v3.25.4
Segment Reporting
 12 Months Ended
Dec. 31, 2025
Segment Reporting [Abstract]  
Segment Reporting Segment Reporting
The Company assesses its reportable segments on an annual basis or as changes in its business occur. As part of its assessment, the Company has determined its chief operating decision maker (“CODM”) to be its Chief Executive Officer, Andrew Rubenstein, who is ultimately responsible for the operating performance of the Company and the allocation of resources. The CODM assesses financial performance and allocates resources based on Adjusted EBITDA. Adjusted EBITDA is used by the CODM to understand the Company’s underlying drivers of profitability, trends in its business, and to facilitate company-to-company and period-to-period comparisons. Segment asset information is provided to the CODM to support the CODM’s assessment of performance but is not used to allocate resources.
The Company defines Adjusted EBITDA as net income plus:
•Amortization of intangible assets and route and customer acquisition costs
•Stock-based compensation expense
•Loss from unconsolidated affiliates
•Loss on change in fair value of contingent earnout shares
•Gain on expiration of warrants
•Other expenses, net which consists of i) non-cash expenses including the remeasurement of contingent consideration liabilities, ii) non-recurring lobbying and legal expenses related to distributed gaming expansion in current or prospective markets, and iii) other non-recurring expenses
•Depreciation and amortization of property and equipment
•Interest expense, net
•Emerging markets, which reflects the results, on an Adjusted EBITDA basis, for non-core jurisdictions where the Company’s operations are developing
•Income tax expense
•Loss on debt extinguishment
The Company’s distributed gaming reportable segment consists of the installation, maintenance, and operation of gaming terminals, redemption devices that disburse winnings and contain ATM functionality, and other amusement devices in authorized non-casino locations such as restaurants, bars, convenience stores, liquor stores, truck stops, and grocery stores. The Company’s operations and services are consistent in the Company’s markets.
The Company has determined that with the acquisition of Fairmount in December of 2024, it has two operating segments: distributed gaming and casino and racing as of December 31, 2025. However, the casino and racing operating segment does not meet the criteria of a reportable segment primarily from a quantitative standpoint as of December 31, 2025. The Company will continue to evaluate from a quantitative and qualitative standpoint whether the casino and racing operating segment meets the criteria of a reportable segment.
Significant segment expenses, including disaggregated significant expenses that are presented within general and administrative expenses, are presented in the Company’s consolidated statement of operations and comprehensive income and are included in the table below.
The following table presents financial information with respect to the Company’s single reportable segment, distributed gaming, for the years ended December 31, 2025, 2024, and 2023. Additionally, the Company has included an "all other" operating segment which is its casino and racing business that is neither individually reportable nor able to be aggregated or combined with another operating segment.
(in thousands,)
December 31,
202520242023
Distributed gaming
Total net revenues (1)
$1,295,114 $1,229,577 $1,170,420 
Adjustments: (2)
Cost of revenue
894,623 852,226 809,524 
Compensation related costs - operations (3)
86,398 77,902 67,523 
Compensation related costs - general and administrative (3)
49,456 53,606 51,926 
All other segment items (4)
54,487 56,899 60,002 
Adjusted EBITDA for distributed gaming
$210,150 $188,944 $181,445 
Adjusted EBITDA for “all other” operating segment (5)
$(2)$203 $— 
Less Adjustments for:
Depreciation and amortization of property and equipment
$52,725 $43,978 $37,906 
Amortization of intangible assets and route and customer acquisition costs
25,425 22,577 21,211 
Interest expense, net34,198 35,892 33,144 
Emerging markets67 165 (948)
Loss from unconsolidated affiliates59 — — 
Stock-based compensation12,205 12,204 9,416 
Loss on change in fair value of contingent earnout shares
573 1,276 8,539 
Gain on expiration of warrants
— (13)— 
Loss on debt extinguishment
1,090 — — 
Other expenses, net11,875 19,339 6,453 
Income before income tax expense$71,931 $53,729 $65,724 
Income tax expense20,659 18,438 20,121 
Net income$51,272 $35,291 $45,603 
(1)Total net revenues is further disaggregated by revenue stream as included on the consolidated statements of operations and comprehensive income.
(2)The significant expense categories and amounts align with the segment-level information that is regularly provided to the CODM.
(3)Compensation related costs represent payroll and other related costs that are included in general and administrative on the consolidated statements of operations and comprehensive income.
(4)All other segment items include other operating and general and administrative expenses (such as general and administrative expenses related to parts, advertising, information technology, etc.) which are included in general and administrative on the consolidated statements of operations and comprehensive income and cost of manufacturing goods sold, as well as, adjustments for stock-based compensation expense and emerging markets.
(5)All corporate expenses were allocated to the distributed gaming reportable segment as of December 31, 2025. The "all other" operating segment had total net revenues of $35.8 million and $1.4 million; cost of revenues of $13.5 million and $147 thousand; compensation related costs of $11.4 million and $581 thousand in operations and $4.0 million and zero in general and administrative; and all other segment items of $6.9 million and $464 thousand for the years ended December 31, 2025 and 2024, respectively.
As of December 31, 2025 the consolidated assets associated with the distributed gaming segment are $1,044.7 million and the assets for the "all other" operating segment are $58.7 million.
See the consolidated financial statements for other financial information (such as cash used for capital expenditures, etc.) regarding the Company’s reportable segment.