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Date

Tuesday, March 3, 2026 at 5 p.m. ET

Call participants

  • Chief Executive Officer — Andrew Harry Rubenstein
  • Chief Operating Officer and President, U.S. Gaming — Mark T. Phelan
  • Chief Financial Officer — Brett Summerer

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Takeaways

  • Total revenue in the fourth quarter -- $341 million, a 7.5% increase from the prior year, representing the highest fourth quarter revenue in company history.
  • Adjusted EBITDA in the fourth quarter -- $56 million, up 19% year over year, also a quarterly record, reflecting operating leverage and expense discipline.
  • Full-year revenue -- $1.3 billion, achieving 8% growth compared to 2024.
  • Full-year adjusted EBITDA -- $210 million, on a non-GAAP basis, as reported by management for fiscal 2025 (year ended December 31, 2025).
  • Net income -- $16 million in the fiscal fourth quarter, with performance affected by a $600,000 gain related to the fair value change in contingent earn-out shares, compared to a $3 million loss in the prior-year period.
  • EPS -- $0.61 basic and $0.60 fully diluted for the year ended December 31, 2025.
  • Locations supported -- Over 4,500 nationwide, up from the previous footprint, with nearly 28,000 gaming machines deployed.
  • Illinois TITO penetration -- 81% of Illinois locations fully enabled with ticket-in, ticket-out (TITO) technology as of year-end.
  • Nevada terminal growth -- Terminal count increased 13% year over year in the fiscal fourth quarter, driven by new route expansions and acquisitions.
  • Louisiana revenue -- Saw significant fiscal fourth quarter growth after adjustment for the stub period in the previous year, reinforced by bolt-on acquisition activity and Toucan Gaming integration.
  • Nebraska and Georgia -- Delivered notable quarterly and full-year revenue growth, highlighting leverage from increasing density.
  • Fairmont Park Casino -- First full racing season completed and casino operations ramped post-April opening, with "consistent month-over-month engagement growth."
  • Share repurchases -- Approximately 3.8 million shares repurchased during fiscal 2025, of which 1.5 million occurred in the fiscal fourth quarter.
  • Liquidity position -- Ended the year with $297 million in cash and cash equivalents, net debt of $311 million (down 1% year over year), and an undrawn $300 million revolving credit line.
  • Route optimization in Illinois -- Location mix improved, and underperforming assets redeployed, driving revenue per machine and margin enhancements with largely flat total establishment numbers.
  • GrandVision Gaming -- In-house content development continues lowering capital expenditures and increasing free cash flow through exclusive offerings.
  • Nevada operations expansion -- Acquired Dynasty Games (20 locations, 123 machines) and entered a new partnership with Rebel Convenience Stores adding 55 locations and 424 machines, executed within six days.
  • Operations footprint -- Nevada operations now support over 600 locations and about 3,000 gaming machines statewide.
  • Acquisition pipeline -- Management described the Louisiana acquisition pipeline as "healthy," positioning the company for continued consolidation.
  • Chicago VGT rollout -- City estimates a potential 2,500 new locations, with Accel Entertainment (ACEL +0.35%) citing readiness to scale quickly given regulatory and operational infrastructure.
  • Leadership transition -- Andrew Harry Rubenstein moved to Chairman; Mark T. Phelan assumes CEO role in August 2026, following a February 2, 2026 announcement.
  • Capital allocation -- Approach remains focused on earnings-based investment decisions, comparing organic growth, M&A, debt optimization, and opportunistic share buybacks.
  • Maintenance capital expenditures -- Most 2026 capital will target maintenance, especially in Illinois, as location expansion needs are low following pruning and optimization.
  • Unit economics in Chicago -- CEO Rubenstein noted average equipment count per location may be lower due to space constraints, but "average play per machine should be higher than the average play of our existing portfolio."
  • Illinois market share -- Rubenstein stated the company currently holds "just shy of the 30% range" and does not expect to "greatly exceed" that in Chicago, though expects better per-location performance.
  • Fairmont and Louisiana acquisitions -- Phelan disclosed that combined, these contributed about 5% to both the fiscal fourth quarter and full-year revenue.

Summary

The call highlighted accelerating operating leverage, as revenue and adjusted EBITDA reached new records, accompanied by disciplined expense management and a robust cash position. Management emphasized rapid progress in deploying TITO technology in Illinois, integration of key acquisitions in Nevada and Louisiana, and the ramp-up at Fairmont Park Casino, signaling continued platform scalability. The upcoming Chicago VGT rollout was presented as a large-scale incremental opportunity, with the company already prepared to capitalize on regulatory progress and projected 2,500 establishments. No new leverage or major M&A was committed, but management's framework prioritizes return-driven capital deployment, with share repurchases balanced against selective bolt-on acquisitions. Leadership transition plans were detailed, with direct implications for strategic execution and external engagement as the company advances in its core and expansion markets.

  • Phelan stated the Fairmont Park Casino and Louisiana platforms are categorized as "emerging investments," making up roughly 5% of fiscal fourth quarter and full-year revenue, but not double-digit contributors to the bottom line.
  • Rubenstein said the company is in the "third inning" of TITO technology benefits, expecting material incremental revenue and cost impact as adoption surpasses 90% and player behavior adapts.
  • Discussion clarified that the majority of 2026 capital expenditures will be for maintenance in mature markets, with limited growth spending in smaller, developing geographies.
  • Phelan gave no specific timing or probability for route gaming legalization in markets such as Pennsylvania, Virginia, Missouri, or North Carolina, describing company planning as "conservative" due to legislative challenges.
  • Leadership confirmed no planned significant leverage increase, with the untapped revolving credit line described as a resource reserved for "very large deal" activity and not regular operations or current bolt-on acquisitions.
  • Post-hoc impact from expected increases in jackpot-related regulations is not anticipated in 2026, though eventual positive effects are expected upon legislative and manufacturer updates.
  • The Fairmont Park Casino partnership with FanDuel was mentioned as a model for future content or sports betting collaborations; management continues to evaluate similar partnerships for revenue and customer acquisition uplift.
  • Illinois location count will likely continue to be pruned, but entry into Chicago is expected to reverse this trend through substantial new establishment growth.

Industry glossary

  • TITO (Ticket-In, Ticket-Out): Technology enabling players to use printed tickets rather than cash for gameplay across machines, streamlining transactions and improving operational efficiency.
  • VGT (Video Gaming Terminal): Electronic gaming devices authorized in regulated, non-casino locations such as bars and restaurants, predominant in Illinois' distributed gaming market.
  • Bolt-on acquisition: Acquisition strategy targeting smaller, complementary companies or assets that can be quickly integrated to enhance growth in specific markets.
  • Stub period: A partial period in financial reporting reflecting activity between an acquisition closing and the next scheduled reporting date, often producing non-annualized results.

Full Conference Call Transcript

Scott Levin: Welcome to Accel Entertainment, Inc.'s 2025 fourth quarter and full year earnings call. Participating on the call today are Andrew Harry Rubenstein, Accel Entertainment, Inc.'s Chief Executive Officer, Mark T. Phelan, Accel Entertainment, Inc.'s Chief Operating Officer and President, U.S. Gaming, and Brett Summerer, Accel Entertainment, Inc.'s Chief Financial Officer. Please refer to our website for the press release and supplemental information that will be discussed on this call. Today's call is being recorded and will be available in the Investor Relations section of our website under events and presentations. Some of the comments in today's call may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.

These forward-looking statements are subject to risks and uncertainties. Actual results may differ materially from those discussed today, and the company undertakes no obligation to update those statements unless required by law. For a more detailed discussion of these and other risk factors, investors should review the forward-looking statements section of the earnings press release available on our website as well as other risk factor disclosures in our filings with the SEC. Any projected financial information presented in this call is for illustrative purposes only and should not be relied upon as being predictive of future results.

The inclusion of any financial forecast information in this call should not be regarded as a representation by any person that the results reflected in such forecast will be achieved. During the call, we may discuss certain non-GAAP financial measures. For a reconciliation of the non-GAAP measures as well as other information regarding these measures, please refer to our earnings release and other materials in the Investor Relations section of our website. Following management's prepared remarks, we will open the call for a question and answer session. With that, I would now like to introduce Andy. Please go ahead.

Andrew Harry Rubenstein: Thank you, Scott. And good afternoon, everyone. Accel Entertainment, Inc. delivered a strong finish to 2025. We closed the year with record financial results, continued operating momentum, new growth opportunities, and an enhanced balance sheet. In the fourth quarter, total revenue increased 7.5% year over year to $341,000,000, and adjusted EBITDA grew 19% to $56,000,000, both all-time quarterly highs. For the full year, we also generated records in revenue of over $1,300,000,000 and adjusted EBITDA of $210,000,000. These results reflect the resilience of our distributed gaming model, growth from our new acquisitions, and our disciplined operating measures and capital deployment.

We ended the year supporting more than 4,500 locations and nearly 28,000 gaming machines nationwide, demonstrating the breadth and durability of our platform and its predictable revenue profile. In Illinois and Montana, we continue to optimize our footprint and terminal base, driving steady hold-per-day improvement and margin expansion. Illinois remains our largest and most established market, and we continue to execute on our strategy to improve unit economics and expand margins through disciplined deployment and route optimization. We are excited by and are closely monitoring developments in Chicago, following public announcements regarding the introduction of video gaming terminals in licensed establishments. As the leading operator in Illinois, we believe Accel Entertainment, Inc. is uniquely positioned to participate meaningfully.

Our existing regulatory relationships, operating infrastructure, route management capabilities, and strong financial position provide a clear advantage in our ability to service and scale this market quickly and efficiently with our existing platform. As we discussed in more detail in our 01/08/2026 press release, the city estimates 2,500 new locations in Chicago over the long term. We view this as a highly attractive opportunity that would enable Accel Entertainment, Inc. to further leverage its fixed cost structure and generate incremental returns at compelling margins. As always, we will remain focused on disciplined execution and creating long-term shareholder value. Turning to our developing and strategic growth markets, we continue to generate positive momentum.

In Nevada, terminal count increased 13% year over year for the fourth quarter, supported by recent strategic and accretive route expansions. We are encouraged by the trajectory of new placements and believe the market is positioned for steady improvement. After adjusting for the stub period in 2024, Louisiana revenue increased significantly in the fourth quarter. We continue to execute our bolt-on acquisition strategy and optimize the Toucan gaming platform. Louisiana remains a priority market for consolidation with many tuck-in opportunities that clearly fit our return thresholds. We are well positioned as a buyer of choice and the market currently has a good pipeline.

Nebraska and Georgia delivered strong growth both quarterly and on a full-year basis, demonstrating the ongoing expansion and increasing leverage of our operating platform as these markets expand and develop. As our density increases, we expect continued profitability to follow. At Fairmont Park Casino and Racing, we completed our first full racing season and ramped up our casino operations following the April 2025 opening. Customer engagement has been healthy, and monthly performance has continued to build as consumer awareness increases. We continue to evaluate the timing and scope of future development phases. As we have highlighted in the past, in addition to being an attractive stand-alone business, Fairmont diversifies our revenue mix and provides operating flexibility.

Reflecting our commitment to shareholder returns, and our belief that Accel Entertainment, Inc. represents an attractive long-term investment, we repurchased approximately 3,800,000 shares of common stock during 2025, including 1,500,000 shares in the fourth quarter. Our capital allocation framework, which includes our $300,000,000 revolving credit line, remains disciplined and return-focused, balancing organic investment, bolt-on and other strategic acquisitions, balance sheet strength, and opportunistic share repurchases. As we look ahead to 2026, our priorities remain clear: Drive steady organic growth in our core markets, scale profitability in developing and new markets, execute accretive tuck-in acquisitions, and consistently convert earnings into free cash flow. Before my closing comments, I want to touch on our February 2 press release regarding the leadership transition.

As we shared, I have stepped into the Chairman role effective immediately, and in August, I will transition out of the CEO role as Mark takes over day-to-day leadership of the company. This new role gives me more flexibility to leverage my local and national relationships to help Mark and the Accel team capitalize on the attractive growth opportunities in front of us, including expanding into the Chicago VGT market. I am excited to keep working closely with Mark as we continue to profitably grow Accel Entertainment, Inc. With that, I will turn the call over to Mark to review our operations in more detail.

Mark T. Phelan: Thank you, Andy. From an operating standpoint, 2025 was a year of steady execution across each market, with continued focus on route quality, service performance, and targeted investment. In Illinois, our team focused on improving location mix, redeploying underperforming assets, and concentrating investment into higher-yielding gaming machine placements. That work continues to drive steady improvements in revenue per machine and overall margin performance, even though it means we largely maintain flat location counts. The rollout of ticket-in, ticket-out technology in Illinois progressed as expected, with 81% of Accel Entertainment, Inc. locations having all gaming machines fully TITO enabled.

While still early in the penetration cycle, TITO is expected to enhance player convenience, provide benefits to Accel Entertainment, Inc. in terms of streamlining cash handling, and improve overall operating efficiency. As adoption continues to increase, we believe it will contribute to both revenue stability and cost improvements. Montana continues to benefit from our proprietary content and systems. The strength of that market is not just stability, it is predictability. Our teams there continue to refine gaming machine placement strategy and leverage our in-house technology to support profitability per location.

Additionally, our GrandVision Gaming wholly owned subsidiary continues to develop new content which allows us to enhance margins through exclusivity as well as lower our CapEx and increase free cash flow. In Nevada, the focus has been integration, expansion, and operational alignment. During the quarter, we completed the accretive acquisition of Dynasty Games, which added 20 locations and approximately 123 gaming machines across Northern Nevada. This transaction expands our footprint into several new communities and further strengthens our route across the state. During the quarter, we also entered into a new route partnership with Rebel Convenience Stores which adds 55 locations and 424 gaming machines across Southern Nevada, started in January.

We leveraged our deep capability across our national teams to accomplish this arduous deployment in only six days. The Rebel rollout demonstrates our ability to efficiently launch new locations across markets, including new markets like the city of Chicago, so location owners can begin offering gaming entertainment to their patrons as soon as possible. Accel Entertainment, Inc.'s Nevada operations now deliver state-of-the-art gaming and technology solutions to more than 600 locations, supporting approximately 3,000 gaming machines. The integration of Toucan Gaming in the Louisiana market has progressed well. Our field teams have been focused on route optimization, gaming machine refreshes, and disciplined bolt-on acquisitions.

The pipeline for acquisitions remains healthy, and we are confident in our ability to continue consolidating attractive opportunities that fit our return profile. At Fairmont Park Casino and Racing, our operational teams completed a full racing season while continuing to ramp casino performance following the April 2025 grand opening. We have gained valuable insight into customer behavior, marketing effectiveness, and operating cadence, which is informing how we approach future development phases. Importantly, we are seeing consistent month-over-month engagement growth as awareness of the park builds. Across all markets, our operational approach remains consistent: prudent capital placement, service excellence at the location level, data-driven decision-making, and strong local relationships.

That operating discipline is what underpins our financial performance and supports our ability to generate growing free cash flow. With that, I will turn the call over to Brett to review the financial results in greater detail.

Brett Summerer: Thank you, Mark, and good afternoon, everyone. I'll begin our fourth quarter results and then provide additional detail on our full year performance on the income statement, cash flow, and balance sheet. As Andy mentioned, for the fourth quarter, total revenue increased 7.5% year over year to $341,000,000, the highest fourth quarter revenue in the company's history. Growth was driven by continued strength in our core markets, incremental contributions from developing markets, and a continued ramp at Fairmont Park. Adjusted EBITDA increased 19% year over year to a record $56,000,000. Importantly, adjusted EBITDA grew meaningfully faster than revenue, reflecting expense discipline and operating leverage across the platform.

As our network grows, we continue to see margin expansion driven by route optimization, density improvements, and cost discipline. Operating income for the quarter also improved year over year, reflecting both top-line growth and stable overhead. Net income for the quarter was $16,000,000. As noted in the press release, results benefited from a $600,000 gain related to the change in fair value of contingent earn-out shares compared to a $3,000,000 loss in the prior-year period. Excluding this non-cash mark-to-market item, underlying earnings growth remained strong and consistent with our adjusted EBITDA performance. For the full year 2025, revenue was a record $1,300,000,000, representing 8% growth compared to 2024.

Adjusted EBITDA increased 11% year over year to $10,000,000, demonstrating continued margin expansion and scalability of our operating model. Income for the year was $51,000,000. Translating to EPS, this was $0.61 basic or $0.60 fully diluted. Turning to capital expenditures, full-year CapEx was aligned with our expectations and remains heavily focused on revenue-producing assets. A significant portion of our capital supports growth initiatives, including new machine placements, route expansions, and the Fairmont Casino opening and track enhancements, with the remainder dedicated to maintaining and optimizing the installed terminal base. This disciplined allocation supports strong returns and sustained cash generation.

Based on our current earnings and capital profile, we expect to continue generating meaningful cash flow which provides flexibility to fund growth, maintain a conservative balance sheet, and return capital to shareholders. Moving to liquidity and leverage, we ended our year with $297,000,000 in cash and cash equivalents and net debt of approximately $311,000,000, down 1% year over year. Our leverage profile remains conservative relative to our recurring cash flow base, providing significant financial flexibility, including our currently untapped $300,000,000 revolving credit line. During 2025, we repurchased approximately 3,800,000 shares of common stock, including 1,500,000 shares in the fourth quarter.

We evaluate capital allocation decisions through a rigorous return-based framework, comparing organic investments, bolt-on and strategic M&A, debt optimization, and share repurchases. Looking ahead, our recurring revenue model, disciplined capital deployment, and operating leverage position us to continue converting adjusted EBITDA into cash. We remain focused on maintaining balance sheet strength while pursuing high-return growth opportunities. Overall, our financial performance in 2025 extends our long-term record of growth, and we remain confident in our strong liquidity, scalable platform, and disciplined capital allocation to provide a solid foundation for continued growth in 2026. With that, operator, please open the line for questions.

Operator: We will now begin the question and answer session. If you would like to ask a question, please press 1 on your telephone keypad. To withdraw your question, press 1 again. Please pick up your handset when asking a question. If you are muted locally, please remember to unmute your device. Please stand by while we compile the Q&A roster. Your first question comes from the line of Max Marsh with CBRE. Your line is now open. Please go ahead.

Max Marsh: Hi. Thanks for taking my question. Andy, Mark, congrats on the new roles. Looks like things are moving ahead in Chicago. IGB just started accepting applications last week. Do you guys view that as just a matter of time, or are there any political or legislative points of failure until you guys can start generating some revenue in that market?

Andrew Harry Rubenstein: Thanks, Max. This is Andy. There is a process that still needs to happen within the city, but the fact that the IGB has begun accepting applications is a great sign. So we are still waiting on some of the procedures related to licensing in the city, and how the cities will either regulate the gaming or facilitate individual establishments in getting started and obtaining a license from the city. So there is some of that still that needs to happen, but the fact that the IGB is accepting applications is a great start.

Max Marsh: Great. Thanks for that. And as we think about the market opportunity in there, should we think about that as similar to the unit economics of the state at large, or do you guys have the potential to do a little bit better there with your established service routes and relationships in the state?

Andrew Harry Rubenstein: So it is a kind of a twofold question. Operationally, we have a fantastic platform in order to service, collect, and facilitate play at all the establishments. But the reality is the actual establishments on a whole have less square footage than the establishments we operate elsewhere in the state. Obviously, that is because the city has greater density, real estate is more valuable, and the taverns and establishments are not allotted as much square footage. So we believe that where in the rest of the state many of the locations will easily accommodate six machines, there may be some constraints on certain establishments to get to that six machine.

So we are estimating a lower amount of average equipment—we do not have that exact number—than we do in the rest of our portfolio. That being said, the density of population is far greater in the city and so, therefore, the average play per machine should be higher than the average play of our existing portfolio. So the final element of all of this is the difficulties of operating in the city in terms of parking, logistics, will probably impact our cost a little bit. But we will be able to offset most of that by the fact that we have a platform and we are able to service it from the outside.

We will have to establish some type of warehouse facilities and support within the city, but, all in all, it should be a very positive impact on our business.

Max Marsh: Great. Super helpful. And, Craig, congrats on a great quarter. Thank you.

Operator: Your next question comes from Jordan Bender with Citizens Bank. Your line is now open. Please go ahead.

Jordan Bender: Hi, everyone. Thanks for the question. We have been watching Hawthorne play out over the last several weeks. Curious to get your views around the bankruptcy of that track. Depending on how that plays out, you could be left with the only operational track in the state. I guess, also, what does that kind of mean for your investment at your track, including the casino? Thank you.

Mark T. Phelan: Hey, Jordan. It is Mark. So I would say as a horseracing fan, it is a tough moment for Illinois horse racing. Hawthorne's decline is painful for everyone who cares about sport racing, particularly in Illinois. And our thoughts are with the Carey family. They carried Illinois horse racing for over a century, and we wish them well in whatever comes next for them. That being said, the pari-mutuel horse racing market has faced significant headwinds nationally as well as in the state of Illinois. But we are, as you point out, still standing and still very much excited about the coming season, which starts in April.

And we stand ready to support the Illinois Racing Board in any capacity that they require to help make sure racing operations, specific employees, horsemen, and all the backside communities have a workable path going forward.

Jordan Bender: Great. Thanks. And then just maybe sticking with you, Mark. As you step into the CEO role, do you have any different views across any of the business, the geographic segments of how they are kind of run today?

Mark T. Phelan: So we kind of have talked a bit in the past about how we break our markets up into core, developing, and emerging. I think we are pretty excited about 2025, and we are definitely excited about 2026 in terms of all those different categories. They all sort of benefit from each other, and there is all sorts of overlap in terms of content and systems, which we think can drive growth in all of them. So I think what we are fundamentally trying to do is shift the route business from a real logistics-heavy business to an entertainment and hospitality business that is more nuanced, more niche, and definitely more differentiated with higher margin.

I would say that is really what is driving me in terms of when I take over. But I would point out that Andy has done an amazing job, and there are big shoes to fill and a huge platform to grow off of.

Jordan Bender: Understood. Thank you very much.

Operator: Your next question comes from Patrick Keough with Truist Securities. Your line is now open. You may go ahead.

Patrick Keough: Hey, guys. Thank you so much for taking my question. Congrats on a really nice quarter, and congrats to Andy and Mark on the transition into new roles. For my first question, there has been some route gaming traction in state sessions like Pennsylvania, Virginia, Missouri, and North Carolina. Could you talk about how you view any of these as likely to legalize this year? And could you talk about how you think about building versus buying to get a foothold in these markets if they go online? Thank you.

Mark T. Phelan: Hey, Patrick. It is Mark. I would say we formally included Chicago in those emerging markets, and thankfully, that is now going to be a reality, so we are pretty excited about that. That being said, these types of situations do not happen often, and so I am a little more conservative in terms of the other markets that you mentioned. Pennsylvania, North Carolina, Virginia, Missouri, they all have outstanding legislation in terms of legalizing some form of electronic gaming machines for routes. Each of them has their own nuances, may or may not make it a higher probability to go legal. But I would be just caution.

A lot of these states except for North Carolina have casinos, which is always an issue with trying to pass legislation for VGTs and always makes it very difficult. And it is just naturally difficult to pass gaming laws. So we prepare for the best, but our budget and our expectations are prepared for not having this in this year. Yeah. Your second question in terms of—yeah. In terms of acquiring things, we actually have a pretty good ground game in a lot of these markets, like Chicago, for example, where organically, we will acquire stores through our own internal customer acquisition group.

But certainly, as Andy showed over the last seventeen years, we will ultimately acquire other routes over time as that sort of unfolds.

Patrick Keough: Great. Thank you. And a question on Illinois, if I could. It looks like location count declined again quarter over quarter. Could you just give an update on maybe what inning you are in of pruning and where you see this trending over the next few quarters?

Andrew Harry Rubenstein: Patrick, it is Andy. So as we have talked about in the past, this is a continuous process of improving and optimizing our Illinois route. And having nearly 2,700 establishments, we are always looking at the performance at the bottom and whether or not it makes sense to continue operating in those locations. And as we acquire or win new locations every month or every meeting with the IGB, we take an even deeper look at those locations and oftentimes reallocate our assets to what we expect to be higher-performing positions. So I would expect that with such large numbers, we will continue doing this. There may be some more loss of locations.

You will probably see, as Chicago comes on, for that trend to be reversed, as there will be a significant increase in locations from the Chicago market.

Patrick Keough: That makes sense. Thank you, and congrats again.

Andrew Harry Rubenstein: Thank you.

Operator: Your next question comes from Steven Donald Pizzella with Deutsche Bank. Your line is now open. Please go ahead.

Steven Donald Pizzella: Hey. Good afternoon, everybody, and thank you for taking my questions. Also wanted to just say thanks to Andy for the time over the years, and congratulations to you, Mark. First, just wanted to ask how you think about the increased tax returns here moving forward. Have you seen historically a direct correlation with that increased gaming at your locations? Have you maybe seen any impact thus far recently as returns start to come in?

Mark T. Phelan: Steve, yeah. So that typically has got a high correlation in terms of play. February, March, as you can imagine, are usually our best months. And we do not guide, but, certainly, that seasonal impact has not changed this year from what we are seeing.

Steven Donald Pizzella: Okay. That is helpful. Thank you. And then how should we think about the growth CapEx in 2026, and how do you think about balancing the buybacks versus some incremental tuck-in acquisitions?

Brett Summerer: Sure. So from a capital perspective, the maintenance versus—

Mark T. Phelan: Versus growth, the way we define those two is probably important to just refresh everybody on. But the way we define it is growth is a new location, we are adding machines to it. Or it is a location, for example, that has five machines and we go to six. Capital in those two instances would be growth. Most of what is left is maintenance, so largely in our space, we consider a replacement of a brand-new machine in an existing location that is at capacity for machines. Even though it is a brand-new machine, we consider that maintenance. That is a little bit different than other companies, but that is how we think about it.

So I want to at least set the table on that. But in terms of, like, next year and where that is going, if you think about our space and you think about what we just got done talking about in terms of reducing our locations and kind of, you know, firing bad customers, so to speak, the need for us to continue to spend a lot to expand our locations in Illinois is low. And, therefore, most of the maintenance or most of the capital that we are spending next year in our large market is going to be on that maintenance side. If you think about the other markets, those are investing in growth side.

However, those are much, much smaller markets. So when you look at the company as a whole, you see most of it sitting in maintenance capital. Then refresh me any other question. I am sorry.

Steven Donald Pizzella: I guess, how do you think about balancing buybacks versus incremental tuck-in acquisition or maybe something bigger?

Mark T. Phelan: Yeah. So, you know, I would say our position on that has not changed much over the last, you know, six months or so or even longer than that. But we look at every dollar of investment, and we look at the return on investment we can get from it. And we just measure that against, you know, our internal capital returns versus our M&A versus, you know, debt payoff and shareholder buybacks and that sort of thing. You know, given where things are moving and kind of just recent studies, you know, I think M&A tends to be the most attractive if we can get the price right.

So that tends to be where we focus our energy on the most. But to the extent that there is nothing in the pipeline or things that we do not like, then we will pursue, you know, alternative activities.

Steven Donald Pizzella: I guess maybe if I could follow up real quick. Do you think about the balance sheet any different now moving forward than the current leverage profile historically of the company, which has been fairly conservative? Would you be more willing to take on additional leverage if the opportunities present itself, I guess, or potentially incremental capital return?

Mark T. Phelan: Yeah. I think the way that I—so first of all, again, I would go back to, you know, we are going to evaluate the deals as they come through. But the way that I think about the fact we have an untapped accordion feature out there, a revolving feature out there, is likely going to be for something that would be significant—

Brett Summerer: Sort of M&A. That would be the ultimate use for something like that. Most of the stuff we are going to do with our current cash balance and, you know, through tuck-ins and that sort of thing. So, yeah, I would not think that we need to hit that revolver. And I think if anything, you know, we are not in the business of wanting to lever up substantially for any particular reason right now. There is just not enough evidence of it. It would have to be some sort of very large deal or something like that came up, you know, for us to go down that path.

Steven Donald Pizzella: Okay. Great. Appreciate it. Thanks, guys.

Operator: Your next question comes from David Bain with Texas Capital Bank. Your line is now open. Please go ahead.

David Bain: Great. Thank you so much, and congratulations, Andy and Mark, for the new roles. I know this was asked kind of early on, but maybe looking at Chicago differently, just given your infrastructure and, you know, the personnel dedicated to it, can we expect your market share or really, like, fair share to potentially exceed what you have in the state, you know, again, kind of just given what you have set up today? You are better able to help locations with licensing and maybe, you know, cherry picking, if you will. Is that a fair assumption versus, you know, if a new state just opened up? I mean, how should we be looking at maybe from that perspective?

Andrew Harry Rubenstein: So thank you for the question, David. Looking at Chicago, we see ourselves as an obvious leader from our experience, from the fact that we are the most chosen company to do business with in the state of Illinois, and we expect to continue to win in that market. That being said, I do not expect us to greatly exceed our current market share in the city of Chicago. Today, we are in just shy of the 30% range of the market. I do not think we are going to be any more than that. But what I do think is the performance per location will be greater than what we show in the rest of our portfolio.

And we have seen things happen over the last—and we are now in our fourteenth year of operation—that allow us to better select locations, better to equip them, and I think the performance that we will achieve will exceed the rest of the portfolio's performance.

David Bain: Okay. Helpful. I guess I will switch gears to TITO. I mean, a high percentage of machines now converted, but what inning do you think we are really in, in terms of the benefit of that transition? And do you still see that as material going forward?

Andrew Harry Rubenstein: Yeah. So we have—it is a great question, David. We have about 81% of the machines upgraded. But what happens is not all the machines are upgraded in every location. And so there are machines that they can take their ticket and utilize for play, and there are ones that they cannot. I think once we get closer into the nineties, then you are going to start to see a real benefit. The other thing that really needs to happen is the player has to change its behavior. They are just learning, after playing with cash entirely for the last fourteen-plus years, that they can use their ticket to go from machine to machine.

I believe that as far as the innings in the game, we are probably third inning. By the time we talk again at the end of—when we have our first quarter earnings, we will probably be the fourth or the fifth. I think it will start accelerating through the end of the year. And it is something that we are constantly evaluating. We are just starting to optimize because we are getting some confidence that in certain establishments the customer is comfortable with utilizing the tickets. But it is something that is, again, like third inning in terms of the implementation and results.

David Bain: Very good. Alright. Great execution. Thank you.

Operator: Your next question comes from Chad C. Beynon with Macquarie. Your line is now open. Please go ahead.

Chad C. Beynon: Hi. Good afternoon, Andy and Mark. Thanks for taking my question. Just a couple for me. One, just wanted to ask a higher-level question in terms of opportunities maybe in certain markets to partner with other companies, whether it is digital or other consumer companies, just to help drive additional revenues to the site or help just acquire customers. Could that be an initiative that could help your yields within any of your markets in the near term? Thank you.

Mark T. Phelan: Hey, Chad. It is Mark. So just to remind everyone, we do partner with a fairly significant gaming operator in Illinois, and that is FanDuel with Fairmont Park’s online sports betting license. In terms of other markets, we are always looking for partnerships. You know, route gaming is really just an extension of local gaming, which, if you go to other parts of the world, includes online, includes owning local casinos, as well as doing distributed gaming in bars and taverns, things like that. So there is always a possibility.

We also do produce our own content through our subsidiary, GrandVision Gaming, and there are always elements of partnering with content producers as content is a big driver of play in our markets. So it is a great question. We are always looking for those partners. As I mentioned before, to really drive away from being a more commodity-like vendor, we really need to specialize, and that is sometimes best done through other content, payments, and loyalty and things like that. And those are partners. So we have always got our eye on it.

Chad C. Beynon: Excellent. Thanks, Mark. And then I know you just hit on TITO, but around the W-2G jackpot limits, is that something that you think can also help drive additional yields across your fleet? Thank you.

Andrew Harry Rubenstein: So, Chad, this is Andy. Thank you. The answer is yes, but the challenge is that in Illinois, you need legislation for the bet jackpot to be raised, and then you need the manufacturers to redo the software to accommodate it. In terms of priorities, the route markets come far after the casinos because they can make those changes right away and have the leverage to be able to distribute the games with the new jackpots to many, many markets. I expect Illinois probably to be the first one to be able to experience it because it is the greatest opportunity.

But at this—and probably Nevada will see it because they utilize the same software that is utilized in the casinos. The other markets will follow, but I would not expect a real bump from that in—we do not expect it to happen in 2026. So, eventually, it will help us. But it is kind of next step for the manufacturers.

Chad C. Beynon: Okay. Thanks, Andy, and congrats on everything.

Operator: A kind reminder that if you would like to ask a question, please press star 1 on your telephone keypad. To withdraw your question, press star 1 again. Your next question comes from Gregory Thomas Gibas with Northland Securities. Your line is open. You may go ahead.

Gregory Thomas Gibas: Hey. Good afternoon, Andy, Mark, congrats on the results. Wanted to follow up maybe on the opportunity within Chicago, and maybe what you see as kind of the total establishment count for that market? And maybe if you could share a little bit more estimated timing there. I know that you mentioned, you know, they have accepting applications is a good sign. When do you expect to maybe hear more about that developing?

Mark T. Phelan: Well, as Andy said, you know, we are very confident the market will roll out given that the Illinois Gaming Board is accepting applications from locations. There are some rules that need to be promulgated. We are helping Chicago leaders work through that and provide sort of best practices to expedite the rollout. You know, if you really had to push me against the wall to say when we are going to go live, I would say more likely later in Q4 2026 or potentially even 2027, just given the backlog of applications currently at the Illinois Gaming Board. But, again, it depends a lot on how quickly the city can roll out these rules. So we are awaiting.

We are helping out leadership in terms of helping them do best practices.

Gregory Thomas Gibas: Okay. Fair enough. And if I could ask, you know, I imagine organic growth is pretty close to the revenue growth. But could you maybe break that out considering, I think, Fairmont and some Louisiana acquisitions closed, I think, late in the prior year?

Mark T. Phelan: Yeah. So from a revenue perspective—and we discussed this—but from a revenue perspective, those two acquisitions made up about 5% of our Q4 revenue and about 5% of our full year as well. So in terms of the revenue side, that is about what they are. We do not disclose on the EBITDA side, you know, but those are our emerging investments. So emerging—yeah, investments in the plays that we have there. So, you know, we are not making, you know, double-digit growth or anything like that on the bottom line. But on the top line, we have talked before about it; it is about 5%.

Gregory Thomas Gibas: Great. Thank you.

Operator: There are no further questions at this time. I will now turn the call back to Andrew Harry Rubenstein for closing remarks. Please go ahead.

Andrew Harry Rubenstein: Thank you, everyone, for joining us again today. Accel Entertainment, Inc. presents a differentiated investment opportunity with enhanced financial flexibility, expanding market opportunities, and a scalable platform capable of delivering steady growth and improving returns over time. I want to especially thank our partners, our shareholders, and our team members for their dedication and their continued execution. Their hard work is what drives our performance and positions us for sustained success. We appreciate all of you joining us today, and we look forward to updating you again on our progress next quarter. Thank you.

Operator: This concludes today's call. Thank you for attending. You may now disconnect.