Accel Entertainment, Inc.

Good afternoon. Thank you for attending the Accel Entertainment fourth quarter 2025 earnings call. I would now like to pass the conference over to your host, Scott Levin. You may proceed.

Welcome to Accel Entertainment's 2025 fourth quarter and full year earnings call. Participating on the call today are Andy Rubenstein, Accel's chief executive officer, Mark Phelan, Excel's Chief Operating Officer and President, US Gaming, and Brett Sommerer, Excel's Chief Financial Officer. Please refer to our website for the press release and supplemental information that will be discussed on this call. Today's call is being recorded and will be available in the investor relations section of our website under events and presentations. Some of the comments in today's call may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risk and uncertainties. Actual results may differ materially from those discussed today, and the company undertakes no obligation to update those statements unless required by law. For a more detailed discussion of these and other risk factors, investors should review the forward-looking statement section of the earnings press release available on our website as well as other risk factor disclosures in our filings with the SEC. Any projected financial information presented in this call is for illustrative purposes only and should not be relied upon as being predictive of future results. The inclusion of any financial forecast information in this call should not be regarded as a representation by any person that the results reflected in such forecasts will be achieved. During the call, we may discuss certain non-GAAP financial measures. For reconciliation of the non-GAAP measures, as well as other information regarding these measures, please refer to our earnings release and other materials in the investor relations section of our website. Following management's prepared remarks, we will open the call for a question and answer session. With that, I would now like to introduce Andy. Please go ahead.

Thank you, Scott, and good afternoon, everyone. Excel delivered a strong finish to 2025. We closed the year with record financial results, continued operating momentum, new growth opportunities, and an enhanced balance sheet. In the fourth quarter, total revenue increased 7.5% year-over-year to $341 million, and adjusted EBITDA grew 19% to $56 million, both all-time quarterly highs. For the full year, we also generated records in revenue of over $1.3 billion and adjusted EBITDA of $210 million. These results reflect the resilience of our distributed gaming model, growth from our new acquisitions, and our disciplined operating measures and capital deployment. We ended the year supporting more than 4,500 locations, and nearly 28,000 gaming machines nationwide, demonstrating the breadth and durability of our platform and its predictable revenue profile. In Illinois and Montana, we continue to optimize our footprint and terminal base, driving steady hold per day improvement and margin expansion. Illinois remains our largest and most established market. and we continue to execute on our strategy to improve unit economics and expand margins through discipline, deployment, and route optimization. We are excited by and are closely monitoring developments in Chicago following public announcements regarding the introduction of video gaming terminals in licensed establishments. As the leading operator in Illinois, we believe Accel is uniquely positioned to participate meaningfully. Our existing regulatory relationships, operating infrastructure, route management capabilities, and strong financial position provide a clear advantage in our ability to service and scale this market quickly and efficiently with our existing platform. As we discussed in more detail in our January 8, 2026 press release, the City estimates 2,500 new locations in Chicago over the long term. We view this as a highly attractive opportunity that would enable Excel to further leverage its fixed cost structure and generate incremental returns at compelling margins. As always, we will remain focused on disciplined execution and creating long-term shareholder value. Turning to our developing and strategic growth markets, we continue to generate positive momentum. In Nevada, terminal account increased 13% year over year for the fourth quarter, supported by recent strategic and accretive route expansions. We are encouraged by the trajectory of new placements and believe the market is positioned for steady improvement. After adjusting for the stub period in 2024, Louisiana revenue increased significantly in the fourth quarter. We continue to execute our bolt-on acquisition strategy and optimize the Toucan gaming platform. Louisiana remains a priority market for consolidation with many tuck-in opportunities that clearly fit our return thresholds. We are well positioned as a buyer of choice and the market currently has a good pipeline. Nebraska and Georgia delivered strong growth both quarterly and on a full year basis. demonstrating the ongoing expansion and increasing leverage of our operating platform as these markets expand and develop. As our density increases, we expect continued profitability to follow. At Fairmont Park Casino and Racing, we completed our first full racing season and ramped up our casino operations following the April 2025 opening. Customer engagement has been healthy, and monthly performance has continued to build as consumer awareness increases. We continue to evaluate the timing and scope of future development phases. As we have highlighted in the past, in addition to being an attractive standalone business, Fairmont diversifies our revenue mix and provides operating flexibility. Reflecting our commitment to shareholder returns, and our belief that Excel represents an attractive long-term investment, we repurchased approximately 3.8 million shares of common stock during 2025, including 1.5 million shares in the fourth quarter. Our capital allocation framework, which includes our $300 million revolving credit line, remains disciplined and return-focused, balancing organic investment Bolton and other strategic acquisitions, balance sheet strength, and opportunistic share repurchases. As we look ahead to 2026, our priorities remain clear. Drive steady organic growth in our core markets, scale profitability and developing in new markets, execute accretive tuck-in acquisitions, and consistently convert earnings into free cash flow. Before my closing comments, I want to touch on our February 2nd press release regarding the leadership transition. As we shared, I've stepped into the chairman role effective immediately. And in August, I'll transition out of the CEO role as Mark takes over day-to-day leadership of the company. This new role gives me more flexibility to leverage my local and national relationships to help Mark and the Excel team capitalize on the attractive growth opportunities in front of us. including expanding into the Chicago VGT market. I'm excited to keep working closely with Mark as we continue to profitably grow Excel. With that, I'll turn the call over to Mark to review our operations in more detail.