Accel Entertainment Q3 Revenue Hits Record $364M, Net Income Jumps 55%

Accel Entertainment, Inc. (NYSE: ACEL) reported third-quarter 2026 revenue of $363.6 million on 3 November 2026, a 10% increase from $329.7 million a year earlier, alongside net income of $20.6 million, up 55% from $13.3 million. The company also posted record quarterly Adjusted EBITDA of $57.5 million, 12% higher year-over-year, and ended the period with $294.4 million in cash against $271.7 million in net debt.

Context — Why Accel's Q3 2026 Results Matter Now

Accel operates roughly 29,548 electronic gaming machines across 4,705 third-party locations in ten states, making it one of the largest terminal operators in the US. Its revenue model depends on regulated revenue splits with host states, so growth comes from adding machines, improving hold-per-day at existing sites, or acquiring competitors.

The company's Illinois base, its largest market at $257.9 million of quarterly revenue, grew 7% excluding Fairmount Park. Management credited a deliberate strategy of pruning lower-performing locations and reallocating capital toward stronger venues. Illinois location count actually fell 1.6% to 2,685, while hold-per-day rose 9.2% to $957.

That mix shift is the central story of the quarter. Accel is trading venue quantity for venue quality in its mature market while expanding aggressively elsewhere, particularly Nevada, where locations jumped 49.5% to 553 and machines rose 48.7% to 4,099.

The report frames the quarter as validation of operating use: Adjusted EBITDA grew faster than revenue, which the company attributed to portfolio quality and disciplined capital deployment. That claim is testable against the prior-year comparison, where Adjusted EBITDA of $51.2 million represented 15.5% of revenue versus 15.8% in Q3 2026.

Data — What Accel's Q3 2026 Numbers Show

Total net revenues rose from $329.7 million to $363.6 million. Gross margin percentage ticked up to 31.38% from 31.32%. Operating income climbed to $28.8 million from $25.4 million. Diluted earnings per share reached $0.25 versus $0.16, while adjusted diluted EPS came in at $0.22 versus $0.19.

Metric	Q3 2026	Q3 2025	Change
Total net revenues	$363.6M	$329.7M	+10%
Net income	$20.6M	$13.3M	+55%
Adjusted EBITDA	$57.5M	$51.2M	+12%
Diluted EPS	$0.25	$0.16	+56%
Locations	4,705	4,451	+5.7%
Machines	29,548	27,714	+6.6%

Nevada stands out as the anomaly. Despite adding 1,342 machines, location hold-per-day fell 16.5% to $613 from $734. Nebraska moved the opposite way, with hold-per-day up 31.9% to $405 and locations up 10.9%. Louisiana rose 15.1% to $1,125 per location per day, and Georgia climbed 24.7% to $182.

Free cash flow reached $62.0 million, a conversion rate of 107.8% of Adjusted EBITDA, helped by a $20.0 million net tax refund tied to $18 million of federal credits purchased in Q2 for $17 million. Nine-month operating cash flow rose 18.7% to $142.1 million.

Analysis — What It Means For Gaming Operators And ACEL

Accel's results land against a US regional gaming backdrop where operators with route-based, non-casino exposure have generally outpaced destination casino peers on margin stability, though the report provides no direct peer comparison. The Illinois hold-per-day improvement suggests Accel's pruning strategy is working, but the state's location count decline shows the ceiling on organic expansion there.

The Nevada hold-per-day decline is the quarter's most notable soft spot. Adding machines at a 48.7% clip while per-location revenue falls 16.5% implies the new venues are lower-volume than the existing base, or that competitive intensity is compressing yields. The company did not disclose which factor dominates.

A second risk sits in the earnings quality. Net income includes a $5.8 million non-cash gain on contingent earnout share revaluation, which is $3.6 million higher than the prior-year gain. Stripping that out, adjusted net income of $18.2 million rose only 11.9%, far below the headline 55% net income growth. Investors reading the GAAP figure alone would overstate operating momentum.

Accel repurchased roughly 624,000 Class A-1 shares for $7.2 million during the quarter, a modest pace relative to its $294 million cash position. Management described the buyback as reflecting its view that shares represent an attractive opportunity, language that signals confidence but commits no specific capital.

The Chicago rollout has begun with the receipt of first licenses, and Wyoming and Chicago are now classified as emerging markets. Those operations will drag on Adjusted EBITDA until they reach scale, though the report gives no timeline.

Outlook — What To Watch Next For ACEL

Investors should track three things. First, whether Nevada hold-per-day stabilizes as the newly added locations mature, since a continued decline would undercut the growth narrative in Accel's fastest-expanding market. Second, the pace of Chicago license approvals and machine installations, which management flagged as a forward opportunity without quantifying it.

Third, Fairmount Park's trajectory. Gaming revenue there rose approximately 84% year-over-year, and the company said it remains focused on continued development of the property. No specific target or completion date was disclosed.

On the balance sheet, net debt of $271.7 million against trailing twelve-month Adjusted EBITDA of $226.4 million implies use near 1.2x, leaving room for further acquisitions or buybacks. The report does not name any pending transaction.

Frequently Asked Questions

Why did Accel's net income rise so much more than revenue?

Net income grew 55% to $20.6 million while revenue rose 10% because the quarter included a $5.8 million non-cash gain on contingent earnout share revaluation, $3.6 million larger than the prior-year gain. Adjusted net income, which strips that out, rose 11.9% to $18.2 million. The gap between the two figures is the clearest measure of underlying earnings momentum.

What does the Nevada hold-per-day decline mean for Accel?

Nevada hold-per-day fell 16.5% to $613 even as machines rose 48.7% to 4,099. That suggests newly added locations generate less revenue per machine than the existing base, or that competition is compressing yields. Accel did not disclose the cause. If the metric keeps falling, Nevada's contribution to consolidated growth will depend entirely on machine count.

How much cash does Accel have and what will it do with it?

Accel ended Q3 2026 with $294.4 million in cash and cash equivalents and $271.7 million in net debt. It repurchased about 624,000 shares for $7.2 million in the quarter. Management said the balance sheet provides flexibility to invest organically, pursue acquisitions, and return capital when it believes that is an effective use of funds. No specific allocation was disclosed.

Bottom Line

Accel's record revenue and EBITDA growth are real, but the 55% net income jump leans on a non-cash gain that adjusted figures exclude.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. CFD trading carries high risk of capital loss.