During Tuesday’s earnings call, Accel Entertainment management was asked if they were considering M&A opportunities, given that the company has $290.2 million in cash and cash equivalents on hand.
According to Accel President of U.S. Gaming Mark Phelan, some opportunities have piqued the company’s interest. But nothing, as of Tuesday, will be acted on soon. With time, Phelan noted, prices tend to come down.
“We’ve got the capacity now to absorb some new additions,” Phelan said. “Obviously, when we’re sitting on any influx of cash, we’re going to look at it and use it the best way possible. We look at all opportunities. We have a pretty rigorous process to look at return on investment, share buybacks versus debt payoffs versus M&Q. It’s going to be case by case and as things come in, we’ll evaluate them and decide accordingly.”
Accel Entertainment Wednesday reported third-quarter revenue of $329.7 million, a 9.1% increase compared to the same time period in 2024.
Net income was $13.4 million for 3Q25, an increase of 171.8%, partially attributable to a gain of $2.2 million on the change in the fair value of the contingent earnout shares (Accel Class A-2 common stock) compared to a loss of $4.2 million in the prior period.
Adjusted EBITDA increased $51.2 million, a 11.5% gain for Q325 compared to Q324, or 0.60%.
Accel finished 3Q25 with 4,451 locations, an increase of 3.8% compared to Q324, and 27,714 gaming terminals, a year-over-year increase of 4.5%.
In terms of route gaming expansion, Accel CEO Andy Rubenstein said opportunities can be divided into two categories: markets that do and don’t have gaming.
“We’re monitoring Pennsylvania pretty closely, as we have in the past,” Rubenstein said. “We’re always looking at Missouri. North Carolina got close a few years ago. There’s always the potential that that can reignite and Virginia has definitely considered it again, as they’ve had legislation that got close. Those are the four markets that we think have the most probability of having a new VGT market.”
Rubenstein added that enhancements to existing legislation in Georgia and Louisiana, along with some modifications in Nebraska, “have been relatively favorable for the operator to increase their revenue, to provide better gaming experiences for the players. I think you’ll see those three markets in particular have a lot of benefit in the future and Accel will continue to perform in those three markets.”
Accel Entertainment shares closed at $9.93 on the Nasdaq, down $0.60 or 0.60%.