<\/p>\n
Achieved record Q1 revenue and adjusted EBITDA through disciplined route quality improvements and momentum in developing markets.<\/p>\n<\/li>\n
Illinois performance was driven by location optimization and higher-yielding machine placements, resulting in a 9% year-over-year increase in average location hold per day.<\/p>\n<\/li>\n
The business model is positioned as fundamentally hyperlocal and resilient, benefiting from trade-down activity as consumers seek affordable, local entertainment options.<\/p>\n<\/li>\n
Strategic shift from a logistics-focused model to a gaming and hospitality framework aims to drive margin expansion through proprietary content and enhanced player experiences.<\/p>\n<\/li>\n
Operational leverage is scaling effectively in Nebraska and Georgia, where revenue grew 57% and 43% respectively due to increased terminal density.<\/p>\n<\/li>\n
Management views the current macroeconomic uncertainty as a stabilizing tailwind, as players prioritize local venues over high-travel regional casinos.<\/p>\n<\/li>\n<\/ul>\n
Anticipate the first Chicago locations to go live in late 2026 or 2027, representing a significant near-term growth catalyst.<\/p>\n<\/li>\n
Expect the benefits of ticket-in, ticket-out (TITO) technology to build through the remainder of 2026 as player adoption matures.<\/p>\n<\/li>\n
Full-year 2026 CapEx is projected between $60 million and $70 million, reflecting a normalization following elevated 2025 investment in Fairmont Park.<\/p>\n<\/li>\n
Free cash flow is expected to grow as developing markets scale profitably and capital expenditures shift toward maintenance with 2-3 year payback periods.<\/p>\n<\/li>\n
The company remains active in evaluating bolt-on acquisitions, particularly in Louisiana and Illinois, while maintaining a disciplined return-focused capital allocation framework.<\/p>\n<\/li>\n<\/ul>\n
Adjusted EBITDA and net income were impacted by a $2 million shift in the timing of Fairmont Park purse expense accruals to align with revenue recognition.<\/p>\n<\/li>\n
A new interest rate collar was established in January 2026, providing a cap of 4% and a floor of 2.92% on the term loan through September 2029.<\/p>\n<\/li>\n
Management noted that while vertical integration rules were passed in Illinois, they are currently being contested in court, creating regulatory uncertainty.<\/p>\n<\/li>\n
The leadership transition is finalized with Mark T. Phelan set to assume the CEO role effective August 7, 2026.<\/p>\n<\/li>\n<\/ul>\n
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