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Segment Reporting | 9 Months Ended
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Sep. 30, 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 •(Gain) loss on change in fair value of contingent earnout shares •Other expenses, net •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, it has two operating segments: distributed gaming and casino and racing as of September 30, 2025. However, the casino and racing operating segment does not meet the criteria of a reportable segment primarily from a quantitative standpoint as of September 30, 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 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 nine months ended September 30, 2025 and 2024. 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 September 30, |  | Nine Months Ended September 30,
|  | 2025 |  | 2024 |  | 2025 |  | 2024
Distributed gaming |  |  |  |  |  |  |  |
Total net revenues (1) |  | $ | 319,418 |  |  | $ | 302,227 |  |  | $ | 963,857 |  |  | $ | 913,457 |
Adjustments: (2) |  |  |  |  |  |  |  |
Cost of revenue |  | 220,849 |  |  | 210,841 |  |  | 666,734 |  |  | 633,325 |
Compensation related costs - operations (3) |  | 22,646 |  |  | 19,532 |  |  | 64,734 |  |  | 56,918 |
Compensation related costs - general and administrative (3) |  | 11,743 |  |  | 13,373 |  |  | 37,121 |  |  | 38,659 |
All other segment items (4) |  | 12,523 |  |  | 12,602 |  |  | 40,555 |  |  | 42,763 |
Adjusted EBITDA for distributed gaming |  | $ | 51,657 |  |  | $ | 45,879 |  |  | $ | 154,713 |  |  | $ | 141,792 |
Adjusted EBITDA for “all other” operating segment (5) |  | $ | (487) |  |  | $ | — |  |  | $ | (849) |  |  | $ | — |
Less Adjustments for: |  |  |  |  |  |  |  |
Depreciation and amortization of property and equipment |  | $ | 13,339 |  |  | $ | 11,001 |  |  | $ | 38,735 |  |  | $ | 32,229 |
Amortization of intangible assets and route and customer acquisition costs |  | 6,389 |  |  | 5,781 |  |  | 19,001 |  |  | 16,808 |
Interest expense, net |  | 8,622 |  |  | 9,164 |  |  | 26,078 |  |  | 26,730 |
Emerging markets |  | — |  |  | 43 |  |  | 67 |  |  | 121 |
Loss from unconsolidated affiliates |  | 22 |  |  | 1 |  |  | 55 |  |  | 1 |
Stock-based compensation |  | 3,504 |  |  | 3,342 |  |  | 8,384 |  |  | 8,927 |
(Gain) loss on change in fair value of contingent earnout shares |  | (2,170) |  |  | 4,216 |  |  | 1,209 |  |  | 4,190 |
Loss on debt extinguishment |  | 1,090 |  |  | — |  |  | 1,090 |  |  | — |
Other expenses, net |  | 2,577 |  |  | 3,867 |  |  | 9,490 |  |  | 13,620 |
Income before income tax expense |  | $ | 17,797 |  |  | $ | 8,464 |  |  | $ | 49,755 |  |  | $ | 39,166 |
Income tax expense |  | 4,492 |  |  | 3,569 |  |  | 14,575 |  |  | 12,269 |
Net income |  | $ | 13,305 |  |  | $ | 4,895 |  |  | $ | 35,180 |  |  | $ | 26,897 |
(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 good 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 September 30, 2025. The "all other" operating segment had total net revenues of $10.3 million and $25.7 million; cost of revenues of $4.7 million and $10.0 million; compensation related costs of $4.4 million and $11.5 million and all other segment items of $1.7 million and $5.0 million for the three and nine months ended September 30, 2025, respectively. As of September 30, 2025, the assets associated with the distributed gaming segment are $1.0 billion and the assets for the "all other" operating segment were $54.7 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.

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-21 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name 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