The following table presents financial information with respect to the Company’s single reportable segment, distributed gaming, for the three months ended March 31, 2026 and 2025. Additionally, the Company has included an "all other" operating segment which is its casino and racing operations that is neither individually reportable nor able to be aggregated or combined with another operating segment.


(in thousands)	Three Months Ended March 31,
	2026		2025
Distributed gaming
Total net revenues (1)	$	340,801	$	318,062
Adjustments: (2)
Cost of revenue	237,034		219,680
Compensation related costs - operations (3)	22,373		20,956
Compensation related costs - general and administrative (3)	12,543		12,447
All other segment items (4) (6)	15,261		15,632
Adjusted EBITDA for distributed gaming	$	53,590	$	49,347

Adjusted EBITDA for “all other” operating segment (5)	$	167	$	167

Less Adjustments for:
Depreciation and amortization of property and equipment	$	13,862	$	12,301
Amortization of intangible assets and route and customer acquisition costs	6,790		6,290
Interest expense, net	8,501		8,685
Emerging markets	—		63
Loss from unconsolidated affiliates	16		16
Stock-based compensation expense	2,499		2,091
Gain on change in fair value of contingent earnout shares	(1,476)		(2,355)


Other expenses, net (6)	3,526		2,817
Income before income tax expense	$	20,039	$	19,606
Income tax expense	5,376		4,993
Net income	$	14,663	$	14,613

(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 condensed 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 March 31, 2026. The "all other" operating segment had total net revenues of $10.8 million; cost of revenues of $4.6 million; compensation related costs of $3.2 million in operations and $0.8 million in general and administrative; and all other segment items of $2.0 million for the three months ended March 31, 2026.