Stock-based Compensation

6 Months Ended

Jun. 30, 2021

Share-based Payment Arrangement [Abstract]

Stock-based Compensation

Stock-based Compensation

The Company grants various types of stock-based compensation awards. The Company measures its stock-based compensation expense based on the grant date fair value of the award and recognizes the expense over the requisite service period for the respective award.

Under the Accel Entertainment, Inc. Long Term Incentive Plan, the Company granted 0.2 million stock options to eligible officers and employees of the Company during the first quarter of 2021, which shall vest over a period of 4 years. Also in the first quarter of 2021, the Company issued 0.4 million restricted stock units (“RSUs”) to the board of directors and certain employees, which shall vest over a period of 4 years for employees and a period of approximately 9 months for board of directors. The estimated grant date fair value of these options and RSUs totaled $5.6 million.

In the second quarter of 2021, the Company granted approximately 24 thousand stock options and 41 thousand RSUs to eligible officers and employees of the Company, which shall vest over a period of 4 years. The estimated grant date fair value of these options and RSUs totaled $0.7 million.

Stock-based compensation expense, which pertains to the Company’s stock options and RSUs, was $2.1 million and $3.7 million for the three and six months ended June 30, 2021. In comparison, stock-based compensation expense was $1.3 million and $2.4 million for the three and six months ended June 30, 2020, respectively. Stock-based compensation expense is included within general and administrative expenses in the condensed consolidated statements of operations and other comprehensive income (loss).