of revenue, which reached $221.5 million, and an 11.3% rise in general and administrative expenses, totaling $53 million. The company also reported a 17.9% increase in depreciation and amortization expenses, reflecting the growth in its asset base, particularly in gaming terminals.

In terms of strategic developments, Accel Entertainment has been active in expanding its footprint through acquisitions. The company completed several acquisitions in late 2024, including the FanDuel Sportsbook & Horse Racing, which has been rebranded as Fairmount Park - Casino & Racing. This acquisition is expected to enhance the company's market presence and revenue streams. As of March 31, 2025, Accel operated in eight states, with a total of 4,391 locations, an increase of 124 from the previous year, and 27,180 gaming terminals, up 4.4%.

The company’s operational metrics indicate a steady increase in customer engagement, with the average location hold-per-day rising in several states, including a 2.9% increase in Illinois. The number of gaming terminals in operation also grew, particularly in Nebraska and Georgia, where increases of 12.7% and 10.7% were recorded, respectively. Accel's management remains focused on monitoring macroeconomic conditions, including inflation and interest rates, which could impact consumer spending and, consequently, gaming revenues.

Looking ahead, Accel Entertainment anticipates continued growth driven by its strategic acquisitions and operational expansions. The company plans to invest approximately $75-80 million in capital expenditures in 2025, with a significant portion allocated to the Fairmount acquisition. The management is optimistic about maintaining compliance with debt covenants and expects to leverage its cash reserves and operational cash flows to support future growth initiatives.