Accel Entertainment delivered a positive first quarter, outperforming Wall Street’s expectations on both revenue and adjusted earnings. Management credited stable growth in its core Illinois and Montana markets, along with strong contributions from newer states like Nebraska and Georgia. CEO Andy Rubenstein highlighted the company's local distributed gaming model and diversification across multiple states as key strengths. The recent acquisition and integration of Louisiana operations, as well as the opening of Fairmount Park Casino in Illinois, also contributed to the quarter’s results. Rubenstein pointed to Accel’s ability to “scale proprietary products and services across our national footprint,” emphasizing returns driven by a flexible, asset-light approach.
Is now the time to buy ACEL? Find out in our full research report (it’s free).
Accel Entertainment (ACEL) Q1 CY2025 Highlights:
- Revenue: $323.9 million vs analyst estimates of $318.8 million (7.3% year-on-year growth, 1.6% beat)
- Adjusted EPS: $0.23 vs analyst estimates of $0.20 (17.8% beat)
- Adjusted EBITDA: $49.51 million vs analyst estimates of $48.06 million (15.3% margin, 3% beat)
- Operating Margin: 8%, in line with the same quarter last year
- Video Gaming Terminals Sold: 27,180, up 1,151 year on year
- Market Capitalization: $985.2 million
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions Accel Entertainment’s Q1 Earnings Call
- Chad Beynon (Macquarie): asked about the impact of tariffs and future CapEx, to which CEO Andy Rubenstein and President Mark Phelan responded that most prices had been locked in, minimizing near-term effects, while consumer demand remains strong.
- Chad Beynon (Macquarie): inquired about weather impacts and April trends; CFO Matt Ellis explained that weather was a neutral factor, and April followed expectations with no signs of consumer weakness.
- Steve Pizzella (Deutsche Bank): questioned the ongoing strategy of pruning Illinois locations, and Rubenstein confirmed it is part of a continuous process to optimize profitability and reallocate assets efficiently.
- Steve Pizzella (Deutsche Bank): sought updates on Louisiana, with Rubenstein and Phelan noting early positive results, ongoing remodeling, and the application of best practices expected to yield further growth.
- Greg Gibas (Northland): asked about the timing of Phase 2 at Fairmount Park and Louisiana’s run-rate sustainability. Phelan shared that management will assess Phase 2 after the racing season, while Rubenstein expects continued improvement in Louisiana as upgrades progress.
Catalysts in Upcoming Quarters
In the next few quarters, StockStory analysts will be monitoring (1) the ramp-up of Fairmount Park Casino and its impact on regional growth, (2) the pace of operational improvements and technology adoption in Louisiana and other new markets, and (3) the company’s ability to maintain margin discipline as it continues to prune underperforming locations and reallocate resources. Execution on these priorities, along with the seamless transition of financial leadership, will be important markers for Accel’s long-term trajectory.
Accel Entertainment currently trades at $11.30, up from $10.76 just before the earnings. Is the company at an inflection point that warrants a buy or sell? Find out in our full research report (it’s free).
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