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Segment Reporting
 9 Months Ended
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,
2025202420252024
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, net8,622 9,164 26,078 26,730 
Emerging markets— 43 67 121 
Loss from unconsolidated affiliates
22 1 55 1 
Stock-based compensation3,504 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, net2,577 3,867 9,490 13,620 
Income before income tax expense$17,797 $8,464 $49,755 $39,166 
Income tax expense4,492 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.