v3.26.1
Segment Reporting
 6 Months Ended
Jun. 30, 2026
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
•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, iii) other non-recurring expenses and beginning in 2026 iv) gain or loss on sale of fixed assets, which were previously presented in general and administrative expenses. Prior periods have not been recast to reflect this change.
•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
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 2024, it has two operating segments: distributed gaming and casino and racing as of June 30, 2026. However, the casino and racing operating segment does not meet the criteria of a reportable segment from a quantitative standpoint as of June 30, 2026. 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 condensed 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 three and six months ended June 30, 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
June 30,		Six Months Ended
June 30,
2026202520262025
Distributed gaming
Total net revenues (1)
$354,850 $326,378 $695,652 $644,440 
Adjustments: (2)
Cost of revenue
247,311 226,206 484,345 445,886 
Compensation related costs - operations (3)
20,857 21,133 43,229 42,089 
Compensation related costs - general and administrative (3)
14,271 12,931 26,814 25,378 
All other segment items (4) (6)
14,046 12,399 29,309 28,031 
Adjusted EBITDA for distributed gaming
$58,365 $53,709 $111,955 $103,056 
Adjusted EBITDA for “all other” operating segment (5)
$559 $(529)$726 $(362)
Less Adjustments for:
Depreciation and amortization of property and equipment
$13,827 $13,095 $27,689 $25,396 
Amortization of intangible assets and route and customer acquisition costs
6,823 6,322 13,613 12,612 
Interest expense, net8,642 8,771 17,143 17,456 
Emerging markets— 4 — 67 
Loss from unconsolidated affiliates
14 17 30 33 
Stock-based compensation expense
3,243 2,789 5,742 4,880 
Loss on change in fair value of contingent earnout shares5,018 5,734 3,542 3,379 
Other expenses, net (6)
2,978 4,096 6,504 6,913 
Income before income tax expense$18,379 $12,352 $38,418 $31,958 
Income tax expense5,872 5,090 11,248 10,083 
Net income$12,507 $7,262 $27,170 $21,875 
(1)Total net revenues is further disaggregated by revenue stream as included on the condensed 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 condensed 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 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 June 30, 2026 and 2025. The "all other" operating segment had total net revenues of $13.3 million and $24.0 million; cost of revenues of $5.3 million and $9.9 million; compensation related costs of $4.0 million and $7.2 million in operations and $1.1 million and $2.0 million in general and administrative; and all other segment items of $2.3 million and $4.3 million for the three and six months ended June 30, 2026, respectively. In comparison, the "all other" operating segment had total net revenues of $9.5 million and $15.4 million; cost of revenues of $3.6 million and $5.3 million; compensation related costs of $3.5 million and $5.2 million in operations and $1.1 million and $1.9 million in general and administrative; and all other segment items of $1.9 million and $3.3 million for the three and six months ended June 30, 2025, respectively.
(6)Loss on sale of fixed assets was $2.5 million and $3.2 million for the three and six months ended June 30, 2026, respectively, and is included in Other expenses, net. Loss on sale of fixed assets was $0.1 million and $0.3 million for the three and six months ended June 30, 2025, respectively, and is presented in general and administrative expenses, which is not an adjustment for EBITDA.
As of June 30, 2026, the assets associated with the distributed gaming segment are $1.0 billion and the assets for the "all other" operating segment were $65.1 million. See the condensed consolidated financial statements for other financial information (such as cash used for capital expenditures, etc.) regarding the Company’s reportable segment.