Accel Entertainment Initiated at Hold by Truist Securities

Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at Rush Street Interactive and the best and worst performers in the gaming solutions industry.

Gaming solution companies operate in a dynamic and evolving market, and the digital transformation of the gaming industry presents significant opportunities for innovation and growth, whether it be immersive slot machine terminals or mobile sports betting. However, the gaming solution industry is not without its challenges. Regulatory compliance is a crucial consideration as companies must navigate a complex and often fragmented regulatory landscape across different jurisdictions. Changes in regulations can impact product offerings, operational practices, and market access, requiring companies to maintain flexibility and adaptability in their business strategies. Additionally, the competitive nature of the industry necessitates continuous investment in research and development to stay ahead of competitors and meet evolving consumer demands.

The 7 gaming solutions stocks we track reported a mixed Q3. As a group, revenues were in line with analysts’ consensus estimates.

In light of this news, share prices of the companies have held steady as they are up 4.3% on average since the latest earnings results.

Best Q3: Rush Street Interactive

Specializing in online casino gaming and sports betting, Rush Street Interactive is an operator of digital gaming platforms.

Rush Street Interactive reported revenues of $277.9 million, up 19.7% year on year. This print exceeded analysts’ expectations by 4.3%. Overall, it was a very strong quarter for the company with a solid beat of analysts’ adjusted operating income and EPS estimates.

Richard Schwartz, Chief Executive Officer of RSI, said, "We’re pleased to report another strong quarter that underscores the resilience of our business model and player-first approach. Our third quarter results demonstrate continued momentum and acceleration of growth across key markets, led by our continued outperformance in the online casino space. Another quarter of record revenue, up 20% year-over-year, marks our tenth consecutive quarter of sequential revenue growth over the prior quarter. This growth was driven by record player acquisition and strong player engagement across our higher-value markets.

Rush Street Interactive achieved the biggest analyst estimates beat and fastest revenue growth, but had the weakest full-year guidance update of the whole group. Unsurprisingly, the stock is up 1.3% since reporting and currently trades at $18.40.

Is now the time to buy Rush Street Interactive? Access our full analysis of the earnings results here, it’s free for active Edge members.

Inspired

Specializing in digital casino gaming, Inspired is a provider of gaming hardware, virtual sports platforms, and server-based gaming systems.

Inspired reported revenues of $86.2 million, up 11.7% year on year, outperforming analysts’ expectations by 3.9%. The business had a satisfactory quarter with a beat of analysts’ EPS estimates but a miss of analysts’ Virtual Sports revenue estimates.

The market seems happy with the results as the stock is up 5.8% since reporting. It currently trades at $8.06.

Is now the time to buy Inspired? Access our full analysis of the earnings results here, it’s free for active Edge members.

Weakest Q3: PlayStudios

Founded by a team of former gaming industry executives, PlayStudios offers free-to-play digital casino games.

PlayStudios reported revenues of $57.65 million, down 19.1% year on year, falling short of analysts’ expectations by 3%. It was a disappointing quarter as it posted a miss of analysts’ daily active users estimates and a significant miss of analysts’ adjusted operating income estimates.

PlayStudios delivered the slowest revenue growth in the group. The company reported 2.21 million monthly active users, down 25.3% year on year. As expected, the stock is down 28.3% since the results and currently trades at $0.65.

Read our full analysis of PlayStudios’s results here.

Accel Entertainment

Established in Illinois, Accel Entertainment is a provider of electronic gaming machines and interactive amusement terminals to bars and entertainment venues.

Accel Entertainment reported revenues of $329.7 million, up 9.1% year on year. This number beat analysts’ expectations by 0.5%. Zooming out, it was a satisfactory quarter as it also produced a beat of analysts’ EPS estimates but a miss of analysts’ adjusted operating income estimates.

The stock is up 1.9% since reporting and currently trades at $10.12.

Read our full, actionable report on Accel Entertainment here, it’s free for active Edge members.

DraftKings

Getting its start in daily fantasy sports, DraftKings is a digital sports entertainment and gaming company.

DraftKings reported revenues of $1.14 billion, up 4.4% year on year. This print came in 5.6% below analysts' expectations. Overall, it was a softer quarter as it also logged full-year revenue guidance missing analysts’ expectations significantly and full-year EBITDA guidance missing analysts’ expectations significantly.

DraftKings achieved the highest full-year guidance raise but had the weakest performance against analyst estimates among its peers. The stock is up 13% since reporting and currently trades at $31.72.

Read our full, actionable report on DraftKings here, it’s free for active Edge members.

What Happened?

A number of stocks jumped in the afternoon session after comments from a key Federal Reserve official bolstered hopes for an interest rate cut. New York Federal Reserve President John Williams stated he sees “room for a further adjustment” in the near term, sparking a significant market rally. Following his remarks, the probability of the central bank cutting rates at its December meeting jumped from 39% to over 73%, according to the CME FedWatch tool. This positive sentiment provided relief to markets amid concerns over high valuations, particularly in AI-related stocks.

The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks.

Among others, the following stocks were impacted:

• Gaming Solutions company Accel Entertainment jumped 3.3%. Is now the time to buy Accel Entertainment? Access our full analysis report here, it’s free for active Edge members.
• Casino Operator company Golden Entertainment jumped 3.2%. Is now the time to buy Golden Entertainment? Access our full analysis report here, it’s free for active Edge members.

Zooming In On Accel Entertainment (ACEL)

Accel Entertainment’s shares are not very volatile and have only had 6 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.

The biggest move we wrote about over the last year was 4 months ago when the stock dropped 17.3% on the news that the company reported second-quarter results that showed a significant drop in profit and missed Wall Street's expectations. While the company posted record quarterly revenue of $335.9 million, an 8.6% increase from the prior year, its net income plummeted. Profits fell by over 50% to $7.3 million. This resulted in earnings per share of $0.08, which was less than half of the $0.17 reported in the same quarter last year and well below analysts' forecasts. The company attributed the sharp decline in net income primarily to a loss related to the changing value of contingent earnout shares, a form of common stock, which contrasted with a gain from the same item in the previous year.

Accel Entertainment is down 5.3% since the beginning of the year, and at $10.02 per share, it is trading 22.9% below its 52-week high of $12.99 from July 2025. Investors who bought $1,000 worth of Accel Entertainment’s shares 5 years ago would now be looking at an investment worth $923.04.

Looking back on gaming solutions stocks’ Q3 earnings, we examine this quarter’s best and worst performers, including Inspired and its peers.

Gaming solution companies operate in a dynamic and evolving market, and the digital transformation of the gaming industry presents significant opportunities for innovation and growth, whether it be immersive slot machine terminals or mobile sports betting. However, the gaming solution industry is not without its challenges. Regulatory compliance is a crucial consideration as companies must navigate a complex and often fragmented regulatory landscape across different jurisdictions. Changes in regulations can impact product offerings, operational practices, and market access, requiring companies to maintain flexibility and adaptability in their business strategies. Additionally, the competitive nature of the industry necessitates continuous investment in research and development to stay ahead of competitors and meet evolving consumer demands.

The 7 gaming solutions stocks we track reported a slower Q3. As a group, revenues were in line with analysts’ consensus estimates.

In light of this news, share prices of the companies have held steady as they are up 1% on average since the latest earnings results.

Inspired

Specializing in digital casino gaming, Inspired is a provider of gaming hardware, virtual sports platforms, and server-based gaming systems.

Inspired reported revenues of $86.2 million, up 11.7% year on year. This print exceeded analysts’ expectations by 3.9%. Despite the top-line beat, it was still a slower quarter for the company with a miss of analysts’ Virtual Sports revenue estimates and a significant miss of analysts’ adjusted operating income estimates.

“Inspired delivered a strong quarter driven by strategic execution, digital expansion, and product innovation,” said Brooks Pierce, President and CEO of Inspired.

Interestingly, the stock is up 2.1% since reporting and currently trades at $7.78.

Read our full report on Inspired here, it’s free for active Edge members.

Best Q3: Rush Street Interactive

Specializing in online casino gaming and sports betting, Rush Street Interactive is an operator of digital gaming platforms.

Rush Street Interactive reported revenues of $277.9 million, up 19.7% year on year, outperforming analysts’ expectations by 4.3%. The business had a very strong quarter with an impressive beat of analysts’ adjusted operating income estimates and a beat of analysts’ EPS estimates.

Rush Street Interactive delivered the biggest analyst estimates beat, fastest revenue growth, and highest full-year guidance raise among its peers. Although it had a fine quarter compared to its peers, the market seems unhappy with the results as the stock is down 6.4% since reporting. It currently trades at $17.01.

Is now the time to buy Rush Street Interactive? Access our full analysis of the earnings results here, it’s free for active Edge members.

Weakest Q3: PlayStudios

Founded by a team of former gaming industry executives, PlayStudios offers free-to-play digital casino games.

PlayStudios reported revenues of $57.65 million, down 19.1% year on year, falling short of analysts’ expectations by 3%. It was a disappointing quarter as it posted a miss of analysts’ daily active users and adjusted operating income estimates.

PlayStudios delivered the slowest revenue growth in the group. The company reported 2.21 million monthly active users, down 25.3% year on year. As expected, the stock is down 24.6% since the results and currently trades at $0.69.

Read our full analysis of PlayStudios’s results here.

Accel Entertainment

Established in Illinois, Accel Entertainment is a provider of electronic gaming machines and interactive amusement terminals to bars and entertainment venues.

Accel Entertainment reported revenues of $329.7 million, up 9.1% year on year. This number surpassed analysts’ expectations by 0.5%. Zooming out, it was a satisfactory quarter as it also recorded a beat of analysts’ EPS estimates but a miss of analysts’ adjusted operating income estimates.

The stock is up 3.5% since reporting and currently trades at $10.28.

Read our full, actionable report on Accel Entertainment here, it’s free for active Edge members.

Light & Wonder (NASDAQ:LNW)

With names as crazy as Ultimate Fire Link Power 4 for its products, Light & Wonder (NASDAQ:LNW) is a gaming company supplying the casino industry with slot machines, table games, and digital games.

Light & Wonder reported revenues of $841 million, up 2.9% year on year. This result lagged analysts' expectations by 1.1%. More broadly, it was a mixed quarter as it also produced a decent beat of analysts’ adjusted operating income estimates but a miss of analysts’ Social Gaming revenue estimates.

The stock is up 23.8% since reporting and currently trades at $90.91.

Read our full, actionable report on Light & Wonder here, it’s free for active Edge members.

As the Q3 earnings season comes to a close, it’s time to take stock of this quarter’s best and worst performers in the gaming solutions industry, including Light & Wonder (NASDAQ:LNW) and its peers.

Gaming solution companies operate in a dynamic and evolving market, and the digital transformation of the gaming industry presents significant opportunities for innovation and growth, whether it be immersive slot machine terminals or mobile sports betting. However, the gaming solution industry is not without its challenges. Regulatory compliance is a crucial consideration as companies must navigate a complex and often fragmented regulatory landscape across different jurisdictions. Changes in regulations can impact product offerings, operational practices, and market access, requiring companies to maintain flexibility and adaptability in their business strategies. Additionally, the competitive nature of the industry necessitates continuous investment in research and development to stay ahead of competitors and meet evolving consumer demands.

The 7 gaming solutions stocks we track reported a slower Q3. As a group, revenues were in line with analysts’ consensus estimates.

In light of this news, share prices of the companies have held steady as they are up 2.1% on average since the latest earnings results.

Light & Wonder (NASDAQ:LNW)

With names as crazy as Ultimate Fire Link Power 4 for its products, Light & Wonder (NASDAQ:LNW) is a gaming company supplying the casino industry with slot machines, table games, and digital games.

Light & Wonder reported revenues of $841 million, up 2.9% year on year. This print fell short of analysts’ expectations by 1.1%. Overall, it was a mixed quarter for the company with a decent beat of analysts’ adjusted operating income estimates but a miss of analysts’ Social Gaming revenue estimates.

Interestingly, the stock is up 23.9% since reporting and currently trades at $90.91.

Is now the time to buy Light & Wonder? Access our full analysis of the earnings results here, it’s free for active Edge members.

Best Q3: Rush Street Interactive

Specializing in online casino gaming and sports betting, Rush Street Interactive is an operator of digital gaming platforms.

Rush Street Interactive reported revenues of $277.9 million, up 19.7% year on year, outperforming analysts’ expectations by 4.3%. The business had a very strong quarter with an impressive beat of analysts’ adjusted operating income estimates and a beat of analysts’ EPS estimates.

Rush Street Interactive scored the biggest analyst estimates beat, fastest revenue growth, and highest full-year guidance raise among its peers. Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 5.1% since reporting. It currently trades at $17.28.

Is now the time to buy Rush Street Interactive? Access our full analysis of the earnings results here, it’s free for active Edge members.

Weakest Q3: PlayStudios

Founded by a team of former gaming industry executives, PlayStudios offers free-to-play digital casino games.

PlayStudios reported revenues of $57.65 million, down 19.1% year on year, falling short of analysts’ expectations by 3%. It was a disappointing quarter as it posted a miss of analysts’ daily active users and adjusted operating income estimates.

PlayStudios delivered the slowest revenue growth in the group. The company reported 2.21 million monthly active users, down 25.3% year on year. As expected, the stock is down 20.5% since the results and currently trades at $0.72.

Read our full analysis of PlayStudios’s results here.

DraftKings

Getting its start in daily fantasy sports, DraftKings is a digital sports entertainment and gaming company.

DraftKings reported revenues of $1.14 billion, up 4.4% year on year. This print came in 5.6% below analysts' expectations. Overall, it was a softer quarter as it also logged full-year revenue guidance missing analysts’ expectations significantly and full-year EBITDA guidance missing analysts’ expectations significantly.

DraftKings had the weakest performance against analyst estimates and weakest full-year guidance update among its peers. The stock is up 6.6% since reporting and currently trades at $29.80.

Read our full, actionable report on DraftKings here, it’s free for active Edge members.

Accel Entertainment

Established in Illinois, Accel Entertainment is a provider of electronic gaming machines and interactive amusement terminals to bars and entertainment venues.

Accel Entertainment reported revenues of $329.7 million, up 9.1% year on year. This result surpassed analysts’ expectations by 0.5%. Zooming out, it was a satisfactory quarter as it also produced a beat of analysts’ EPS estimates but a miss of analysts’ adjusted operating income estimates.

The stock is up 3.7% since reporting and currently trades at $10.29.

Read our full, actionable report on Accel Entertainment here, it’s free for active Edge members.

Market Update

As a result of the Fed’s rate hikes in 2022 and 2023, inflation has come down from frothy levels post-pandemic. The general rise in the price of goods and services is trending towards the Fed’s 2% goal as of late, which is good news. The higher rates that fought inflation also didn't slow economic activity enough to catalyze a recession. So far, soft landing. This, combined with recent rate cuts (half a percent in September 2024 and a quarter percent in November 2024) have led to strong stock market performance in 2024. The icing on the cake for 2024 returns was Donald Trump’s victory in the U.S. Presidential Election in early November, sending major indices to all-time highs in the week following the election. Still, debates around the health of the economy and the impact of potential tariffs and corporate tax cuts remain, leaving much uncertainty around 2025.

As the Q3 earnings season wraps, let’s dig into this quarter’s best and worst performers in the gaming solutions industry, including PlayStudios and its peers.

Gaming solution companies operate in a dynamic and evolving market, and the digital transformation of the gaming industry presents significant opportunities for innovation and growth, whether it be immersive slot machine terminals or mobile sports betting. However, the gaming solution industry is not without its challenges. Regulatory compliance is a crucial consideration as companies must navigate a complex and often fragmented regulatory landscape across different jurisdictions. Changes in regulations can impact product offerings, operational practices, and market access, requiring companies to maintain flexibility and adaptability in their business strategies. Additionally, the competitive nature of the industry necessitates continuous investment in research and development to stay ahead of competitors and meet evolving consumer demands.

The 7 gaming solutions stocks we track reported a slower Q3. As a group, revenues were in line with analysts’ consensus estimates.

In light of this news, share prices of the companies have held steady as they are up 2.1% on average since the latest earnings results.

Weakest Q3: PlayStudios

Founded by a team of former gaming industry executives, PlayStudios offers free-to-play digital casino games.

PlayStudios reported revenues of $57.65 million, down 19.1% year on year. This print fell short of analysts’ expectations by 3%. Overall, it was a disappointing quarter for the company with a miss of analysts’ daily active users estimates and a significant miss of analysts’ adjusted operating income estimates.

PlayStudios delivered the slowest revenue growth of the whole group. The company reported 2.21 million monthly active users, down 25.3% year on year. Unsurprisingly, the stock is down 20.5% since reporting and currently trades at $0.72.

Read our full report on PlayStudios here, it’s free for active Edge members.

Best Q3: Rush Street Interactive

Specializing in online casino gaming and sports betting, Rush Street Interactive is an operator of digital gaming platforms.

Rush Street Interactive reported revenues of $277.9 million, up 19.7% year on year, outperforming analysts’ expectations by 4.3%. The business had a very strong quarter with an impressive beat of analysts’ adjusted operating income estimates and a beat of analysts’ EPS estimates.

Rush Street Interactive delivered the biggest analyst estimates beat, fastest revenue growth, and highest full-year guidance raise among its peers. Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 5.1% since reporting. It currently trades at $17.28.

Is now the time to buy Rush Street Interactive? Access our full analysis of the earnings results here, it’s free for active Edge members.

DraftKings

Getting its start in daily fantasy sports, DraftKings is a digital sports entertainment and gaming company.

DraftKings reported revenues of $1.14 billion, up 4.4% year on year, falling short of analysts’ expectations by 5.6%. It was a softer quarter as it posted full-year revenue guidance missing analysts’ expectations significantly and full-year EBITDA guidance missing analysts’ expectations significantly.

DraftKings delivered the weakest performance against analyst estimates and weakest full-year guidance update in the group. Interestingly, the stock is up 6.6% since the results and currently trades at $29.80.

Read our full analysis of DraftKings’s results here.

Churchill Downs

Famous for hosting the Kentucky Derby, Churchill Downs operates a horse racing, online wagering, and gaming entertainment business in the United States.

Churchill Downs reported revenues of $683 million, up 8.7% year on year. This result topped analysts’ expectations by 1.2%. Zooming out, it was a mixed quarter as it also logged a beat of analysts’ EPS estimates but a significant miss of analysts’ adjusted operating income estimates.

The stock is up 3.5% since reporting and currently trades at $99.83.

Read our full, actionable report on Churchill Downs here, it’s free for active Edge members.

Accel Entertainment

Established in Illinois, Accel Entertainment is a provider of electronic gaming machines and interactive amusement terminals to bars and entertainment venues.

Accel Entertainment reported revenues of $329.7 million, up 9.1% year on year. This print beat analysts’ expectations by 0.5%. More broadly, it was a satisfactory quarter as it also recorded a beat of analysts’ EPS estimates but a miss of analysts’ adjusted operating income estimates.

The stock is up 3.7% since reporting and currently trades at $10.29.

Read our full, actionable report on Accel Entertainment here, it’s free for active Edge members.

Market Update

As a result of the Fed’s rate hikes in 2022 and 2023, inflation has come down from frothy levels post-pandemic. The general rise in the price of goods and services is trending towards the Fed’s 2% goal as of late, which is good news. The higher rates that fought inflation also didn't slow economic activity enough to catalyze a recession. So far, soft landing. This, combined with recent rate cuts (half a percent in September 2024 and a quarter percent in November 2024) have led to strong stock market performance in 2024. The icing on the cake for 2024 returns was Donald Trump’s victory in the U.S. Presidential Election in early November, sending major indices to all-time highs in the week following the election. Still, debates around the health of the economy and the impact of potential tariffs and corporate tax cuts remain, leaving much uncertainty around 2025.