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State of Play’s TL;DR
- Accel Entertainment enjoyed a record Q2.
- The gaming operator’s revenue soundly beat analyst estimates.
Accel Entertainment reported a record second quarter, with revenue of $368 million beating analyst estimates of $356.5 million.
The gaming operator also posted higher profit, expanded its location footprint, and said Fairmount Park Casino delivered its strongest quarterly gross profit since acquisition.
Accel disclosed the results in an 8-K filed Aug. 4. The update offers a fresh look at demand in Illinois gaming and at how a regional operator is balancing expansion, cash flow, and casino development.
Record quarter driven by growth in locations and terminals
According to the filing, Accel’s second-quarter net income rose to $13 million, up 72% from the prior-year period. Adjusted EBITDA increased 11% to $59 million.
The company said it expanded to 4,676 locations and 29,281 gaming terminals, up 6% and 7% year over year, respectively.
Operating cash flow was $20 million, and free cash flow was $10 million for the quarter.
Illinois remained the key earnings engine, contributing $264 million. GuruFocus also noted that Fairmount Park Casino posted its highest quarterly gross profit since Accel acquired the property.
Accel continues Illinois expansion
Accel carried a GF Score of 85 out of 100 and a GF Value of $12.69, compared with a market price of $12.16. That implied the stock was modestly undervalued by about 4.2%.
The same report listed Accel’s financial strength at 5/10, profitability at 7/10, growth at 8/10, predictability at 0 stars, and moat score at 4/10. It also cited insider buying of $0.6 million versus insider sales of $1.6 million.
Accel’s latest quarter points to continued scale in Illinois gaming terminals, steady cash generation, and ongoing attention on Fairmount Park’s longer-term casino buildout.
Based on reporting by GuruFocus.
