Accel Entertainment’s first quarter results for 2026 received a negative reaction from the market, reflecting a mix of top-line growth and profit margin pressures. Management pointed to robust revenue gains, especially in developing markets like Nebraska and Georgia, as well as continued operational strength in Illinois. CEO Andrew Rubenstein credited disciplined execution, stating, “These results reflected the continued strength of our distributed gaming model, ongoing momentum in our developing markets, and our team’s disciplined execution.” However, increased depreciation and expense timing at Fairmont Park weighed on bottom-line results, and investors appeared cautious given the modest EPS shortfall versus expectations.
Is now the time to buy ACEL? Find out in our full research report (it’s free for active Edge members).
Accel Entertainment (ACEL) Q1 CY2026 Highlights:
- Revenue: $351.6 million vs analyst estimates of $343.7 million (8.5% year-on-year growth, 2.3% beat)
- Adjusted EPS: $0.27 vs analyst estimates of $0.25 (11.6% beat)
- Adjusted EBITDA: $53.76 million vs analyst estimates of $53.62 million (15.3% margin, in line)
- Operating Margin: 7.7%, in line with the same quarter last year
- Video Gaming Terminals Sold: up 1,173 year on year
- Market Capitalization: $940.1 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 From Accel Entertainment’s Q1 Earnings Call
- Patrick Keough (Truist Securities) asked about early adoption and cost impact of TITO technology; CFO Brett Summerer explained adoption is at 13% and benefits will build gradually with further rollout.
- Steven Donald Pizzella (Deutsche Bank) inquired about the impact of gas prices on customer behavior; CEO Andrew Rubenstein noted no material effect so far, emphasizing the hyperlocal nature of Accel’s customer base.
- Jordan Bender (Citizens) questioned the ongoing pruning of Illinois locations; President Mark Phelan responded that pruning is opportunistic and mainly targets cash-burning locations, with less “low-hanging fruit” remaining.
- Chad C. Beynon (Macquarie Capital) sought updates on legislative progress for new market entry; Phelan expressed skepticism about significant legislative movement in 2026, citing recent setbacks like the Virginia veto.
- Maxwell James Marsh (CBRE) asked about EBITDA margin trends; Summerer highlighted seasonal patterns and pointed to growth in non-regulated markets as a driver for future margin improvement.
Catalysts in Upcoming Quarters
In the coming quarters, the StockStory team will be watching (1) progress on regulatory approvals for Chicago VGT locations and the speed of market entry; (2) measured adoption and impact of TITO technology on both operational costs and player engagement; and (3) continued revenue and margin momentum in developing states like Nebraska and Georgia. Execution of the M&A pipeline and integration of recent acquisitions will also be key areas of focus for sustainable growth.
Accel Entertainment currently trades at $11.82, down from $12.47 just before the earnings. At this price, is it a buy or sell? Find out in our full research report (it’s free).
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