Accel posts record Q2 revenue of $368.1M, with Chicago and growth markets in focus

Record Revenue and State-by-State Trends

Accel Entertainment closed the second quarter of 2026 with record revenue of $368.1 million, up 10% year over year, as growth in Nevada, Nebraska and Georgia helped offset a slight contraction in its Illinois route network. Net income rose 72% to $12.5 million, operating income increased to $32.1 million from $26.9 million, and adjusted EBITDA rose 11% to a record $58.9 million. Diluted EPS was $0.15 versus $0.08 in the prior-year quarter.

The company ended June with 4,676 locations and 29,281 gaming terminals, up 5.6% and 6.9% respectively. Nevada recorded the largest expansion, with locations up 54.4% to 548 and terminals up 52.6% to 4,045, while Georgia and Nebraska also posted growth. Illinois locations and terminals both declined modestly, to 2,692 and 15,540, though Illinois remained the largest revenue market at $264.5 million for the quarter.

Illinois revenue, excluding Fairmount Park, still rose 6% year over year, driven by higher hold-per-day and a higher-performing customer mix. Hold-per-day improved in every reported market except Nevada, with Nebraska up 49.8% to $427, Georgia up 24.2% to $185, and Illinois up 9% to $992. Fairmount Park Casino & Racing, which introduced table games and its second racing season in April 2026, recorded its highest quarterly gross profit since Accel acquired the property, and Accel reiterated plans to develop a permanent casino there.

Chicago and Growth Markets

Chicago remains among Accel's most compelling near-term growth opportunities. The Illinois Gaming Board has approved video gaming locations in the city, and 17 of the 39 approved to date, or 44%, are Accel locations. The city has begun accepting and processing license applications; once a location receives its city license, the operator can schedule connection to the Central Communications System and go live. Management estimates the Chicago market could eventually represent roughly $1 billion in annual revenue, though full deployment may take more than five years.

Outside Illinois, Accel completed the acquisition of Rice Palace Truck Stop Casino in Louisiana and announced a Nevada route agreement and equipment purchase expected to add about 600 terminals across Southern Nevada. The company said adjusted EBITDA in Nebraska and Georgia increased significantly during the quarter, highlighting the growing importance of those markets to long-term earnings.

Balance Sheet, Capital Allocation and Leadership

Accel ended the quarter with $255 million in cash, net debt of $318 million, net leverage of about 1.4 times, and an undrawn $300 million revolving credit facility. It repurchased roughly 500,000 shares for $5.6 million. Operating cash flow was $20 million and free cash flow was $10 million; excluding a $17 million tax credit purchase, those figures would have been $37 million and $26 million respectively. The company also guided to $60 million to $70 million in 2026 capital expenditures.

CEO Andy Rubenstein said the quarter reflected "the strength and resilience of our distributed gaming model," and noted early customer adoption of ticket-in, ticket-out (TITO) technology across the Illinois installed base. Rubenstein is set to become chairman on Aug. 7, with President Mark Phelan succeeding him as CEO. He said he was confident Accel was positioned for its "next chapter of growth."

Revenue of $368.1 million and adjusted EBITDA of $58.9 million came in ahead of Wall Street expectations of $356.5 million and $57.27 million, while GAAP EPS of $0.15 missed the $0.19 consensus. Shares traded flat at $12.17 shortly after the report, giving Accel a market capitalization of about $979 million.