Accel Entertainment, Inc. recently shared its impressive financial results for the first quarter ending March 31, 2025. The company saw record-breaking revenue of $323.9 million, a 7.3% increase from the same period in 2024. Net income surged by 97.0%, reaching $14.6 million, while adjusted EBITDA also rose by 7.1%, totaling $49.5 million.

Expanding operations and strong performance:

Accel’s performance was boosted by its expansion efforts, both in terms of locations and gaming terminals. The company ended Q1 with 4,391 locations, marking a 2.9% increase compared to Q1 2024. Additionally, the total number of gaming terminals rose to 27,180, an increase of 4.4% year-over-year.

A key development in the quarter was the commencement of operations at Fairmount Park Casino & Racing, marking a significant growth opportunity for the company. Despite inclement weather affecting the Kentucky Derby event at the track, Accel saw strong visitation to its casino operations, highlighting the potential of its latest acquisition. CEO Andy Rubenstein expressed confidence in Accel’s ability to continue driving financial momentum throughout 2025, fueled by the company’s expansion and strong operational results.

As stated in the company’s press release, Accel’s revenue growth was diverse, with notable increases in several key states. Georgia saw a remarkable 64.8% increase, while Nebraska’s revenues grew by 23.9%, and Montana recorded a 7.9% increase. Illinois, the company’s largest market, saw a more modest rise of 3.8%. However, Nevada experienced a slight decline in revenue by 5.5%.

The company’s entrance into Louisiana, where it acquired 85% of the state’s route operators, contributed significantly to its expansion strategy. The early signs in Louisiana are promising, with positive feedback on the progress of remodeling and optimization efforts. CFO Matt Ellis noted that the company had made substantial improvements in the state, which are expected to drive further success.

Strategic initiatives and long-term growth:

Accel’s growth trajectory is aligned with its strategic focus on expansion into complementary markets. Rubenstein emphasized the importance of leveraging operational strengths to drive long-term growth, ensuring the company remains on track to meet its financial goals. This expansion includes not only physical locations and terminals but also the ongoing optimization of existing assets, such as Fairmount Park Casino & Racing.

The company also made significant strides in shareholder value with the repurchase of one million shares of its Class A-1 common stock for approximately $10.2 million in Q1 2025. Rubenstein highlighted that this move reflects Accel’s strong financial position and commitment to enhancing shareholder value.

Despite the challenges posed by fluctuating tariffs and rising construction costs, especially regarding Phase II of the Fairmount Park project, Accel remains confident in its ability to execute its plans effectively. Phelan noted that the company had locked in prices for most of its capital expenditures for the year, mitigating the impact of price volatility so far.

Accel’s Q1 performance was driven by several key financial metrics, with net revenues increasing by $22.1 million compared to Q1 2024. In terms of adjusted net income, the company saw a slight increase of 3.7%, reaching $20.2 million. The company’s adjusted EBITDA of $49.5 million reflects a 7.1% increase, demonstrating strong operational efficiency and profitable growth.

As of March 31, 2025, Accel reported a net debt of $309 million, a slight increase compared to the previous year. This indicates the company’s continued efforts to maintain financial stability while expanding its business.