Revenue growth remains consistent at 8.5% year-over-year, yet operating margins remain constrained between 6.5% and 8.7% due to rigid statutory revenue-sharing agreements.
| Sales/Revenue | 1.36B | 1.33B | 1.23B | 1.17B | 969.8M | 734.71M | 316.35M | 428.7M | 335.08M | 248.44M |
| Revenue Growth % | 8.42% | 8.12% | 5.17% | 20.69% | 32% | 132.24% | -26.21% | 27.94% | 34.88% | - |
| Cost of Goods Sold | 926.19M | 908.12M | 859.47M | 817.2M | 670.9M | 494.03M | 211.09M | 282.01M | 217.46M | 157.01M |
| COGS % of Revenue | - | 68.23% | 69.82% | 69.82% | 69.18% | 67.24% | 66.72% | 65.78% | 64.9% | 63.2% |
| Gross Profit | 432.42M | 422.84M | 371.5M | 353.23M | 298.9M | 240.68M | 105.27M | 146.69M | 117.62M | 91.42M |
| Gross Margin % | 31.83% | 31.77% | 30.18% | 30.18% | 30.82% | 32.76% | 33.27% | 34.22% | 35.1% | 36.8% |
| Gross Profit Growth % | - | 13.82% | 5.17% | 18.18% | 24.19% | 128.64% | -28.24% | 24.71% | 28.66% | - |
| Operating Expenses | 323.44M | 314.99M | 280.62M | 245.82M | 202.04M | 170.48M | 129.94M | 133.35M | 92.75M | 73.25M |
| OpEx % of Revenue | - | 23.67% | 22.8% | 21% | 20.83% | 23.2% | 41.08% | 31.11% | 27.68% | 29.49% |
| Selling, General & Admin | 224.38M | 219.34M | 194.72M | 178.85M | 145.94M | 110.82M | 77.42M | 69.03M | 53.99M | 376.37K |
| SG&A % of Revenue | - | 16.48% | 15.82% | 15.28% | 15.05% | 15.08% | 24.47% | 16.1% | 16.11% | 0.15% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 4M | 95.65M | 85.89M | 66.97M | 56.1M | 59.66M | 52.52M | 64.32M | 38.76M | 72.88M |
| Operating Income | 108.98M | 108.65M | 90.88M | 107.41M | 96.86M | 70.19M | -24.68M | 13.34M | 24.87M | 18.17M |
| Operating Margin % | 8.02% | 8.16% | 7.38% | 9.18% | 9.99% | 9.55% | -7.8% | 3.11% | 7.42% | 7.31% |
| Operating Income Growth % | - | 19.55% | -15.38% | 10.89% | 37.99% | 384.42% | -285.06% | -46.38% | 36.87% | - |
| EBITDA | 181.7M | 186.8M | 157.44M | 166.52M | 143.63M | 116.87M | 18.9M | 57.71M | 60.33M | 41.43M |
| EBITDA Margin % | 13.37% | 14.04% | 12.79% | 14.23% | 14.81% | 15.91% | 5.97% | 13.46% | 18.01% | 16.68% |
| EBITDA Growth % | 13.17% | 18.65% | -5.46% | 15.94% | 22.9% | 518.41% | -67.25% | -4.35% | 45.62% | - |
| D&A (Non-Cash Add-back) | 72.72M | 78.15M | 66.56M | 59.12M | 46.78M | 46.68M | 43.58M | 44.37M | 35.46M | 23.26M |
| EBIT | 77.21M | 108.65M | 89.62M | 98.87M | 116.4M | 59.28M | -3.62M | 2.36M | 24.87M | 18.86M |
| Net Interest Income | -24.58M | -30.24M | -35.89M | -33.14M | -21.64M | -12.7M | -13.71M | -12.86M | -9.64M | 0 |
| Interest Income | 1.6M | 6.9M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 34.68M | 37.14M | 35.89M | 33.14M | 21.64M | 12.7M | 13.71M | 12.86M | 9.64M | 0 |
| Other Income/Expense | -36.62M | -36.72M | -37.16M | -41.68M | -2.09M | -23.62M | 7.35M | -44.9M | -9.64M | -8.11M |
| Pretax Income | 72.36M | 71.93M | 53.73M | 65.72M | 94.76M | 46.58M | -17.33M | -31.57M | 15.22M | 10.06M |
| Pretax Margin % | 5.33% | 5.4% | 4.36% | 5.62% | 9.77% | 6.34% | -5.48% | -7.36% | 4.54% | 4.05% |
| Income Tax | 21.04M | 20.66M | 18.44M | 20.12M | 20.66M | 15.02M | -16.92M | 5.2M | 4.42M | 1.75M |
| Effective Tax Rate % | 29.08% | 28.72% | 34.32% | 30.61% | 21.8% | 32.24% | 97.63% | -16.47% | 29.04% | 17.43% |
| Net Income | 51.5M | 51.47M | 35.25M | 45.6M | 74.1M | 31.56M | -410K | -36.76M | 10.8M | -376.37K |
| Net Margin % | 3.79% | 3.87% | 2.86% | 3.9% | 7.64% | 4.3% | -0.13% | -8.58% | 3.22% | -0.15% |
| Net Income Growth % | 21.26% | 46.01% | -22.7% | -38.46% | 134.8% | 7797.32% | 98.88% | -440.31% | 2970.3% | - |
| Net Income (Continuing) | 51.33M | 51.27M | 35.29M | 45.6M | 74.1M | 31.56M | -410K | -36.76M | 10.8M | 8.31M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 4.07M | 4.08M | 4.28M | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 0.61 | 0.60 | 0.41 | 0.53 | 0.81 | 0.33 | -0.00 | -0.25 | 0.17 | -0.01 |
| EPS Growth % | 21.77% | 46.34% | -22.64% | -34.57% | 145.45% | - | 98.04% | -247.06% | 1766.67% | - |
| EPS (Basic) | - | 0.61 | 0.42 | 0.53 | 0.82 | 0.34 | -0.00 | -0.25 | 0.19 | -0.01 |
| Diluted Shares Outstanding | 84.09M | 86.37M | 84.98M | 86.8M | 91.23M | 94.64M | 83.05M | 61.85M | 62.18M | 37.04M |
| Basic Shares Outstanding | 82.56M | 85.02M | 83.75M | 85.95M | 90.63M | 93.78M | 83.05M | 61.85M | 57.62M | 37.04M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - |
Regulatory and Legislative Concentration
According to quarterly financial disclosures, Accel Entertainment has demonstrated a consistent revenue growth trajectory, reaching $351.6 million in 2026Q1, which represents an 8.5% year-over-year increase, suggesting that the company's strategy of consolidating fragmented regional gaming markets continues to drive top-line expansion despite a mature Illinois base.
The steady climb in revenue suggests that the company is successfully leveraging its route-based model to capture additional market share. Investors should monitor whether this growth remains organic or if it is increasingly reliant on capital-intensive acquisitions that may eventually face diminishing returns.
As reported in recent income statements, Accel's gross margin has remained tightly range-bound between 29.9% and 33.4%, reflecting the rigid, statutory revenue-sharing agreements that dictate the company's take-home pay after accounting for state taxes and host venue payouts in its primary operating jurisdictions.
The lack of significant margin expansion suggests that Accel possesses limited pricing power, as its cost structure is largely dictated by regulatory frameworks rather than operational efficiency. This structural reality implies that profitability improvements must come from scale-driven SG&A leverage rather than improvements in the core gaming take rate.
Based on the provided income statement data, operating income has struggled to scale proportionally with revenue, with operating margins fluctuating between 6.5% and 8.7% over the last ten quarters, indicating that the company's fixed cost base for route maintenance is rising alongside its top-line growth.
The inability to significantly expand operating margins suggests that the logistical complexity of managing a distributed network of terminals creates a persistent drag on profitability. Analysts should investigate whether recent investments in new markets are temporarily inflating SG&A or if this represents a permanent ceiling on operational efficiency.
Analysis of the company's recent filings reveals significant quarterly volatility in net income, ranging from $4.9 million to $16.2 million, which appears partially influenced by fluctuating stock-based compensation charges that reached a negative $8.4 million in 2025Q4, complicating the assessment of true underlying operational profitability.
The erratic nature of net income suggests that investors should focus on adjusted metrics that strip out non-cash compensation and acquisition-related amortization. The inconsistency in bottom-line performance warrants further investigation into whether these swings are purely accounting-driven or indicative of underlying operational instability.
While the company's moat is built on exclusive location contracts, the reliance on a single state's legislative environment, as evidenced by the concentration of operations, suggests that any adverse change in tax rates or terminal limits could rapidly compress margins and undermine the current valuation thesis.
Short-term growth may be masking the long-term risk of market saturation and potential legislative headwinds that could force a renegotiation of the revenue-sharing model. Investors should remain cautious, as the company's reliance on local, habitual gaming may be more sensitive to regulatory shifts than the market currently prices in.
Quick answers to the most common questions about buying ACEL stock.
For fiscal year 2025, Accel Entertainment, Inc. (ACEL) reported total revenue of $1.33B. This represents a 435.7% increase compared to $248.4M in 2017.
Accel Entertainment, Inc. (ACEL) is profitable, generating $51.5M in net income for the fiscal year ending 2025 with a net profit margin of 3.9%.
Accel Entertainment, Inc. (ACEL) reported an operating income of $108.7M, resulting in an operating profit margin of 8.2%. This margin reflects the operational efficiency of the business before interest and taxes.
Accel Entertainment, Inc. (ACEL) generated $422.8M in gross profit for the year, representing a gross profit margin of 31.8%. This demonstrates the company's core pricing power and production efficiency.